Welcome to QSI’s API Standardization Conference Newsletter (Exploration & Production)
Updates from the President
I recently attended the American Petroleum Institute’s 2019 Winter Standardization Conference held in San Antonio, TX the week of January 21st. My main focus was on the following:
- SC18 – Committee on Quality
- API Monogram / APIQR Forum
- SC20 – Supply Chain Management
Since much of the information in this version of our newsletter carries over from the QSI Newsletter from the 2018 Summer Conference, all new information is color coded in green.
The following important changes are coming (click the link below to jump to section):
- Changes to the API Monogram Program
- When Product Specifications Change
- API Composite List
- API Spec. Q1, 9th Edition, Addendum 2
- API Spec. Q1, 10th Edition and ISO 9001:2015
- API Spec. Q2, Revision
- API Product Audit Questions
- Manufacturing Capability
- APIQR Changes
- 12 June Technical Session
- Document Matrix
- SC 20 Business Needs (Process Defined)
- Additive Manufacturing (3D Printing)
Subcommittee 18 Overview
Changes to the API Monogram Program
Here are some questions to consider with regards to the upcoming changes:
- Are you prepared for the upcoming changes to the API Monogram Program?
- How will you manage the changes?
- What does the API Monogram mean to your financial bottom line?
- Is it worth losing?
Here are the changes:
API Spec. Q1, 9th Edition, Addendum 2
Addendum 2 was published in June of 2018; its implementation date is June 1, 2019. The major focus of this revision has to do with critical product, components and/or activities. The biggest impact has to do with the definition of “supply chain” “Suppliers and associated sub-supplier(s) required for product realization”. This basically means that your supplier suppliers will have to be evaluated with regards to your definition of what “critical” means as it relates to:
- The products and components your company purchases
- The activities performed on your products (e.g., heat treatment, welding, plating, coating, NDE) through your tier 1 suppliers
- The activities performed on the parts and components you purchase from the supply chain (e.g., tier 2, tier 3, tier 4 suppliers and so forth)
The API will begin auditing Addendum 2 in March of this year. Any nonconformities will be treated as observations up to the implementation due date of June 1, 2019. There after they will be treated as nonconformities.
Bud Weightman, President of QSI, is an international management systems expert involved with management and technical systems for over 40 years. As President of QSI, Bud is involved with the industry committees responsible for emerging requirements, including: revision of API specifications, leading various API Task Groups, and lead auditor for the accreditation of SEMS Audit Providers through the Center for Offshore Safety. Bud’s experience includes working with ISO 9001, ISO 14000, and OHSAS 18000 management systems, as well as industry-specific certification schemes such as API Q1 and Q2, AS9100, ASME systems, and numerous other standards.
API Spec. Q1
API Spec. Q2
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Q1, 10th Edition & ISO 9001:2015
SC18 Task Group 2 has the responsibility to review the ISO 9001:2015 document and identify the changes that will be incorporated to API Spec. Q1. TG2 has held several meetings and began their efforts on Q1, 10th Edition changes. It is anticipated that it will be complete sometime in 2019.
Monogram Program Licensee Audit Frequency
The audit frequency is changing from every 3 years to every year starting July 1, 2019.
Product Specification changes
Regular Scheduled Changes
Recommend that licensees regularly monitor the API Annual Standards Plan as part of your Management Review Process.
Changes Resulting from SC20-Subcommittee on Supply Chain Management
API Spec. 20E and 20F will be appearing or appear in the current and/or upcoming revisions of the following product specifications in the Normative Reference section and in the body of the specification. Here are a few of the specifications that will make reference to Spec. 20E and 20F:
- 6A, Wellhead and Christmas Tree Equipment, 21st Edition
- 6DSS, Subsea Pipeline Valves, 3rd Edition
- 16A, Drill Through Equipment, 4th Edition
- 16C, Choke and Kill Equipment, 3rd Edition
- 16F, Marine Drilling Riser Equipment, 2nd Edition
Some products are being removed from licensee licenses
Once Spec. 20E and 20F have been identified, the burden of proof of compliance to these new Normative References will be placed upon the licensees.Other SC20 documents are also being considered for incorporation into the Normative Reference Section of API Product Specifications by the relevant Subcommittees.The API Monogram / APIQR Forum presentation discussed Manufacturing Capability and interconnected with a citing from the API Monogram Licensing Program Requirements (Revision 11), Part 4 – API Monogram License Agreement, Item 1 states:
- “API grants to Licensee a non-exclusive non-transferable license to use the API Monogram on the types of products set forth in the Certificate of Authority to Use the Official API Monogram which is made a part hereof provided that these products are made in accordance with the requirements set forth in the API Product Specification in effect at the time of manufacture associated with the applicable license number, API Spec Q1 (Specification for Quality Management System Requirements for Manufacturing Organizations for the Petroleum and Natural Gas Industry), and the API Monogram Program Requirements, including any amendments, modifications, substitutions or interpretations that hereafter are adopted (hereinafter “the API requirements” or “the requirements”). This Agreement is applicable only to Licensee’s product(s) that are made at the Licensee’s facility.”
