adoption of international standards in shell

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Shell Global Solutions

Adoption of International Standards in Shell

Neil ReeveIFAN President, and

Shell Standards Manager

Shell Global Solutions International B.V.




Slide 2

November 2007

Introduction• Who needs standards? The world needs standards. Shell uses standards.

• Shell is an international company, trading in an international industry, using

international (and national) suppliers under many different regulatory regimes.

For our projects and operations, Shell prefers to use International Standards

(ISO and IEC), and is actively supporting this.

• To apply the external standards, a Shell internal technical standards system is

required. For “ engineering” this is the DEP (Design and Engineering

Practices) system.




Slide 3

November 2007

Company Standardization Management

Standardization Steering Committee: - E&P, Downstream1 (refining,

chemicals, distribution), G&P, HSE,C&P, Projects

Transparent standards structure: - policy

Internal standards: - provision of standards (DEPs);- materials standards catalogue (MESC)

External standards: - input to external standards

Procurement process (variety control): - type restriction; vendor selection- MESC, TAMAP, E-SPIR

Providing internal and external standards on the SWWDEP Design and Engineering Practice

MESC Mater ials and Equipment Standards and Code



Shell Global SolutionsSlide 4

November 2007

Local Operating Company

responsibility

Shell Group Common Base.

Central organization

responsibility

Increased resourcesfor cri tical standards

Business

justification

to deviate

ExternalExternalStandards

DEP

Project

Variation

Company

Variation

Management control

Knowledge feedback

Shell’s Transparent Standards Structure




November 2007

Benefits are maximized when all companies usethe same common industry standards

• Maximize use of common industry standards (ISO/IEC if possible)

• Minimize addit ional company requirements

• Ensure variations justif ied (technical and commercial)

• Ensure continuous improvement (feedback fromusers)

• Influence external standards bodies. Participateactively in the technical committees and workinggroups of key external standards

Shell Standardization Policy




November 2007

Company benefits from standards

Cost Reduction - Increase Business Efficiency

• Simpli fy design and procurement; Variety Control

• Interchangeability of equipment

• Promote stable and global market

Enhance Technical Integrity

• Safety, Health and protection of the Environment

• Maximise availabili ty, minimise lost revenue

Establish a Common Technology Base

• Technology transfer / Sharing best practice / Remove barriers to trade (WTO)

Support Legislation where linked

• Safety and Environmental Regulations (e.g. Process Safety Management, US)

• Procurement Legislation (e.g. European Directives)

• Essential Requirements (e.g. ‘New Approach’ European Directives)

IPA benchmark statistics report that using a coherent standards system saves

projects:

5 % on Capex and 13 % on schedule




November 2007

CompaniesCompanies

IndustryIndustry

R

ecognized

R

ecogn

ized

CONTRACTORS SUPPLIERS

API EEMUA EIASME

NationalNational ANSI BSI

RegionalRegional CEN /CENELEC

InternationalInternational ISO / IEC Vienna Agreement

OPERATORS

OGP

OtherEuropean

ChinaBrazil, J apanRussia, etc.

L

i

ai

s

o

n

Standardization Bodies - Relationships




November 2007

Mission:Mission:

To create value-added standards for the oil and natural gas industry

Vision:Vision:

Global standards used locally worldwide

Goals:Goals:

• Prepare standards required by this industry

• Prepare standards that could be adopted worldwide by bodies such asAPI and CEN

• Publish standards that enable companies to minimize theirspecifications

• Deliver standards to the target dates on the agreed work programme

ISO/TC 67 statements




November 2007

Members of ISO/TC 6729 Participating (P) Members:

Argentina, Brazil, Canada, China, Denmark, Finland, France,

Germany, Indonesia, Italy, J apan, Kazakhstan, Korea, Libya, Mexico,Netherlands, Nigeria, Norway, Oman, Portugal, Qatar, Romania,Russian Federation, South Africa, Spain, Ukraine, United Kingdom,USA, Venezuela

29 Observer (O) Members:Australia, Austria, Azerbaijan, Belgium, Bulgaria, Colombia, Croatia,Cuba, Czech Republic, Ecuador, Egypt, Hong Kong, Hungary, India,Iran, Ireland, Malaysia, Moldova, Mongolia, Poland, Saudi Arabia,

Serbia, Singapore, Slovakia, Sweden, Switzerland, Thailand, Trinidadand Tobago, Viet Nam

•




November 2007

• ISO/TC 67 has published 124 standards.

