mixi report

INTERNSHIP PROJECT REPORT

AN ORGANISATION STUDY AT

“OIL INDIA LTD., ASSAM”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS OF THE INSTITUTE FOR THE

AWARD OF DEGREE

IN

POST GRADUATION DIPLOMA IN MANAGEMENT

By MEENAKSHI GOON.

REG.NO.09PGDM002

UNDER THE GUIDANCE OF

ACHARYA’S BANGALORE B-SCHOOL

#3, LINGADHEERANAHALLI, MAGADI MAIN ROAD,

BANGALORE – 560091

Prof. Nila Chotai

{FACULTY OF ABBS}

INTERNAL GUIDE

D.C.GOSWAMI.

CHIEF MANAGER

ACCOUNTS

OIL INDIA LTD,ASSAM

Acharya’s Academy Of Management Studies

1

http://en.wikipedia.org/wiki/File:Oil_India_Logo.gif

STUDENT DECLARATION

I,MEENAKSHI GOON,Reg.No.09PGDM002 hereby declare that the ORGANISATIONAL STUDY in written and submitted by me under the guidance of Prof.Nila Chotai ,Department of Management Studies ,Acharya’s Bangalore B-School ,Bangalore is my original work and has not been submitted earlier to any other institute.

The report is the fulfillment of the degree of Post Graduation Diploma in Management from this institution.

The matter in this report is based on the data collected by me at OIL INDIA Ltd under the guidance of Mr.D.C.Goswami.

Place: Bangalore

Date:


2


CERTIFICATE FROM GUIDE

This is to certify that internship report of an ORGANIZATIONAL STUDY is based on an

original study conducted by MEENAKSHI GOON at OIL INDIA Ltd., ASSAM under my

guidance in partial fulfillment of the requirements for the award of POST GRADUATION

DIPLOMA IN MANAGEMENT.

To the best of my knowledge and belief the matter presented in this report has not formed a basis

for the award of any degree / diploma by any institution.

Place: Bangalore Prof. Nila Chotai


3


CERTIFICATE

This is to certify that Miss. MEENAKSHI GOON of Reg. No: 09PGDM002, a student of Post

Graduation Diploma In Management, during the academic year 2009-10 of this college has

successfully completed the internship training on ORGANIZATIONAL STUDY at OIL INDIA .

Ltd., ASSAM, under the guidance of Prof.Nila Chotai, in partial fulfilment for the award of Post

Graduation Diploma In Management.

His character and conduct is satisfactory during the study and we wish him all success in future

endeavour.

HOD DIRECTOR


4


The completion and drafting is a solitary task but one which has been made smoother with

the help of many. Here I take this opportunity to thank those who have made a vital

contribution in shaping this study.

I would like to express my profound gratitude to Mr. D.C.GOSWAMI(Chief manager

Accounts) for giving me an opportunity to take up the summer in plant training at

Ltd.

My hearty thanks to my internal guide Prof.Nila Chotai for all the encouragements and

helping hand extended to me for this project work. Any accomplishment requires the efforts of

many people.

Regardless of the source I wish to express my gratitude to those who have contributed to my

project, even though indirectly.

I extend my thanks to our director Dr.H.R.Venkatesha for his valuable guidance and

cooperation during my project.

I would also like to thank my friends for their valuable guidance, support and help during

my project. This project wouldn’t have seen the light of the day, if it weren’t for the cooperation

of all these people.

Last but not the least; I am also grateful to My Parents who have supported in my entire

endeavor’s to bring out this Internship report successfully.

….MEENAKSHI GOON.

ACKNOWLED

GEMENT


5


CONTENTS

CHAPTER NO.

PARTICULARS PAGE NO.

1 INDUSTRY PROFILE

Pipeline History 50 years of oil

7-10

COMPANY PROFILE

Introduction

Establishment

Objectives

Locations

Core purpose

Vision

11-15

PRODUCT PROFILE 16-20


6


2 ORGANIZATION STRUCTURE AND FUNCTIONS 21-29

3 FUNCTIONAL DEPARTMENTS

Marketing

Finance

Human resource

IT

Production

Operations

30-68

4 SWOT ANALYSIS 69-75

5 Findings

Suggestion

6 CONCLUSION 76

BIBILIOGRAPHY 77


7


Oil India Pipeline History:

A 1157 kilometres long fully automated telemetric pipeline with 212 kilometres of

looping having a total capacity to transport over 6.0 MMTPA remains the lifeline

of the Company. Commissioned in 1962, the double skinned crude oil pipeline

traverses 78 river crossings including the mighty Brahmaputra River meandering

through paddy fields, forests and swamps. There are 9 pumping stations, 17


8


Repeater stations and a terminal at Barauni. The engines that drive the giant pumps

along the pipeline have crossed over two hundred thousand hours of service and

established a world record of machine run - hours.

The Company is currently in the process of constructing a 660 KM long Product

Pipeline from Numaligarh to Siliguri. The Pipeline is expected to be completed by

mid 2007. OIL also sells its produced gas to different customers in Assam viz.

BVFCL, ASEB, NEEPCO, IOC (AOD), and APL and to RSEB in Rajasthan. The

company also produces Liquefied Gas (LPG) in its plant at Duliajan, Assam.

It had an IPO on the BSE and the NSE in 2009

50 yrs of oil

OIL on the threshold of its 50th Year since inception in 1959

It’s celebration time for Team OIL and the Company’s

stakeholders!

FLASHBACK:

By arrangement with the AR&T Co Ltd., the Burmah Oil Company (BOC) of

UK, which was at that time operating in Burma across the Patkai Hills, took


9


over the operation of the Assam Oil Company in 1921. BOC/AOC

continued development of the Digboi oilfield and intensified exploration

activities. In 1953, the first oil discovery of independent India was made at

Nahorkatiya, repeated at Moran in 1956.

Oil India Private Ltd. was incorporated on February 18, 1959 for the

development and production of the discovered prospects of Nahorkatiya

and Moran and to increase the pace of exploration in Northeast India. It

was registered as a Rupee Company with two-third shares owned by

AOC/BOC and one-third by the Government of India (GoI). Via a

subsequent agreement on July 27, 1961, GoI and BOC transformed OIL

into a Joint Venture Company (JVC) with equal partnership. OIL remained

a JVC for over two decades.

On October 14, 1981 Oil India Limited (OIL) became a wholly-owned GoI

enterprise by taking over BOC’s 50% equity, and the management of

Digboi oilfield changed hands from the erstwhile AOC to OIL.

GOLDEN JUBILEE CELEBRATIONS – A PERSPECTIVE

Essentially, OIL has celebrated two milestone years till date. First was the

Silver Jubilee Year 1984, and second, a hundred years of the discovery of

crude oil in Digboi in 1989. The Digboi discovery was celebrated primarily

because OIL’s legacy has its roots in Asia’s first and the world’s second

commercially successful oil exploration activity at Digboi, Assam in 1889.

The Silver Jubilee Year was celebrated in 1984 because on February 18,


10


1959, Oil India as a Company (Oil India Private Limited) was born. Though

the nature of ownership changed from the private sector to the public

sector, Oil India in essence retained its name and continued to carry out its

core activity as an E&P company.

Today as the pioneering and second-largest national upstream Oil and Gas

Company with a pan Indian presence and growing global footprint, OIL is

all set to conquer newer horizons of all-round growth and excellence.


11


COMPANY PROFILE…………

The story of Oil India Limited (OIL) traces and symbolises the development

and growth of the Indian petroleum industry. From the discovery of crude


12



oil in the far east of India at Digboi, Assam in 1889 to its present status as a

fully integrated upstream petroleum company, OIL has come far, crossing

many milestones.

On February 18, 1959, Oil India Private Limited was incorporated to

expand and develop the newly discovered oil fields of Naharkatiya and

Moran in the Indian North East. In 1961, it became a joint venture company

between the Indian Government and Burmah Oil Company Limited, UK.

