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API Quality Specifications and the Efficiency of Leveraging a QHSE Management System2013 Safety Driven Performance Conference9-10 October 2013

Robyn Stephens, PhD CRMAPrincipal ConsultantAtkins, Energy, Oil & Gas1Agenda2Who is Atkins? What is the link between Quality and Safety?What is a Management SystemHistory of API Q1 and Q2Understanding API Q1 and Q2Examples of Overlap with HSE/PS MSAdvantages of Integration

Songjiang Shimao Intercontinental HotelPeoples Republic of ChinaArchitecture, structural engineering, civil engineeringWho is Atkins?Why are they here?3Who is Atkins? 4Atkins is one of the world's leading design, engineering and project management consultancies.

PlanDesign

Enable4Why are they Here?Management Systems5

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Capital Fort, SofiaBulgaria6Architecture, interior design, mechanical, electrical, civil and structural engineering, BREEAM assessor, acoustics, ICT strategyWhat is the link between Quality and Safety?Project Name:Capital Fort, SofiaLocation: Sofia, BulgariaServices provided: Multidiscipline concept design, architecture, landscape, structures and building services engineering. Project text:Originally inspired by the cathedral arches of Sofia, Atkins created the concept design for Fort Noks, a mixed used development in Bulgaria. A high rise tower and L shaped low rise office building sit over a podium comprising a wide range of retail and conference facilities accessed through a grand atrium lobby. With some of the most spectacular views of Vitosha Mountain, the high rise office building reaches 135 metres high and is set to create a distinctive landmark in Sofias skyline. It will be visible to visitors driving in and out of the city centre and from the air as aircrafts approach Sofia International Airport. When completed it will be the tallest building in Bulgaria and the Balkans.

6Release to EnvironmentRisk ManagementDifferent Sons of the Same Mother . . .7Procedure FailureEquipment FailureHuman ErrorWork InterruptionFire and/or ExplosionLoss of Primary Containment

Olympic ParkLondon 2012 GamesMultidisciplinary engineering infrastructure design, project managing enabling works,site clearance and remediation, environmental impact assessmentWhat is a Management System?How risks are controlled8Management System Fundamentals9A Management System is a System of processesSustainableSuitable to the organizationThe way we do business9Typical Hierarchical Structure10CorporateBusiness 1Site ASite BBusiness 2Site CSite Specific ProceduresMethodologies and StandardsFramework of ExpectationsManagement System StructureOrganizational StructureWhat is a Process11ProcessOutputInputResourcesControls11A Sustainable System1212

Burj Al ArabUnited Arab EmiratesArchitecture, civil and structural engineering,MEP engineering, cost consultancyHistory of API Q1 and Q2Quality Management SystemsEvolution of Q1 and Q214Originally titled "Specification for Quality Programs for the Petroleum and Natural Gas Industry"QMS for "product" originally manufacturing orientedJointly managed with ISO as ISO 29001ISO/API Separation 2012Q1 8th Edition released December 2007Quality impacts to industry risingFailures of equipmentProblems with service deliveryIncrease in Nonproductive Time (NPT) exacerbatedIncreasing complexity of wellsIncreasing rig costs

14Evolution of Q1 and Q2 - continued15Root causes of NPT: Competency/TrainingLack of procedures or adherenceLack of robust Mechanical Integrity programsLack of contingency planningLack of history dataLack of effective change managementNeed for industry standardization

Evolution of Q1 and Q2 - continued16SC18 TG 5 CreatedDeveloped & balloted document in less than 9 monthsPublished Q2 in Dec 2011Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries Q1 9th Edition issued June 2013 effective June 2014Specification for Quality Management System Requirements for Manufacturing Organizations for the Petroleum and Natural Gas Industry

World Trade Center RedevelopmentUnited States of AmericaProgram management,cost consultancy

Understanding API Q1 9th and Q2 1stDifferences from Q1 8th Edition17New Quality ElementsQ1 9th & Q2 1st Over Q1 8th / ISO 2900118Documented competency of personnelRisk assessment and managementContingency planningSupply chain controls critical / non-critical servicesSpecific evaluation and selection requirements for "critical" product or service providersProduct / Service Quality PlanPreventive Maintenance, Inspection and Test ProgramManagement of Change (MoC)18

Bahrain World Trade CenterBahrainArchitecture, civil and structural engineering, MEP engineering, sustainable design, construction supervisionExamples of OverlapSEMS RequirementsName of project: Bahrain World Trade Center

Location: Manama, Bahrain

Services provided by Atkins: Architecture, civil and structural engineering, MEP engineering, sustainable design, construction supervision

What: Atkins provided architecture, civil and structural engineering, MEP engineering, sustainable design and construction supervision services for the twin 240m high office towers and shopping mall.

