Professional Documents
Culture Documents
RESEARCH SUPERVISOR
SUBMITTED BY
Session:2008-10
Directorate of Distance Education
Guru Jambheshwar University of Science & Technology Hisar (India)
CERTIFICATE
This is to certify that Ms. Debalina Bose Enrolment No.08061148171 has
proceeded under by supervision on her Research Project Report on
COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT OF
SALARY WITH 9TH PAY REVISION IN IOCL, GUWAHATI REFINERY
in the Specialization area HR.
The work embodied in this report is original and is of the Standard expected
of an MBA Student and has not been submitted in part or full to this or any
other university for the award of any degree or diploma. She has completed all
requirements of guidelines for research Project Report and the work is fit for
evaluation.
DESIGNATION
ORGANIZATION
Delhi
Professor
NSB SCHOOL OF BUSINESS, New
Forwarded by Head/Director of
Study Centre
(With Signature, Name & SEAL)
Ms DEBALINA BOSE
ENROLLMENT NO: 08061148171
(SIGNATURE)
With Seal
Countersigned by the Employer with Seal
Countersigned by the Director of Study Centre with Seal
DECLARATION
3
ACKNOWLEDGEMENT
DEBALINA BOSE
TABLE OF CONTENTS
PAGE NO
1) COMPENSATION MANAGEMENT
7-24
5
2) EXECUTIVE SUMMARY
25
26
27-30
31-41
42
7) RESEARCH METHODOLGY
43
44
9) GLOBAL SCENERIO
45-109
110-115
116-124
125-128
a) CONCLUSION
b) RECOMMENDATION & SUGGESTION
13) REFERENCE
129
14) APPENDIX
130-132
QUESTIONNAIRE
Compensation is payment in the form of hourly wages or annual salary combined with benefits
such as insurance, vacation, stock options, etc. that can positively or negatively affect an
employee's work performance.
An ideal compensation management system will help you significantly boost the performance of
your employees and create a more engaged workforce thats willing to go the extra mile for your
organization. Such a system should be well-defined and uniform and should apply to all levels of
the organization as a general system.. Plus youll enjoy clearer visibility into individual
employee performance when it comes time to make critical compensation planning decisions.
With effective compensation management youll also enjoy clearer visibility into individual
employee performance when it comes time to make critical compensation planning decisions.
These performance appraisals assist in determining compensation and benefits, but they are also
instrumental in identifying ways to help individuals improve their current positions and prepare
for future opportunities.
Definition
Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
PREFCAE
What is COMPENSATION MANAGEMENT ??????
Human Resource is the most vital resource for any organization. It is responsible for
each and every decision taken, each and every work done and each and every
result. Employees should be managed properly and motivated by providing best
remuneration and compensation as per the industry standards. The lucrative
compensation will also serve the need for attracting and retaining the best
8
employees.
Compensation is the remuneration received by an employee in return for his/her
contribution to the organization. It is an organized practice that involves balancing
the work-employee relation by providing monetary and non-monetary benefits to
employees.
Compensation is an integral part of human resource management which helps in
motivating the employees and improving organizational effectiveness.
Components of Compensation System
Compensation systems are designed keeping in minds the strategic goals and
business objectives. Compensation system is designed on the basis of certain
factors after analyzing the job work and responsibilities. Components of a
compensation system are as follows:
Types of Compensation
Compensation provided to employees can direct in the form of monetary benefits
and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the
compensation offered is effectively managed, it contributes to high organizational
9
productivity.
Direct Compensation
Indirect Compensation
Need of Compensation Management
Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, compensation
serves the purpose.
The most competitive compensation will help the organization to attract and
sustain the best talent. The compensation package should be as per industry
standards.
Strategic Compensation
Strategic compensation is determining and providing the compensation packages to the
employees that are aligned with the business goals and objectives. In todays competitive
scenario organizations have to take special measures regarding compensation of the employees
so that the organizations retain the valuable employees. The compensation systems have changed
from traditional ones to strategic compensation systems.
10
Compensation is payment in the form of hourly wages or annual salary combined with benefits
such as insurance, vacation, stock options, etc. that can positively or negatively affect an
employee's work performance.
An ideal compensation management system will help you significantly boost the performance of
your employees and create a more engaged workforce thats willing to go the extra mile for your
organization. Such a system should be well-defined and uniform and should apply to all levels of
the organization as a general system.. Plus youll enjoy clearer visibility into individual
employee performance when it comes time to make critical compensation planning decisions.