In 1981, OIL became a wholly-owned Government of India enterprise.

Today, OIL is a premier Indian National Oil Company engaged in the

business of exploration,

development and production of

crude oil and natural gas,

transportation of crude oil and

production of LPG. OIL also

provides various E&P related

services and holds 26% equity in

Numaligarh Refinery Limited.

The Authorized share capital of the

Company is Rs. 500 Crores. The Issued,

Subscribed and Paid share capital of the

company is Rs. 240.45 Crores. At

present, The Government of India, the

Promoter of the Company is holding


13


78.43% of the total Issued & Paid-up Capital of the Company. The balance

21.57% of the Equity capital is held by others.

OIL has over 1 lakh sq km of PEL/ML areas for its exploration and

production activities, most of it in the Indian North East, which accounts for

its entire crude oil production and majority of gas production. Rajasthan is

the other producing area of OIL, contributing 10 per cent of its total gas

production.

Oil India Ltd., (OIL) is a large state-owned oil and gas company in India under

the administrative control of the Ministry of Petroleum and Natural Gas of the

Government of India. OIL is engaged in the business of exploration, development

and production of crude oil and natural gas, transportation of crude oil and

production of liquid petroleum gas.

OIL is the pioneer in exploration and production of hydrocarbons in India, and

traces its roots back to Oil India Private Ltd., formed in 1959 with The Burmah Oil

Company Ltd. holding two-thirds of equity and Government of India holding one-

third. Oil India Private evolved into Oil India Ltd., which was an equal partnership

between Burmah Oil and Government of India. In 1983 the company became a

public sector undertaking of the Government of India.


14

http://en.wikipedia.org/wiki/Public_sector

http://en.wikipedia.org/wiki/Partnership

http://en.wikipedia.org/wiki/Ownership_equity

http://en.wikipedia.org/wiki/Burmah_Oil_Company_Ltd.

http://en.wikipedia.org/wiki/Burmah_Oil_Company_Ltd.

http://en.wikipedia.org/w/index.php?title=Oil_India_Private_Ltd.&action=edit&redlink=1

http://en.wikipedia.org/wiki/Hydrocarbons

http://en.wikipedia.org/wiki/Liquid_petroleum_gas

http://en.wikipedia.org/wiki/Crude_oil

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Ministry_of_Petroleum_and_Natural_Gas_(India)

http://en.wikipedia.org/wiki/Public_administration

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Natural_gas

http://en.wikipedia.org/wiki/Petroleum


The Company presently produces over 3.2 MMTPA (million tons per annum) of

crude oil, over 5 MMSCMD of Natural Gas and over 50,000 Tones of LPG

annually. Most of this emanates from its traditionally rich oil and gas fields

concentrated in the Northeastern part of India and contribute to over 65% of total

Oil&Gas produced in the region. The search for newer avenues has seen OIL

spreading out its operations in onshore / offshore Orissa and Andaman, deserts of

Rajasthan, plains of Uttar Pradesh, riverbeds of Brahmaputra and offshore

Saurashtra. In Rajasthan, OIL discovered gas in 1988, heavy oil / bitumen in 1991

and started production of gas in 1996. The company has accumulated over a

hundred years of experience in the field of oil and gas production, since the

discovery of Digboi oilfield in 1889. It is possibly the only company to do so.

From well completion to wellbore servicing, installation, operation and

maintenance of modern surface handling facilities, the company has the skill and

expertise to manage the entire range of operations required for onshore oil and gas

production.

The company has over 100,000 square kilometres of license areas for oil and gas

exploration. It has emerged as a consistently profitable international company with

exploration blocks as far as Libya and sub-Saharan Africa.

In recent years, OIL has stepped up E & P activities significantly including Gas

monetization in the North-East India. OIL has set up the NEF (North East Frontier)

project to intensify its exploration activities in the frontier areas in North East,

which are logistically very difficult and geologically complex. Presently, seismic

surveys are being carried out in Manbhum, Pasighat and other Trust Belt areas.

The Company operates a crude oil pipeline in the North East for transportation of

crude oil produced by both OIL and ONGCL in the region to feed Numaligarh, Acharya’s Academy Of Management Studies

15

http://en.wikipedia.org/wiki/Sub-Saharan_Africa

http://en.wikipedia.org/wiki/Libya

http://en.wikipedia.org/wiki/International

http://en.wikipedia.org/wiki/MMSCMD


Guwahati, Bongaigaon and Barauni refineries and a branch line to feed Digboi

refinery.

CorePurpose :

"The fastest growing energy company with a global presence providing

value to the shareholder"

OIL's Vision :

Oil India is the fastest growing Energy Company with highest profitability.

Oil India delights the customers with quality products and services at

competitive prices.

Oil India is a Learning Organization, nurturing initiatives, innovations and

aspirations with best practices.

Oil India is a team, committed to honesty, integrity, transparency and

mutual trust creating employee pride.

Oil India is fully committed to safety, health and environment.

Oil India is a responsible corporate citizen deeply committed to socio-

economic development in its areas of operations.


16


PRODUCT PROFILE……….

Our vast product range encompasses Transformer Oil, Glass Mould Oil, Cutting Oil, Gear Oil, Switchgear Oil, Hydraulic Oil, Circulating System Oil, Hydraulic Brake Fluids, Rubber Process Oil, Refrigeration Oil,


17


Quenching Oil, White Oil, Heat Transfer Oil, Steam Cylinder Oil, SAE Oil, Turbine Oil, etc. The firm, with these and many other premium quality products, aims to achieve a premier position in the Indian and overseas markets.

We have established ourselves as a popular brand name in the lubricant industry within nearly three decades of time. Our products are an immaculate blend of the most efficient lubricating agents that assist in the frictionless movement of various incorporated machinery parts. A significant portion of our product range is exported to the overseas markets of UAE, Sri Lanka, Bangladesh, Nepal, Malaysia, and many other countries. Similarly, we import quality raw materials such as base oil, adhesives, transformer oil, etc. from USA and Korea.

We have expanded our business profile with our sister concerns such as Shilpi International, Shaily Exports, and Seven Seas International. With these companies, we are able to meet all kinds of lubricant requirements of our clients in India and overseas. More importantly, recognizing our position in the trade, organizations and associations such as Vadodara Chamber Of Commerce & Industry (VCCI), Federation of Gujarat Industries (FGI), Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) have bestowed their affiliation with us.

Product range:

Tashkent Oil Company Pvt. Ltd. deals in a wide range of premium quality industrial lubricants and special purpose oils like:

Transformer Oil Glass Mould Oil Cutting Oil Gear Oil


18


Switchgear Oil Hydraulic OilCirculating System Oil

Hydraulic Brake Fluids

Rubber Process Oil Refrigeration OilSugar Mill Bearing Oil

Axle Oil

Quenching Oil White Oil Heat Transfer Oil Shock Absorber Oil

Steam Cylinder Oil SAE Oil Turbine Oil Capacitor Oil

Wire Drawing Oil Ink OilAgricultural Spray Oil

Orchard Spray Oil

Rubber Spray Oil X-Ray Tube Oil Instrument OilSecondary Plasticizer Oil

EmulsifierSpecial Grade Pharmaceutical Oil

Calibration OilCorrosion Preventive Oil Compounds

Textile OilAnti-Static Coning Oil

Wood Batching Oil Spin Finish Oil

Anti-Caking Agent Anti-Static Agent

Beside these we also produce different types of lubricants.Few examples are given below.

Lubricants For

Commercial Vehicles and Agricultural Equipments :Oil has a wide range of lubricants specially developed for commercial vehicles operating on diesel as well as on gas.


