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?
OPERATOR BUSINESS
DRIVERS

Your Trusted Advisors in the Oil and Gas Industry

Inconsistent Global Quality
Reasons for Inconsistent Controls

• Absence of a corporate
management system

• Failing to implement the

management system

• Application inconsistency

• Partial compliance

• Lack of corporate oversight

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?
 Activity 3: Root Causes of NPT

Service
execution Lack of using
Competencyplanning history logs
/ Training No
contingency
Lack of
planning
procedures Lack of
inspection/ test
Not following
procedures Lack of a Preventive
Maintenance,
Inspection, Test
Programs (PMITP)
The root causes for NPT are
within the Service Providers
control, according to their own
internal investigations!!
Service Supply Organization Business Driver

BEFORE AFTER

100 Employees 100 Employees

Results of Actual Beta Test Site after 12 months of concentrated

on API Q2 implementation.
Business Drivers: Government-Related

Protection of:

Protecting our Protecting our Protecting our Protecting our

Community Environment Marine & Wildlife Workers
INDUSTRY RESPONSE
 API Subcommittee 18

CSOEM

SC1
8

TG1 TG2 TG3 TG4 TG5 TG6 TG7

Auditor API Monogram Min. Mfg. API Welding Life Cycle
Effectiveness Spec Q1 Program Requirements Spec Q2 Management
Evolution of API Spec Q2

DEVELOPED PUBLISHED BETA TESTING CONFORMANCE COMPLIANCE COMPLIANCE

2015

API Spec Q2 was API Spec Q2 was A combination of Service providers Service providers TO
developed in 2010 published in operators and service start getting their may apply for
through 2011. December 2011. providers participated QMSs in compliance Certification. PRESENT
in the beta test. with API Spec Q2.

INDUSTRY EXPECTATION IS CONFORMANCE & COMPLIANCE

NOT CERTIFICATION
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
WHAT IS THE SAME?
WHAT IS DIFFERENT?

Your Trusted Advisors in the Oil and Gas Industry

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.
 WHAT API Q2
SPECIFICATION IS AND
IS NOT

Your Trusted Advisors in the Oil and Gas Industry

3rd Party Certification
What API Spec Q2 is Not
What API Spec Q2 is

It is about risk mitigation, service quality,

and SRP reliability, that is supported by
validation and performance.
COOPERATION, IMPACTS &
RESULTS
API Q2 Cooperation
IMPACTS
RESULTS – 2014 to Present

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
QUESTIONS?

Your Trusted Advisors in the Oil and Gas Industry