With effective compensation management youll also enjoy clearer visibility into individual
employee performance when it comes time to make critical compensation planning decisions.
These performance appraisals assist in determining compensation and benefits, but they are also
instrumental in identifying ways to help individuals improve their current positions and prepare
for future opportunities.
Definition
Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
Direct Compensation:
Direct compensation refers to monetary benefits offered and provided to employees in return
of the services they provide to the organization. The monetary benefits include basic salary,
house rent allowance, conveyance, leave travel allowance, medical reimbursements, special
allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a
certain period say a day, a week, a month, etc. It is the money an employee receives from
his/her employer by rendering his/her services.
12
INDIRECT COMPENSATION
ndirect compensation refers to non-monetary benefits offered and provided to employees in lieu
of the services provided by them to the organization. They include Leave Policy, Overtime
Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement
Benefits, Holiday Homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the organization.
The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and
maternity leaves, statutory pay, etc.
Overtime Policy
13
Employees should be provided with the adequate allowances and facilities during their overtime,
if they happened to do so, such as transport facilities, overtime pay, etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an interval
of one year. Even their dependents should be eligible for the medi-claims that provide them
emotional and social security.
Insurance
Organizations also provide for accidental insurance and life insurance for employees. This gives
them the emotional security and they feel themselves valued in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with their
families. Some organizations arrange for a tour for the employees of the organization. This is
usually done to make the employees stress free.
Retirement Benefits
14
Organizations provide for pension plans and other benefits for their employees which benefits
them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at different
locations. These holiday homes are usually located in hill station and other most wanted holiday
spots. The organizations make sure that the employees do not face any kind of difficulties during
their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work during
normal shifts due to their personal problems and valid reasons.
IMPORTANCE OF COMPENSATION
Compensation and Reward system plays vital role in a business organization. Since, among
four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is
impossible to imagine a business process without Men. Every factor contributes to the
process of production/business. It expects return from the business process such as rent is the
return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur
expects profits. Similarly the labour expects wages from the process.
Labour plays vital role in bringing about the process of production/business in motion. The
other factors being human, has expectations, emotions, ambitions and egos.
15
Labour therefore expects to have fair share in the business/production process. Therefore a
fair compensation system is a must for every business organization. The fair compensation
system will help in the following:
o
An ideal compensation system will have positive impact on the efficiency and results
produced by employees. It will encourage the employees to perform better and
achieve the standards fixed.
It will enhance the process of job evaluation. It will also help in setting up an ideal
job evaluation and the set standards would be more realistic and achievable.
Such a system should be well defined and uniform. It will be apply to all the levels of
the organization as a general system.
The system should be simple and flexible so that every employee would be able to
compute his own compensation receivable.
It will raise the morale, efficiency and cooperation among the workers. It, being just
and fair would provide satisfaction to the workers.
Such system would help management in complying with the various labor acts.
Such system should also solve disputes between the employee union and
management.
16
It should motivate and encouragement those who perform better and should provide
opportunities for those who wish to excel.
The perfect compensation system provides platform for happy and satisfied
workforce. This minimizes the labour turnover. The organization enjoys the stability.
The organization is able to retain the best talent by providing them adequate
compensation thereby stopping them from switching over to another job.
The business organization can think of expansion and growth if it has the support of
skillful, talented and happy workforce.
17
18
that Federal contractors may use to analyze their compensation systems; analyses may be useful
in determining if there are patterns of discrimination in the workforce; focus is on analyses of
salaries or wages, procedures can be used to analyze other forms of compensation as well. TOP
Are Higher Pay Increases Necessarily Better? This study investigated the
relationship between pay increase percentages and pay satisfaction among 118 MBA students
and found that pay satisfaction had the largest increase between three percent and seven percent
and appeared to level off between seven percent and eleven percent, suggesting that there may be
a point at which high pay increases may not necessarily lead to more satisfaction. In addition, it
was found that pay increases between six and eight percent are the minimum amounts needed for
pay increase satisfaction. Finally, we suggest that employees may not need as high of a pay
increase to experience satisfaction with their pay increase when providing those employees with
a signal, such as an average pay increase. pdf Building a Better 401(k) 401(k) plan
sponsors are taking steps to make their plans more attractive to employees in 2003. January 2003
Compensation Planning: The Key to Profitability This book can help brokers
create effective individual company compensation plans by giving them a better understanding
of how changes to existing compensation schedules affect the company finances as a whole. Pdffile 3.6 MB Compensation Plans An overview, article provided by Salary Source
Explaining Executive Compensation Managerial Power vs. the Perceived Cost of
Stock Options. Working Paper. Pdf-file Glossary Of Employee Benefit Terms Is Your
Long-Term Incentive Plan Really Performance-Based? Long-term incentive
plans (LTIPs) typically provide the largest component of senior executives compensation, most
often through one or more of three equity-based types: stock options, restricted stock, and what
are often called performance shares.
