Evolving Standards: How API 16B Impacts Existing Equipment in the Field

Evolving Standards: How API 16B Impacts Existing Equipment in the Field 

*A 10–15-minute read. 

As a manufacturer of pressure control equipment for coiled tubing and wireline well interventions, NXL Technologies has received numerous inquiries from customers about navigating the upcoming release of API 16B. Many are unsure how to address the significant changes that new requirements may impose on their existing equipment, along with the potential financial impact, especially if their clients and regulatory bodies started imposing sweeping, evolving, or unclear requirements. This article aims to clarify these challenges by offering insights into the importance of collaboration among stakeholders and how proper evaluation and planning can mitigate potential negative impacts of new and evolving standards while maintaining safety and performance expectations. 

Elevating Safety & Quality in Well Intervention Equipment 

The long-awaited release of API 16B for Coiled Tubing, Snubbing, and Wireline Well Intervention Equipment is hopefully just around the corner. A lot of blood, sweat, and tears have gone into making this standard a reality, and thanks to the combined efforts and commitment of the industry to safety and quality, manufacturers and service providers will finally have a dedicated standard tailored to the unique requirements of coiled tubing, wireline, and snubbing well interventions. 

API Standards and Their Importance in Oil and Gas Safety 

Safety standards in the oil and gas industry are not just guidelines—they are essential safeguards that protect lives, the environment, and operational integrity, developed through industry collaboration and continuously updated to address emerging risks. Implementation and compliance with these standards are not about just ticking boxes – it is about mitigating hazards, preventing incidents, and fostering a culture of safety that reflects a deep commitment to protecting workers, safeguarding communities, and ensuring the responsible stewardship of natural resources.  

API Standards: Voluntary Guidelines or Mandatory Requirements? 

It is important to understand that the American Petroleum Institute (API) is not a regulatory body mandating that the oil and gas industry adopt its standards. Instead, API works with industry experts to develop technical specifications and recommended practices or guidelines, which become mandatory only when adopted by the individual policies of operators or service providers, or when incorporated by reference into regulatory requirements. API only acts as the governing body for manufacturing and service companies seeking to obtain certifications and monogram licenses. 

Avoiding Blanket Policies: Navigating Compliance Decisions for New and Legacy Equipment  

It is crucial that companies avoid making knee-jerk decisions when API revises existing or releases new standards such as API 16B, as this may lead to unnecessary blanket policies. If not approached with proper consideration, blanket policies can lead to unintended consequences, including high financial burdens, operational setbacks, and the premature decommissioning of viable assets. Let's explore this further: 

Is the Monogram Always Required? 

While the API monogram is a key indicator of equipment quality and adherence to industry standards, it may not always be applicable. Customers may choose not to, or be unable to, monogram equipment for various reasons, such as the equipment not falling under a standard, not qualifying due to unique requirements or customizations, or customers having their own robust quality criteria. In other cases, operating conditions or regional regulations may not mandate the use of monogrammed equipment. 

API Licensed Manufacturers Ensure Quality, With or Without the Monogram 

Regardless of the reason for not monogramming equipment, purchasing from a facility with an API-license such as API 6A or 16B (when released) remains a reliable choice. An API monogram licensee must ensure that the rigorous API Q1 Quality Management System requirements are always in place for equipment manufactured for the oil and gas industry, even when that equipment does not fall under the scope on their certification. Additionally, licensees’ must also have the capability and processes in place to meet the stringent design, material, and testing requirements of the API technical specification, providing an extra layer of quality, safety, and performance, monogrammed or not. 

Assessing Legacy & New Equipment During the Transition Phase  

When API revises or releases a new standard, such as API 16B, the oil and gas industry does not automatically mandate full compliance or disqualify legacy equipment. During the transition period, as manufacturers upgrade their systems to obtain the monogram license, service companies and operators need to evaluate their existing fleets. The wireline, coiled tubing, and snubbing industries should adopt a risk-based approach to assess current equipment, update requirements for new pressure control equipment, and identify where deviations or exceptions may be appropriate. This effort requires collaboration among industry experts—including manufacturers, service companies, operators, and governing bodies—to ensure safety remains a top priority for both new and existing equipment. 

No Shortcuts in Safety: How Risk Assessments Can Keep Legacy Equipment in Play 

You’ve heard the saying, “You Can’t Grandfather Safety”. And this is true—when it comes to safety, there should never be shortcuts. But what if we could tweak that concept a bit? By adding in risk assessments, evaluations, thorough testing, and making the right retrofits, it’s possible to ensure that existing equipment meets today’s performance standards without having to retire fleets of existing equipment. After all, if a piece of equipment has been in use for the last 20 years without any issues, it's already been virtually validated through real-world performance. It’s not about cutting corners; it’s about taking a smart, responsible approach to make sure existing equipment is up to par, even if it's been around for a while. 

