Shell Global Solutions

Adoption of International Standards in Shell

Neil Reeve
IFAN President, and
Shell Standards Manager
Shell Global Solutions International B.V.

Introduction
Who needs standards? The world needs standards. Shell uses standards.
Shell is an international company, trading in an international industry, using
international (and national) suppliers under many different regulatory regimes.
For our projects and operations, Shell prefers to use International Standards
(ISO and IEC), and is actively supporting this.
To apply the external standards, a Shell internal technical standards system is
required. For engineering this is the DEP (Design and Engineering
Practices) system.

Slide 2
Shell Global Solutions

November 2007

Company Standardization Management

Standardization Steering Committee:

chemicals,
C&P, Projects

- E&P, Downstream1 (refining,

distribution), G&P, HSE,

Transparent standards structure: - policy

Internal standards:

- provision of standards (DEPs);

- materials standards catalogue (MESC)

External standards:

- input to external standards

Procurement process (variety control):

- type restriction; vendor selection

- MESC, TAMAP, E-SPIR

Providing internal and external standards on the SWW
DEP

Design and Engineering Practice

MESC

Materials and Equipment Standards and Code

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Shell Global Solutions

November 2007

Shells Transparent Standards Structure

Management control
Knowledge feedback
Increased resources
for critical standards

External
External
Standards

DEP

Business
justification
to deviate

Company
Variation

Shell Group Common Base.

Central organization
responsibility

Project
Variation

Local Operating Company

responsibility
Slide 4
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Shell Standardization Policy

Maximize use of common industry standards (ISO/

IEC if possible)

Minimize additional company requirements

Ensure variations justified (technical and commercial)

Ensure continuous improvement (feedback from

users)

Influence external standards bodies. Participate

actively in the technical committees and working
groups of key external standards

Benefits are maximized when all companies use

the same common industry standards

Slide 5
Shell Global Solutions

November 2007

Company benefits from standards

Cost Reduction - Increase Business Efficiency

Simplify design and procurement; Variety Control

Interchangeability of equipment

Promote stable and global market

Enhance Technical Integrity

Safety, Health and protection of the Environment

Maximise availability, minimise lost revenue

Establish a Common Technology Base

Technology transfer / Sharing best practice / Remove barriers to trade (WTO)

Support Legislation where linked

Safety and Environmental Regulations (e.g. Process Safety Management, US)

Procurement Legislation (e.g. European Directives)

Essential Requirements (e.g. New Approach European Directives)

IPA benchmark statistics report that using a coherent standards system saves
projects:
5 % on Capex and 13 % on schedule

Slide 6
Shell Global Solutions

November 2007

Standardization Bodies - Relationships

RR
ISO / IEC
International
ee
cc
oo Regional
gg
L
i
nn
a
ii
i
s
China
zz National
ANSI Brazil,
BSI
o
Japan
ee
Russia, etc. n
dd
Industry
Companies

API

ASME

OPERATORS

OGP

Vienna Agreement

CEN /
CENELEC

Other
European

EEMUA

CONTRACTORS

EI

SUPPLIERS
Slide 7

Shell Global Solutions

November 2007

ISO/TC 67 statements
Mission:
To create value-added standards for the oil and natural gas industry

Vision:
Global standards used locally worldwide

Goals:
Prepare standards required by this industry
Prepare standards that could be adopted worldwide by bodies such as
API and CEN
Publish standards that enable companies to minimize their
specifications
Deliver standards to the target dates on the agreed work programme
Slide 8
Shell Global Solutions

November 2007

Members of ISO/TC 67
29 Participating (P) Members:
Argentina, Brazil, Canada, China, Denmark, Finland, France,
Germany, Indonesia, Italy, Japan, Kazakhstan, Korea, Libya, Mexico,
Netherlands, Nigeria, Norway, Oman, Portugal, Qatar, Romania,
Russian Federation, South Africa, Spain, Ukraine, United Kingdom,
USA, Venezuela

29 Observer (O) Members:

Australia, Austria, Azerbaijan, Belgium, Bulgaria, Colombia, Croatia,
Cuba, Czech Republic, Ecuador, Egypt, Hong Kong, Hungary, India,
Iran, Ireland, Malaysia, Moldova, Mongolia, Poland, Saudi Arabia,
Serbia, Singapore, Slovakia, Sweden, Switzerland, Thailand, Trinidad
and Tobago, Viet Nam

Slide 9
Shell Global Solutions

November 2007

ISO/TC 67 has published 124 standards.

