NS ACCREDITATION & STANDARDS

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2 ABOUT US.. NS Accreditation & Standards is a new product line of the Fearnley Procter Group. As the name would suggest it manages the development of NS-1 and NS-2 Standards plus the Accreditation Programmes for companies providing products and services to the Oil & Gas Industry. In addition it supports the industry with training programmes on the standards for managers, as well as inspectors and QA/QC specialists.. The NS-1 & NS-2 Standards supplement the API standards for when drilling equipment needs to be used in more challenging conditions - such as Offshore Drilling, Extended Reach drilling and HP/HT wells. Now available electronically through our web portal - the NS Information Hub - they are continually updated as new innovations are made and solutions to modern drilling challenges are achieved. The Accreditation Programmes, which run alongside the two standards, support both the end user and the supplier in setting a level of capability required in order that the supplier can meet the demands of the standards. This in turn brings additional re-assurance to their customers. As an independent assessment process it can help minimize the risk of equipment failing when used in the field. Training Programmes in both the NS-1 and the NS-2 Standards are provided at our training facilities, at customers own locations and Inspection facilities, and soon on-line as well. These programmes train inspectors and QA/QC personnel in the use and application of the two standards. We also have training courses for those who are directly involved in managing the manufacturing or inspection process and awareness programmes for support staff. Within this pack you will find more details on each of the services outlined above. WHY NS-1 & NS-2 The Oil and Gas industry is working within drilling environments not thought of as possible 10 or 20 years ago. Equipment is being used in more arduous conditions. Therefore, when being used in these more testing conditions, it needs to be made and inspected to a higher standard. NS-1 & NS-2 supplement the API standards when conditions warrant it. So if you are drilling Offshore, in HP/HT Wells or undertaking ERD Projects, then consider the NS-1 & NS-2 Standards.

3 The NS-1 and NS-2 Standards To measure quality in all walks of life we need standards and everything that we do in this product line begins with the NS-1 and NS-2 Standards. NS-1 - Quality and Inspection Requirements for New and Refurbished Drilling and Well Completion Equipment NS-2 - Inspection Standard for Used Proprietary and Specialised Drilling and Well Completion Equipment These two Standards have been developed over the last 20 years to meet the changing needs presented by more challenging drilling conditions, over and above those provided by the other drilling standards. For offshore drilling, HP/HT wells and Extended Reach Drilling, with the increased costs, risks and difficulties associated with them, many companies are now turning to our NS-1 and NS-2 Standards. This is because it has demonstrated, through improved results for operators and drilling companies alike, that it is highly suited to these conditions. Access to the standards To support global use of NS-1 and NS-2 we have developed a new online system that will allow access to the standards 24 hours a day, 7 days a week, anywhere in the world. You can even access them using your smart phone. This is all available through our new web portal the NS Information Hub (see separate section). The system is designed to make obtaining the necessary specifications and sub-specifications for the manufacture of any item of equipment as simple as possible. You select the item of equipment and then all the required information is available to you through hyper-links, so there is no need to have multiple documents, containing different specifications, open at the same time. NS-1 was originally developed by Shell over a 10 year period. In order to maintain the commitment to its development as well as to release it to a larger drilling audience - it was passed over to Fearnley Procter who now has full ownership. It continues to be developed as a top up system to API, to allow rapid response to new types of equipment, new drilling environments and new failure types. This is an important aspect of the NS system, the underlying principle and standards of API and ISO are built into it with additional specifications where necessary.

