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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 Prof. Nila Chotai {FACULTY OF ABBS} INTERNAL GUIDE D.C.GOSWAMI. CHIEF MANAGER ACCOUNTS OIL INDIA LTD,ASSAM

acharya
NURTURING THE FUTURE

ACHARYAS BANGALORE B-SCHOOL #3, LINGADHEERANAHALLI, MAGADI MAIN ROAD, BANGALORE 560091
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2010

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 ,Acharyas 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:

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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 Date:

Prof. Nila Chotai

Acharya s Academy Of Management Studies

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ACKNOWLEDGEMENT

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 ha e made a contribution in shaping this study. I would like to express my profound gratitude to Mr. D. .GOSWAMI( hief manager Accounts) for gi ing me an opportunity to take up the summer in plant training at OIL INDIA. Ltd. My hearty thanks to my internal guide Prof.Nila hotai for all the encouragements and ital

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 ha e contributed to my project, e en though indirectly. I extend my thanks to our director Dr.H.R.Venkatesha for his cooperation during my project. I would also like to thank my friends for their aluable guidance, support and help during my project. This project wouldnt ha e seen the light of the day, if it werent for the cooperation of all these people. Last but not the least; I am also grateful to My Parents who ha e supported in my entire endea ors to bring out this Internship report successfully. .M NAKSHI GOON. aluable guidance and

eg.no.09PGDM002
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CONTENTS
CHAPTER NO. 1 PARTICULARS INDUSTRY PROFILE Pipeline History 50 years of oil PAGE NO. 7-10

11-15 COMPANY PROFILE Introduction Establishment Objectives Locations Core purpose Vision

PRODUCT PROFILE 2 3 ORGANIZATION STRUCTURE AND FUNCTIONS FUNCTIONAL DEPARTMENTS Marketing Finance Human resource IT Production Operations SWOT ANALYSIS Findings Suggestion CONCLUSION BIBILIOGRAPHY Acharya s Academy Of Management Studies

16-20 21-29 30-68

4 5

69-75

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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 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

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

Its celebration time for Team OIL and the Companys 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 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 BOCs 50% equity, and the management of Digboi oilfield changed hands from the erstwhile AOC to OIL.
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GOLDEN

JUBILEE

CELEBRATIONS

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 OILs legacy has its roots in Asias first and the worlds second commercially successful oil exploration activity at Digboi, Assam in 1889. The Silver Jubilee Year was celebrated in 1984 because on February 18, 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.

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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 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%

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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 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.

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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 onethird. 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. 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.

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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, 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 socioeconomic development in its areas of operations.
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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, 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.

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

Transformer Oil Switchgear Oil

Glass Mould Oil Hydraulic Oil

Cutting Oil

Gear Oil Brake

Circulating System Hydraulic Oil Fluids Sugar Mill Bearing Axle Oil Oil Heat Transfer Oil Turbine Oil Agricultural Oil Spray

Rubber Process Oil Refrigeration Oil Quenching Oil White Oil

Shock Absorber Oil Capacitor Oil Orchard Spray Oil Secondary Plasticizer Oil Corrosion Preventive Compounds

Steam Cylinder Oil SAE Oil Wire Drawing Oil Ink Oil

Rubber Spray Oil

X-Ray Tube Oil

Instrument Oil

Emulsifier

Special Grade Calibration Oil Pharmaceutical Oil Anti-Static Oil Coning

Oil

Textile Oil

Wood Batching Oil Spin Finish Oil

Anti-Caking Agent

Anti-Static Agent

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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 commercia vehicles operating on diesel as well as on gas.

Two Wheelers :
Oil offers a complete range of engine oils 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 ou
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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

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.
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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.

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
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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 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

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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 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.

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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.

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
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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 responsibilities. The Board also undertakes programme for rural workers' education and functional adult education. ADJUDICATING BODIES Central Government Industrial TribunalscumLabour 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.

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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 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
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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) 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.

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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. Quasi-Judicial functions. Verification of the membership of the Trade Unions. Welfare. Other Miscellaneous functions.

