API Licensing Is a Business Risk Decision—Not a Formality
For oil & gas manufacturers and service providers, API licensing is no longer just a qualification requirement. It is a commercial gatekeeper. Operators, EPCs, and major service buyers increasingly treat API Q1, API Q2, and the API Monogram as minimum entry criteria, not differentiators.
Organizations that underestimate the preparation effort often face failed audits, repeat nonconformities, delayed approvals, and loss of contract eligibility. In many audit reviews, the root cause is not intent—but poor readiness, weak implementation, and lack of risk-based thinking.
This guide explains how to properly prepare, apply, and succeed in obtaining an API Q1, API Q2, or API Monogram license—based on real audit outcomes and operational realities.
Understanding the Difference: API Q1, API Q2, and the API Monogram
API Q1: Quality Management for Manufacturers
API Q1 applies to organizations that design, manufacture, test, inspect, or service equipment for the oil and gas industry. It governs the entire lifecycle—from sales and design through manufacturing, testing, preservation, and delivery.
Auditors assess:
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- Risk-based planning and operational controls
- Design and change management
- Traceability, inspection, and testing
- Nonconformance and corrective action effectiveness
API Q2: Quality Management for Service Providers
API Q2 focuses on service execution, making it critical for oilfield services, drilling contractors, inspection companies, and intervention providers.
Audits emphasize:
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- Service quality plans
- Risk assessment at job level
- Contingency planning
- Field execution control
API Monogram: Product Compliance and Marking
The API Monogram authorizes manufacturers to apply the API mark to products that meet defined API product specifications.
Important:
An organization cannot obtain an API Monogram license without meeting API Q1 requirements, even if it applies only for the Monogram.
To apply for API Q1/Q2 or Monogram certification, there are several prerequisites that must be met. These include:
- Quality Management System (QMS) implementation: The organization must have a well-defined QMS in place that meets API Q1 or API Q2 requirements documented and implemented for at least 4Months. Prior to application.
- Internal Audits: The organization must conduct internal audits of its QMS to ensure that it is meeting API Q1 or API Q2 requirements.
- Corrective and Preventive Action (CAPA): The organization must have a system in place to identify, document, and take corrective and preventive actions for any non-conformances.
- Facility Applying for monogram, Should have the Product Specification ,the organization must have clear and concise product specifications that meet API Monogram product requirements.
- Manufacturing Process Controls that the organization must have effective process controls in place to ensure that its products are consistently manufactured to meet API Monogram requirements and design packages for products as required by API advisory.
- Demonstrate the capability of product including design, manufacturing, testing and Inspection requirements, the organization must have a system in place to ensure that all products are properly tested and inspected to meet API Monogram requirements.
- By meeting these prerequisites, an organization can apply for API Q1/Q2 or Monogram certification and demonstrate its commitment to quality and customer satisfaction.
API Monogram defines the product specification that needs to be fulfilled by manufacturers, and if an organisation meets the requirements, they can mark the API Monogram on the products that meet specific requirements. Therefore, an organisation can choose to apply for either API Q1 certification or API Monogram license based on their specific requirements. However, if they want to apply for an API Monogram license, they will still need to meet the API Q1 requirements as a prerequisite.
Step-by-Step API Application Process (What Actually Happens)
To apply for an API Q1/Q2/Monogram license, you will need to follow the API’s application process. Here are the general steps you can take:
Step 1: Confirm Scope and Readiness
Define:
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- Certification scope
- Product or service boundaries
- Facility and site applicability
Step 2: Submit Application via API MyCert Portal
Applications must include:
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- Accurate organizational details
- Defined scope
- Supporting QMS documentation
- Licensing fees
Incomplete or inaccurate submissions delay audits.
Step 3: Application Review and Clarifications
API may request:
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- Additional documents
- Scope clarification
- System evidence
Delays here often reflect poor preparation.
Step 4: On-Site API Audit
Auditors assess:
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System implementation
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Risk-based controls
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Field execution
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Staff competence and awareness
This is where most organizations struggle.
Step 5: Audit Review and Licensing Decision
Based on audit findings:
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Nonconformities must be addressed
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CAPA effectiveness is reviewed
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Licensing approval is granted only after closure
Prerequisites Before Applying for API Q1, API Q2, or API Monogram
API does not audit intent—it audits evidence. Before submitting an application, organizations must demonstrate maturity and stability.
1. API-Compliant Quality Management System (Minimum 4 Months)
Your QMS must be:
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Fully documented
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Implemented across operations
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Actively used for at least four months
Auditors expect records—not draft procedures.
2. Internal Audits Based on Real Risk
Internal audits must:
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Cover all API clauses applicable to your scope
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Reflect operational risk, not checklist compliance
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Identify real gaps prior to API audits
Weak internal audits are a common audit finding.
3. Corrective and Preventive Action (CAPA) Effectiveness
API auditors scrutinize:
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Root cause analysis quality
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Timeliness of corrective actions
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Evidence of systemic prevention
Superficial CAPA responses almost always result in nonconformities.
4. Product Specifications and Design Packages (Monogram Applicants)
For Monogram licensing, manufacturers must maintain:
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Current API product specifications
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Complete design packages
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Validation, testing, and inspection records
Design exclusions, where applicable, must align with API Advisory guidance.
5. Manufacturing, Testing, and Inspection Capability
Organizations must demonstrate control over:
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Manufacturing processes
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Inspection and test plans
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Calibration and traceability
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Supplier and subcontractor oversight
Auditors will test whether these controls work in practice, not just on paper.
Typical Timeline: What Companies Should Expect
Most API licensing timelines range from 6 to 12 months, depending on:
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QMS maturity
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Operational complexity
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Audit scheduling
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NCR closure efficiency
Organizations that rush applications often extend timelines instead of shortening them.
API Licensing Protects Market Access—When Done Right
API Q1, API Q2, and the API Monogram are not administrative hurdles. They are operational credibility tests. Organizations that treat them seriously reduce audit risk, protect contracts, and improve execution discipline.
Those that rush the process often pay for it later—through failed audits, rework, and lost opportunities
