20151208 Hydrocarbon training Cyprus - Regulators session

1
Dutch hydrocarbon sector and
role of regulation and standardization
Jarno Dakhorst & Willem van der Wal
Regulators session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015

Outline
• Organization of NEN
• Introduction into standardization
• Overview of oil and gas standardization and standards
• Golden triangle
2Regulators session hydrocarbon sector | Cleopatra Hotel, Nicosia | 8 December 2015

3
ORGANIZATION
OF NEN

NEN in brief
4
• Private, independent not-profit-organisation founded in 1916
• Our core values:
― Honest: we strive to set up long-term relationships
― Professional: we strive to attain the highest standard
― Cementing:we shareeach other's knowledge, qualities and networks
― Service-focused: we keep our promises
• About 270 employees
• Over 5 250 active members in standardization
• Over 33 000 standards in portfolio [4% Dutch, 45%
European and 51% global standards]
• Turnover of 36 M€ [2014]

NEN’s activities (1)
5
• Standards development:
― Development of national standards (NEN, NTA, NPR)
― Mirror committees for CEN, CENELEC, ISO and IEC technical
committees for which a Dutch interest exists
― Secretariat for several CEN, CENELEC, ISO and IEC
technical committees (e.g. ISO/TC 67 and CEN/TC 12)
• Standards publishing:
― Sales of standards
― Supporting documents and web tools
• Standards services:
― Training
― Events

NEN’s activities (3)
6
• Standards related activities:
― Standardization requests (mandates)
― (Pre-)standardization research
(e.g. Horizon 2020 projects)
― Scheme management and registers
(e.g. ISO 55001)
― Self declarations (e.g. ISO 26000)
― Management of hazardous substances
publication series (i.e. guidelines for
authorities in permitting process)
― Project management

7
INTRODUCTION INTO
STANDARDIZATION

Introduction into standardization –
What are standards?
Standards…
• … are documents with agreements on products,
services and systems
• ... are designed for voluntary use
• ... contribute to:
― (inter)national strengthof competition
― innovation
― health, safety and environment
― image
• ... are in accordance with WTO

Why standardization?
9
Overcoming trade barriers
Vision ISO/TC 67
(oil & gas):

What is standardization?
Standardization …
• … is an open process => all parties concerned invited
to participate for broad support
• … is developing agreements based on consensus =>
no sustained opposition
• … is transparent => agreements are publicly
available for comments and use
• … takes place on three levels:
― national (e.g. NEN, CYS)
― regional (e.g. CEN, GSO)
― international (e.g. ISO, IEC)

11
OVERVIEW OF OIL AND GAS
STANDARDIZATIONANDSTANDARDS
© Lot Bakker | LOT of Illustrations
http://lotofillustrations.com/

Overview of oil and gas standardization
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Materials, equipment and
offshore structures
CEN/TC 12
CEN/TC 234
National mirror committees
ECISS
CEN/TC 282
Simplified representation
ISO/TC 67
ISO/TC 118/
SC1
IEC/TC 18
CLC/TC 18X
Electrical installations of
ships and of mobile and
fixed offshore units

ISO/TC 67 – Title and scope
13
• Title:
― Materials, equipment and offshore structures for the
petroleum, petrochemical and natural gas industries
• Scope:
― Standardization of the materials, equipment and offshore
structures used in the drilling, production, transport by
pipelines and processing of liquid and gaseous hydrocarbons
within the petroleum, petrochemical and natural gas
industries.
Excluded: aspects of offshore structures subject to IMO
requirements (ISO/TC 8).

ISO/TC 67 – Goals
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• Prepare standards required by the industry
• Prepare standards that are adopted worldwide by
bodies such as ABNT (Brazil), API (USA), CEN
(Europe), GOST R (Russian Federation), GSO (Gulf
Region) and SAC (China)
• Prepare standards that are recognized by regulators
• Publish standards that enable companies to minimize
their specifications
• Deliver standards to the target dates on the agreed
work programme

ISO/TC 67 – Deliverables
15
SOURCE:IOGP | Postercan be downloaded from www.iogp.org/international-standards

ISO/TC 67 – Post-industry events action plan
16
After Montara and Macondo events:
• Ad hoc group created in October 2010
• Work programme established in March 2011
• Ad hoc group transformed to task force to follow
recommendations and monitor progress of
developing/revising identified standards
• Disassociation of API from ISO in 2012 impacts
execution of work programme
• Half yearly progress reporting: during ISO/TC 67/MC
and ISO/TC 67 plenary meetings
• Final report circulated in March 2015

