API Q1 and ISO/TS 29001

A Case Study in Successful

Collaboration
Stacey Hagen, Drilling Materials Sr. QA Advisor OCTG Lead
Chair, API Subcommittee on Quality

Overview
ExxonMobil Background
ExxonMobils standards strategy
API Q1/ISO 29001 Case Study
Conclusions

Company Background
Formed in 2000 as the result of the merger of Exxon and
Mobil corporations
Now the worlds largest publicly owned oil company
2006 net income of $39 billion US:
Total liquid and gas production available for sale was
4.2 million oil-equivalent barrels per day
Refinery throughput of 5.6 million barrels per day
On March 30, 2007 announced participation in Chinas
first fully integrated refining, petrochemical and fuels
marketing joint venture with foreign participation
Agreement between Sinopec, Fuijan Province,
ExxonMobil and Saudi Aramco

Standards Strategy
ExxonMobil has long been active in national and
international standardization
Member of the American Petroleum Institute (API),
the leading oil industry standards developing
organization since 1919
Chairman and CEO Rex Tillerson currently serves as
Chairman of the API Board
Involvement in ISO activities since 1947, providing the
chair of TC28, Petroleum Products and Lubricants
since its inception and holding a variety of other
positions in TC28 as well as TC67, Oilfield
Equipment, Materials, and Offshore Structures and
TC193, Natural Gas

Standards Strategy
Participation is based on business / industry need
Resource cost assessed against standards added
value
Standards value combination of business benefits,
priority, and spend
Provide leadership where ExxonMobil has resources
and expertise
Standardization vehicle to improved performance
Improved safety
Improved reliability
Reduce costs and enhanced supplier base
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Standards Strategy
ExxonMobil participation in Upstream oil & gas
50 technical professionals actively participate on
API/ISO committees
Annual prioritization of standards activities and
proposals
Steering team reviews accomplishments and forward
plans

Steering Team

Pipelines

Drilling

Floating Structures
Cementing

Subsea &
Flexibles

Quality

Civil /
LNG

Fixed Structures

Materials

Drlg Equipment &

Riser

Completion
Equipment
Coiled Tubing

Drilling Fluids

Subsea Wellheads

Derricks, Wind
Loads

Well Control

Drilling & Servicing

Equipment

OCTG & Line Pipe

Metering

Germany ISO
Field Bus
Design
(Process
Instruments)

Coordination
Fire & Blast &
Platform
Reassessment

API Q1/ISO TS 29001 Case Study

API has been developing standards since 1923 and is
recognized as de facto international standards1
Industry undergoes tremendous transformation and
growth:
1970s North Sea Discoveries, 1980s frontier areas
including China, Africa, Middle East
TC 67 reactivated in 1989, API assumes secretariat on
behalf of ANSI in 1995
1

Standards & Competitiveness: Coordination for Results removing

Standards-Related Trade Barriers Through Effective Collaboration,
US DOC report, May 2004.
8

API Q1/ISO TS 29001 Case Study

API Q1, Specifications for Quality Systems first
published in 1985, two years prior to initial publication of
ISO 9000 series
API Q1 and API product specifications form the basis of
APIs Monogram Program
API Monogram Program is the leading industry
conformity assessment program, with 2120 licensed
facilities worldwide
China has largest number of licenses issued to date,
560
9

API Q1/ISO TS 29001 Case Study

Why does oil and gas industry need more than ISO
9001:2000?
Failure of goods and services can have severe
consequences
Need for consistency in manufacturing
API Q1 contains 9001 text in its entirety and 45
additional requirements
Control Features
Independent Design Review
Final Acceptance Inspection
10

API Q1/ISO TS 29001 Case Study

Oil industry determined need for a sector-specific solution
similar to automotive
Standard to be developed in liaison with the TC 176 to
ensure harmonization
Q1 was recognized as model for an international sectorspecific document so that final API and ISO standards
would be identical

11

API Q1/ISO TS 29001 Case Study

How best to align API Q1 and ISO as a sector specific
quality standard?
APIs Subcommittee on Quality proposed a NWI to
align a revision of API Q1 and the development of
sector specific quality requirements in March, 2002
Draft Technical Specification January 2003
Publication June 2003

12

API Q1/ISO TS 29001 Case Study

One standard accepted globally
One assessment / certification body accepted globally
Ensures consistency in audits
Eliminates variances in interpretations
Prerequisite for doing business

13

API Q1/ISO TS 29001 Case Study

Conclusions:
API and ISO can work together successfully if the
vision and commitment is agreed at the projects
onset
ExxonMobil and the international Oil and Gas industry
will continue to push frontier boundaries in the search
for oil and gas, requiring more stringent quality
assurance requirements
API Q1/ISO TS 29001 will continue to help the oil and
gas industry ensure consistency in manufacturing and
reliability of products.

14

Xie Xie (Thank you)

Contact Information:
Stacey Hagen
Drilling Materials Sr. QA Advisor OCTG Lead
ExxonMobil Global Service Company
16945 Northchase Dr
Houston, TX 77060
stacey.w.hagen@exxonmobil.com

API www.api.org, standards@api.org

ISO www.iso.org, central@iso.org
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Back-Up Slide
Definitions:
API Spec Q1

Specification for Quality Programs for the Petroleum,

Petrochemical and Natural Gas Industry
ISO TS29001 Petroleum, Petrochemical and Natural Gas Industries
Sector Specific Quality Management Systems
Requirements for Product and Service Supply
Organizations
NWI
New Work Item
TC
Technical Committee

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Back-Up Slide
Example clause ensures that documented methods are available for audit

17

Back-Up Slide
Example clause ensures independent review of designs

18

Back-Up Slide
Example clause ensures final acceptance inspection of product

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