The following are quotes from one of the slides out of the presentation regarding manufacturing capability and the citing shown above:
- “A licensee manufacturing a single component is expected to perform a primary activity in transforming the raw material into conforming products in-house”
- “A licensee manufacturing assembled equipment may outsource the manufacturing of individual components, but it is expected to perform assembly activities in-house”
In short, a licensee cannot outsource the manufacture of single components identified in their license scope and monogram them.
The API has begun removing products from licenses that do not meet the aforementioned requirements. Example:
Products listed as single components in Spec. 6A and listed in Advisory #6 (July 5, 2018), Design and Development Exclusion under the API Monogram Program (definitions from API Spec. 6A, 20th Edition)
- Tees and Crosses
- Tee (3.1.118) – pressure-containing fitting with three openings
- Cross (3.1.33) – pressure-containing fitting with a minimum of four openings
- Ring Joint Gaskets
- Top Connectors
- Top Connector; bottomhole test adapter (3.1.124) – uppermost fitting of a christmas tree which allows full-bore access to the christmas tree
- Flanged Connectors (except Type 6B)
- Loose connector (3.1.65) – connector, as-manufactured, that is not intended to be made integral with another piece of wellhead and christmas tree equipment. Examples: There are blind, threaded, spacer, welding neck, flanged, studded, or other loose connectors
- Threaded Connectors
- Loose connector (3.1.65) – connector, as-manufactured, that is not intended to be made integral with another piece of wellhead and christmas tree equipment. Examples: There are blind, threaded, spacer, welding neck, flanged, studded, or other loose connectors.
- Adapter and Spacer Spools
- Adapter (3.1.4) – pressure-containing piece of equipment having end connections of different nominal sizes and/or pressure ratings, used to connect other pieces of equipment of different nominal sizes and/or pressure ratings
- Spacer Spool (3.1.107) – pressure-containing piece of equipment used to connect and provide separation between other pieces of equipment
- Bullplugs (3.1.12) – pressure-containing closure for a female-threaded end or outlet connection, which may have an internal counterbore and/or test port
- Valve Removal Plugs
- Valve Removal Plug (3.1.131) – threaded plug that can be installed in the wellhead to enable gate-valve removal under pressure
These changes are coming quickly! Read more…
API Spec. Q2, 2nd Edition
Q2 remains in the revision process. The revision should be completed soon and the revised document should be submitted for ballot sometime this year. Currently the Task Group is working with the International Association of Drilling Contractors and is attempting to setup beta site audits with volunteer drilling companies.
API Product Audit Questions
API product questions are in the process of being reassessed. Product specification questions will eventually be discontinued. More than 100 audits have been conducted in North America using the new method. The new method will focus on:
- The specific products licensed to the licensee as published in the licensee’s scope on the API Composite List
- Areas such as:
– Pressure Testing
– Coating / Painting
– Preparation for Shipment
– Facility Requirements
– Normative Annexes
Input for the focus areas is received from the API Product Specification subcommittees. This new methodology allows the auditor to be directly engaged and provides more flexibility. To date, the API has completed documentation to deploy this new method for 83 documents under the API Monogram Program.
Also remember that all API Product Specifications have a relationship to API Spec. Q1. Essentially this means that the applicable product specifications are providing a bit more detail on some Spec. Q1 requirements. Remember, this doesn’t mean that the product specs replace Q1 requirements; rather, they supplement them.
