Upload
amrit-jyoti-borah
View
108
Download
2
Embed Size (px)
Citation preview
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
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:
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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,
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
14
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
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.
Acharya’s Academy Of Management Studies
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,
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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”
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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)
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
30
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
33
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
Acharya’s Academy Of Management Studies
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,
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
37
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
Acharya’s Academy Of Management Studies
38
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
Acharya’s Academy Of Management Studies
39
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
41
FINANCE DEPARTMENT ECONOMICS OF ENVIRONMENTAL MANAGEMENT SYSTEM IN OIL INDIA LIMITED: AN ENVIRONMENTAL
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
51
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.
Acharya’s Academy Of Management Studies
53
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
62
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
Acharya’s Academy Of Management Studies
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,
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
70
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.
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
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.
Acharya’s Academy Of Management Studies
78
BIBLIOGRAPHY:
1. www.oil-india.com
2. www.google.com
Acharya’s Academy Of Management Studies
79