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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 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.
y y

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.

y y

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 wouldnt want every manager putting his own spin on a sexual harassment policy, as an example much of the HR role is transforming itself.
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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

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:
y y y y y y

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

y y y

Compensation, rewards, and benefits management Training and development (learning management) .

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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 todays organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR 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.

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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, 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.

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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 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]

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The Indian Economy Blog Oil Pricing in India Filed under: Energy, Growth, Politics, Regulatory reforms pm 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. Indias 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
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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 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 Indias 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

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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 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.

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

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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
1

practice of a firm or a corporate body. EMS is defined 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
2

some sequence of events [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 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.
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The key elements of EMS include the following: 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 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
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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 OConnor Associates
4

Environment Insurance of Canada to carry out an Environmental Study 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 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.
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OIL did not have an EM till late 2003. The Safety, Health and Environment
th

(SHE) Policy of the OIL was approved and adopted in the 344 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. 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.
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y 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 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
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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

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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.

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I.T.DEPARTMENT

The search for hydrocarbons is on & technology has always been at the core of OILs activities. Induction of Information & Communication Technology as an enabler to the core functions of OIL has been a driving force.

OILs 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 todays era of cut-throat competitions. OILs 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 I enterprise Knowledge management through Information management

IT

Mission

To achieve a high level of computerisation in the technical and commercial processes in all spheres of OILs activities, developing an Enterprise-wide
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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 multidimensional 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

&

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 Warehouse) , SRM ( Suppliers Relationship Management ) and EP ( Employees Portal ).

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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

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,
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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.

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Human Face of IT y OILs FO Project has paved way for a Broadband Telecommunication 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 OILs operational areas.
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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 STPIs VSAT link.

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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
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WebServices, Internet/ Mail Services: 3-Tier Application Deployment using IIS, Corporate Mail Services & Internet for 1000 Users.

The

Road

Ahead

The Road Ahead for OILs IT Mission is to




Steer OIL to I 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.

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OPERATIONS
Exploration:
OILs 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, approach Techno-econFormation of geological, evaluation through an and integrated reservoir

geophysical,

geo-chemical

engineering studies has allowed OIL to develop and exploit deep (35004700 m) thin sand prospects. Today, these reservoirs contribute over 50% of OILs 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
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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 OILs 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 inhouse 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,
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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.

OILs 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.

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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.

OILs 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 OILs 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 OILs 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 OILs internal safety competitions from 1994 till date, besides a continuous accident free record for several years. The WLD won the first
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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 OILs internal projects. In the onshore Bay Exploration Project at Orissa, it provided the entire logging services for 4 wells in 198788. 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,
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OIL has the expertise to manage the entire range of operations required for 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

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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 OILs internal gas production, due to efficient operation and maintenance. The plant also handles LPG bottling.

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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:
y 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. y 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. y It has strong manufacturing base.

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WEAKNESSES:
y The R &D system sometimes can cause weakness to this organization. y Absence of lifetime warranty on most of its product version and approximately valid for seven months.

OPPORTUNITIES:
y The company is very fortune to be in an industry where the technological up gradation provides new opportunities and new challenge for the company. y Favorable attitude of the Government toward this organization always focuses on the development of this industry. y Phenomenal growth of the internet.

THREATS:
y 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.

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y 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
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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 business - Corporate strategy strategy. - SWOT Analysis opportunities - Company history

A detailed description of the company s operations and divisions. Analyst s summarization of the company s business

A detailed analysis of the company s strengths, weakness, and threats.

Progression of key events associated with the company. A list of major products, services and brands of company.

- Major products and services the Key competitors A

list

of

key

competitors

to

the

company.

- Key employees - Executive biographies - Key operational heads

A list of the key executives of the company. A brief summary of the executives employment history. A list of personnel heading key departments/functions. A list and contact details of key locations of the company.

- Important locations and subsidiaries and subsidiaries

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- 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 efficiency position and 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.
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3. The company should equip itself with information that enables you to sharpen your strategies and transform its operations profitably.

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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.

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BIBLIOGRAPHY:

1. www.oil-india.com

2. www.google.com

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