19


Two Wheelers :Oil offers a complete range of engine oil’s for 4-stroke and 2-stroke motorcycles and scooters. Our premium range of 4T oils with “Formula 10,000 “for an extended drain interval of 10,000 kms and “PENTATEC ADVANTAGE” for new generation bikes provides a unique Fuel saving formula and a power packed performance.

Cars and Utility Vehicles :With changing technology in new generation passenger cars, Oil is committed to enhance the performance of passenger cars with a complete range of Engine Oils with “Mx4 technology” that ultimately gives Maximum Performance to your car.

Industrial Applications :Oil offers wide range of quality industrial lubricants that meet and exceed the required specification. Our technical expertise has come out with lubricants catering to the needs of various sectors of an industry.

Car Care Products :Presenting a complete range of car care products, from a unique product for emergency punctured tyre repair to multifunctional fluids, polishes and cleaners, there is virtually everything for those “who park their car in their heart”


20


Construction and Mining Equipments:Oil has the most extensive range of high performance lubricants developed exclusively to take care of your Construction / Mining Equipment because, “Special equipment requires specialized solutions”.

Quality Assurance:

We put quality at the highest pedestal, and through the proper application of quality management systems we maintain standard quality, for which we have also been accredited with the prestigious ISO 9000:2001 certification. Tashkent Oil Company Pvt. Ltd. is a reliable name offering high quality products to a gamut of Indian and overseas clients. We produce all our oil lubricants using qualitative base oils and chemicals which are tested over and again and approved by our scientific laboratories to ensure higher benefits and satisfaction of the end users.


21


ORGANISATIONAL STRUCTURE & FUNCTIONS

STRUCTURE AND FORMATION

2.3 The Ministry has the following four attached offices and ten subordinate

offices, four autonomous organizations, twenty-twoadjudicating bodies and one

arbitration body.


22


ATTACHED OFFICES

Directorate General of Employment &Training (DGE&T)

2.4 This Office is responsible for laying downthe policies, standards, norms and

guidelines in the area of vocational training throughout the country and also for

coordinating employment services.

Office of Chief Labour Commissioner

(Central) [CLC(C)]

2.5 This Office is responsible for (a)prevention, investigation and settlement of

industrial disputes in the central sphere; (b) enforcement of awards and

settlements; (c) implementation of labour laws in industries and establishments in

respect of which Central Government is the appropriate government; (d)

verification of membership of unions affiliated to the Central Organisations of

workers for giving them representation in national and international conferences

and committees; and (e) fixation and revision of dearness allowance component

of minimum wages under the Minimum Wages Act,1948 in the scheduled

employments.

Directorate General of Factory Advice

Service and Labour Institutes (DGFASLI)

2.6 This Directorate is concerned with formulation of policy relating to the safety,

health


23


and welfare of workers in factories and docks. It is responsible for coordinating

the implementation of the measures of the Factories Act, 1948 by the State

Governments and formulation of Model Rules thereunder. It is also concerned

with the administration of the Dock Workers (Safety, Health and Welfare) Act,

1986. It undertakes research in industrial safety, occupational health, industrial

hygiene, industrial psychology and

industrial physiology. It provides training mainly in the field of industrial

psychology and industrial safety & health including a diploma course of one year

duration in industrial safety. The Diploma is an essential qualification for

appointment of Safety Officers in factories. Regular in-service training of Factory

Inspectors is another important activity of the Organisation.

Labour Bureau

2.7 The Bureau with its headquarters at Chandigarh and Shimla, is responsible for

collection, compilation and publication of statistical and other information

regarding

employment, wages, earnings, industrial relations, working conditions etc. It also

compiles and publishes the Consumer Price Index Numbers for industrial and

agricultural / rural workers. The Bureau further renders necessary assistance to

the States for conducting training programmes in labour statistics at State /

District / Unit levels.

SUBORDINATE OFFICES


24


Directorate General of Mines Safety

(DGMS)

2.8 This Office is entrusted with enforcement of provisions of the Mines Act, 1952

and the Rules and Regulations framed thereunder. The provisions of the Indian

Electricity Act, 1910 as applicable to mines and oil fields are also enforced by it.

Welfare Commissioners

2.9 The nine Offices of Welfare Commissioners are responsible for providing

welfare facilities to the workers employed in mica, limestone and dolomite, iron

ore, manganese and chrome ore mines and in the beedi and cinema industries.

These offices are located at Allahabad, Bangalore,Bhilwara, Bhubaneshwar,

Kolkata, Hyderabad, Jabalpur, Karma (Jharkhand) and Nagpur.

AUTONOMOUS ORGANISATIONS

Employees' State Insurance Corporation

(ESIC)

2.10 The Corporation is responsible for implementation of the Employees' State

Insurance Act 1948, which provides for medical care and treatment to insured

persons and their families. Assistance is given in terms of benefits during sickness

and maternity, compensation foremployment injury, pensions for dependents on

the death of workers due to employment injury, etc.


25


Employees' Provident Fund Organisation

(EPFO)

2.11 This Organisation is responsible for administration of the Employees

Provident Funds and Miscellaneous Provisions Act, 1952. The Schemes for

Provident Fund, Family Pension and Deposit Linked Insurance are implemented by

the Organisation for the benefit of workers covered under the scheme. The

Organisation is also responsible for administration of Employees' Pension

Scheme, 1995 that came into existence on 16.11.1995.

V.V. Giri National Labour Institute (VVGNLI)

2.12 The Institute, with its headquarters at Noida (U.P.), is a registered society,

which conducts action oriented research and provides training to grass-root level

workers in the trade union movement, both in urban and rural areas and also to

Officers dealing with industrial relations, personnel management, labour welfare

etc.

Central Board for Workers' Education

(CBWE)

2.13 The Board with its headquarters at Nagpur is a registered society dealing

with schemes for training of workers in the techniques of trade unionism and in

bringing about consciousness among workers about their rights, duties and


26


responsibilities. The Board also undertakes programme for rural workers'

education and functional adult education.

ADJUDICATING BODIES

Central Government Industrial Tribunalscum-

Labour Courts (CGITs)

2.14 In all, 22 (twenty two) Industrial Tribunalcum- Labour Courts have been set

up under the provisions of the Industrial Disputes Act, 1947 for adjudication of

the industrial disputes in organisations for which the Central Government is the

appropriate Government. These Tribunals are located at Dhanbad (Jharkhand),

Mumbai, New Delhi and Chandigarh (two courts each) and one each at Kolkata,

Jabalpur, Kanpur, Nagpur, Lucknow, Bangalore, Jaipur, Chennai, Hyderabad,

Bhubaneswar, Ahmedabad, Ernakulam, Asansol and Guwahati.

ARBITRATION BODY

Board of Arbitration (Joint Consultative

Machinery)

2.15 The Board, with its headquarters at New Delhi, set up under the Scheme for

Joint


27


Consultative Machinery and Compulsory Arbitration is an institution for

compulsory

arbitration of disputes between employees and the Government and on matters

of pay and allowances, weekly hours of work and leave of a class or grade of

employees.

Main Subjects dealt in the Ministry of Labour

and Employment

2.16 In pursuance of the powers derived from the respective entries in the Union

List and the Concurrent List of Seventh Schedule of the Constitution, the Ministry

of Labour and

Employment has been allocated the following items of work: -

2.17 Labour policy (including wage policy) and legislation, Safety, health and

welfare of labour, Social security of labour, Policy relating to special target group

such as women, child labour, Industrial relations and enforcement of labour laws

in the Central sphere, Adjudication of industrial disputes through Central

Government Industrial Tribunals-cum-Labour Courts and National Industrial

Tribunals, Workers' Education, Labour and Employment Statistics, Employment

Services and Vocational training, Administration of Central Labour & Employment

Services, International Cooperation in Labour & Employment matters.

