Slide 1

Regulators’ use ofstandards

Neftegazstandart conference,

9-11 September 2009, Kazan

Alf Reidar Johansen

OGP Standards Manager

Introduction

•This presentation reflects the current situationof national regulators' reference and use ofstandards in their regulatory documents.

•Particular focus on offshore petroleumindustry and standards for materials,equipment, systems and structures.

•This presentation is based on a draft OGPreport* that analyzes the documents preparedby the regulators themselves.

*) Assumed to be published fall 2009 and freely available atwww.ogp.org.uk.

Standards’ place in the package

Regulators covered

•Canada, represented by:

•Canadian Nova Scotia Offshore Petroleum Board (CNSOPB)

•Canadian Newfoundland Offshore Petroleum Board (CNOPB)

•Danish Energy Agency (DEA); Denmark

•Department of Labour (DoL), New Zealand

•Ministero dello Sviluppo Economico (MES), Italy

•National Agency of Petroleum, Natural Gas and Biofuels (ANP),Brazil

•National Offshore Petroleum Safety Authority (NOPSA), Australia

•Oil Industry Safety Directorate (OISD), India

•Petroleum Safety Authority (PSA), Norway

•State Supervision of Mines (SODM), The Netherlands

•UK Health and Safety Executive (HSE), UK

•United States represented by:

•US Coast Guard (USCG)

•US Minerals Management Service (US MMS).

Areas examined

Purpose of OGP Report

•Provide for better understanding of use of national,regional, international and industry standards inthe regulatory documents

•provide a good basis for OGP interactions with therelevant regulators and in particular the IRF

•provide relevant background material for theprioritization of international standards work

•provide a better basis for the evaluation of OGP’sposition on development and use of internationalstandards. Ref. OGP Report No. 381, April 2007

•provide a benchmark on regulators' use ofstandards.

Numerous types of regulatorydocuments

•Acts

•Law

•Decree

•Regulations

•Executive orders

•Directives

•Amendments to Acts andRegulations

•Guidelines

•Management practices

•Standards

•Rules

•Guidance Notes

•Code of Practices

•Memoranda

•Interpretations.

Regulators references to standards

1.348 references in total

Summary of references byStandards Development Organisations

NORSOK

Summary of references byregulators analyzed

•1.348 references to standards in total

•1.142 of these references are to different,individual standard titles.

•From more than 60 different standardsdevelopment organisations around the globe.

•Of the 1.142 different standards, as many as 989or 87% are referenced by one regulator only.

•Only 13% of the standards to be referenced bytwo or more regulators.

Note: Russia not included and China has no specific references tostandards in their regulatory documents.

Number of standards referenced byindividual regulator

Category of standards referenced byindividual regulator

Standards mostly referenced

•API Spec 6A* Wellhead and Christmas Tree Equipment

•IMO Mobile Offshore Drilling Units (MODU) Code

•API RP 14B* Subsurface Safety Valve Systems

•API Spec 17J* Unbonded Flexible Pipe

•IEC 60331-11 Fire resisting characteristics of electric cables

•API RP 14C* Basic Surface Safety Systems

•API RP 521* Pressure-Relieving and Depressuring Systems

•API Spec 14A* Subsurface safety valves

•NFPA 13 Installation of sprinkler systems.

•ANSI/ASME VIII-1 Pressure Vessels

•NACE MR 01-75* Standard Material Requirements, Metals forSulfide Stress Cracking and Stress Corrosion Cracking Resistancein Sour Oilfield Environments

*) also available as ISO/TC 67 standard

By 4 regulators

By 5

Duplicating standards forpipelines transportation systems

•ANSI/ASME B31.4 Liquid Transportation Systems for Hydrocarbons

•ANSI/ASME B31.8 Gas Transmission and Distribution Piping Systems

•API RP 1102 Pipelines Crossing Railroads and Highways

•API RP 1111 Offshore Hydrocarbon Pipelines

•CAN/CSA-Z184-92, Gas Pipeline Systems

•CAN/CSA-Z187-M87 Offshore Pipelines (replaced by Z662-07)

•DNV OS-F101 Submarine Pipeline Systems

•EN 14161 Pipeline Transportation Systems (Adoption of ISO 13623)

•ISO 13623 Pipeline transportation systems

•NEN 3650 Requirements for pipeline systems

•NZS 5223 High Pressure Gas and Petroleum Liquids Pipelines

•PD 8010-2 Code of practice for pipelines: Subsea pipelines

Country of origin of standardsreferenced

Region of origin of referencedstandards

Oil & gas industry can influence

Summary so far

•References to industry standards (44%) dominates,then to national standards (35%) and finallyinternational standards (21%).

•Regional origin of standards is 40% from SDOs inN&S America, 24% from Europe, 21% areinternational standards and 15% emanates fromSDOs in India and Australasia.

•API standards are dominating with 225 references,including 49 API MPMS standards.

•ISO has delivered 152 of the standards, including 59from the work of ISO/TC 67.

Sharing and single references:Canada and US regulators

Sharing and single references:Denmark, Norway and UK regulators

Other observations

•Many standards referenced cover the samesubject and duplicate each other.

•E.g. offshore structures and pipelines.

•Mix of references to dated (e.g. Norway, US)and undated revisions.

•Referenced standards appear to be voluntaryin most of the regulatory regimes.

•Other technical solutions can be opted forprovided proof of compliance can bedocumented.

Conclusions

•Standards play an important role in theregulators definition of the desired safety levelof oil and gas installations they regulate.

•The diversity of references provides achallenge for international operators.

•Duplication of standards should be looked intofor harmonization.

•The oil and gas industry is able to directlyinfluence the content of 380 of the standardslisted in this report and therefore is largelyresponsible for their development andmaintenance.

Conclusions cont.

•There is a significant increase in the referenceto international standards and a sharpdecrease in references to national standardscompared with PETROL96.

•However, with the figure of only 21%references to international standards by theregulators, it is evidentthere is still a lot ofwork to be done.

GlobalStandardsUsed LocallyWorldwide

Questions?

Alf Reidar Johansen

OGP Standards Manager

Email: arj@ogp.org.uk

Mobile: +47 95 029 079