API Monogram-APIQR Program Updates. Updated June 14, 2017

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1 API Monogram-APIQR Program Updates Updated June 14, 2017

New York City Primary operations moved to DC in 1969

2 History of API Founded in 1919 as the trade association for the oil and natural gas industry Originally headquartered in New York City Primary operations moved to DC in 1969 Formation of Industry Services (now Global Industry Services) in 1997

Scope of API API s mission is to promote safety across the industry globally and to influence public policy in support of a strong, viable U.S. oil and natural gas industry GIS

3 Scope of API API s mission is to promote safety across the industry globally and to influence public policy in support of a strong, viable U.S. oil and natural gas industry GIS s mission is to promote the reliability, interchangeability, quality, and safety of equipment used within the industry through its standards development and certification programs

4 API Facts 300 employees 7000 volunteers 32 state offices 4,785 cited references in federal, state, and international regulatory regimes

Quality Evolution in Industry 1924 1985 1998 2003 2011 2013

to 3 rd party verification Monogram licensees required to meet

ISO 9001 Registration TC 67 WG 2 started ISO TS 29001 API

launched API Spec Q2, , published for service suppliers API Spec

5 Quality Evolution in Industry Birth of the API Monogram Program Selfcertification API Spec Q1, 1 st ed. published Monogram Program transitioned from selfcertification to 3 rd party verification Monogram licensees required to meet Product Spec and API Spec Q1 Registration program created Began ISO 9001 Registration TC 67 WG 2 started ISO TS API adopted as ISO/TS 29001:2003 API adds Annex A creating Spec Q1, 7th ed. API Spec Q1, 7 th ed., published to align with ISO 9001 Registration to API Q-Plus launched API Spec Q2, 1 st ed., published for service suppliers API Spec Q1, 9 th ed., published No longer formatted as an ISO 9001 document New requirements such as risk management, contingency planning and management of change (MOC)

6 API Global Industry Services

7 API Licensed and Certified Facilities Monogram Only Dual APIQR Only As of May 4, 2017: 4,270 total

1000 800 600 400 200 0 Top Monogram Specifications

8 Top Monogram Specifications Licenses issued for 76 Specifications and Standards

9 Top Monogram Products Spec Product API-6D Ball Valves API-5CT Threader API-6A Flanged Connectors API-7-1 Threading for Rotary Shouldered Connections API-6D Check Valves API-6D Gate Valves API-6A Tees and Crosses API-5L Manufacturer of Line Pipe Plain End at PSL 1 API-6A Valves API-5L Manufacturer of Line Pipe Plain End at PSL 2

10 API Monogram Licensees China-Taiwan USA Middle East Western Europe South East Asia India-South Asia Eastern Europe South America South Korea Canada NOTE: Includes all Monogram-Only Licensed Facilities plus Dual Facilities 79 Countries

11 Monogram / APIQR Accepted Applications YTD Number of Applications: 148 APIQR: 59 Dual: 16 Monogram: 73 Number of Countries: 26

12 How to Apply for Monogram Licensing

Vision for Monogram/APIQR Internationally renowned

and certification programs Fair and equitable

primed and ready for industry changes Lead the way

13 Vision for Monogram/APIQR Internationally renowned for value and integrity Benchmark for licensing and certification programs Fair and equitable policies and processes for all clients Always primed and ready for industry changes Lead the way with the competent and effective auditors, assessors, and staff

14 Monogram/APIQR Program Staff Located in Washington, DC and Houston, TX 20 professional and administrative staff Strong industry (86 years) and extensive manufacturing (137 years) experience Diverse education and background

15 API Code of Conduct Promotes integrity, compliance, and equitable treatment for all Applies to all of us API Staff, Clients, API Auditors and Contractors Clients must sign off that they have read and understand the Code of Ethics before an audit can be scheduled

16 Audit Program Summary Ian Woods Updated June 29, 2017

17 Number of API Auditors

18 Audits Over Time 4000 Total Audits Monogram

19 Total Audit Expectations Audits (Average 326 per month) Audits by Program Monogram Only 1524 Dual 1602 Registration % 39% Monogram Dual Registration 41%

20 NCR Reporting For Monogrammed product and/or product manufactured under an APIQR registered QMS that is identified upon receipt or fails in the field

21 Requests for Interpretation Be advised, as committee volunteers may be required to review requests for interpretation, responses may take up to 12 months.

22 API Monogram-APIQR The Near Future New Specs added to Monogram Program New Certification Programs 18LCM; 16AR and Supply Chain Management Developed the Process for Adding/Removing Specs

23 Together, we can Power Past Impossible!

APIQR - Monogram Programs Update. January 25, 2018

APIQR - Monogram Programs Update January 25, 2018 History of API Founded in 1919 as the trade association for the oil and natural gas industry Originally headquartered in New York City Primary operations