• API has adopted 54 of these as joint API / ISO standards.

• CEN has adopted 103 of these as joint European EN ISO standards.

• China has adopted 20 of these as Chinese national standards.

• Kazakhstan has adopted 54 of these as Kazakhstan national standards.




November 2007

Number of DEPs based on external standards

14

1822

28

3438

4448

56

64

7478

97102

109

0

20

40

60

80

100

120

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year end

N o . o f D E

P s

Trend towards transparency -

Benefit of external standards efforts(Total number of DEPs = 320)




November 2007

Total Cost of Ownership




November 2007

DEP making process

Plan Draft Review Comment Modify Review,

approve

and

issue

Use

UsersCustodians

Administ rator PeersUsers

ManufacturersContractors

Author

Feedback

Author

Administ rator

andmanagement




November 2007




November 2007

Abbreviations and weblinks

DEP Design and Engineering Practice sww.shell.com/standards

ISO International Organization for Standardization www.iso.ch

IEC International Electrotechnical Commission www.iec.ch

API American Petroleum Institute www.api.org

CEN European Organization for Standardization www.cen.eu

OGP International Association of Oil and Gas Producers www.ogp.org.uk

MESC Materials and Equipment Standards and Code www.shell.com/cwwTAMAP Technically Accepted Manufacturers and Products sww.shell.com/standards

E-SPIR Elect ronic - Spare Par ts Interchangeability Record www.e-spir.com




November 2007

Conclusions• Shell needs and uses international standards

• Shell participates in developing international standards

• Shell wil l maintain an internal technical standards

system (DEPs)

• Standards are a corporate asset, and not a corporate

liability

• Technical standards are only as good as you, the users,

make them

• Organizations should develop a standards plan to meet

their needs (Identify key standards; manage use of

these)




November 2007

Thank You

[email protected]

www.ifan.org




November 2007

Back-up

--




November 2007

Shell and Diversity

¾ Shell is Anglo/Dutch in origins (100 year history)

¾ Shell operates in 145 countries in 6 continents

¾ In our offices in The Hague there are 60 nationalit ies

¾ High degree of local business autonomy in operations




November 2007

STANDARDS ARE

A CORPORATE ASSET

NOT A CORPORATELIABILITY




November 2007

ISO/TC 67 Vision

Global

Standards UsedLocally

Worldwide




November 2007




November 2007

Pattern of change - Work in BSI

1983 2000

11%

93%

Int’lStds

Int’lStds

UK

Stds

UK StdsNote: Typical for all European Standards Bodies

Over these years

Standards work in

BSI committees has

changed to be mostlyinternationalor regional(ISO, IEC, CEN

and CENELEC)




Slide 28

November 2007

Growth of CENEuropean Standards

9452

1981

Cumulative number of published CEN standards

6400

2400

40013060

1985 1990 1995 2000 2006




Slide 29

November 2007




Slide 30

November 2007

125

0 2

116

109

96

76

60

41

19

8

66

0

20

40

60

80

100

120

140

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

ISO/TC 67 accomplishments:

Cumulative number of documentspublished

Note: excluding “ fasttrack” ISOs




Slide 31

November 2007

Global standards used locally worldwide

ISO-API-CEN

CEN/TC12

103 published

(incl. EN ISO 10434, EN ISO 15761 andEN ISO 17292 from CEN/TC69; and incl. TR for use of ASME B31.1)

1

(TR)

>400others

8

0

15

5646

Note: 32 of the other >400 API standards are linked with35 of the other 71 ISO/TC 67 standards

ISO/TC67

125 published

(excl. ISO 10425 from ISO/TC105;excl ISO 10497 from ISO/TC 153;excl. so-called “fast-track”standards)

API

Upstream & Refining

54 cobranded published;

(excl. NACE MR0175/ISO 15156;excl API Spec 9A/ISO 10425 fromISO/TC105excl ISO 10497 from ISO/TC 153;Excl 4 MPMS adoptions fromISO/TC28)