Central Labour Service (CLS)


28


2.18 The Central Labour Service (CLS) was constituted with effect from 3rd

February 1987 to ensure better industrial relations, labour law enforcement and

labour welfare. Consequent upon the Cadre Review, the Central Labor Service

(CLS) was notified as an organized service in 2004. 2.19. The factories and mines

employing 500 or more workers and plantations employing 300 or more workers

are required to appoint a prescribed number of welfare officers under the

relevant statutes. Assistant Labour Welfare Commissioners (Central) and Deputy

Labour Welfare Commissioners (Central) under the supervision of Welfare

Commissioners discharge these statutory functions and they also advise and assist

the management of the concerned establishments in maintaining harmonious

industrial relations in the areas of safety, health and welfare of workers etc.

Moreover, by assisting in resolution of workers grievances, these officers prevent

them from escalating into industrial disputes.

FUNCTIONS OF THE ORGANISATION:

Prevention and settlement of Industrial Disputes, in the Central Sphere;

Enforcement of Labour Laws and Rules made thereunder in the Central

Sphere;

Implementation of awards.Acharya’s Academy Of Management Studies

29


Quasi-Judicial functions.

Verification of the membership of the Trade Unions.

Welfare.

Other Miscellaneous functions.


30



31


HUMAN RESOURCE DEPARTMENT

purpose and role

In simple terms, an organization's human resource management strategy

should maximize return on investment in the organization's human capital

and minimize financial risk. Human Resources seeks to achieve this by

aligning the supply of skilled and qualified individuals and the capabilities

of the current workforce, with the organization's ongoing and future business


32


plans and requirements to maximize return on investment and secure future

survival and success. In ensuring such objectives are achieved, the human

resource function purpose in this context is to implement the organization's

human resource requirements effectively but also pragmatically, taking

account of legal, ethical and as far as is practical in a manner that retains the

support and respect of the workforce.

Some industry commentators call the Human Resources function the last

bastion of bureaucracy. Traditionally, the role of the Human Resource

professional in many organizations has been to serve as the systematizing,

policing arm of executive management.

In this role, the HR professional served executive agendas well, but was

frequently viewed as a road block by much of the rest of the organization.

While some need for this role occasionally remains — you wouldn’t want

every manager putting his own spin on a sexual harassment policy, as an

example — much of the HR role is transforming itself.

The role of the HR manager must parallel the needs of his or her changing

organization. Successful organizations are becoming more adaptive, resilient,

quick to change direction and customer-centered. Within this environment, the HR

professional, who is considered necessary by line managers, is a strategic partner,

an employee sponsor or advocate and a change mentor


33

http://humanresources.about.com/od/careerdevelopment/a/agile_business.htm

http://humanresources.about.com/od/jobdescriptions/f/hr_job_mgr.htm


Key functions

Human Resources may set strategies and develop policies, standards, systems, and

processes that implement these strategies in a whole range of areas. The following

are typical of a wide range of organizations:

Recruitment, selection, and onboarding (resourcing)

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Industrial and employee relations

Human resources (workforce) analysis and workforce personnel data

management

Compensation, rewards, and benefits management

Training and development (learning management)

.

Implementation of such policies, processes or standards may be directly

managed by the HR function itself, or the function may indirectly

supervise the implementation of such activities by managers, other

business functions or via third-party external partner organizations.

Strategic Partner

In today’s organizations, to guarantee their viability and ability to contribute, HR

managers need to think of themselves as strategic partners. In this role, the HR


34


person contributes to the development of and the accomplishment of the

organization-wide business plan and objectives.

The HR business objectives are established to support the attainment of the overall

strategic business plan and objectives. The tactical HR representative is deeply

knowledgeable about the design of work systems in which people succeed and

contribute. This strategic partnership impacts HR services such as the design of

work positions; hiring; reward, recognition and strategic pay; performance

development and appraisal systems; career and succession planning; and employee

development.

Employee Advocate

As an employee sponsor or advocate, the HR manager plays an integral role in

organizational success via his knowledge about and advocacy of people. This

advocacy includes expertise in how to create a work environment in which people

will choose to be motivated, contributing, and happy.

Fostering effective methods of goal setting, communication and empowerment

through responsibility, builds employee ownership of the organization. The HR

professional helps establish the organizational culture and climate in which people

have the competency, concern and commitment to serve customers well.

In this role, the HR manager provides employee development opportunities,

employee assistance programs, gainsharing and profit-sharing strategies,


35


organization development interventions, due process approaches to problem

solving and regularly scheduled communication opportunities.

Change Champion

The constant evaluation of the effectiveness of the organization results in the need

for the HR professional to frequently champion change. Both knowledge about and

the ability to execute successful change strategies make the HR professional

exceptionally valued. Knowing how to link change to the strategic needs of the

organization will minimize employee dissatisfaction and resistance to change.

The HR professional contributes to the organization by constantly assessing the

effectiveness of the HR function. He also sponsors change in other departments

and in work practices. To promote the overall success of his organization, he

champions the identification of the organizational mission, vision, values, goals

and action plans. Finally, he helps determine the measures that will tell his

organization how well it is succeeding in all of this.


36


MARKETING DEPARTMENT

Marketing is the process by which companies create customer interest in

products or services. It generates the strategy that underlies sales techniques,

business communication, and business development.[1] It is an integrated process


37

http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-0


through which companies build strong customer relationships and create value for

their customers and for themselves.[1]

Marketing is used to identify the customer, to keep the customer, and to satisfy the

customer. With the customer as the focus of its activities, it can be concluded that

marketing management is one of the major components of business management.

Marketing evolved to meet the stasis in developing new markets caused by mature

markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of

marketing strategies requires businesses to shift their focus from production to the

perceived needs and wants of their customers as the means of staying profitable.[citation needed]

The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired

satisfactions.[2] It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy these

more effectively than competitors.[2]

The Indian Economy Blog

Oil Pricing in India

Filed under: Energy, Growth, Politics, Regulatory reforms — Pragmatic @ 10:20

pm


38

http://indianeconomy.org/category/regulatory-reforms/

http://indianeconomy.org/category/politics/

http://indianeconomy.org/category/growth/

http://indianeconomy.org/category/energy/

http://indianeconomy.org/2008/01/05/oil-pricing-in-india/

http://indianeconomy.org/

http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-1

http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-b-1

http://en.wikipedia.org/wiki/Target_markets

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed

http://en.wikipedia.org/wiki/Profit_(accounting)

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed

http://en.wikipedia.org/wiki/Overcapacity

http://en.wikipedia.org/wiki/Mature_market

http://en.wikipedia.org/wiki/Mature_market

http://en.wikipedia.org/wiki/Outline_of_business_management

http://en.wikipedia.org/wiki/Marketing_management

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Marketing#cite_note-kotler-a-0

http://en.wikipedia.org/wiki/Customer_relationship_management


The crude oil prices have finally touched $100 per barrel – a psychological barrier

and a statistical inanity. The composition of Indian crude basket represents average

of Oman & Dubai for sour grades and Brent (dated) for sweet grade in the ratio of

59.8:40.2 since April 2006. The Indian crude basket has touched a high of over $92

in the new year, but is yet to hit the three-figure mark.

India imports about 76 per cent of its crude oil requirements which amounts to an

oil import bill of around $50 billion every year. India’s crude oil import bill rose

by 3.48% in rupee terms and 16.67% in dollar terms during the first half of the

current fiscal year. The appreciation in rupee value by 12.3% this year, the most

since at least 1974, has helped partially offset the sharp rise in global oil prices. As

per the Government, every one rupee appreciation in the exchange rate of Indian

rupee against US dollar will help reduction in the net oil import bill by around Rs

3950 crore. It should help that the rupee is forecast to advance 3.4 percent next

year to 38 per dollar by the end of December, according to the median estimate of

22 strategists surveyed by Bloomberg News.

