API Q2

FOR

THE PETROLEUM & NATURAL GAS

INDUSTRY

Learning Outcomes

By the end of this learning event, you will be able to:

• Summarize the events that led to the development of API Spec Q2.

• Discuss the operator and service provider business drivers.

• Explain how the industry responded to the specification.

• Summarize API Q2 with a brief overview.

• Brief overview of results from data being collected over the past 2

years.

WHAT WERE THE DRIVERS

THAT LED TO API Q2?

TG5 formed prior to the

Macondo Incident for the

development of API Q2 to

Reduce NPT.

Activity 1: API Spec Q2 Controls

DISCUSSION POINT!

How do you think the requirements

called out in API Q2 can help mitigate

the risks of such incidents from

occurring?

Your Trusted Advisors in the Oil and Gas Industry

OPERATOR BUSINESS

DRIVERS

Inconsistent Global Quality

• Absence of a corporate

management system

• Failing to implement the

management system

• Application inconsistency

• Partial compliance

• Lack of corporate oversight

Reasons for Inconsistent Controls

Activity 2: Top 3 Causes of NPT

DISCUSSION POINT!

What do you think the top 3 causes of

NPT is according to Service Supply

Organizations internal investigations

and root causes provided to the

operators?

Service

execution

planning Competency

/ Training

Lack of

procedures

Not following

procedures

Lack of using

history logs

No

contingency

planning Lack of

inspection/ test

Lack of a Preventive

Maintenance,

Inspection, Test

Programs (PMITP)

Activity 3: Root Causes of NPT

The root causes for NPT are

within the Service Providers

control, according to their own

internal investigations!!

Service Supply Organization Business Driver

100 Employees

AFTER

100 Employees

BEFORE

Results of Actual Beta Test Site after 12 months of concentrated

on API Q2 implementation.

Protecting our

Community

Protecting our

Environment

Protecting our

Marine & Wildlife

Protecting our

Workers

Protection of:

Business Drivers: Government-Related

INDUSTRY RESPONSE

API Subcommittee 18

Life Cycle

Management

API

Spec Q2

API

Spec Q1

Auditor

Effectiveness

Min. Mfg.

Requirements

Welding Monogram

Program

TG2 TG1 TG3 TG4 TG5 TG6 TG7

SC1

8

CSOEM

DEVELOPED PUBLISHED BETA TESTING CONFORMANCE

API Spec Q2 was

developed in 2010

through 2011.

API Spec Q2 was

published in

December 2011.

A combination of

operators and service

providers participated

in the beta test.

Service providers

start getting their

QMSs in compliance

with API Spec Q2.

Service providers

may apply for

Certification.

Evolution of API Spec Q2

INDUSTRY EXPECTATION IS CONFORMANCE & COMPLIANCE

NOT CERTIFICATION

COMPLIANCE COMPLIANCE

2015

TO PRESENT

Benefits of Standardization

Consistency

Risk mitigation

Improved communication

Reduction in NPT & Injuries

Identification of critical aspects, impacts and controls

Efficiency improvements

SPECIFICATION OVERVIEW

AND EXCLUSIONS

Your Trusted Advisors in the Oil and Gas Industry

WHAT IS THE SAME?

WHAT IS DIFFERENT?

Similarities: API Spec Q1 and Q2

Differences: API Spec Q1 and Q2

ISO 9001 and API Q1 have

always permitted a service

organization to exclude design.

API Q2 does not permit this

exclusion to any organization

claiming compliance to the

specification.

Exclusions

“When an organization performs

activities addressed by this

document, including the provision

of service-related product, all

requirements shall be performed

and no claims to exclusion of those

requirements shall be permitted.”

1.2 Exclusions

3.1.16 Service-Related Product

Materials, equipment, and software used in the

execution of a service.

Your Trusted Advisors in the Oil and Gas Industry

WHAT API Q2

SPECIFICATION IS AND

IS NOT

3rd Party Certification

What API Spec Q2 is Not

It is about risk mitigation, service quality, and SRP reliability, that is supported by

validation and performance.

What API Spec Q2 is

COOPERATION, IMPACTS &

RESULTS

API Q2 Cooperation

IMPACTS

Average of 40% Reduction in NPT

• Segments, Service Lines & Product Lines

Implementing

• Normalized – Downturn

Average of 24% in Safety Improvements

• Reduction in Injuries

Average of 26% Improvement in Efficiencies

Average of 39% COPQ Improvement

• Rework, Scrap

• Delays due to Planning

• Supplier Improvements

RESULTS – 2014 to Present

Your Trusted Advisors in the Oil and Gas Industry

QUESTIONS?