Slide 32

November 2007

ISO/IEC references in Shell documents

1990

ISO

IEC

30

100

130

2007

700

300

1000

Note: Step change in usage of ISO/IEC documents.(These are unique references, many of which are referenced multiple times)




Slide 33

November 2007

ISO/IEC references in OGP member documents

1999

ISO

IEC

750

150

900

2004

1100

500

1600

Note: Change in usage of ISO/IEC documentsRef: OGP Report (2005) - Catalogue of International Standards used in the

petroleum and natural gas industries




Slide 34

November 2007

3

3.5

4

4.5

5

5.5

6

6.5

7

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

A v e r a

g e a g e , y e a r s

DEP average age

Target




Slide 35

November 2007

Standards + Variety Control = Standardization

Transparent

structure

Essential

requirements

Type

restriction

Vendor

optimization

STANDARDSVARIETY

CONTROL

Two standardization examples30% price savings on electric cable, and50% stock reduction.

30% price savings on valves, and 80% stockreduction.

A catalogue such as MESC isa key enabler for standardization

External

standards



30 KEY ITEMS FOR ISO/TC 67 (Annual industry expenditure)




Slide 38

November 2007

30 KEY ITEMS FOR ISO/TC 67 (Annual industry expenditure)

SUBSURFACE- ISO 10432 SSSV

- ISO 11960 Casing & tubing

- ISO 11961 Drillpipe

- ISO 10426 Well cements

- ISO 13500 Drilling fluids

SUBSEA SYSTEMS- ISO 13628-1 Subsea systems

- ISO 13628-2 Flexible pipe

- ISO 13628-4 Subsea wel lhead & ch ri stmas t ree

- ISO 13628-6 Subsea produc tion con trols

- ISO 13628-8 ROV

- ISO 13628-9 ROT

OFFSHORE STUCTURES- ISO 19900 Offshore structures

PRODUCTION EQUIPMENT- ISO 10423 Wellhead & c hristm as trees

- ISO 13533 Drill-through equipment

- ISO 13535 Hoisting equipment

- ISO 15649 Piping systems

PIPELINES- ISO 13623 Pipeline systems

- ISO 3183 Linepipe

- ISO 13847 Pipeline welding

- ISO 14313 Pipeline valves

- ISO 15589 Cathodic protection

- ISO 15589 Bends, f langes & fittings

PROCESS FACILITIES- ISO 10437 Steam turbines

- ISO 10439 Centrifugal com pressors

- ISO 10441 Flexible couplings

- ISO 13706 Ai r-c ool ed heat ex ch ang er s

- ISO 13707 Reci pro cati ng c ompr es sor s

- ISO 13709 Centrifugal pumps

- ISO 21049 Shaft-sealing systems

10 billion

3 billion

2 billion

2 billion

6 billion

2 billion

TOTAL USD 25 bill ion p.a.




Slide 39

November 2007

Promote reference to international standards inregulations – or avoid need for regulations

1. To facili tate export of products manufactured nationally, and to

facilitate inward investment from overseas.

2. Adopt as many as possible ISO/IEC standards with as few

changes as possible.

3. Use same standard as used in Europe, America, China, andelsewhere with all the sustainable benefits of that.

4. Use ISO/IEC Guide 21 as a guide for the procedure for the

national adoption of ISO/IEC standards.

5. Energy and organization needed to create committees from allthe stakeholders to do this work.




Slide 40

November 2007

Future vision/challenges

Global standards used locally worldwide:

- “Build shared vision”at all levels. One standard/one test/accepted everywhere.

- Keep eye on the process so that gains are maintained and grown.

- Keep up with developments; create/revise for new, bigger, smaller.

- People: grow standards engineers; technical discipline networks; authorities.

External standards:

- Stimulate, increase adoption of International Standards by national standards

bodies, Russia, China, India, Brazil, Kazakhstan etc.

Internal standards:

- Maintain focus on DEPs. Increase their usage in Shell operations.

- Managed mandate.

Procurement:

- Fully integrate MESC, TAMAP etc into (procurement) SAP systems.

Technical standards service:

- Provide not only documents, but how to use them.

adoption of international standards in shell

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