CNBC-TV18 believes that at current rates, petroleum has an under recovery of

nearly Rs 9.5 per litre, diesel Rs 11.3 per litre, LPG Rs 380 per cylinder, and

kerosene Rs 21 per litre. However, Indian Express estimates the loss to marketing

companies for petrol at Rs 8.74 a litre, diesel at Rs 9.92 per litre, kerosene Rs

20.53 a litre and LPG at Rs 256.35 per cylinder.

As per the government policy of 2003, the subsidy component by the government

has remained constant since 2004-05 at Rs 22.58 per per LPG cylinder and Rs 0.82


39

http://www.indianexpress.com/story/257731.html

http://www.moneycontrol.com/india/news/business/crude-@-100-impactindian-cos/13/45/319522

http://www.bloomberg.com/apps/news?pid=20601091&sid=a44Jems1kZi0&refer=india


per litre of kerosene. The balance subsidy is provided by the marketing companies

from their own pockets.

The gross under-recoveries in 2006-07 by the three oil marketing companies –

IOC, BPC and HPC – were Rs 28584 crore for kerosene and LPG, and Rs 20803

crore for petrol and diesel. The estimated under recoveries by oil marketing

companies during April- September 2007 have been Rs13814 crores on kerosene

and LPG, and Rs 12549 crore on petrol and diesel. If current price trends hold, the

under-recoveries to the marketing companies are estimated to be around Rs 70,000

crore this financial year — around o.75% of India’s GDP. This has to be shared

between the three marketing companies, the upstream companies – ONGC, Oil

India and GAIL – and the government. The upstream oil companies have already

contributed Rs 8788 crore for the period April- September 2007 to partially

compensate these under-recoveries by the oil marketing companies. The

contribution by the upstream companies in 2006-07 was Rs 20507 crore and is

likely to rise by another 5000 crore this year.

In 2006-07, the government issued oil bonds worth Rs 24,121 crore to marketing

companies for the four products, while it had issued oil bonds worth Rs.11,500

crore in 2005-06 for losses in marketing LPG and kerosene. The government has

decided to issue bonds worth Rs 23,457 crores this year, which is not likely to meet

the estimated deficits of the marketing companies.

If additional bonds are not issued by the government this year, the deficit can only

be met by increasing the domestic prices of the products. The last time the


40


domestic prices of petrol and diesel were raised was in June 2006. The prices of

petrol and diesel were revised downwards twice afterwards, in November 2006 and

in February 2007.

Domestic pricing continues to be a politically sensitive topic, with a broad

consensus across the political spectrum to stall any upward revision of prices.

There is a Group of ministers, chaired by Pranab Mukherjee, to suggest an

alternative model for pricing of domestic products. As with the Indo-US nuclear

deal, the left and the right are both opposed to any hike in prices of domestic

petroleum products. The government is also worried about the inflationary impact

of higher domestic prices of petroleum products. A cut in the customs duty on the

crude oil and in the excise duty in petrol and diesel by the government is likely to

keep the prices suppressed for some more time.

The subsidies, whether direct and transparent by the government or indirect as in

tax cuts, oil bonds and compensation by government owned upstream companies,

are a drain on the resources of the government. The losses to the exchequer can

only be reduced when the consumer pays the right price for the product.


41


FINANCE DEPARTMENT ECONOMICS OF ENVIRONMENTAL MANAGEMENT SYSTEM IN OIL INDIA LIMITED: AN ENVIRONMENTAL


42


ECONOMICS PERSPECTIVE CASE STUDY OF OIL, DULIAJANINTRODUCTION- THE RESEARCH PROBLEM

Oil India Limited (OIL) is a major public sector organization in

India that explores and produces mineral oil and natural gas. This

is a research study based on OIL’s Duliajan Central Industrial

Complex. The Environmental implications of the exploration and

production of mineral oil and natural gas are well known. Global

problems like “enhanced greenhouse effect” to locally increased

incidence of respiratory disorders are attributed to such

operations. So are other forms of pollution, which adversely affect

the flora, fauna, humans, domesticated animals and all other

forms of life. In the theory and practice of environmental

management, a paradigm shift is taking place from 'end-of-the-

pipe treatment' of pollution or negative environmental

externalities, to 'Preventive Environmental Management'. OIL and

its operations have sufficient scope for attracting attention as far

as externalities are concerned for it is the biochemical and

physical nature of the fossil fuels that may make the life of

human, flora, fauna and all other forms of life unsustainable on

earth. But then, the need of economic development, which is

essentially energy intensive, cannot be denied. The issue

becomes pertinent in the context of a developing economy like

India. The role of OIL and similar industries


43


forms the core in rapid economic growth, through industrialization

and a subsequent expansion of the services sector. Preventive

Environmental Management (PEM) can mitigate the potential

environmental damage. Therefore, it is essential to explore the

pragmatic integration of the externalities into the marginal

private cost (MPC) of production of the operations of the OIL and

arrive at a nearly true Marginal Social Cost (MSC) of production.

Whether, the environmental performance of OIL with special

reference to its operations under the Duliajan Central Industrial

Complex, is optimum, has to be examined. The examination and

related studies requires integration of the enforceability of the

Environmental Management System (EMS), eco-efficiency and

application of the grant of property rights, for an efficient solution

to the problems faced in environmental economics. There is a

pressing need to resolve the contradictions between rapid

development through poverty alleviation via unsustainable

energy exploration/production/use, and sustainable development

through efficient environmental management. Therefore, the

research problem is to explore the possibility of implementing an

efficient EMS in the OIL.

Paper presented in the Workshop on Trade, Environmental and

Rural Poverty held at the Institute of Economic Growth, University

Enclave, Delhi, during 18-19 August, 2006.


44


STUDY GOAL OF THE PAPER

The paper attempts to analyse compatibility of the existing

environmental management practices with the principles of EMS.

THE ECONOMICS OF ENVIRONMENTAL MANAGEMENT

SYSTEM IN OIL

Corporate Environmental Management (CEM) is referred to as

Environmental Management System when the later is

incorporated as a management policy and practice of a firm or a

corporate body. EMS is defined1 as a comprehensive

management policy and includes practices undertaken by a

corporate body or firm or an institution that include the

operations, organization, financial planning and overall strategies

for meeting the goal of sustainable development through

deliberate modifications in the context of its interactions with the

environment. The concepts and ideas related to CEM took

concrete shape during the 1960s and some sequence of events2

[a comprehensive list can be referred in Appendix I] across the

developed nations gave shape to a kind of awakening in this field.

Levels of EMS in OIL

In order to find the levels of Environmental Management System

(EMS), during the course of study questionnaires were

administered to the officials of OIL, information and data were

collected on objective indicators of EMS and officials were also


45


interviewed over a period of two years. At the beginning of the

study, OIL did not have a comprehensive certification like the ISO

9000 or ISO 14000 but during the course of the study, OIL

gradually adopted certain certification processes and at the

conclusion of the study it has undertaken certification under ISO

14000 for certain facilities.

The key elements of EMS include the following:3

• Environmental Policy

• Environmental Standards

• Legal Requirements and Compliance

• Setting of Environmental Targets

• Organizational Structure and Responsibility

• Training, Awareness and Development of Competence

• Establishment of Communication

• Operational Control

• Monitoring and Measurement

• Non-Compliance and Non-Conformation for Subsequent

Corrective and Preventive Action

• Maintenance of Records

• EMS Audit


46


• Management Review.

A detailed study of the aforesaid key elements in the context of

the operations of OIL was done and the methodology consisted in

use of questionnaires; interviews and official documents and

records of the management sections of OIL; as well as records of

SPCB. A Check-list on EMS was prepared and information was

recorded for this specific purpose. The study found that as per the

official version of OIL, the organization is committed to

Environmental Management (EM) and this is validated by two

important aspects. OIL appointed O’Connor Associates

Environment Insurance of Canada to carry out an Environmental

Study4 in the year 1995. This study was a voluntary initiative and

there was no legal, public, global, market or any other requisition

for carrying out such a study.