Compliance: Evaluating & Upgrading Existing Equipment  

Evaluating existing equipment against API 16B demands a structured approach to maintain safety, performance, and compliance. This process involves identifying gaps, performing risk assessments, and determining the appropriate actions to take. Let’s dive into what this evaluation may involve: 

Industry Review and Gap Analysis 

Conducting a detailed comparison between existing equipment that had no applicable standard and the requirements of API 16B once released. 

Risk Assessments 

Performing a risk-based evaluation related to design, operational, and safety gaps to determine whether existing equipment can be safely used as-is, upgraded, or replaced altogether. Key considerations may include: 

  • Condition of Equipment: Conducting a detailed review of existing equipment’s age, service history, and environmental exposure. 

  • Upgraded Recertification: The level of assurance that can be provided by a 5-year recertification with some additional inspections, such as drift testing, UT examination, hardness testing, and positive material identification testing. This could provide tangible evidence to use in determining if the equipment still meets operational safety and reliability demands. 

  • Engineering Review: Obtaining engineering justification by the OEM or an independent Third-Party to confirm that the design methods used for existing equipment meet the intended performance criteria. 

 

Guidelines for Addressing Existing Equipment and Maintenance 

The results of risk assessments should provide companies with essential information to develop clear guidelines for evaluating equipment condition, determining inspection requirements, and establishing strategies for maintenance or replacement. Let’s explore what this may involve: 

Condition of Equipment 

Guidelines should outline how to assess the current state of equipment and its service history to determine its continued use. Equipment that has been subjected to less harsh conditions—such as minimal pressure or exposure to corrosive environments—may have a higher allowable age limit than equipment that’s seen in more extreme conditions. If the equipment remains within its original service parameters without showing performance or safety issues, operators may choose to continue using it without immediately requiring compliance with new API standards. 

Third-Party or OEM Upgraded Recertification 

Guidelines may include criteria for testing beyond standard 5-year recertification. This could involve sending equipment to the OEM or an approved Third-Party for additional inspections (e.g., drift testing, hardness testing, or positive material identification) or necessary retrofits to ensure compliance with updated API 16B standards for replacement parts. 

Allowable Deviations 

In certain cases, service companies, operators, and governing bodies may permit deviations from API standards based on factors such as service conditions or the applicability of the standard to the equipment. For example, since API 16B has not yet been released, there is currently no dedicated standard for wireline and coiled tubing pressure control equipment. In these instances, companies often use equipment that complies with relevant requirements of existing API standards, such as API 6A, while approving specific deviations where appropriate. These deviations are carefully assessed to ensure they do not compromise safety or performance. 

  • Industry Example - Approved Deviations in the Absence of a Standard: When the 21st edition of API 6A was released, changes in raw material, mandating tensile testing from a larger QTC size, disqualified some previously acceptable material that still met chemistry, Charpy, and UT standards, resulting in longer lead times and increased material costs. In response, many companies approved deviations to continue using materials compliant with the 20th edition, while ensuring that design methodologies and testing adhered to the 21st edition. 

Developing a Maintenance or Replacement Strategy 

Operators or regulatory bodies may establish minimum requirements for phasing out non-compliant equipment under API 16B, if necessary, over a defined period. This may involve replacing outdated equipment with compliant or monogrammed API 16B units. Service companies can then create and submit phase-out plans, factoring in recertification results and the current condition of their existing equipment, to meet these new standards. 

Final Insights on Adapting to New Standards 

In conclusion, as a premier manufacturer and provider of recertification equipment for coiled tubing and wireline in the oil and gas industry, NXL Technologies believes that a thoughtful, measured, and data-driven risk-based approach can effectively adapt the "grandfather clause" to ensure equipment remains safe, reliable, and fit for service, even as new standards emerge. 

Guiding Companies Toward a Balanced Compliance Strategy 

At NXL Technologies, our commitment to stewardship means we prioritize health, safety, and environmental responsibility. Through innovation and excellence, we deliver next-level solutions that transform challenges into opportunities, ensuring that quality is at the core of everything we do. Our expertise and client-focused approach mean that operators and service providers can rely on us for trusted support and effective solutions. 

  • Cleaning the equipment to minimize the risks of leakage
  • Lubricating all moving parts
  • Replacement of all seals
  • Removing metal fragments in the BOP

Tower One

Without a Regular Maintenance Schedule

The first Dual Combi BOP we are looking at in this comparison did not have a regular maintenance schedule. The 15K Dual Combi BOP was purchased in 2018 and received its required 5-year recertification in 2023. Over those five years, the equipment experienced wear and tear, which accumulated year after year.