CEN/TC 12 – Title and scope
17
• Title:
― Materials, equipment and offshore structures for the petroleum,
petrochemical and natural gas industries
• Scope:
― Similar to ISO/TC 67, excluding gas infrastructure from the input
of gas into the on‐shore transmission network up to the inlet
connection of gas appliances (covered by CEN/TC 234) and
installations and equipment for LNG (covered by CEN/TC 282).
• Secretariat provided by NEN and CYS

CEN/TC 12 – Mode of operation
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• Standards are usually developed under Vienna
Agreement in ISO/TC 67 working groups, with active
participation of experts from at least 3 European
countries.
• One of European experts is 'European Project Leader'
(EPL) and checks that both environmental and
regulatory issues are taken into account.
• After publication by ISO, standards are adopted in
Europe as EN ISO (and with that as national standard).
• This development process is coherent with CEN/TC
12’s motto “Global standards used locally worldwide”

19
GOLDEN TRIANGLE

Relationship between regulation,
standardization and certification
20
One way to
demonstrate
is applying
standards
Regulator has
confidence in
value of certificate
to demonstrate
compliance with
law
Third party
conformity
assessment
increases
credibility
Operator has to
comply with legal
requirements

Case 1 – Directive 2013/30/EU (1)
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Directive 2013/30/EU on safety of offshore oil and gas
operations and amending Directive 2004/35/EC:
“To ensure safety in design and continuous safe operations, the
industry is required to follow the best practices defined in
authoritative standards and guidance. […] Having due regard to
the established priorities the preparation of new or improved
standards and guidance should be commissioned without delay.”
“At Union level, it is important that technical standards are
complemented by a corresponding legal framework of product
safety legislation and that such standards apply to all offshore
installations in offshore waters of Member States, and not just
non-mobile production installations. The Commission should
therefore undertake further analysis of the product safety
standards applicable to offshore oil and gas operations.”

Case 1 – Directive 2013/30/EU (2)
22
• European Commission is aiming at harmonised
standards for machinery used in drilling and well
intervention operations in offshore oil and gas industry.
• For this purpose, the European Commission intends to
submit a revised standardization request (formerly
known as mandate), after rejecting of a previous
standardization request by CEN/BT, also based on
recommendations by CEN/TC 12.

Oil and gas standardization and regulation
23
European
Commission
Dutch
government NEN
Mandates
Standards
Standards
Laws
Regulation
Laws
Directives
Legislation Standardization
NC 310008
Standards
WTO ISO
CEN
Vienna
agreement
TC 12
TC 67
E.g.
2013/30/EU
No barriers to trade
E.g.
Mining
Act
Draft mandate
offshore oil &
gas industry

Case 2 – NTA 8120 (1)
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• SSM/SodM:
― inspector safety of gas networks and integrity and safety of
installations under Mining Act
― grid operators must have an operating safety management
system (SMS) from 2011
― voluntary agreement with requirements to SMS
• Grid operators:
― mostly integrated network companies (electricity and gas)
― also need for quality management system

Case 2 – NTA 8120 (2)
25
• Result:
― voluntary agreement on asset management (with focus on
safety, quality and capacity)
― willingness of participation of (currently named) ACM as
supervisor for Electricity and Gas Act
First edition of NTA 8120 was published
in 2009; the second edition in 2014 (also
in English) to align with ISO 55001,
integrate security and better distinct
requirements from recommendations

Case 2 – NTA 8120 (3)
26
• All parties involved developed certification scheme
linked to NTA 8120
• Certification scheme operational since 2011
• Nearly all grid operators are certified for NTA 8120
• Next step to bring NTA 8120 certification under
accreditation (together with ISO 55001 certification)
• With this certificate grid operators demonstrate to
comply with NTA 8120 requirements and in this way
with parts of legislation => inspector can change way of
supervising to system surveillance

From golden triangle to diamond
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Working with accredited
conformity assessment
bodies further increases
confident in value
certificate

28
THANK YOU FOR YOUR
ATTENTION
jarno.dakhorst@nen.nl
+31 6 33 334 671 or +31 15 2 690 245
@jarnodakhorst
https://nl.linkedin.com/in/jarnodakhorst

20151208 Hydrocarbon training Cyprus - Regulators session

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