OIL has succeeded in the continual cycle approach to a great

extent. OIL has a well organized Safety & Environment (S & E)

department functioning with an allocation of top level executives

and is manned by 20 full-time employees. The S & E department

is responsible for overseeing the environmental aspects and

implications of the operations of OIL and is the core group behind

the Environmental Policy adopted, implemented, and practiced. It


47


also ensures an efficient overall EMS. According to the S & E

department officials, the budgetary allocation made to it does not

reflect the entire expenditure on environmental management.

The individual departments of OIL additionally budget for

environmental management matters and compliance in their

respective departments. For example, the Production Department

of OIL maintains a Treatment Plant and hence incurs the related

expenditure. However, a mere amount of Rs 4 to 5 lakh is kept

aside for the payment of compensation related to pollution and

externality damages.

Environmental Policy and OIL

An Environmental Policy is a key element of an efficient EMS and

in the absence of such a policy, only partial environmental

management (EM) can be practiced.

OIL did not have an EM till late 2003. The ‘Safety, Health and

Environment (SHE) Policy’ of the OIL was approved and adopted

in the 344th Board Meeting of the Board of Directors held at New

Delhi on 17 Nov, 2003. According to this policy, the following

measures have been adopted-

• Ensure a safe and sound working environment at all our work

places.


48


• Comply with all the Rules and Regulations on Safety,

Occupational Health and Environment Protection stipulated by

statutes besides our own policies and manuals.

• Adopt and promote safe and eco-friendly technology and review

the performance of the systems in line with changing needs.

• Continuously work towards mitigation of adverse environmental

impacts, if any of our operations on air, water and land.

• Prevent mishaps, minimize risks and hazards and remain

trained, equipped and ready for an effective and prompt

response to emergencies including disasters and accidents.

• Promote resource conservation and recycle options.

• Prevent occupational diseases and accord due concern for

the employees health as well as community around our

operational areas.

• Encourage external audit of our S, H & E standards so that

the confidence of stakeholders and the public is

safeguarded.

Encourage knowledge upgradation and promote safety,

health and environmental awareness amongst all the

employees.

• Remain committed to continual improvement and the

achievement of highest safety, health and environmental Acharya’s Academy Of Management Studies

49


protection standards of the company leading towards

sustainable development.

• Work towards preserving the ecological balance and heritage

in operational areas.

OIL has taken a major step towards ensuring an efficient EMS in

its operations by adopting the stated Environmental Policy. The

statements of this policy are in line with, and correspond to, the

standard practices in EMS of CEM at the global level. OIL has

affected measures to ensure a safe and sound working

environment at its sites and all other work places.

According to standard environmental policies, mitigation of the

environmental effects of the operations of a producer must take

place within a span of two to three years. The annual reports of

the firm too must reflect the changes that have been effected in

the environmental aspects. The annual reports of OIL for the

years 2002-05, 2003-04, 2004-05 were scrutinized and analysed

to assess whether the changes and mitigation efforts had been

documented or not. It was found that OIL meticulously documents

all the preventive, mitigating measures, certification, compliance

and any other related activities in the context of environmental

aspects in all its annual reports of the OIL. For example, OIL has

undertaken certification of certain facilities like the Power House,

LPG Bottling Plant, Hospital and


50


Medical Services, etc. and three of these have been already

approved under ISO 14000. Efforts to bring the facilities of OIL

under the purview of ISO 14000

certification


51



52


and its subsequent documentation in its Annual Reports are

validation of its initiating establishment of an efficient EMS.

Environmental Standards

Environmental standards can be defined in the context of national

or sub-national and international requirements, legislations,

treaties and other practiced and enforceable systems. At the

national and sub-national level, OIL has to compulsorily adhere to

the legislations enforced by the Government of India and those

that are regulated by the MoEF and implemented and enforced by

the CPCB and SPCBs at the central and state levels, respectively.

Only three (3) departments of OIL have been certified under the

ISO 14000 standards.


53



54


I.T.DEPARTMENT

The search for hydrocarbons is on & technology has always been at the

core of OIL’s activities. Induction of Information & Communication

Technology as an enabler to the core functions of OIL has been a driving

force.

OIL’s IT initiatives through various software solutions, state-of-the-art

servers, optical fibre, satellite up-linking, terminals, platforms program

developers, digital data, networking, workflow – has been enabling OIL to

sail along the information superhighway...empowering employees and

management to take techno-economic decisions so vital in today’s era of

cut-throat competitions. OIL’s IT Department is responsible for providing a

proper workflow where people have access to latest technology, which

ensures accurate, timely and consistent transmission of data.

IT Vision

To transform OIL into an I² enterprise

Knowledge management through Information management


55


IT Mission

To achieve a high level of computerisation in the technical and commercial

processes in all spheres of OIL’s activities, developing an Enterprise-wide

Information system, creating local/ wide area connectivity across the

organisation to provide network and data communication facilities,

application of innovation and introduction of new technology by prudent IT

resource planning in the most effective manner, continuous updation of

knowledge so that the benefits of technology reach all levels of

management as well as knowledge workers in OIL.

Preparing OIL to implement IT-based online systems requires a multi-

dimensional approach incorporating user training, change management,

motivation, etc. The philosophy of IT initiatives is to add the above with the

practical experience of IT-enabled processes for the users to realise the

potential of IT applications in all areas. In line with this, IT Department put

in extra effort to develop and implement in-house applications in critical

areas like Finance, materials, HR, production, drilling, geoscience, etc. over

the past few years in a planned manner.

ERP and E & P Databank Initiatives

ERP: “Enterprise Resource Planning” had gone live from 01st December,

05, and implemented SAP ERP modules HR (Human Resource), MM

(Materials Management), FICO (Financial Accounting & Controlling), PP

(Product Planning), PM (Plant Maintenance), PS ( Project System ) , IS Oil

(Industry Standard Solution), SD (Sales & Distribution), BW (Business


56


Warehouse) , SRM ( Suppliers Relationship Management ) and EP

( Employees Portal ).

Successful implementation of ERP has helped OIL towards

a)improved efficiency, effectiveness in all business processes,

b) introduction of a cost management system at par with the best,

c) continuous improvement in productivity to gain entry into the league of

the best achievers in the world &

d) introduction of the best management practices of the industry.

E&P: Exploration & Databank Project implementation is on. E&P Databank

is based on a POSC Epicenter Data Model that Will Act as a Receptacle for

All E&P related data. Once implemented, this data-center will be able to a)

Store more than 100 Years of Invaluable E&P Related Data Possessed by

OIL available in various formats into a common industry-standard format,

b)Provide a Robust Central Repository of Data for the Geo-Technical

Community, c) Convert Data Assets of OIL into Capital, as the Data could

be Used Productively to Create Value for OIL

IT Business Continuity plan


57


To protect the vital company data from disasters like earthquake, fire, flood

etc., organizations must build up redundant data repositories, preferably at

geographically distant locations. As a part of IT business continuity plan,

disaster recovery centre was set up in the Noida, UP. Continuous data

replication of all of its business data takes place between the primary site at

Duliajan, Assam and Noida, UP. Physical access to data repositories are

being controlled by means of effective technologies like use of biometrics,

CCTV monitoring etc.

The DR centre was inaugurated by the Chairman & Managing Director of

OIL, Shri NM Borah on 18th September, 2009.


58


Human Face of IT

OIL’s FO Project has paved way for a Broadband Tele-

communication Infrastructure in Entire North-East.

Annually about 50 Students pursuing Professional Courses are provided

Project Based Training on Oracle Database, Web Technology.

Networking etc. to give them the necessary industry exposure.

