GNBS defends use of American Petroleum Institute’s standards for oil and gas

The Guyana National Bureau of Standards (GNBS) has defended its decision to use the American Petroleum Institute’s (API) standards, protocols, guidelines and recommended practices as its benchmark implementations for the oil and gas sector here saying they offer numerous benefits.

API is seen as friendly to the needs of the US oil industry and counts ExxonMobil as one of its members.

“The GNBS, recognising its crucial role in the Oil and Gas sectors did its research and determined that API has the standards and support needed to propel the GNBS adequately to develop its capacity to serve the Oil and Gas sector,” GNBS spokesperson Lloyd David said in response to questions from the Stabroek News.

Earlier this month, the GNBS announced that it had signed a Memorandum of Understanding (MoU) with API to adopt safety standards and guidelines for the expanding local oil and gas sector.

As part of the MoU, the GNBS will be adopting a list of API standards and will access training and capacity building as well as other opportunities based on the needs of the bureau and the petroleum industry. The  agency’s Head Ramrattie Karan said that GNBS and API will be exchanging information on regulations that may be applicable to the industry in Guyana, thereby enhancing the understanding and implementation of the API manual of the Petroleum Management Standard that is issued onboard a Floating Production, Storage and Offloading platform.

But questions have been raised on the choice of API against, for example the standards set by the International Organization for Standardization (ISO), given that API is also a trade association for the oil and natural gas industry representing nearly 600 corporations of which ExxonMobil – the major operator in Guyana – is one.

Karan, had said that the MoU will strengthen the knowledge and cooperation on standards, safety guidelines and other requirements for the local petroleum industry. She noted that standards are important as Guyanese businesses venture into the oil and gas industry and the bureau sees its role as critical to ensure success. “We look forward to partner with API to standardize the practices and the procedures through the adoption of API standards and other guidelines for the petroleum industry,” she said.

David told this newspaper that the GNBS, being the national standards institution and over the years having  established relationships with a number of regional and international standards institutions including ISO, ASTM, BIPM and CROSQ, went for API as it was the best for this country’s needs.

“We are concerned with adopting the best standards, which will satisfy the needs of stakeholders across our local sectors. We do not choose to associate with other organisations based on their ability to be good watchdogs, but rather to establish benchmarks based on the best and critically needed standards,” he said.

David made clear that the American Petroleum Institute did not lobby the GNBS but that the GNBS sought out that organisation.

He listed benefits of the partnership with API saying that it has much to learn from the body, formed over 102 years ago.

“Benefits of the established relationship with the API include: Cooperation and exchange of information in relation to standardisation and related activities in the oil and gas industry. Collaboration on the execution of joint fora, conferences and workshops to create awareness on key aspects for players in the sector. Access to petroleum experts to standardise practices and procedures in the sector to be on par with or reflect other thriving oil and gas industries worldwide,” he said.

“The implementation of internationally recognised standards by the industry [and] the transfer of critical skills through training and attachments [are] needed to develop the industry,” he added.

Vice President of the API Segment Standards & Services Global Industry Services Alexa Burr had noted that signing of the MoU marks the first official agreement between API and GNBS and the start of a long term collaboration. “Between API’s 600+ members and our 7000+ standards combined with GNBS decades of experience, we have a significant opportunity to share knowledge across the industry’s safety, sustainability and environmental protection practices,” she said.

Meanwhile, Ministry of Natural Resources representative Bobby Gossai had said that the standards will also ensure that Guyana adheres to international best practices for the industry.