4 Any required pages are available to print and use for your selected tasks and you can also guarantee that it is completely up to date with no more need to switch updates in and out of binders. NS-2 was initially an Exxon specification utilized in the USA and it was then issued to Shell Expro by Exxon, as part of a Quality Improvement Project (QIP) on reduction in Drill String Failures. Fearnley Procter UK was part of the QIP Team and was involved in developing the standard then known as In 1999 Fearnley Procter UK was handed ownership of for further development and wider use of it in the industry. The first revision of NS-2 was released in November that year. Since taking over the standards, Fearnley Procter Group have developed the NS System into the standards of choice for There are a number of web based support services now available to individual subscribers of NS-1 and NS-2 through the new online version. These include: Search Facility this allows users to enter key words or phrases in order to identify where in the standards the topics can be found. Search results are hyperlinked directly to their location. Specification Help Desk answers to any query with regards to the content of a specification within the two standards, or its application, are available through this link. An is generated and the query answered by our technical teams. Technical Bulletins which will be circulated to all users with regards to the content of new specifications and discussion on how to apply them. Direct Information on Updates once a month an is sent to all registered subscribers to bring them up to date with any changes that have been made to the NS-1 and NS-2 Standards that month. This is particularly useful if subscribers are currently using a printed specification sheet, are in a remote location or are working from their previous knowledge and understanding of the Specification, and any of its tables. Accreditation Programme Updates the Fearnley Procter NS-1 Accreditation Programme provides independent assessments of a company s facility, service, equipment or product and its capability to provide it to the requirements of NS-1 and NS-2. Subscribers receive by any new approvals or re-approvals under the programme as well as any suspensions and validity changes. You can request account information by going to the login page and selecting the REGISTER link from the top menu.

5 THE NEW EDITIONS NS-1 Edition 3 - March 2013 The NS-1 Standard is now recognised as a sign of quality in more countries than ever before. Every week we receive requests for details on NS- 1 as drilling operations and end users demand tougher standards. NS-1 covers the following Equipment. Abandonment Tools Bit Subs Blast Joints Casing and Tubing Crossovers Cementing Tools The NS-1 Standard is delivered as a top-up to already existing standards where additional focus on the prevention of failure of equipment being used in more challenging conditions is required. Wells being drilled off-shore, extended reach drilling (ERD) and High Pressure / High Temperature wells are higher risk and therefore require higher performing equipment. Across an international operation where a mixture of drilling conditions are met, companies sometimes look to balance the quality of the drill string components with the environment it is being used in. This is considered a value exercise so that savings can be made where drilling conditions are less onerous. Although this seems good sense - those companies that follow this strategy need to be very confident in their equipment management system, as it only takes one piece of equipment being used in a situation for which it was not designed, for a failure to occur. The inappropriate use of equipment in more difficult drilling conditions is a primary root cause for drill string failure. Equipment failure is an expensive business. Fearnley Procter are committed to the reduction of avoidable equipment related non-productive-time Centralisers and Stop Collars Coring Equipment Crossovers Crossover subs Drill Collars Drill Pipe - Aluminium Drill Pipe - Steel Drill Pipe - Heavy Weight Drill Stem Subs DST Tools Fishing Tools Float Collars Float Shoes Flow Couplings Gravel Pack Tools Hole Openers Inflatable Packers Insert Float Equipment Jars & Accelerators Kellies Kelly Valves Landing Nipples

6 Liner Hanger Liner Running Tools Milling Tools PBR Clean Out Tools PDC Bits Production Packers Reamers Rotary Tongs Safety Valve Lock Assembly SCSSV Landing Nipple SCSSV Tubing Retrievable Side Pocket Mandrels Sliding Sleeve Assemblies Stabilisers Stuffing Box Equipment Telescopic Tubing Joint Assembly Tongs Tubing for Rotary Drilling Tubing Seal Assembly Well head tools Wire Wrap Screens Wireline BOP Wireline Hydraulic Jars Wireline Knuckle Joints Wireline Lubricator Riser Assemblies Wireline Mechanical Jars Wireline Overshots/ Releasable Spears Wireline Running & Pulling Tools Wireline Running Tool Wireline Spears & Grabs THE NEW EDITIONS and the adoption of the NS-1 standard throughout a company s drilling operations is one sure way of making that a reality. Quality Assured? In support of the NS-1 Standard there is now in place an Accreditation Programme for suppliers of equipment, products, design services, inspection services, processes and facilities. Armed with this Certificate suppliers can demonstrate to end users that they can meet the demand of the standard. End users can now be re-assured that the equipment and products that they use are designed with failure avoidance in mind. In addition, that the facilities where they are manufactured, applied, repaired or inspected have been independently assessed as being capable of performing to the requirements of the NS-1 Standard. We believe that there is more to a standard than a set of basic requirements. The NS-1 Standard includes full details of how they should be applied with supporting sub-specifications. Through the NS Information Hub - the new portal for the web delivery of the new fully searchable and hyperlinked Edition 3 - any subscriber can access the Specification Help Desk. This support service will allow the user to ask our NS Technical Team questions about the content and the application of any of the standards. The new Edition is not the end of the story. The web version allows us to update it on a more regular basis and new equipment is being added for coverage. announcements will get to subscribers as and when this happens and we welcome all comments as to which equipment should be added next.