Lends Technical Help & Infrastructure in Programmes Organised by

Various Institutions

IT Resources

IT Hardware: OIL has installed state of the art hardware in its Data center

comprising about 50 servers including large number high end servers, 15

TB SAN storage, An automatic tape library system for backup and about

2000 PCs across various user locations spread across OIL’s operational

areas.


59


LAN Connectivity: A Robust 100 BaseT LAN with Fiber Backbone at

Duliajan Field HQs and Wireless connectivity to all remote locations like

OCSs, Digboi etc supports more than 2000 nodes , handles applications

ranging from Intranet, Internet, Email, SAP ERP applications , 2-Tier Client

Server Applications on Oracle RDBMs, 3-Tier Applications.

WAN / Remote Area Connectivity: Wide Area Network connectivity

connecting all other spheres of OIL by MPLS VPN through BSNL is in

operation. A VSAT connectivity through BTVL shared hub services

connects all Project offices as a fall back arrangement to MPLS

High Speed Internet Connectivity: A 24X7 high speed 4 Mbps link

catering to approximately 1000 users is provided at OIL, Duliajan through

STPI’s VSAT link.


60


Core Business Intelligent Systems: Seismic 2D/ 3D Data Processing

Software “Promax” on SGI Power Challenge, Seismic Data Interpretation

Software “GeoFrame” on SUN Ultra Sparc, Well-Log Interpretation “ELAN

PLUS” on SUN, Reservoir Modelling Software “Petral”, Reservoir

Simulation “Eclipse 100”, Well Testing Software “WellTest100”, SCADA

System and a host of other systems.

Business Information and support Systems: In-house developed Oracle

based Hospital Information System, Superannuation fund management

system , Land information, GRPC Databse, Explosive Management

Database, Intranet Portal Deployment, Corporate Website Deployment etc.

IT Expertise

Database: Oracle RDBMS - Oracle 8/ 9i/10g Database, Oracle Database

Administration, Microsoft Access, Oracle Forms, Reports, Graphics Builder,

VB.

OS: System Administration of Microsoft Windows NT, Windows 2000,

Windows XP, LINUX, IBM AIX, SUN Solaris, SGI Irix, HP Tru Unix


61


WebServices, Internet/ Mail Services: 3-Tier Application Deployment

using IIS, Corporate Mail Services & Internet for 1000 Users.

The Road Ahead

The Road Ahead for OIL’s IT Mission is to

Steer OIL to I² Enterprise (“Informationalised” and “Integrated” in every

aspect)

Facilitate Knowledge Management for Knowledge Workers

Integrate Technical & Business decisions

Venture into E-Business to Remain Competitive and Remain at Par with

International E&P Companies

Continuously Upgrade IT skills and Technology thereby Consistently

Improve Organisational Performance

Strive for implementing digital oil fields.


62



63


OPERATIONS

Exploration:

OIL’s systematic and scientific approach to exploration has been rewarded

with a high success ratio of 65% of exploratory wells drilled. OIL also

possesses 2D and 3D seismic data acquisition capabilities, with excellent

support services ranging from satellite navigation systems to remote

blasting units. NE

OIL owns a vast array of advanced computing systems and experienced

personnel to process and interpret geo-scientific data through integrated

exploration applications such as Remote Sensing, Structural and

Stratigraphic Interpretation, Seismic Attribute Analysis, Source Rock

Evaluation, Biostratigraphy, Petrophysics, Sequence Stratigraphy, Basin

Analysis, Techno-econFormation evaluation through an integrated

approach of geological, geophysical, geo-chemical and reservoir

engineering studies has allowed OIL to develop and exploit deep (3500-

4700 m) thin sand prospects. Today, these reservoirs contribute over 50%

of OIL’s production. It is envisaged that the current introduction of extensive

3D seismic will assist in reservoir management in both new as well as

ageing fields, heralding a new chapter in reservoir engineering studies.

OIL has so far acquired, processed and interpreted over 70,000 line km of

2D and 5,000 sq km of 3D seismic data in a variety of terrains, including


64


hills,deserts,rivers,marshes,etc.

ReservoirManagement:

OIL has pioneered the implementation of the concepts of modern reservoir

management in the Indian oil industry. Numerical reservoir simulation,

introduced by OIL in India for the first time in the early seventies, has

remained its forte since inception. Simulation has been used as an

important tool for management planning, production forecasting and

decision making. Based on numerical simulation studies, gas and water

injection, and water and polymer flooding projects have been successfully

implemented in OIL’s fields, yielding recoveries averaging over 20% in

excess of the recoverable solely by primary depletion.

OIL has also developed special expertise in reservoir management of

ageing fields. Today, OIL has state-of-the-art numerical reservoir

simulators with dedicated workstations and a valuable knowledge-base to

handle cost-effective reservoir evaluation, development and management

in all demanding environments.

An integrated database management system designed and developed in-

house has been extremely efficient in processing / analysing reservoir

monitoring data. Apart from routine activities for reservoir surveillance,

many other operations such as transient well tests, nodal analysis,


65


collection of crude / condensate / gas samples for PVT analysis, analysis of

side-wall and conventional cores, etc. are carried out as an integral part of

reservoir management. omic Evaluation, etc. xploration

Dilling & Work Overr:

OIL currently owns and operates 13 drilling rigs and 14 work-over rigs,

besides charter hiring drilling rigs based on operational requirement.

Over 1,000 wells covering over 3.5 million metres, varying in depth from

1,000 – 5,000 metres, have been drilled in various surface and sub-surface

environments, including high underground pressures and temperaturTo

minimise land acquisition time, OIL has resorted to cluster well drilling to

develop its oil and gas fields, which has resulted in protection of green belts

surrounding OIL's operational areas.

OIL’s all round excellence in performance is attributed in part to efficient

well drilling by the rig building team and proper maintenance of equipment

at the company's well-equipped Workshop, which has achieved a peak

performance level of over 20,000 m/rig year.


66


WirelineLoggingServices:

The process of recording formation parameters against depth for locating

reservoirs, their contents and the ability to produce oil, gas or water after

interpretation is known as ‘Well Logging’.

OIL’s Well Logging Department (WLD) was set up in 1978 under the

directive of the Ministry of Petroleum & Chemicals, to develop self reliance

and save foreign exchange being paid to service contractors. This in-house

setup, equipped with basic logging equipment, started its logging

operations from 1979 by recording a Cement Bond Log (CBL) in Well

Jorajan # 12.

The WLD now provides around 75% of OIL’s total logging requirements.

The balance 25% is supplemented by service contractors since the WLD

has not invested in specialised logging equipment, which is extremely

expensive and not cost-effective. Log interpretation, which was earlier

outsourced, is now executed by OIL’s personnel. The WLD uses RS6000

workstation and software ‘ULTRA’, procured from Halliburton Energy

Services, USA for log interpretation.

The WLD has recorded continuous awards as the best engineering

installation in OIL’s internal safety competitions from 1994 till date, besides

a continuous accident free record for several years. The WLD won the first


67


prizes in the North-eastern Oil Mines Safety Competition as the Best

Engineering Installation and for the Best Safety Performance.

The WLD has constantly stretched its manpower and equipment to their

limits to serve OIL’s internal projects. In the onshore Bay Exploration

Project at Orissa, it provided the entire logging services for 4 wells in 1987-

88. Similarly, in the Rajasthan Project in 1988, the WLD provided logging

services for the first well, followed by 3 drilling and 4 work-over wells at

Kumchai in Arunachal Pradesh in 1992-93 and in Simen Chapori # 1 under

BVEP in 2002. The WLD is also providing Cased Hole logging and

perforating services to the Rajasthan Project.

The WLD currently provides self-designed, essential logging services as

desired by the management. However, specialised logging services such

as those for offshore, horizontal and multilateral wells will be outsourced in

the future as well. e conditions.

