SHRI RAMSWAROOP MEMORIAL
COLLEGE OF
   ENGINEERING & MANAGEMENT




                A Project Report

                    ...
BATCH- 2008-10
   OVERVIEW OF THE OIL INDUSTRY

In current scenario there is one section in economy which is really hot an...
ONGC OVERVIEW
It is an upstream company as it deals with exploration and production of oil. Oil
and Natural Gas Corporatio...
COMPANY PROFILE

Type- Public

Founded- 1956

Headquarters- Dehradun, India

Key Person- Mr. R.S. Sharma

Industry- Petrol...
Vision


To be a world-class Oil and Gas Company integrated in energy business with
dominant Indian leadership and global ...
Products
While ONGC is an oil producing company so the only product it sells is oil. The oil
produced by upstream companie...
• Mangalore Refinery & Petrochemicals Ltd. (MRPL) (71% equity stake)
• ONGC Videsh Ltd.
• Indian Oil Corporation.(9.6% equ...
9. Corporate Planning, New Delhi
        10. Human Resource Development, Dehradun
        11. Employee Relations, Dehradun...
the last few years. The advancements were substantial and improved the
   company's ability to extract the greatest amount...
4. Grow their hold in the energy market
      The company can become more aggressive in locating new oil-fields
      acro...
After studying the detail of O.N.G.C LTD I reached at conclusion that O.N.G.C
has achieved its entire desire goal with its...
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Shri Ramswaroop Memorial College Of