The following is an illustration of how API Spec. Q1 are interrelated with product specifications:
|Q1 Requirement||Product Specification Requirement|
– 5.4.3 Design Acceptance Criteria
– 5.6.2 Purchasing Information
– 220.127.116.11 Process Control Documents
– 18.104.22.168 Validation of Processes for Production and Servicing
– 22.214.171.124 In-process Inspection and Testing
– 5.8 Control of Testing, Measuring, and Monitoring Equipment
– 5.10.3 Manufacturing Acceptance Criteria
|– Design Criteria
– Material Specification Criteria
– Visual Criteria
– Dimensional Criteria
– Hardness Testing Criteria
– Nondestructive Examination Criteria
– Welding Criteria
– Heat Treating Criteria
– Test Criteria
– Coating and Plating Criteria
|126.96.36.199 Personnel Competence||Quality Control Personnel Qualifications
– Nondestructive Examination Personnel
– Visual Examination Personnel
– Welding Inspectors
– Welder Qualification
|4.4.3 Control of Documents||Like words shown in the spec. such as:
– Manufacturer’s written specification
– Operating Manual
– Manufacturer Instructions
– Quality Control Instructions
– Manufacturer’s documented instructions
|4.4.4 Use of External Documents in Product Realization||Normative References|
|4.5 Control of Records||– Quality Control Records
|5.4 Design and Development||Design and Material Requirements|
|188.8.131.52 Validation of Processes for Production and Servicing||Specific requirements for processes such as:
– Heat Treating
– Nondestructive Examination
|5.7.3 Identification and Traceability||Identification, Traceability, Serialization|
|5.7.6 Preservation of Product||– Preservation Requirements
– Packaging Requirements
– Shipping Requirements
|5.7.7 Inspection and Testing||Visual and dimensional inspection, nondestructive
examination, welding inspection, drift testing,
|5.7.8 Preventive Maintenance||Maintenance Requirements|
|5.8 Control of Testing, Measuring, and Monitoring Equipment||– Calibration Procedure
– Calibration Intervals
– Controls for Specific Types of Equipment
– Calibration Frequency
|Annex A, Application of the API Monogram||Annexes, Application of the API Monogram|
API Advisory #11, API Monogram Manufacturing Requirements, Manufacturing Capabilities, and Updated Licensing Agreement, was published on May 7, 2018. It discusses:
- Manufacturing Requirements and Capabilities
- Updated License Agreement
This subject has been widely discussed over the years. Now that there is guidance:
- Licensees need to be careful to maintain the integrity of their operations with regards to the amount of work that is outsourced
- Also, new applicants need to understand what the API will allow to be licensed under the API Monogram Program and what it will not allow
Read more about manufacturing capability in:
- The API Monogram Program License Agreement
- Q1, Annex A, Use of API Monogram by Licensees, A.7, Manufacturing Capability
On another note, Advisory #11 will not apply to those product specifications and/or standards that already identify manufacturing capability (minimum facility requirements), for example:
- API Spec. 6D, Specification for Pipeline and Piping Valves, Table 8, Minimum Facility Requirements
- API Standard 20M, Qualification of Suppliers of Machining Services for Use in the Petroleum and Natural Gas Industries, Section 4.1, Minimum Requirements
In addition to Advisory #11 and API Product Specifications that identify manufacturing capability; read more about manufacturing capability in:
- The API Monogram Licensing Program Requirements;
- Q1, Annex A, Use of API Monogram by Licensees, A.7, Manufacturing Capability;
- The Product Specification Licensing Form; and Product Specification Definitions (for single component product).
APIQR will be performing management system audits to ISO 45001:2018, Occupational Health and Safety Management Systems – Requirements since it has replaced OHSAS 18001 (same title as 45001).
Subcommittee 20 Overview – Subcommittee on Supply Chain Management
A Technical Session was presented on June 12th at the 2018 Summer Conference. SC20 was invited to give presentations on the SC20 service standards to familiarize attendees and subcommittee chairpersons with these activities.
The following presentations were given:
|SC20||API Upstream Standard Development – Supply Chain Management||Rick Faircloth – SC20 Chairman; Cameron, a Schlumberger Company, Valves & Measurement|
|20D||Nondestructive Examination Services for Equipment Used in the Petroleum
and Natural Gas Industry
|Neal Ferguson – SC20 Vice Chairman, Element|
|20H||Heat Treatments Services – Batch Type for Equipment Used in the
Petroleum and Natural Gas Industries
|Joel Russo, Chairman, Technip FMC|
|20J||Qualification of Distributors of Metallic Materials for Use in the
Petroleum and Natural Gas Industries
|Jason Price, Fastenal|
|20M||Qualification of Suppliers of Machining Services for Use in the
Petroleum and Natural Gas Industries
|Bud Weightman, TG Chairman, Qualified Specialists International|
These presentations are available on the API SC20 webpage and are available for download.