API has adopted 54 of these as joint API / ISO standards.

CEN has adopted 103 of these as joint European EN ISO standards.

China has adopted 20 of these as Chinese national standards.

Kazakhstan has adopted 54 of these as Kazakhstan national standards.

Shell Global Solutions

Slide 10
November 2007

Trend towards transparency Benefit of external standards efforts

(Total number of DEPs = 320)
Number of DEPs based on external standards
120

109
97

No. of DEPs

100
80

74

102

78

64
56

60
44

40
20

34

48

38

28
14

18

22

0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year end
Slide 11
Shell Global Solutions

November 2007

Total Cost of Ownership

Slide 12
Shell Global Solutions

November 2007

DEP making process

Users
Custodians

Plan

Author

Draft

Administrator

Review

Peers
Users
Manufacturers
Contractors

Comment

Author

Administrator
and
management

Modify

Review,
approve
and
issue

Use

Feedback

Slide 13
Shell Global Solutions

November 2007

DEP systems contents (June 2007)

Subject Category
Miscellaneous Engineering Subjects and Indices

No of DEPs
31

Mechanical Engineering
General

12

General equipment/noise/safety relief systems

10

Boilers/furnaces

Heat exchangers

Vessels/columns/reactors

Rotating equipment

28

Piping and pipelines

41

Construction materials

Welding, General

Maintenance and inspection

Offshore applications

19

Instrument Engineering and Telecommunications

48

Electrical Engineering

21

Civil Engineering (incl. tanks)

21

Surface Protection

26

Safety and fire fighting

Drilling and production

39

Total number of DEPs

339
Slide 14
Shell Global Solutions

November 2007

Slide 15
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Abbreviations and weblinks

DEP

Design and Engineering Practice

sww.shell.com/standards

ISO

International Organization for Standardization

www.iso.ch

IEC

International Electrotechnical Commission

www.iec.ch

API

American Petroleum Institute

www.api.org

CEN

European Organization for Standardization

www.cen.eu

OGP

International Association of Oil and Gas Producers

www.ogp.org.uk

MESC

Materials and Equipment Standards and Code

www.shell.com/cww

TAMAP

Technically Accepted Manufacturers and Products

sww.shell.com/standards

E-SPIR

Electronic - Spare Parts Interchangeability Record

www.e-spir.com

Slide 16
Shell Global Solutions

November 2007

Conclusions

Shell needs and uses international standards

Shell participates in developing international standards

Shell will maintain an internal technical standards

system (DEPs)

Standards are a corporate asset, and not a corporate

liability

Technical standards are only as good as you, the users,

make them

Organizations should develop a standards plan to meet

their needs (Identify key standards; manage use of
these)
Slide 17
Shell Global Solutions

November 2007

Thank You

neil.reeve@shell.com
www.ifan.org

Slide 18
Shell Global Solutions

November 2007

Back-up
--

Slide 19
Shell Global Solutions

November 2007

Shell and Diversity

Shell is Anglo/Dutch in origins (100 year history)
Shell operates in 145 countries in 6 continents
In our offices in The Hague there are 60 nationalities
High degree of local business autonomy in operations

Slide 20
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November 2007

STANDARDS ARE
A CORPORATE ASSET
NOT A CORPORATE
LIABILITY

Slide 21
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November 2007

ISO/TC 67 Vision

Global
Standards Used
Locally
Worldwide
Slide 22
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Slide 23
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Slide 24
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Slide 25
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Slide 26
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Pattern of change - Work in BSI