Theory and Evidence Despite the widespread use ofincentive pay, there is limited
evidence about what factors influence its organization-wide, broad-based application. Pdf-file
Paying for Performance: An Overlooked Opportunity
Sales force
deployment and compensation are among the most powerful means a company has to improve
growth, market share, and profitability. Yet few companies take the time to align their payout
systems with current strategy. The author explains how to design a successful compensation plan
that is precise, fair, and simple. pdf-file Performance based Pay The Value of
Performance-Based Pay in the War for Talent, pdf-download version
Performance
Standards in Incentive Contracts Research in incentives has focused on
performance measures and pay-performance sensitivities but has largely ignored the
performance standard, which generates important incentives whenever plan participants can
influence the standard-setting process. Working paper. pdf-file Promise and Peril in
Implementing Pay for Performance: A Report on Thirteen Natural
Experiments Despite the popularity of pay for performance programs, very little research
has examined the dynamics and dilemmas associated with implementing these programs. We
studied the implementation of thirteen experiments in pay for performance that were initiated by
local management in a high-commitment company (Hewlett Packard). We examined Hewlett
Packard documents and interviewed managers to understand their experience with implementing
these programs. Managers reported a relatively unfavorable cost-benefit assessment of programs
and difficulty in designing and maintaining them, especially in a fast changing business
environment. Managers at each site eventually concluded that they could attain greater
performance benefits through alternative managerial tools like effective leadership, clear
objectives, coaching or training, and therefore discontinued their pay for performance programs.
Finally, we discuss implications for management and for future research.
Classification of Wages
Machinery for fixing wages
Job Evaluation
Objectives of job evaluation and methods of evaluation
Promotions and transfers
Wage and Salary Administration:
The term compensation management is the alternative of wage and salary administration. Wage
word is commonly used for those employees whose pay is calculated according to the number of
hours worked. The concept of wage came from capitalist before it in the Jamindari system the
concept of wage was in the slaves form. Salary applies to compensation that is uniform from one
period to the next and does not depend upon the number of hours worked. When we got for job
definition we found that job is defined as a collection or aggregation of tasks, duties, and
responsibilities that, as a whole, is regarded as the reasonable assignment to an individual
employee. Job is known as impersonal however position is known as personal. Job always
contains a position which defines some set of works.
Job Satisfaction
Job satisfaction depends on the situations and environment of work atmosphere. According to the
MBA Book MB 0027, Job satisfaction is determined by a set of personal and job factors,
personal factors relate to workers age, length of service, intelligence, skill, and other personality
or temperamental factors.
About the Job Evaluation British Institute of Management has defined job evaluation as the
process of analysis and assessment of jobs to ascertain reliably their relative worth, using the
assessment as a basis for a balanced wage structure.
Job analysis is the process of getting information about jobs; specifically, what the worker does;
how he gets it done; why he does it; skill, education and training required; relationships to other
22
Pigors & Meyers give a unique definition of promotion which is, the advancement of an
employee to a better job better in terms of greater respect of pay and salary. Better houses of
work or better location or better working conditions-also may characterize the better location or
better working conditions-also may characterize the better job to which an employee seeks
promotions, but if the job does not involve greater skill or responsibilities and higher pay, it
should not be considered a promotions.
On the Subject of Transfer Pigors and Mayers also writes, the movement of an employee from
one job to another on the same occupational level and at about the same level of wages or
salary.
In the end of the chapter we can say that Compensation Management deals not only salary and
wages but also job analysis and job satisfaction.
23
EXECUTIVE SUMMARY
The feedback of the respondents was being up to mark and a positive response was
being carried out.
26
Director (Refineries)
2.
Director ( Pipelines)
3.