The Atkins solution:Atkins achieved a world first by aesthetically incorporating commercial wind turbines into the fabric of the building. The three 29m diameter wind turbines and the shape of the paired towers have a direct and tangible relationship via wind dynamics. The Carbon Critical Design of the Bahrain World Trade Center meant it was fully tenanted by major regional businesses from day one. Atkins also received a number of accolades for the design including a Best Tall Building award from The Council for Tall Buildings and Urban Habitat, a Construction Week award and an Innovation award from the Building Exchange.Overlap with SEMS30 CFR 250 Subpart S20SEMS/RP 75 RequirementAPI Q1 / Q2 (1) General (see 250.1909)4.1.2 Quality Policy4.1.3 Objectives4.1.4 Planning4.1.5 Communications4.2 Management Responsibility4.3.2 Human Resources6.5 Management Review5.9 Product/Service Validation6.2.2 Internal Audit6.3 Analysis of Data(2) Safety and Environmental Information (see 250.1910)4.4 Documentation Requirements4.5 Control of Records6 Quality Management System Measurement, Analysis, and Improvement(3) Hazards Analysis (see 250.1911)5.3 Risk Assessment and Management(4) Management of Change (see 250.1912)5.3 Risk Assessment and Management5.11 Management of ChangeOverlap with SEMS30 CFR 250 Subpart S21SEMS/RP 75 RequirementAPI Q1 / Q2 (5) Operating Procedures (see 250.1913)4.4 Documentation Requirements5.7.2 Product/Service Quality Plan(6) Safe Work Practices and Contractor Selection (see 250.1914)4.3.2 Human Resources4.5 Control of Records5.6.1 Purchasing Control5.6.3 Verification of Purchased Products and Services(7) Training (see 250.1915)4.3.2 Human Resources(8) Mechanical Integrity (Assurance ofQuality and Mechanical Integrity ofCritical Equipment) (see 250.1916)5.6 Purchasing5.7.2 Product/Service Quality Plan5.7.6 Identification and Traceability5.7.8 Preventive Maintenance, Inspection, and Test Program5.8 Control of Testing, Measuring, Monitoring, and Detection Equipment21Overlap with SEMS30 CFR 250 Subpart S22SEMS/RP 75 RequirementAPI Q1 / Q2 (9) Pre-startup Review (see 250.1917)5.1.1 Requirements Review5.4.4 Design and Development Verification5.4.5 Design and Development Final Review and Approval(10) Emergency Response and Control (see 250.1918)5.5 Contingency Planning(11) Investigation of Incidents (see 250.1919)5.10 Control of Nonconformities6.4.2 Corrective Action6.4.3 Preventive Action(12) Auditing (Audit of Safety andEnvironmental Management ProgramElements) (see 250.1920)6.2.2 Internal Audit(13) Recordkeeping (Records andDocumentation) and additionalBOEMRE requirements (see 250.1928)4.4 Document Control4.5 Control of RecordsQ1 8th EditionQ2 1st EditionQ1 9th EditionControl of DocumentsControl of DocumentsControl of DocumentsControl of RecordsControl of RecordsControl of RecordsInternal AuditInternal AuditInternal AuditControl of Nonconforming ProductControl of Nonconforming ProductControl of Nonconforming ProductCorrective ActionCorrective ActionCorrective ActionPreventive ActionPreventive ActionPreventive Action6 ProceduresPlus 18 More Total 24 Plus 17 More Total 23Processes vs. Procedures23Required Documented Procedures

Hurricane ProtectionUnited States24PgM/PM/CM, coastal restoration, engineering, environmental, GIS support, cost estimating, CPM scheduling Advantages of IntegrationName of project: Hurricane ProtectionLocation: United StatesServices provided:PgM/PM/CM, coastal restoration, engineering, environmental, GIS support, cost estimating, CPM scheduling Project text:PBS&J works with the US Army Corps of Engineers to develop and manage the $14 billion post-Hurricane Katrina Storm Damage Risk Reduction program in New Orleans and southern Louisiana.PBS&J works side by side with USACE staff in developing and managing the Risk Reduction program as a part of Task Force HOPE. Management by CPM schedule is critical for the success of this effort. The work includes levees and floodwalls, locks, dams and sector gates, pump stations, as well as freshwater diversions, marsh creation and barrier island restoration.

24Advantages of Integration 25Consistency in Risk Tolerance & AppetiteSilo MinimizationClarity on Applicability and AccountabilityReduced number of Procedures More Consistent Procedure ApplicationMinimize Duplicative InfrastructuresMore Efficient Governance and AdministrationSystem Management Process InteractionImproved System Management

Opportunity Realization26HSEMSQMSQHSEMS26

Solan Offshore DevelopmentPeoples Republic of ChinaStructural design & assessmentsMechanical engineering Safety Process engineering Concept designQuestions27Table of Contents Q1 and Q2281 Scope 2 Normative References3 Terms, Definitions, and Abbreviations3.1 Terms and Definitions3.2 Abbreviations4 Quality Management System Requirements4.1 Quality Management System4.2 Management Responsibility4.3 Organization Capability4.4 Documentation Requirements4.5 Control of RecordsTable of Contents Q1 and Q2295 Product Realization5.1 Contract Review5.2 Planning5.3 Risk Assessment and Management 5.4 Design and Development 5.5 Contingency Planning5.6 Purchasing5.7 Production and Servicing Provision5.8 Control of Testing, Measuring, and Monitoring Equipment5.9 Product Release5.10 Control of Nonconforming Product5.11 Management of Change (MOC)Table of Contents Q1 and Q2306 Quality Management System Monitoring, Measurement, Analysis, and Improvement6.1 General6.2 Monitoring, Measuring, and Improving6.3 Analysis of Data6.4 Improvement6.5 Management ReviewAnnex A (informative) Use of API Monogram by LicenseesAnnex B (informative) Cross-reference from API Q1, 9th Edition to API Q1, 8th EditionAnnex C (informative) Cross-reference from API Q1, 8th Edition to API Q1, 9th Edition