Production Services:

OIL has accumulated over a hundred years

ofexperience in oil and gas production since the

discovery of Digboi oilfield in 1889. From well

completion to wellbore servicing, installation, operation

and maintenance of modern surface handling facilities,

OIL has the expertise to manage the entire range of operations required for Acharya’s Academy Of Management Studies

68


onshore oil and gas production. In particular, it has perfected the

techniques to produce and condition the waxy (paraffinic and asphaltenic)

crude oil of Assam.

Productivity improvement measures like acid stimulation, polymer water

shut-off, gravel packing and chemical consolidation are designed and

implemented in-house. Coil tubing technology has been increasingly used

over the last decade. OIL also possesses expertise in designing, installing

and troubleshooting continuous and intermittent gas-lift systems and the

related networks.

About 50% of crude oil production comes from depleting oilfields. Artificial

lifting and EOR techniques adopted since late 1960s have played an

important role in augmenting production and enhancing the ultimOIL

produces around 5 MMSCUMD of natural gas and has a dedicated pipeline

network for collection and supply of gas as fuel and feedstock to nearby

industries such as refineries, fertilizer and petrochemical plants, power

generation plants and 200 tea gardens. Over 90% of the internal energy

requirement of varied oilfield plants and equipment is met by natural gas.

ate recovery from these oilfields.

OIL produces around 5 MMSCUMD of natural gas and has a dedicated

pipeline network for collection and supply of gas as fuel and feedstock to


69


nearby industries such as refineries, fertilizer and petrochemical plants,

power generation plants and 200 tea gardens. Over 90% of the internal

energy requirement of varied oilfield plants and equipment is met by natural

gas.

OIL utilizes a SCADA (Supervisory Control and Data Acquisition) system

for online monitoring of production, injection, storage-cum-flowback and

distribution of natural gas. It has the expertise to design, install and

commission gas compressor stations and gas collection and distribution

networks. OIL achieved natural gas production of 2264.57 MMSCUM and

sale 1767.505 MMSCUM during 2006-2007.

An LPG plant was set up in 1982 to process 2.2 MMSCMD of gas using the

Turbo Expander Technology for the first time in Asia. This plant is

producing over 50,000 MT of LPG annually with feedstock supplied from

OIL’s internal gas production, due to efficient operation and maintenance.

The plant also handles LPG bottling.


70



71


SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate the

Strengths ,Weaknesses ,Opportunities and Threats involved in a project or in a

business venture .It involves specifying the objective of the business venture or

project and identifying the internal and external factors that are favorable and

unfavorable to achieving that objective.

SWOT analysis is just one method of categorization and has its own

weaknesses .It also presents the resulting lists uncritically and without clear

prioritization so that for eg. Weak opportunities may appear to balance strong

threats.

STRENGTHS:

The company’s competitive edge is further enhanced by its strong in home

R&D,quality manufacturing facilities ,strong support by the parent company

and a nationwide distribution and sales.

The strength lies in a strong financial position which enhances the ability of

the company to make investments and capitalize on the opportunities to

serve the customers in the best way and also to improve the shareholder’s

value.

It has strong manufacturing base.


72


WEAKNESSES:

The R &D system sometimes can cause weakness to this organization.

Absence of lifetime warranty on most of its product version and

approximately valid for seven months.

OPPORTUNITIES:

The company is very fortune to be in an industry where the technological up gradation provides new opportunities and new challenge for the company.

Favorable attitude of the Government toward this organization always focuses on the development of this industry.

Phenomenal growth of the internet.

THREATS:

Due to stiff competition in the industry the company faces a lot of threats from counter parts,the company operates in an industry which is under constant pressure due to the increase in working capital.


73


The company is addressing the issue by entering into new products line introducing high technology products and making constant efforts to improve the source efficiencies and reducing the cost of manufacturing.

FINDINGS:

Oil India Limited (Oil India) is an upstream petroleum company, owned by

Government of India. It is engaged in the exploration, production and

development of oil and natural gas. In addition, the company is engaged in the

transportation of crude oil and production of LPG. It owns and operates 13 drilling

rigs and 14 work-over rigs. The company’s operations are spread across India,

Iran, Libya, Gabon, Sudan, Yemen and Nigeria. It is a wholly owned Indian

government enterprise and holds 26% equity in Numaligarh Refinery Ltd. The

company is headquartered at New Delhi, India

Oil India Limited Key Recent Developments

May 06, 2010: OVL And Partners To Sign Contract For Venezuela Oilfield

Apr 26, 2010: GeoGlobal Resources Commences Drilling At Rachan-1 Well In

Rajasthan, India

Apr 19, 2010: Rocksource Updates On CY-DWN-2001/1 Block In Cauvery Basin,

India

Apr 15, 2010: HPCL Scraps Plans To Build Refinery In Visakhapatnam, South India

Mar 19, 2010: ONGC, Partners Win 17 Blocks In NELP-VIII Bidding Round


74


This comprehensive SWOT analysis of Oil India Limited provides you an in-depth

strategic analysis of the company’s businesses and operations. The profile has

been compiled to bring to you a clear and an unbiased view of the company’s key

strengths and weaknesses and the potential opportunities and threats. The profile

helps you formulate strategies that augment your business by enabling you to

understand your partners, customers and competitors better.

The profile contains critical company information including,

- Business description – A detailed description of the company’s operations and

business divisions.

- Corporate strategy – Analyst’s summarization of the company’s business

strategy.

- SWOT Analysis – A detailed analysis of the company’s strengths, weakness,

opportunities and threats.

- Company history – Progression of key events associated with the company.

- Major products and services – A list of major products, services and brands of

the company.

- Key competitors – A list of key competitors to the company.

- Key employees – A list of the key executives of the company.

- Executive biographies – A brief summary of the executives’ employment history.

- Key operational heads – A list of personnel heading key departments/functions.

- Important locations and subsidiaries – A list and contact details of key locations

and subsidiaries of the company.Acharya’s Academy Of Management Studies

75


- Detailed financial ratios for the past five years – The latest financial ratios

derived from the annual financial statements published by the company with 5

years history.

- Interim ratios for the last five interim periods – The latest financial ratios derived

from the quarterly/semi-annual financial statements published by the company

for 5 interims history.

Scout for potential investments and acquisition targets, with detailed insight into

the companies’ strategic, financial and operational performance.

- Financial ratio presented for major public companies in the profile include the

revenue trends, profitability, growth, margins and returns, liquidity and leverage,

financial position and

efficiency ratios.

Gain key insights into the company for academic or business research.

- Key elements such as SWOT analysis, corporate strategy and financial ratios and

charts are incorporated in the profile to assist your academic or business research

needs.

SUGGESTIONS:

1. The organization should understand and respond to its competitors’

business structure and strategies, and capitalize on their weaknesses.

2. The organization should stay up to date on the major developments

affecting the company.Acharya’s Academy Of Management Studies

76


3. The company should equip itself with information that enables you

to sharpen your strategies and transform its operations profitably.


77


CONCLUSION

It was a great experience working in OIL INDIA Ltd, where I learnt many things

about the functioning of the company in accordance with the present market

trends.The interaction with the company gave me an insight and a firsthand

experience of the industrial scenario in the competitive environment outside the

realms of the institute.

The main purpose of the organization study is to make the students acquainted

with the practical knowledge about the overall functioning of the organization It

gives opportunity to study human behavior and also makes one ready to face

different situations,which normally would come across while on work in the office

or factory environment.

The interactions which I had with various departmental heads were the best part

of the whole study.It helped me to know the real situation,duties,responsibilities

and functions of the departments.Inspite of the busy schedules they were very

much interested to explain me different concepts.It helps me a lot to relate the

theoretical concepts learned in the classroom to the organizational functioning

and understand the real life application of management.


78


BIBLIOGRAPHY:

1. www.oil-india.com

2. www.google.com


79

http://www.oil-india.com/


mixi report

Documents