Director (Marketing)
4.
Director (Finance)
5.
Director (HR)
6.
Director (R & D)
7.
Director (P&BD)
With the Head Office at New Delhi, the Refineries Division is the
successor
to
incorporated
22.8.1958 as Private
Limited
Limited
which
was
Company
and
having
two
Personnel
Management Services
Corporate Communication
ED(HR)
is
DGM(Training
assisted
&
in
his
Development),
above
functions
by
DGM(HR), DGM(HRD),
GM(A&W),
CMSM,
and
CM(CC) respectively.
Mission
To achieve international standards of excellence in all aspects of energy and
29
diversified
business with focus on customer
delight through value of products and services, and cost reduction.
To maximize creation of wealth, value and satisfaction for the stakeholders.
To attain leadership in developing, adopting and assimilating state-of- theart technology for competitive advantage.
To provide technology and services through sustained Research and
Development.
To foster a culture of participation and innovation for employee growth and
contribution.
To cultivate high standards of business ethics and Total Quality Management
for a strong corporate identity and brand equity.
To help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment
conscience.
Values
Care
Innovation
Passion
Trust
IndianOilPeople...
towards Excellence...
1958
Indian Refineries Ltd. was formed with Mr. Feroze Gandhi as Chairman.
1959
Indian Oil Company Ltd. was established on 30th June 1959 with Mr. S.
Nijalingappa as the first Chairman.
1960
Agreement for supply of SKO and HSD was signed with the then USSR. M.V:
"Uzhgorod" carrying the first parcel of 11,390 tonnes of HSD docked at Pir
Pau Jetty in Mumbai on 17th August 1960.
1962
Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru.
Construction of Barauni Refinery commenced.
1963
Foundation was laid for Gujarat Refinery
Indian Oil Blending Ltd. (a 50:50 Joint Venture between Indian Oil and Mobil)
was formed.
1964
Indian Oil Corporation Ltd. was born on 1st September, 1964 with the
merger of Indian Refineries Ltd. with Indian Oil Company Ltd.
Barauni Refinery was commissioned.
The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was
commissioned.
1965
Gujarat Refinery was inaugurated by Dr. S.Radhakrishnan, the then
President of India.
Barauni-Kanpur Pipeline (BKPL) and Koyali- Ahmedabad product Pipeline
(KAPL) commissioned.
Indian Oil People maintained the vital supply of Petroleum products to
Defense in 1965 War.
1966
The first long-term agreement was signed for harmonious employee
relations.
31
1967
Haldia Baraurii Pipeline (HBPL) was commissioned.
Bitumen and Marine Bunker business began.
1968
Techno-economic studies for Haldia-Calcutta, Bombay-Pune and BombayManmad Pipelines submitted to the Government.
1969
Indian Oil undertook the marketing of Madras Refinery products.
1970
Indian Oil acquired 60% majority shares of IBP.
The same was offloaded in favor of the President of India under a Directive
in 1972.
1971
Dealership/reservation was extended to war widows, disabled Defense
personnel, Freedom Fighters, etc. after 1971 War.
1972
R&D Centre was established at Faridabad.
SERVO, the first indigenous lubricant was launched.
1973
Foundation-stone of Mathura Refinery was laid by Mrs. Indira Gandhi, the
then Prime Minister of India.
1974
Indian Oil Blending Ltd. (IOBL) became the wholly owned subsidiary of Indian
Oil.
Marketing Division attained a new watershed with a market participation of
64.2%.
1975
Haldia Refinery was commissioned.
Multipurpose Distribution Centers were introduced at 132 Retail Outlets
pioneering rural convenience.
32
1976
Private petroleum companies nationalized.
Burmah Shell became BPC.
1977
R&D Centre launched Nutan wick stove.
1978
Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL)
began.
1979
Barauni Refinery and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL)
affected by Assam agitation.
1980
The second Oil Shock was witnessed as a result of Iranian Revolution. Crude
Oil price flared to a new high of $32 per barrel.
1981
Digboi Refmery and Assam Oil Company's (AOC) marketing operations were
vested in IndianOil. It became Assam Oil Division (AOD) of Indian Oil.
1982
Mathura Refinery was commissioned.
Mathura-Jalandhar Pipeline (MJPL) was commissioned.
1983
Massive augmentation of LPG storage and distribution facilities was
undertaken.
Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated
cost of Rs l, 181 Crore.