  1. 1. SHRI RAMSWAROOP MEMORIAL COLLEGE OF ENGINEERING & MANAGEMENT A Project Report On Under the Guidance of Submitted by Mr. TRIPUTI MISHRA ATUL KUMAR TIWARI Roll No.PGDM08008
  2. 2. BATCH- 2008-10 OVERVIEW OF THE OIL INDUSTRY In current scenario there is one section in economy which is really hot and boiling and it is oil sector. With crude oil at $146 per barrel and raring to cross $200 per barrel this sector is suddenly giving sleepless nights to all the major economies of the world. It is also responsible for increase in inflation throughout the world. The major oil consumer are US and China with India at sixth position the irony is that none of these countries is major producer of oil so they have t rely on other countries like OPEC, Russia for their needs. OPEC (organization of petroleum exporting countries) has 11 member countries and they together account for 40% of total oil production in the world and they have the market share of around 78% in potential crude reserves. As OPEC is the largest exporter of oil so it directly impacts the price of crude oil in the market. The whole oil sector is divided in to two categories Upstream – It involves exploration and production of crude oil. With limited crude reserves on the earth this field has suddenly become the cynosure for all the countries. Downstream – It involves the refining and transportation of oil. The major companies in this field are Shell, BP, and IOCL etc
  3. 3. ONGC OVERVIEW It is an upstream company as it deals with exploration and production of oil. Oil and Natural Gas Corporation Limited (ONGC) (incorporated on June 1993) is an Indian public sector petroleum company. It is a Fortune Global 500 company ranked 335th, and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India. It was set up as a commission on August 14, 1956 Indian government holds 74.14% equity stake in this company. ONGC is engaged in exploration and production activities. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of India's crude oil requirement. It owns and operates more than 11,000 kilometres of pipelines in India. It has one subsidiary ONGC Videsh Limited for exploration and production of oil outside India. It has its major exploration site at Bombay high near Mumbai.
  4. 4. COMPANY PROFILE Type- Public Founded- 1956 Headquarters- Dehradun, India Key Person- Mr. R.S. Sharma Industry- Petroleum&Gas Revenue- US$ 24.04 billion (2008) Net Income- US$ 04.934 billion (2008) Total Assets- US$ 35.35 billion (2008) Employees- 34,000 (2008) International Ranking  ONGC has been ranked at 198 by the Forbes Magazine in their Forbes Global 2000 list for the year 2007.  ONGC has featured in the 2008 list of Fortune Global 500 companies at position 335, a climb of 34 positions from rank of 369 in 2007.  ONGC is ranked as Asia’s best Oil & Gas company, as per a recent survey conducted by US-based magazine ‘Global Finance’  2nd biggest E&P company (and 1st in terms of profits), as per the Platts Energy Business Technology (EBT) Survey 2004  Ranks 24th among Global Energy Companies by Market Capitalization in PFC Energy 50 (December 2004).  Economic Times 500, Business Today 500, Business Baron 500 and Business Week recognize ONGC as most valuable Indian corporate, by Market Capitalization, Net Worth and Net Profits.
  5. 5. Vision To be a world-class Oil and Gas Company integrated in energy business with dominant Indian leadership and global presence. Mission • Focus on domestic and international oil and gas exploration and production business opportunities. • Provide value linkages in other sectors of energy business. • Create growth opportunities and maximize shareholder value. • Retain dominant position in Indian petroleum sector and enhance India's energy availability.
  6. 6. Products While ONGC is an oil producing company so the only product it sells is oil. The oil produced by upstream companies is not sufficient enough so we have to import oil from other countries and we are the 6th largest producer of oil. Financial Info While ONGC is among the highest profit making companies in the country and has made it to the Forbes top 100 list. Recently it has posted the profit of Rs 1546 crore. Leadership Style – The Company is a Navratna PSU's. Since government is the major equity holder in the company so it controls all the decision of the board of directors of the company as it controls the BOD's. The head of the company is appointed by the government and even the pricing of its product is controlled by the government. Stakes & Subsidiaries
  7. 7. • Mangalore Refinery & Petrochemicals Ltd. (MRPL) (71% equity stake) • ONGC Videsh Ltd. • Indian Oil Corporation.(9.6% equity stake) • Mansarovar Energy Columbia Ltd. • A 50:50 JV between OVL & SINOPEC of China. BASINS • Western Offshore Basin, Mumbai • Western Onshore Basin, Baroda • KG Basin, Rajamundry • Cauvery Basin , Chennai • Assam & Assam-Arakan Basin , Jorhat • CBM- BPM Basin , Kolkata • Frontier Basin , Dehradun REGIONS & PLANTS Uran Plant, Uran Hazira Plant, Hazira Mumbai Region, Mumbai Western Region, Baroda Eastern Region, Nazira Southern Region, Chennai Central Region, Kolkata SERVICES 1. Drilling Services, Mumbai 2. Well Services, Mumbai 3. Geo- Physical Services, Dehradun 4. Logging Services, Baroda 5. Engineering Services, Mumbai 6. Offshore Logistics, Mumbai 7. Technical Services, Dehradun 8. Info-com Services, New Delhi
  8. 8. 9. Corporate Planning, New Delhi 10. Human Resource Development, Dehradun 11. Employee Relations, Dehradun 12. Security, Dehradun 13. Company Secretary, New Delhi 14. Marketing, New Delhi 15. Corporate Affairs &Co-ordination, New Delhi 16. Corporate Communication, New Delhi 17. Health, Safety & Environment, Mumbai 18. Material Management, Dehradun 19. Legal, New Delhi 20. Medical, Dehradun 21. Internal Audit, New Delhi 22. Commercial, New Delhi 23. Exploration & Development, Dehradun SWOT ANALYSIS Strengths- 1. State-owned One of the biggest advantages & strength of the company is that it is state owned. This led the company have great infrastructure with the governments support. The policy making also becomes easier due to the same reason. Moreover any undue and sustained pressure creates due impact on the government as well. 2. Growing demographics ONGC went to global fields through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam. 3. Top Technology ONGC is the technological advancements that were implemented over
  9. 9. the last few years. The advancements were substantial and improved the company's ability to extract the greatest amount of oil and gas. 4. Hard Industry for Competitor to Enter The oil sector is an industry wherein not many competitors can enter owing to the scale and government intervention. 5. Strives to be environmentally friendly The Company has in its guiding principles to cut down emission and become nature friendly in due course of time 6. Strong Infrastructure The company implemented some well needed improvements to the infrastructure and created a strength for the company. Weaknesses- Ever changing laws The ever changing laws pose a big threat to the company. The Company is bleeding due to the rising crude oil prices in the international market but the government has its own priorities. O.N.G.C is facing difficulties to produce oil from aging reservoirs. Security of personnel & property especially crude oil continues to be a cause of concern in certain area. In some exploration Campaign Company involves high technology, high technology, High investment and high risks. Opportunities- 1. Possible Mergers with Smaller Companies ONGC has always great opportunities to get into mergers & acquisitions with companies across the globe 2. Finding Alternative Fuels before competitor It may itself get into the research operations in terms of finding alternative fuels before its competitors 3. Expanding into more areas The company has great opportunities to expand in offshore locations
  10. 10. 4. Grow their hold in the energy market The company can become more aggressive in locating new oil-fields across the globe. Threats- 1. Threat of Alternative Fuels The company may be facing some real threat from alternative fuels in the next decade or so 2. Corrupt Government may not have the company's best interest in mind 3. Could fall behind technology with the everything changing so quickly this day and age . Recommendation- 1). OUTSOURCING contracts Since ONGC is continuously loosing employees it painstakingly trains a good short term strategy would be to start outsourcing to Private firms .There are actually lot of private firms competing for outsourcing contracts of PSUs. Also because of its image as a "SLOW working PSUs" people problem can be avoided by outsourcing. 2) Attracting top notch talent with good payment package and giving challenging tasks to them. Also they can be employed on contract basis for limited time period 3) With economic environment depleting, ONGC can start purchasing future contracts on energy. This will thus hedge their risk if energy prices increase further. Also market seems will deplete further due to environment boiling over attack on IRAN by US and Israel. CONCLUSION
  11. 11. After studying the detail of O.N.G.C LTD I reached at conclusion that O.N.G.C has achieved its entire desire goal with its hard work and unique idea. O.N.G.C is having a good manpower and provides good facilities to their employees. The majority of the company's profitability ratios show an increasing trend. The performance of the company can be considered as satisfactory. As per my opinion that O.N.G.C LTD has a wide scope to develop in coming years.

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