2000

1983
Intl
Stds

UK
Stds

11%

Over these years

Standards work in
BSI committees has
changed to be mostly

93%

international
or regional

Intl
Stds

(ISO, IEC, CEN

and CENELEC)

UK Stds
Note: Typical for all European Standards Bodies
Slide 27
Shell Global Solutions

November 2007

9452

Growth of CEN
European Standards
6400

2400

60

130

1981

1985

400
1990

1995

2000

Cumulative number of published CEN standards

Shell Global Solutions

2006
Slide 28
November 2007

Slide 29
Shell Global Solutions

November 2007

ISO/TC 67 accomplishments:
Cumulative number of documents
published

140

125

120

116
109
96

100
76

80
60

60
41

40
19

20
0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Note: excluding fasttrackISOs

Slide 30
Shell Global Solutions

November 2007

Global standards used locally worldwide

ISO-API-CEN
ISO/TC67

15

125 published

API

(excl. ISO 10425 from ISO/TC105;

excl ISO 10497 from ISO/TC 153;
excl. so-called fast-track standards)

Upstream & Refining

54 cobranded published;
(excl. NACE MR0175/ISO 15156;
excl API Spec 9A/ISO 10425 from
ISO/TC105
excl ISO 10497 from ISO/TC 153;
Excl 4 MPMS adoptions from
ISO/TC28)

8
>400
others

46

56

Note: 32 of the other >400 API standards are linked with

35 of the other 71 ISO/TC 67 standards

1
(TR
)

CEN/TC12
103 published
(incl. EN ISO 10434, EN ISO 15761 and
EN ISO 17292 from CEN/TC69; and incl.
TR for use of ASME B31.1)
Slide 31

Shell Global Solutions

November 2007

ISO/IEC references in Shell documents

1990

2007

ISO

30

700

IEC

100

300

130

1000

Note: Step change in usage of ISO/IEC documents.

(These are unique references, many of which are referenced multiple times)

Slide 32
Shell Global Solutions

November 2007

ISO/IEC references in OGP member documents

1999

2004

ISO

750

1100

IEC

150

500

900

1600

Note: Change in usage of ISO/IEC documents

Ref: OGP Report (2005) - Catalogue of International Standards used in the
petroleum and natural gas industries
Slide 33
Shell Global Solutions

November 2007

DEP average age

7

Average age, years

6.5
6
5.5
5
4.5
4
3.5
3

Target
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Year
Slide 34
Shell Global Solutions

November 2007

Standards + Variety Control = Standardization

Transparent
structure

External
standards

Type
restriction

STANDARDS

VARIETY
CONTROL

Essential
requirements
A catalogue such as MESC is
a key enabler for
standardization

Vendor
optimization
Two standardization examples
30% price savings on electric cable, and
50% stock reduction.
30% price savings on valves, and 80% stock
reduction.
Slide 35
Shell Global Solutions

November 2007

Piping Classes (two of the 339 DEPs)

Pre-designed piping systems for a wide variety of services

Direct link to materials catalogue
Large reduction in engineering and procurement effort
Integrity control (continuously updated for code compliance)
Company-wide standardization
Variety control (greatly reduced spares holding)
Increased leverage (larger volume of fewer components)

Caps
Elbows
Tees
Reducers
Branch fittings

Check valves
Gate valves
Globe valves
Ball valves
Butterfly valves

Slide 36
Shell Global Solutions

November 2007

Shell Piping Classes

Direct reference from DEP to the MESC catalogue
PIPING COMPONENTS

DEP 31.38.01.12-GEN. CLASS

ISSUE DATE : JANUARY 1999
NOMINAL PIPE SIZE
15
20
25

40

50

80

100

150

200

250

300

350

400

450

500
600
ITEM DESCRIPTION
MESC
---------------------------------------------------------------------------------------------------------------------------------------------------------* PIPE
PIPE (API 5L-B, SML)
PIPE (API 5L-B, EW)
PIPE (API 5L-B, SAW)
PIPE
PIPE NIPPLE 50MM