1984
Taluka Kerosene Depots (TKOs) were commissioned for improved availability
of kerosene in rural and hilly areas in addition to Multipurpose Distribution
Centers.
33
1989
Salaya-Mathura Pipeline (SMPL) was suitably modified for handling Bombay
High Crude during winter.
1990
Kandla-Bhatinda Pipeline (KBPL) project was approved.
The first LPG Bottling Plant of Assam Oil DiVision (AOD) at Silcher was
commissioned.
1991
Digboi Refinery Modernization project was initiated.
Bunkering facility at Para dip was completed.
34
1992
Revamp of Vacuum Distillation Unit at Mathura Refinery was completed.
Two of the Indian Oil Table Tennis players represented the nation at
Barcelona Olympic Games.
1993
New era of Micro-processor based Distributed Digital Control System (DDCS)
replacing the pneumatic instrumentations began in Refineries, in phased
manner.
1994
India's First Hydro cracker Unit was commissioned at Gujarat Refinery.
Vision-2000, the Retail Visual Identity programme was launched to upgrade
facilities at Retail Outlets.
1995
1,443 km. long Kandla-Bhatinda Pipeline (KBPL) was commissioned at
Sanganer.
The lndane Home Shoppe was launched.
1996
State-of-the-art LPG Import Terminal at Kandla with a capacity of 6, 00,000
tonnes per annum was commissioned.
1 million metric tonne per annum (MMTPA) new CDU at Haldia Refinery was
executed with in-house supervision.
The first batch of one year International MBA (iambi) programme was
successfully conducted by Indian oil Institute of Petroleum Management
(IIPM).
1997
Commercial production of SERVOIII Titex Grease commenced at the world's
first Titex Plant at Vashi, Bombay.
Business Development received new thrust.
Indian Oil entered into LNG business through Petronet LNG -a JV company.
35
1998
Panipat Refinery was commissioned.
Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed.
The Administrative Pricing Mechanism (APM) was withdrawn from the
Refining Sector effective 1" April 1998. Phase-wise dismantling of APM
began.
Indian Oil Board was reconstituted under the Navaratna concept, with the
induction of five part-time non-official independent Directors.
1999
Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99,
organized by Indian Oil on behalf of the oil Industry.
India attained self-sufficiency in Refining.
Diesel Hydro-desulphurization Units commissioned at Gujarat, Panipat,
Mathura and Haldia Refineries.
Man than -- the IT re-engineering project was launched.
2000
Indian Oil crossed the turnover of the magical mark of Rs l, 00,000 Crore -the first Corporate in India to do so.
The Indian Oil Foundation -- a non-profit trust -- the first of its kind in
Corporate India, was unveiled to protect, preserve and promote the country's
heritage.
Y2K compatibility achieved.
JNPT Terminal was commissioned.
The Lube Blending Plant at Asotin and the Once through Hydro cracker Unit
at Mathura refinery were commissioned.
Indian Oil entered into Exploration & Production (E&P) with the award of two
exploration blocks to Indian Oil and ONGC consortium under NELP-I.
36
2001
Digboi Refinery completed 100 years of continuous operation.
Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and
Petrochemicals Ltd. (BRPL) were acquired.
Fluidized Catalytic Cracker Unit at Haldia Refinery was commissioned.
Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed.
Eight Exploration blocks awarded to the IndianOilled consortium under NELPII.
Two Coal Bed Methane (CBM) blocks awarded to the consortium of Indian Oil
and ONGC under CBM-I.
The investment proposal for Integrated PX/PfA project at Panipat was
approved.
2002
APM dismantled. Pricing of Petroleum products decontrolled.
IBP Co. Ltd. was acquired with management control.
Barauni Refinery expansion project completed.
New generation auto fuels IOC Premium and Diesel Super introduced.
2003
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Retail operations began in Sri Lanka. Indian Oil became the first Indian
Petroleum Company to begin downstream marketing operations in overseas
market. Lanka IOC became an independent oil company in Sri Lanka
Gasohol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
Indian Oil Technologies Ltd. for marketing intellectual properties of R&D
centre was launched.
37
2004
Indian Oil turned a Gas marketer by sale of degasified LNG
Indian Oil Mauritius Ltd.s 18 TMT state-of-the-arts Oil Storage Terminal at
Mer Rouge commissioned
2004
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Retail operations began in Sri Lanka. Indian Oil became the first Indian
Petroleum Company to begin downstream marketing operations in overseas
market. Lanka IOC became an independent oil company in Sri Lanka.
