Managing critical oil and natural gas equipment is fraught with challenges. Over the lifespan of a product—from its manufacture to daily usage to eventual decommissioning— it may change ownership multiple times, be maintained by different service providers and undergo repairs in different locations.
Without a standardized approach to tracking these events, companies could need to assess incomplete documentation, an uncertain maintenance history or limited visibility into equipment performance. Over time, these can have a cumulative impact on operations, leading to delays, disruptions, unnecessary costs and increased safety risks.
Consider a drilling contractor preparing to use a critical component that has been in service for many years. The component appears functional, but records may be fragmented across multiple organizations and key details, such as its original product specifications and repair history, could be missing. Without a complete record of its service history, the contractor is faced with an operational dilemma: Should they risk using the equipment, replace it or conduct testing of its integrity (perhaps unnecessarily) or invest in resource-intensive testing?
The need for a atandard
This is the type of challenge that led to the development of API 18LCM, Product Life Cycle Management System Requirements for the Petroleum and Natural Gas Industries. The standard establishes a comprehensive framework for managing critical industry equipment throughout its life cycle — from manufacturing through decommissioning — ensuring traceability, maintenance and compliance at every stage.
The standard applies to service providers that perform life cycle management activities, which includes OEMs, service companies, operators, drilling contractors and repair organizations.
To provide a structured approach to life cycle management, API 18LCM establishes three Life Cycle Management (LCM) classifications: LCM-1, LCM-2, and LCM-3—each defined by the amount of available documentation and traceability at the time of classification.
LCM-1 applies to equipment with the least available documentation. A company may know the general product type but lacks details such as its maintenance history (before it started managing the equipment) or date the equipment was first used.
LCM-2 applies when more detailed records exist. This classification requires a verifiable service history, including when the equipment was first used and an understanding of its maintenance history and original manufacturing details. Many API-marked products with intact nameplates can meet LCM-2 classification.
LCM-3 represents the highest level of documentation and traceability. Equipment classified under LCM-3 has been tracked carefully since its manufacture and there is certainty about its original design, manufacturing specifications, service history and usage.
Meeting API 18LCM requirements
To comply with API 18LCM, service providers must develop, document and maintain a Life Cycle Management Plan (LCMP) that ensures equipment meets traceability, maintenance, and regulatory requirements. This plan serves as a service quality framework and must align with API Specification Q2, Quality Management for Service Supply Organizations for the Petroleum and Natural Gas Industry (now in its 2nd edition).
Key components of an LCMP include
- Description of the managed product, ensuring proper classification under LCM-1, LCM-2, or LCM-3.
- Identification, marking and traceability, ensuring that every product is clearly documented from manufacturing to decommissioning.
- Repair and maintenance records, which must be continuously updated to track the service history of equipment.
- Installation and service environment considerations, ensuring equipment integrity is maintained throughout its operational life.
- Usage history documentation, providing operators with a verifiable record of product performance.
- Decommissioning protocols, ensuring equipment is safely retired in compliance with industry standards.
Once classified, equipment enters the API 18LCM program, where records are maintained and continuously updated. Decisions are made as to what is required to maintain the quality and integrity of the equipment based on the starting information available. If additional information becomes available that was not previously known, equipment can be reclassified.
Implementation benefits
API 18LCM delivers substantial benefits to operators and service providers by strengthening safety measures, improving operational efficiency and ensuring long-term product integrity. By establishing a structured approach to product traceability and maintenance, the standard helps minimize equipment failures. It also assists organizations in implementing a Q2 quality management framework, reinforcing industry-wide good practices that prioritize safety and risk mitigation.
“Implementing 18LCM has significantly improved several key areas of our business,” said Ahmed El-Shafey, spokesperson for Dubai-based Drilling Engineering Services. “The standardized processes have helped ensure more consistent product outputs, reduce defects, minimize downtime and improve overall efficiency. Safety has also seen a boost as API standards provide a structured framework that enhances our safety protocols, leading to fewer incidents and better compliance.”
“The API 18LCM certification has enabled Sertecpet to establish itself as a global benchmark in product and asset lifecycle management within the energy sector,” said Evelyn Rocio Lucero, spokesperson for Sertecpet, an Ecuadorian energy solutions provider. “This certification supports the quality and reliability of our processes across all our business lines, ensuring complete traceability and operational optimization that translates into greater efficiency and sustainability.”
Organizations that meet API 18LCM’s requirements can apply for official registration through the APIQR Program, demonstrating their commitment to quality, traceability and adherence to the standard’s guidelines. The APIQR Program provides registration for service providers that operate under globally recognized quality management standards, like API Spec Q1 and API Spec Q2. Achieving APIQR registration enhances credibility, strengthens industry confidence and ensures that service providers maintain a high standard of life cycle management.
Mission for success
API 18LCM provides a recognized framework for strengthening asset reliability and enhancing operational efficiency. By fostering industrywide standardization and improving traceability, API 18LCM helps mitigate risks, supports proactive maintenance strategies and promotes long-term equipment performance, reinforcing API’s leadership in setting the foundation for safe, efficient and sustainable energy operations.
This article was developed by specialist Kevin Ferrick and published as part of the fifth edition of Inspenet Brief magazine August 2025, dedicated to technical content in the energy and industrial sector.