74.13.12
74.13.14
74.13.17
74.30.05
76.30.57

018.1

028.1

038.1

058.1

069.1

103.1

149.1
211.1

239.1

279.1

319.1

373.1

421.1

469.1

521.1

018.1
431.1

028.1
441.1

038.1
451.1

058.1
471.1

069.1

103.1

149.1

211.1

239.1

279.1

319.1

373.1

421.1

469.1

521.1

569.1
569.1

* FLANGES
BLIND FLANGE
SPECTACLE BLIND FLANGE
SPACER RING TYPE (ASME FLANGE)
WELDING NECK FLANGE

76.62.11
76.88.03
76.88.16
76.62.78

058.1
002.1
002.1
352.1

062.1
004.1
004.1
354.1

066.1
006.1
006.1
356.1

068.1
008.1
008.1
358.1

070.1
010.1
010.1
310.1

072.1
012.1
012.1
312.1

074.1
014.1
014.1
314.1

076.1
016.1
016.1
316.1

078.1
018.1
018.1
208.1

080.1
020.1
020.1
210.1

082.1
022.1
022.1
212.1

084.1
024.1
024.1
214.1

086.1
026.1
026.1
216.1

088.1
028.1
028.1
218.1

090.1
030.1
030.1
220.1

092.1
032.1
032.1
224.1

* FITTINGS
CAP BUTT-WELD.END
ELBOW 45 DEG BUTT-WELD ENDS
ELBOW 90 DEG BUTT-WELD ENDS
EQUAL TEE
BUTT-WELD ENDS

76.30.19
76.30.38
76.30.40
76.30.84

018.1
568.1
568.1
568.1

024.1
574.1
574.1
574.1

030.1
580.1
580.1
580.1

038.1
588.1
588.1
588.1

055.1
605.1
605.1
605.1

075.1
625.1
625.1
625.1

095.1
645.1
645.1
645.1

115.1
665.1
665.1
665.1

132.1
682.1
682.1
682.1

152.1
702.1
702.1
702.1

172.1
722.1
722.1
722.1

192.1
742.1
742.1
742.1

212.1
762.1
762.1
762.1

232.1
782.1
782.1
782.1

255.1
805.1
805.1
805.1

275.1
825.1
825.1
825.1

003.1

004.1

005.1

007.1
008.1

010.1

012.1

014.1

015.1

016.1

017.1

018.1

019.1

020.1

021.1

023.1

003.1
003.1

004.1
004.1

005.1
005.1

007.1
007.1
008.1

010.1

012.1

014.1

015.1

016.1

017.1

018.1

019.1

020.1

021.1

023.1

008.1

010.1

012.1

014.1

015.1

GLOBE VALVE SOCKET WELD

77.10.05
77.10.20
77.11.04
77.20.04
77.20.20
77.21.04
77.30.05
77.30.20
77.31.04

* MISCELLANEOUS
GASKET, RF TANGED INSERT
METER RUN
ORIFICE FLANGE SET
STRAINER Y-TYPE

85.30.01
76.65.96
76.62.95
76.83.19

014.1

018.1

020.1

024.1

026.1

028.1

030.1

032.1

034.1

036.1

038.1

042.1

710.1
402.1

712.1
404.1

564.1
406.1

566.1
408.1

468.1
420.1

470.1
421.1

472.1
422.1

474.1
423.1

476.1
424.1

478.1

480.1

484.1

* VALVES
CHECK VALVE FLANGED
CHECK VALVE SOCKET WELD
GATE VALVE FLANGED
GATE VALVE SOCKET WELD
GLOBE VALVE FLANGED

003.1
003.1

004.1
004.1

005.1
005.1

007.1
007.1

003.1

004.1

005.1

007.1

004.1
252.1

006.1
254.1

008.1
256.1

012.1
258.1

Noun:
Flanges
Modifiers: Pipe
Welding Neck

HEADER CHARACTERISTICS :
-----------------------Design spec:
Dimensional spec, pipe:
Mat:
Mat, spec:
Facing, flange:
Finish, flange facing:
Pressure designation:
ASME CL
Service:
Service requirement:
Temperature limit:
deg C
Add reqrmts:
Inspection, certif:
Caps code:
MESC: 766278.214.1 Flg
Groove number:
Mass:
Schedule number, hub:
Size:

ASME B16.5
ASME B36.10M/19M
Carbon Steel
ASTM A105M
raised face
smooth
150

SIOP SPE 76/001 DOC

SIOP SPE 76/002 DOC
ISO 10474 -3.1B
WNFL CS01

Pipe Wn A105M CL150 20 DN350

50.00
20
350

kg
DN

Piping class

Buying description

DEP

CMT/MESC

Deliverable

A Piping class consist of a collection of standardized piping

components, that are compatible and suitable for a defined
service at stated pressure and temperature limits
Slide 37
Shell Global Solutions

November 2007

30 KEY ITEMS FOR ISO/TC 67 (Annual industry expenditure)

SUBSURFACE
- ISO 10432
- ISO 11960
- ISO 11961
- ISO 10426
- ISO 13500

SSSV
Casing & tubing
Drillpipe
Well cements
Drilling fluids

SUBSEA SYSTEMS
- ISO 13628-1
- ISO 13628-2
- ISO 13628-4
- ISO 13628-6
- ISO 13628-8
- ISO 13628-9

Subsea systems
Flexible pipe
Subsea wellhead & christmas tree
Subsea production controls
ROV
ROT

10 billion

OFFSHORE STUCTURES
- ISO 19900

Offshore structures

PRODUCTION EQUIPMENT
- ISO 10423
- ISO 13533
- ISO 13535
- ISO 15649

Wellhead & christmas trees

Drill-through equipment
Hoisting equipment
Piping systems

3 billion

PIPELINES
- ISO 13623
- ISO 3183
- ISO 13847
- ISO 14313
- ISO 15589
- ISO 15589

2 billion

Pipeline systems
Linepipe
Pipeline welding
Pipeline valves
Cathodic protection
Bends, flanges & fittings

2 billion
6 billion

PROCESS FACILITIES
- ISO 10437
- ISO 10439
- ISO 10441
- ISO 13706
- ISO 13707
- ISO 13709
- ISO 21049

Steam turbines
Centrifugal compressors
Flexible couplings
Air-cooled heat exchangers
Reciprocating compressors
Centrifugal pumps
Shaft-sealing systems

2 billion

TOTAL USD 25 billion p.a.

Slide 38
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November 2007

Promote reference to international standards in

regulations or avoid need for regulations
1.

To facilitate export of products manufactured nationally, and to

facilitate inward investment from overseas.

2.

Adopt as many as possible ISO/IEC standards with as few

changes as possible.

3.

Use same standard as used in Europe, America, China, and

elsewhere with all the sustainable benefits of that.

4.

Use ISO/IEC Guide 21 as a guide for the procedure for the

national adoption of ISO/IEC standards.

5.

Energy and organization needed to create committees from all

the stakeholders to do this work.

Slide 39
Shell Global Solutions

November 2007

Future vision/challenges
Global standards used locally worldwide:
- Build shared vision at all levels. One standard/one test/accepted everywhere.
- Keep eye on the process so that gains are maintained and grown.
- Keep up with developments; create/revise for new, bigger, smaller.
- People: grow standards engineers; technical discipline networks; authorities.

External standards:
- Stimulate, increase adoption of International Standards by national standards
bodies, Russia, China, India, Brazil, Kazakhstan etc.

Internal standards:
- Maintain focus on DEPs. Increase their usage in Shell operations.
- Managed mandate.

Procurement:
- Fully integrate MESC, TAMAP etc into (procurement) SAP systems.
Technical standards service:
Slide 40

- Provide not only documents, but how to use them.

Shell Global Solutions

November 2007