7 THE NEW EDITIONS NS-2 Edition 3 - March 2013 With increased web use and the increasing need to obtain quick access to Inspection Standards - NS-2 has been remodelled to embrace the power of the internet. With the inclusion of a quick search option - Inspectors can navigate through the NS-2 Standard with ease. The defined layout makes navigation simple. This has been achieved by introducing individual Sub- Specs - there are 23 of them from General Requirements, Ultrasonic Testing End Area to Proprietary Connections. Hyper-links have been introduced throughout the standard making switching between different specifications and sub-specifications very efficient. The new edition required a gap analysis of the other main Industry Specifications to create a consistency in the acceptance and rejection criteria, where we feel there is no risk to our existing users. Keeping with the tradition of our NS Publications the New Edition of NS-2 provides you with specifications unique to our Standards and covering the latest new technical advances in drilling equipment. Some of the other advantages of the NS-2 Online system are: Ability to print the exact page you need, and knowing that the page you print is the latest version. Links to other pages make navigation between specifications quick and easy to complete. NS-2 was the first Standard, and still the only one, to recognise ATI (Automated Thread Inspection) using ACFM (Alternating Current Field Measurement). This was developed for the detection and sizing of surface breaking cracks in threads with the minimum of operator interpretation. ATI records all the inspection data which is stored and available for replay and audit, irrespective of whether a defect is found or not. ATI uses array probes with a particular thread pitch. Specification helpdesk will support you should you require additional assistance in its use. Because you can access it via your laptop and smartphone - no heavy folders to cart around. You won t ever need to remove old pages, replace with new pages or worry about lost pages.

8 THE NEW EDITIONS - NS-2 New Specifications and Updates to existing ones are able to be completed on a more regular basis due the web based presentation and any period of grace is announced within the News Update panel which is set alongside the NS-2 s Index page. Further updates have been completed on the Tables for new bevel diameters for BHA connections, VAM connections and Grant Prideco connections including Turbotorque. Even with all the above we are not sitting back on our achievements, we are already working on new enhanced features, whereby you will be able to put in the connection s details and NS-2 will give you all the relevant details for dimensional inspection without you looking through the tables. Unlike other standards Fearnley Procter s NS-2 only has one level. We believe in keeping it simple. The potential for used equipment to be inspected to a level that is too low for the conditions that the equipment is working in is very dangerous indeed. Much simpler to work with one inspection standard and then if the environment that the tools are working in does not require some elements, then these can be excluded from the inspection criteria. This way you always start with the highest level and it is a positive decision to remove elements that are not applicable rather than run the risk that an element that should have been included has been missed out because it was not part of that Level or Category of inspection. Knowing what to exclude is safer and easier than having to remember what needs to be included. New Specifications: - can be found on Aluminium Drill Pipe and Wired Drillstring (WDS). This is drill pipe with a cable embedded in it so it can carry data from the drill bit to the surface much faster than with conventional MWD pulses. Other new specifications you will find are: Drilling Motors Heavy Duty Landing Strings MWD/LWD Lift Caps and Lift Subs

