1

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
2
Overview
ExxonMobil Background

ExxonMobils standards strategy

API Q1/ISO 29001 Case Study

Conclusions
3
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
4
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
5
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
Standards Strategy
6
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
Standards Strategy
7
Floating Structures
Subsea &
Flexibles
Materials
Drilling
Cementing
Completion
Equipment
Drlg Equipment &
Riser
Fire & Blast &
Platform
Reassessment
Metering
Field Bus
Design
(Process
Instruments)
Quality
Pipelines
Fixed Structures
Coiled Tubing

Subsea -
Wellheads
Well Control
Derricks, Wind
Loads
Drilling & Servicing
Equipment
Steering Team
Civil /
LNG
Germany ISO
Coordination
Drilling Fluids
OCTG & Line Pipe
8
API has been developing standards since 1923 and is
recognized as de facto international standards
1

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.
API Q1/ISO TS 29001 Case Study
9
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

API Q1/ISO TS 29001 Case Study
10
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
API Q1/ISO TS 29001 Case Study
11
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 sector-
specific document so that final API and ISO standards
would be identical

API Q1/ISO TS 29001 Case Study
12
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
API Q1/ISO TS 29001 Case Study
13
One standard accepted globally

One assessment / certification body accepted globally
Ensures consistency in audits
Eliminates variances in interpretations

Prerequisite for doing business

API Q1/ISO TS 29001 Case Study
14
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.

API Q1/ISO TS 29001 Case Study
15
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


16
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



Back-Up Slide
17
Back-Up Slide
Example clause ensures that documented methods are available for audit
18
Back-Up Slide
Example clause ensures independent review of designs
19
Back-Up Slide
Example clause ensures final acceptance inspection of product