Gasohol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
Indian Oil Technologies Ltd. for marketing intellectual properties of R&D
centre was launched.
38
Indian Oil pays the highest-ever dividend of 20% (for fiscal 2003),
amounting to Rs 2453 crore, to shareholders.
Indian Oil signs MoU with IIM (Ahmedabad) to offer one-year Post Graduate
Programmes in Management (Energy) to be conducted at IIPM, Gurgaon.
Indian Oil signs MoU with Haryana government to set up the Rs 6300 crore
Naphtha Cracker & Polymer Complex at Panipat.
R & D Centre bags the prestigious National Technology Award for successful
commercialization of INDMAX technology for conversion of low value heavy
petroleum residues into high value LPG.
Indian Oil moves up by two places to the 189th position in the Fortune
'Global 500' ranking based on fiscal 2003 performance.
39
Indian Oils Rs 1248 crore LAB (Linear Alkyl Benzene) plant, the world's
largest single train kerosene-to-LAB unit, was commissioned at Gujarat,
thus signaling Indian Oils entry into petrochemicals business.
Indian Oil signs Memorandum of Collaboration (MoC) with Mahindra &
Mahindra to
roll out the country's first hydrogen vehicle in the next two
years.
Indian Oils 60 km-long Rs 76 crore Panipat Rewari Product Pipeline
commissioned.
Indian Oil signs MoU with Nepal Oil Corporation Limited to lay a product
pipeline between Raxaul (India) and Amlekhganj (Nepal).
The year marked Indian Oils entry into gas business. As co-promoter of
Petronet LNG Limited, complete quantity of gas (2.52 MMSCMD) allotted
to Indian Oil was sold out and commercial supplies commenced April 2004
onwards.
Indian Oil was voted as the most trusted petrol pump brand in the
country in a survey of India's most trusted brands conducted by the
Economic Times Brand Equity.
LIOC (Lanka IOC), Indian Oils subsidiary, created history on the Colombo
stock exchange as the biggest ever equity issue. LIOC's IPO offering 25%
stake was oversubscribed 11.6 times on the first day itself.
2005
The year marked Indian Oils big ticket entry into the high stakes
business of E&P. The Indian Oil and Oil India consortium signed its
Exploration and Production Sharing Agreement (EPSA) with the National
Oil Corporation of Libya for Block No. 86, in the Sirte basin of Libya.
Indian Oils Mathura Refinery was the first refinery in India to attain the
capability of producing entire quantity of Euro-III compliant diesel by
commissioning the Rs 1046 crore DHDT (Diesel hydro treating unit). Mathura
Refineries also commissioned India's first MS quantity up gradation unit to
produce Euro-III compliant petrol.
Indian Oil becomes the top oil trading company amongst national oil
companies in the Asia Pacific region for the second consecutive year.
40
Indian Oil signs a Supply Purchase Agreement (SPA) to procure 1.75 MMTPA
LNG to be received by the last quarter of 2009 at Petronet LNG Limited Dahej
terminal.
Indian Oil breached the Rs 150, 000 crore mark in sales turnover by clocking
Rs 150, 677 in turnover in fiscal 2004.
Indian Oil signed a JV agreement with GAIL to enter the city gas distribution
projects in Agra and Lucknow.
Indian Oil allowed by Government of India to charter crude oil ships on its
own instead of going through Tran chart, the chartering wing of the Ministry
of Shipping.
41
The main objective of the proposed study was to find out how far the employee has
been satisfied and how far their performance has been improved after the
commencement of 9th pay revision in Indian Oil Corporation Ltd, Guwahati
Refinery. It was necessary to analyze this scenario in Guwahati Refinery as
because prior to the commencement of 9th pay commission in the Indian Oil Sector
the employees were not fully satisfied with their working condition along with the
matching of their payroll. Hindrances and disputes were arising out between the
employers and employees working in this organization.
So it was necessary for a rise in the compensation package in this sector so that the
employees would be satisfied with their performance along with their
compensation package in this organization. So the commencement of 9 th pay
commission was implemented in this organization to attain the satisfaction of the
employees in this organization.
42
Research Methodology
In order to know the satisfaction of the employees working in this organization after the
commencement of 9th pay commission one set of Questionnaire was administered to the
employees ( both officers and non officers) working in this organization on the online basis.
