The oil and gas industry depends on equipment that performs safely and reliably under demanding operating conditions. Over time, valves, blowout preventers, wellhead equipment, drill-through equipment, and other critical assets may require repair or remanufacture to restore them to their original performance standards. To ensure these activities are carried out consistently and in compliance with industry requirements, the American Petroleum Institute (API) established the API Repair and Remanufacture Program. 

If you’re considering an API Repair and Remanufacture license, one of the first decisions you’ll need to make isn’t about your quality system at all — it’s about where your work actually happens. The program offers two licensing structures—Structure 1 and Structure 2—each designed for different business models. Understanding these options helps companies select the license that best matches their operations while meeting customer and regulatory expectations. 

In this guide, we’ll explain the differences between both structures, their requirements, and how to determine which option is fit for your organization’s operations. 

What Is the API Repair and Remanufacture Program? 

Unlike manufacturing new equipment, repair and remanufacture involve restoring existing products to meet their original specifications. Organizations participating in the program must demonstrate competent personnel, documented procedures, inspection processes, equipment calibration, traceability, and effective quality control. 

Companies with an API Repair and Remanufacture License gain greater confidence from customers by showing their commitment to quality, compliance, and operational excellence. 

What Structure 1 Covers

Structure 1 is built for organizations that perform all their repair and remanufacture work at a single, fixed location. Under this structure, that location is identified on the license certificate as the licensed facility, and it’s the only place where the API mark can be applied to finished products.

Structure 1 is a fit if:

  • All repair and remanufacture activities like disassembly, machining, welding etc., are carried out within the organization’s approved location.  
  • The facility operates under a documented quality management system.
  • Equipment, personnel, inspection, testing, and calibration are managed internally.  
  • You don’t rely on third-party facilities to perform any part of the physical repair/remanufacture process
  • You want a simpler audit scope — API only needs to verify the one licensed location

The program is specifically about verifying that physical work — the kind that actually changes the product to meet the standard — happens at the certified site.

Typical Organizations Using Structure 1 

Structure 1 is commonly selected by: 

  • Equipment repair workshops
  • Valve repair facilities
  • Machine shops
  • Oilfield equipment service centers
  • Manufacturers providing repair services
  • API Monogram license holders expanding into repair operations  

Organizations with centralized repair operations generally find Structure 1 easier to manage because quality processes remain within one controlled facility.

What Structure 2 Covers

Structure 2 is designed for organizations whose repair or remanufacture activities happen across multiple locations — including third-party or subcontracted facilities — as long as everything is controlled under a single, centralized quality management system.

Structure 2 is a fit if:

  • You subcontract certain repair/remanufacture steps to partner facilities
  • Your operations span multiple sites, but your QMS oversight is centralized
  • You need the flexibility to scale operations without licensing every individual site separately

The API Repair and Remanufacture Structure 2 license requires stronger operational controls to maintain consistent quality across multiple locations.

Key Differences Between Structure 1 and Structure 2

Which Structure Fits Your Business? 

Choosing between API Repair Program Structure 1 vs Structure 2 depends on how your organization delivers repair services. 

Structure 1 May Be the Right Choice If You: 

  • Operate from a dedicated repair workshop.
  • Receive customer equipment at your facility.
  • Perform inspections and testing on-site. 
  • Prefer centralized quality management. 
  • Have limited field repair activities. 

Structure 2 May Be the Better Choice If You: 

  • Frequently repair equipment at customer locations.
  • Support offshore or drilling operations.
  • Provide mobile repair services. 
  • Work across multiple operating sites.
  • Need flexibility to perform repairs where equipment is installed.  

Selecting the appropriate structure helps reduce compliance risks while improving operational efficiency. 

Preparing for an API Repair and Remanufacture Audit 

An API Repair and Remanufacture Audit evaluates whether the organization’s quality management system is effectively implemented and consistently followed. 

Before the audit, organizations should: 

  • Review documented procedures.
  • Verify competency records
  • Confirm calibration status of inspection equipment
  • Ensure repair records are complete
  • Conduct internal audits
  • Address previous nonconformities
  • Train employees on API requirements.  

Preparation reduces audit findings and improves the likelihood of achieving certification successfully.

How Vegas Consulting Can Help

Choosing between Structure 1 and Structure 2 isn’t just a form field on your application — it determines your audit scope, your ongoing cost exposure, and how much administrative responsibility you’re taking on for third-party sites. Getting it wrong doesn’t just mean extra paperwork; it can mean applying under the wrong scope and needing to revisit it later through a formal change-of-scope review.

Vegas Consulting works with UAE and GCC-based manufacturers and service providers to:

  • Map your actual operations against both structures, so the decision is based on how your facility really works today — not a guess
  • Run a pre-application gap analysis against API Spec Q1 requirements, so you walk into your on-site audit with confidence, not surprises
  • Prepare your documentation set — procedures, records, and third-party agreements — specific to the structure you choose, including the subcontractor access agreements Structure 2 requires
  • Support you through renewal and surveillance audits, so compliance doesn’t lapse once the initial license is issued

The Real Question to Ask Yourself

It’s less about which structure is “better” and more about which one matches how your business actually operates today — and how you expect it to operate over the next few years. Choosing Structure 1 when you’re already subcontracting parts of the work can create a compliance gap. Choosing Structure 2 unnecessarily adds audit cost and administrative burden you may not need.

If your operation is currently self-contained but you’re planning to bring on subcontractors soon, it’s worth having that conversation before your initial application — switching structures later means going through scope-change review.