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8/8/2019 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.
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Shell Global Solutions
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.
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Shell Global Solutions
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
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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
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Shell Global SolutionsSlide 5
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
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Shell Global SolutionsSlide 6
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
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Shell Global SolutionsSlide 7
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
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Shell Global SolutionsSlide 8
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
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Shell Global SolutionsSlide 9
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
•
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Shell Global SolutionsSlide 10
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.
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Shell Global SolutionsSlide 11
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)
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Shell Global SolutionsSlide 12
November 2007
Total Cost of Ownership
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Shell Global SolutionsSlide 13
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
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Shell Global SolutionsSlide 15
November 2007
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Shell Global SolutionsSlide 16
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
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Shell Global SolutionsSlide 17
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)
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Shell Global SolutionsSlide 18
November 2007
Thank You
www.ifan.org
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Shell Global SolutionsSlide 19
November 2007
Back-up
--
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Shell Global SolutionsSlide 20
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
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Shell Global SolutionsSlide 21
November 2007
STANDARDS ARE
A CORPORATE ASSET
NOT A CORPORATELIABILITY
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Shell Global SolutionsSlide 22
November 2007
ISO/TC 67 Vision
Global
Standards UsedLocally
Worldwide
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Shell Global SolutionsSlide 23
November 2007
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Shell Global SolutionsSlide 24
November 2007
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Shell Global SolutionsSlide 25
November 2007
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Shell Global SolutionsSlide 26
November 2007
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Shell Global SolutionsSlide 27
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)
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Shell Global Solutions
Slide 28
November 2007
Growth of CENEuropean Standards
9452
1981
Cumulative number of published CEN standards
6400
2400
40013060
1985 1990 1995 2000 2006
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Shell Global Solutions
Slide 29
November 2007
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Shell Global Solutions
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
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Shell Global Solutions
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)
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Shell Global Solutions
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)
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Shell Global Solutions
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
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Shell Global Solutions
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
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Shell Global Solutions
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
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30 KEY ITEMS FOR ISO/TC 67 (Annual industry expenditure)
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Shell Global Solutions
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.
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Shell Global Solutions
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.
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Shell Global Solutions
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.
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