SC20 Document Matrix
|Title||Publish Date||*Spec.||**Standard||# of
|# Issued vs.
|Spec 20A||Carbon Steel, Alloy Steel, Stainless Steel, and Nickel Base Alloy Castings for Use in the Petroleum and Natural Gas Industry, 2nd Edition||08/01/2017||X||–||9||China (8)
|Spec 20B||Open Die Shaped Forgings for Use in the Petroleum and Natural Gas Industry, 1st Edition||04/01/2013
Errata 1, December 2013
|Spec 20C||Closed Die Forgings for Use in the Petroleum and Natural Gas Industry, 2nd Edition||10/01/2015||X||–||15||China (11)
|Standard 20D||Nondestructive Examination Services for Equipment Used in the Petroleum and Natural
Gas Industry, 1st Edition
|Spec 20E||Alloy and Carbon Steel Bolting for Use in the Petroleum and Natural Gas Industries, 2nd Edition||02/01/2017||X||–||–||China (7)
South Korea (2)
|Spec 20F||Corrosion Resistant Bolting for Use in the Petroleum and Natural Gas Industries,
South Korea (1)
|Standard 20G||Qualification of Welding Suppliers for Equipment Used in the Petroleum and Natural Gas Industry, 1st Edition
(18TR4, Evaluation of
|Standard 20H||Heat Treatment Services – Batch Type for Equipment Used in the Petroleum and
Natural Gas Industry, 1st Edition
|Standard 20J||Qualification of Distributors of Metallic Materials for Use in the Petroleum and Natural
Gas Industries, 1st Edition
|Standard 20L||Qualification of Non-Metallic Seal Suppliers for Equipment Used in the Petroleum and Natural Gas Industry, 1st Edition||Under Development||–||X||–||–|
|Standard 20M||Qualification of Suppliers of Machining Services for Use in the Petroleum and Natural Gas Industries, 1st Edition||10/01/2017||–||X||–||–|
|Standard 20N||Heat Treatment Services – Continuous Furnace for Equipment Used in the Petroleum and Natural
Gas Industry, 1st Edition
|Standard 20P||Qualification of Suppliers for Plating and Coating used in the Petroleum and Natural Gas Industries, 1st Edition;||Under Development||–||X||–||–|
|Standard 20R||Qualification of Suppliers of Subsurface electronics for use in the Petroleum and Natural Gas Industry, 1st Edition||Under Development||–||X||–||–|
* Specification: Interested companies are eligible to apply for an API Monogram Program License (20A, 20B, 20C, 20E, and 20F).
** Standard: A Quality Registration Program is being identified, developed, clarified, and will eventually be implemented for the service standards (20D, 20G, 20H, 20J, 20L, 20M, 20N, 20P, 20R). Interested parties will be eligible to apply for APIQR Quality Management System Certification.
SC20 Business Needs
The following is a high-level explanation of how the SC20 documents were developed:
- A business need has been created because SC20 documents:
- Have been published (some).
- Are in the process of being developed (some).
- Are being included as information references in API Monogram Program product specifications.
- Some are included as normative references.
- Some are included as informative references prior to becoming normative.
- Are initially being discussed by Original Equipment Manufacturers (OEMs) in their communications with their supply chains. More contact will become evident after the API presents a quality registration program to the industry for service standards.
- May be needed as a solution to the revision to API Spec. Q1, 9th Edition, Addendum 2 regarding the “supply chain” and “critical product, components or activities.”
- Overview of How the SC20 Documents Have Come into Realization:
- A business need was identified by the industry (operators and OEMs) to extend API requirements further down into the supply chain.
- Documents were then developed by relevant task group(s), including subject matter experts for the products/services covered, and published:
- Some product specifications (20A, 20B, 20C, 20E, and 20F) are now part of the API Monogram Program and licenses are available.
- A Quality Registration Program is being identified, developed, clarified, and will eventually be implemented for the service standards (20D, 20G, 20H, 20J, 20L, 20M, 20N, 20P, 20R).
- API will audit SC20 Series applicants to the relevant specification or standard and the applicable quality management system, such as API Spec. Q1.
- Organizations who successfully pass the process will be identified in an enhanced API Composite List.
- This creates a licensed (for monogram products) or certified (for service standards) organization, which is discoverable by others using the API Composite List.
- This provides:
- OEM confidence in their supply chain.
- Savings to the licensed/certified companies (less customer audits).
- Savings to the industry at large.
- Product/service consistency and integrity.