During its recertification process, it was discovered the customer-owned BOP required significant repairs, which led to considerable repair costs and downtime. 

Tower One Stats

  • Customer Owned
  • Purchased new in 2018 
  • Regular maintenance schedule: Unknown
  • Annual recertification status: Unknown
  • 5-Year recertification (performed in 2023)
    • Third party breakout company required with added cost.
    • Weld repair and machining operations required with added cost.
    • Significant OEM parts needed due to improper maintenance with added cost.
    • Time taken: 20 weeks total without equipment
    • Lost revenue due to additional time without equipment – Unknown

In the end, it is estimated the customer incurred significant costs in maintenance and repairs, as well as an unknown amount of revenue lost due to the time required to perform the extensive recertification and repairs.

Tower Two

With a Regular Maintenance Schedule

The second 15K Dual Combi BOP compared in this case study is a part of NXL Technology’s rental fleet. This pressure control equipment was originally manufactured in 2014 and had a regular maintenance schedule, which included inspections and repairs after each rental to ensure that it remained efficient and safe for our customers to utilize in their operations. 


Tower Two Stats

  • NXL Rental Fleet
  • Purchased new in 2014 
  • Regular maintenance schedule (after each rental):
    • BOP opened up
    • Remove all trace fluids
    • All Ram blocks disassembled and cleaned
    • Protective film applied 
    • All BX grooves cleaned – protective film applied
    • Q Ports and blocks cleaned
    • Time Taken: 2-4 hours, depending on severity
  • Annual recertification status (yearly):
    • Full disassembly
    • Inspections
    • Assembly
    • Pressure Test
    • Time Taken: 2 days
  • 5-Year recertification (performed in 2018 and 2023)
    • Full disassembly
    • Remove all trace fluids
    • Teflon coating and paint removed
    • Dimensional inspections
    • NDT inspections
    • Teflon coating applied
    • Assemble and pressure test
    • Fresh Paint
    • Time taken: 6-8 weeks

With all the recertifications and scheduled maintenance this BOP received, the total cost came to 2-3X less than the tower that did not receive regular maintenance. This tower also experienced significantly less time being out of commission - by 12-14 weeks.

As you compare the maintenance schedules of the two blowout preventers, you can see that investing in regular maintenance and making small repairs and upgrades can offer significantly more cost savings than delaying scheduled maintenance and having to pay for substantial repairs.


More Reasons Why You Should Maintain Your Equipment

Regular maintenance of equipment in coiled tubing or wireline operations is crucial for several reasons. 

Safety and Environmental Protection: By ensuring that your equipment can be operated safely, you can safeguard personnel, the environment, and the wellbore. Neglecting regularly scheduled maintenance can lead to malfunctions or failures, increasing the risk of blowouts, well control incidents, and other harmful events. Regular inspections and upkeep ensure that your equipment functions optimally, reducing the chances of catastrophic accidents and environmental damage.

Compliance with Regulations: The oil and gas industry is regulated to ensure safety standards are met. Companies must adhere to specific guidelines set by regulatory authorities to prevent accidents and maintain operational integrity. Regular coiled tubing and wireline equipment maintenance is often a mandatory requirement.

Equipment Reliability: Coiled tubing and wireline operations often involve harsh environments, high pressures, and extreme temperatures. These conditions can expose equipment to wear and tear over time. Regular maintenance ensures that your equipment remains in peak working condition, reducing the likelihood of unexpected failures that could disrupt operations and incur significant downtime and costs.

Cost-Effectiveness: Although regular maintenance incurs some costs, it is more cost-effective in the long run compared to dealing with the consequences of equipment failures. The expenses associated with well control efforts, equipment damage, and environmental cleanup far outweigh the preventive maintenance costs. That is why it is beneficial to budget for more predictable costs, such as regular maintenance, versus having to pay for the unknown costs of major repairs.

Proactive Risk Management: In high-risk industries like oil and gas, proactive risk management is essential. Regular maintenance is part of a comprehensive risk mitigation strategy, providing you with peace of mind that you are taking necessary precautions to minimize potential hazards.

Enhanced Operational Efficiency: Well interventions require precise execution and efficient operations. A well-maintained fleet of equipment ensures smoother and safer interventions, minimizing disruptions and downtime. It also allows operators to focus on the task at hand with confidence.

 

If you have any questions about how often your coiled tubing and wireline equipment should be inspected, maintained and recertified, our knowledgeable team is here with all the answers. And if you feel that your equipment may be due for a tune up, contact NXL Technologies today.

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December 6, 2024