9 NS-1 & NS-2 ACCREDITATION PROGRAMME The NS-1 & NS-2 Accreditation Programme was introduced to support both the end user and the service companies within the Oil & Gas Industry. As equipment and drilling products are required to cope with tougher environments and additional operational stresses, so the ability to not only meet the specifications within NS-1 and NS-2, but also to be seen to meet them, has become more important than ever before. More equipment is now being supplied from a greater range of countries and therefore it is important for the industry to know that there is an independent assessment of equipment that crosses international boundaries whilst setting a high level for quality and competency. This is the NS Accreditation Programme. Fearnley Procter, authors and developers of both the NS-1 and the NS-2 Standards, have over the last 15 years developed both standards using their Failure Investigation History and QA/QC experience to minimise the risk of equipment failure. The NS Accreditation Programmes are built on this platform to provide a mark of quality and competence; that suppliers can use to support their products and services; and end users can rely on when using them in the field. NS Accreditation Levels - Each type of Accreditation has a number of levels within it. In order to achieve a higher level of approval all previous levels need to have been successfully completed. Manufacturing Facility Approvals Level 1 (Process Audits): Process audits shall be conducted by NS A&S of the manufacturer s facilities systems and in house processes. The audit shall cover the following areas: Management System Review, Contract/Order Processing, Procurement, Workshop Process, Quality Control, Inspection & Test Equipment Calibration & Control, Packaging & Dispatch, Personnel Competence Assurance Scheme. Level 2 (Product Audit): Product audits shall cover the following areas: NS-1 Supplementary Requirements, NS-1 Sub-Specifications (Mechanical Testing on selected material to verify conformance to NS-1, i.e. Toughness, Hardness, Yield, Chemical Analysis; Tests to verify effectiveness of cold rolling process of threaded connections) Products to be covered within NS-1. Level 3 (Independent Design Review to NS-1 ): For equipment not covered under NS-1 : Design review shall be conducted for this level and include requirements of Levels 1 & 2. Reviews shall cover the following: NS-1 ACCREDITATIONS The following approvals are currently available. Manufacturing Facilities Rental Facilities Service Faciltiies Hardbanding Products Hardbanding Application Hardbanding Re-application Equipment Design NS-2 ACCREDITATIONS Inspection Faclilities

10 Review of Design Drawings to ensure that the product has been designed with consideration to failure avoidance. Evaluations are conducted based on failure modes more commonly observed when equipment is used for purposes to which they were designed, and may require calculations to be performed for determining the maximum loading conditions equipment may be subjected to. For equipment covered under NS-1 : Review of data / performance sheets for product Level 4 (Application Approval of NS-1 Products): Product Application Approval (i.e. Hardbanding, Plastic Coating etc.) shall be conducted for this level and include requirements of Levels 1, 2 & 3. This process shall cover the following: Approval for application of an NS-1 hardbanding or internal plastic coating, through witness of application, destructive test, and application procedures. It is understood that some facilities do not provide and some products do not require hardbanding or internal plastic coating. Where this situation occurs exceptions may be allowed. Level 5 (Use of NS-1 Approved Suppliers Only): Level 5 approvals shall be granted when manufacturers use only approved suppliers for heat treatment and upset tubulars, etc. or perform these processes themselves as part of the audit. Hardbanding Product Approvals Level 1 (Process Approval only): Hardbanding manual review, welding procedures, etc. Level 2 (Product & Application): Within this level hardbanding products and their application processes are tested for performance. The testing of the hardbanding product is witnessed and includes; hardness, adhesion tests, magnetic particle and dye penetrant inspection. Casing wear tests which are carried out by recognized centres are also reviewed by Fearnley Procter. Level 3: To achieve this level the casing wear test must also be witnessed by a FP Engineer. Hardbanding Re-application Process Approvals Level 2 (Product & Application): Company required to demonstrate a secure process for the establishment of the provenance of any tool joint and the currently applied hardbanding product. The re-applied hardbanding then undergoes rigorous adhesive testing carried out and witnessed by the FP engineer to show the adhesive stability of the re-applied hardbanding layer. Equipment Design Approvals Level 1 (Quality & Inspection for Manufacture): This level is classified as being the lowest level of review, where the applicants Manufacturing, Assembly and Inspection procedures alongside Manufacturing Drawings are checked to ensure equipment meets requirements as specified within the appropriate section(s) of Standard NS-1 or other related Standards such as NS-2 if applicable. Level 2 (Review for Failure Prevention): Along with the areas covered in a Level I review, Level 2 reviews ensure that the equipment has been designed with consideration to failure avoidance. Evaluations are conducted based on failure modes more commonly observed when equipment is used for purposes to which they were designed, and may require calculations to be performed for determining the maximum loading conditions equipment may be subjected to. Level 3 (Fitness for Purpose): Along with the areas covered in Level 1 and Level 2 reviews, Level 3 reviews ensure that equipment has been assessed for functionality with tests performed and witnessed by the reviewing engineer in order to demonstrate that the equipment is capable of meeting and performing the physical functions to which it was designed for. Testing may be conducted either by as Surface Testing or Down hole Testing Level 4 (Measurement and Analysis): All of or any combination of Levels 1, 2 and 3 plus a full process audit to assess, analyse and measure the company s capability to maintain the necessary engineering and manufacturing controls on a continual basis or for the duration of a specific contract life.

