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API-OGP Joint Task Force Update 2013 Exploration and Production Standards Conference on Oilfield Equipment and Material

API-OGP Joint Task Force Update 2013 Exploration and Production Standards Conference on Oilfield Equipment and Materials. Dan Mueller ConocoPhillips Vice-Chairman API CSOEM June, 2013. API - OGP Joint Task Force. Purpose:

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API-OGP Joint Task Force Update 2013 Exploration and Production Standards Conference on Oilfield Equipment and Material

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  1. API-OGP Joint Task Force Update2013 Exploration and Production Standards Conference on Oilfield Equipment and Materials Dan Mueller ConocoPhillips Vice-Chairman API CSOEM June, 2013

  2. API - OGP Joint Task Force Purpose: • Determine a process for the continued development of globally accepted international standards for the oil and gas industry, given the current US and EU trade sanctions Scope of Effort: • Initiation, drafting, balloting/comment resolution, publication and revision of standards pertaining to equipment, materials and management systems, for the oil and gas industry Deliverables: • Recommended process for standards, including roles of API/OGP/Others within the framework of the defined terms of reference

  3. API - OGP Joint Task Force Terms of Reference established by the API Executive Committee and OGP Management Committee: • Need for a single set of industry standards to avoid duplication, with the potential for more than one brand; • Need for the standards to be globally acceptable and widely used; • Need for the standards to be accepted by the regulatory community; • A standards setting process as the foundation for the single set of industry standards that builds on the existing API/OGP infrastructure and allows for increased international participation, and • Need to ensure a legally compliant process

  4. Current Situation: Response from US Department of Treasury - Office of Foreign Asset Control (OFAC) to API query is still pending • API sent follow-up letter April 22, 2013 • Letter developed with input from API member company attorneys • Letter reiterates importance of issue to industry and requests timely response • API follow-up on a scheduled basis • API negotiations with ISO linked to the timing of the OFAC response

  5. Current Situation: European Commission (EC ) Response of April 26, 2013 to the OGP Clarification Request • EC response caused concerns with regards to participation in standards development activities where persons from sanctioned countries might be present • OGP Legal Committee to provide specific interpretations to the API-OGP Joint Task Force • OGP Member companies are discussing to align on interpretation(s).

  6. Current Situation: OGP Interim Solution expired June 8, 2013 • 18 Draft standards delivered under the program • 14 New work items approved OGP letter to ISO Secretary General of June 14, 2013 requesting a temporary reinstatement of the Interim Solution • ISO did not wish to extend the Interim Solution • ISO is open to high-level discussions on how OGP and ISO can work together on a go-forward basis to develop standards • OGP continues to offer an interim platform for international standards development

  7. Way Forward: • High Level Meeting of OGP Senior management and ISO Secretary General • OGP Legal Committee clarification on EC response • Engage OGP Brussels for further clarification discussions with EU • API-OGP Joint Task Force continues design of standards development processes in light of the EC response and in anticipation of the OFAC response • Ongoing updates of Task Force activities through the API and OGP committee governance

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