Additive Manufacturing (3D Printing)
A presentation was given to raise awareness of 3D printing being deployed in some manufacturing environments. Some of the topics discussed were:
- 3D printing is useful in rapid prototype development
- 3D printing is an additive manufacturing process and deposits layer upon layer of material
- Production is currently taking place in different industries using the following types of materials:
- Stainless Steel
- Proof of concept can be achieved via short runs
- No investment in permanent tooling
- Parts can be manufactured through a CAD file
- Shorter lead times for developing patters
- 3D printing will require new methods of process qualification and product validation
- There are existing specs./standards being developed for 3D printing, for example:
While discussions were interesting, many companies are not willing to commit discussing their particular processes since most companies in the oil and gas industry are in the research and development phase.
During this meeting (2019 Winter Conference) a motion was passed to create a new SC 20S document for Additive Manufacturing. The scope would cover:
- Manufacturers minimum requirements
- Material requirements
- Quality and Testing
The appropriate form will be sent to the API to request approval to create this new standard.
When Product Specifications Change
The API will allow a company to be audited to a new revision of an API Product Specification prior to the revision effectivity date if the licensee feels they have implemented the changes and are ready for the audit. In other words, in the case of API Spec. 5CT, the new revision is the 10th Edition which is dated June 2018; however, the date of effectivity is July 1, 2019. If a company feels they have implemented the changes, they can request an audit to the new edition prior to the effectivity date.
API Composite List
The Composite List webpage has been modified to provide more information.
Citing of API Documents
The API reported that API documents have been cited in 4,785 federal, state and international regulations.
What impact could this have on your quality management system?
A association could easily be drawn between the quality management system and:
- The identification and evaluation of statutory and/or regulatory documents as specified by Q1, Section 4.4.4 Use of External Documents in Product Realization
- Whether or not statutory and regulatory requirements have been considered in processes such as design input, product realization and purchasing
Linkage to Q1
|3.1.13 Legal Requirement||…statutory or regulatory|
|3.1.5 Compliance||…regulation or regulatory body|
|3.1.9 Design Validation||…regulatory requirements|
|4.4 Documentation Requirements
|4.5 Control of Records||…legal|
|5 Product Realization
5.1.2 Determination of Requirements
|5.4.2 Design and Development Planning||…legal|
|184.108.40.206 Initial Supplier Evaluation—Critical Purchases||…legal|
|6.5 Management Review
6.5.2 Input requirements
Here are some interesting statistics:
|Quality Management System Certifications|
|3006 Active Management System Certifications|
|Monogram Program Licenses|
|Top Specs.||Top Countries|
|% of Spec.|
Remember to Document Your Gap Analyses!
Based upon all the upcoming changes to API documents, it is extremely important that you remember to document your gap analyses.
QSI’s expert consulting services conducts open, yet structured, gap analyses and involves input from senior level management and other key personnel – no matter your type of product, service, or industry. Read more…
While it may seem that this is business as usual, companies licensed under an API product specification or who have a quality management system certification are obliged to follow API Spec. Q1, Clause 4.4.4, Use of External Documents in Product Realization which states:
“When API product or other external specification requirements, including addenda, errata, and updates, are used in the design or manufacture of the product, the organization shall maintain a documented procedure for the integration of these requirements into the product realization process and any other affected processes.”
In other words, this means a consideration whether or not:
- A gap analysis will need to be performed to document the differences between the previous and the new revisions.
- A determination will need to be made as to whether or not the changes to any product specifications represent a risk to your existing design and/or current quality management system (i.e., a risk assessment to Q1, Section 5.3) and whether or not changes need to be made.
- If the changes present a risk, then a risk assessment will need to be documented.
- If changes are to be made, a management of change will need to be implemented with regards to the impact the revised specification will have upon your quality management system and related documentation.
- Upon making all the changes, relevant personnel will need to be trained; the training will need to be documented and training effectiveness will have to be determined.
- Subsequently all the changes will have to be implemented.
QSI offers a variety of software applications and supporting documentation to help keep your QMS in compliance, regardless of upcoming revisions to industry standards or specs. Our applications include:
You can customize the applications to meet your company’s needs, no matter your company’s size. View a comprehensive list of all software applications here.
Be aware that the API Monogram Program Licensing Requirements have been revised; you can view them here.
Keep your eyes open for document changes on API’s website at:
Don’t forget to register for the 2019 API Summer Standardization Conference.
Date: Week of June 24, 2019 to June 28, 2019
Location: Hyatt Regency, New Orleans, LA
Register: See API Events Calendar (Registration Coming Soon)