11 NS-1 & NS-2 TRAINING PROGRAMMES Training plays an integral role in the Fearnley Procter approach. Both internally as well as externally. The company s commitment to reducing avoidable non-productive-time led to the latest Edition 3 of both the NS-1 and NS-2 Standards. Adoption of them into the day to day operations and procurement guidelines of a company has been shown to reduce non-productive-time caused by equipment failure and poor operations. Training throughout the team in the use and adoption of the standards is vital to this success and NS Accreditation & Standards offers training courses for inspectors (and for those that employ or contract them) - procurement teams - quality assurance and quality control teams - supervisors and managers. We offer two forms of training course: Bespoke Courses: These courses are held at clients own inspection facilities and usually cover both Theory and Practical elements. They include examinations and those who qualify are awarded certificates and a level of inspection ability. There is a three day Theory only version of the course. This is classroom based. These also include examinations and successful candidates are awarded examination certificates but as there is no practical examination an inspection level cannot be awarded. Fearnley Procter Training Centre Courses: These courses are held at our training centres in Dubai and Aberdeen. These classroom based courses are for the three day Theory only course. We do not have the required equipment or materials in house to hold the practical sessions. These can however be arranged separately if required at a client s own premises.

12 NS-2 COURSE CONTENT FOR A TYPICAL 3 AND 5 DAY BHP AND DRILL PIPE TRAINING COURSE FOR INSPECTORS Course Content - Theory: 3 Days The objective is to have a clear understanding and interpretation of NS-2 Edition 3 and other inspection standards and to cover the differences of the industry inspection standards used today and why they are specified. References will also be made to the standards covering Manufacture and NDT methods from API (Spec 7-1, 5DP) and the American Society of Mechanical Engineers reference standard (ASME V). We will also cover the responsibility of the inspector and what he should be reporting to the client. Manufacturing: Material types Manufacturing defects API, DS-1 Vol 1, NS-1 Edition 3 Material testing Material certificate review BHA: API RP7G-2 NS-2 Edition 3, DS-1 Vol 3 Thread types Visual Inspection Dimensional Gauging MPI & DP Cold Working Bevel Diameters Jars, Motors etc BSR's Anti Galling Failure Mechanisms Fishing and Milling Equipment Calibration Drill Pipe: API RP7G-2 NS-2 Edition 3, DS-1 Vol 3 Visual Inspection Dimensional Re-facing OD Gauging EMI UT Internal Upsets Internal Coating Hardbanding Thread Compounds NDT Techniques: Visual MPI DPI EMI UT Failure Prevention: Failure mechanisms Fatigue Correlating inspection methods to failure prevention. Course Content - Practical : 2 Days The objective is to assess Inspectors knowledge of implementing NS-2 Edition 3 standard. This will include for Drill Pipe the setting up of EMI and MPI equipment, and inspection techniques for: Visual (thread, internal and external pipe body) Dimensional Measurements Wet Fluorescent MPI EMI Tube Body UT and Wet MPI Slip/Upset Areas MIU Plastic Coating Hardbanding For BHA the correct set up, equipment calculations and inspection techniques for: Wet MPI Dye Penetrant Visual Dimensional Measurements Examination of Slip and Elevator Recess areas. The Inspection Company will be given a summary sheet for each Inspector/Trainee. The Level and grading for each Inspector/Trainee will be based on the overall score for each of the exams. Certification to specify: Name of certified individual Discipline, level, date of certification, and date of expiration Educational background and experience Date, duration and location of training courses Examination scores Statement of satisfactory completion of courses Signature of course examiner and designated company representative Photograph of Attendee 5 Day courses including the practical examination will also carry a level of achievement scaled from 1 to 4. Certificates are not transferable between companies or between individuals and shall remain the property of the company paying for the course to be provided.

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