I.RESEARCH DESIGN: In order to understand the satisfaction of the Employees after the
commencement of 9th pay commission a brief conversation was done with the employers through
online and a survey was done through online basis.
II. Data Collection through Questionnaire:- Primary data have been collected personally from
the respondents through questionnaire through online survey . The respondent includes both the
officers as well as the non officers of every department working in this organization and analysis
on the basis of their working period that is more than 20 years and less than 20 years. The
respondents have been asked to fill up the questionnaire and more over data collection process
also includes oral interview through online.
III. Sampling Design & Sampling Size: - The elements of research of population or universe of
interest are the peoples both the officers and non officers of every department working in this
organization. The sample size of the study consists of samples, which include a study of 70
respondents out of which 5% are officers and 15% are non officers from every department
working in this organization. In this regards out of 70 samples 40 of the respondants were taken
telephonic interview, 20 were given online questionnaire for the survey and for the rest were
conducted an oral interview.
43
IN
DISCRIMINATING
THE
GRADES
OF
THE
EMPLOYEES
BUILDS UP A HOSPITALITY BETWEEN THE EMPLOYERS AND
EMPLOYEES
HELPS IN STOPPING THE DISPUTES ARISING IN THE
ORGANIZATION
HELPS IN GIVING JOB SATISFACTION TO THE EMPLOYEES
HELPS THE EMPLOYEES IN MAKING UNDERSTAND THE
IMPORTANCE OF THEIR JOB ROLE
44
GLOBAL SCENERIO
==========================
Introduction to Oil Companies According to the Global
Scenario Context
The effects of global climate change affect every country, but not all are
responsible in the same way of its causes. The response, nonetheless, should
be global, involving as many countries as possible, but taking into account
their development degrees and their priorities and needs. Recognizing that
no individual nation can effectively address a problem of this scope,
governments within the UNFCCC have decided to address this challenge
collectively,
fostering
collective
initiatives
to
control
the
enhanced
In countries like Mexico, for which international commitments havent been set, the
need to take on international commitments, not yet included in the UNFCCC, is
discussed. International political pressure for such commitments will surely occur
considering
globalization. In the American continent the most rapid growth in carbon emissions
between 1970 and 1997 was in Mexico (235%) followed by Brazil (220%) and
Argentina (147%).
45
On what basis can cooperation against global warming be implemented? Which role
can international or local actors play, taking into consideration their influence on the
global environment? How can international institutions influence individual choices
in order to make international cooperation less problematic? How to make an
objective differentiation and different countries efforts compatible with the search
for equity considering relative development degrees and historic responsibilities?
Those are some of the questions frequently posed in the scientific literature and in
international meetings.
Equity,
Sustainability)
and
climate
change
issues
the DES
into
the
sustainable development agenda, but they show opportunities as well. Sorting out
opportunities from challenges is indispensable for the advancement of dialogue,
negotiations and international cooperation. One of the fields where there is no
consensus is in the emphasis that environmental policies must have: command and
control measures or more flexible instruments which give more options and
responsibilities to economic agents.
There is a recent shift, indeed, towards giving a more important place to market
instruments and agent decisions in order to reach environmental objectives and
46
implement climate change policies. This is the case of the Kyoto Protocol's
international trading system, which has been proposed as a key element of
flexibility, but raises many doubts and criticism, including its relation with equity
issues.
The purpose of this paper is to put this shift to market oriented policies and the role
of some important agents as the international oil companies in a broader
perspective.
Production: This involves the extraction of crude oil from reserves, followed
by its refinement in processing plants.
agriculture,
residential).
This
is
followed
by
the
administrating
their
employees
who
have
to
work
in
extreme
47
The Exxon Mobil Corporation: This American oil and gas corporation is the
progeny of John D. Rockefeller's Standard Oil Company, formed by the merger of
Exxon and Mobil on November 30, 1999. The world's biggest publicly traded
company has its headquarters in Irving, Texas. Its reserves at the end of 2007
were around 72 billion barrels of oil-equivalents (BBOE), which are expected to
last for the next 14 years.
Royal Dutch Shell plc: It was formed in 1907 when Royal Dutch Petroleum
Company merged with Shell Transport and Trading Company Ltd, UK. The initial
establishment included 60 % Dutch and 40% British shares.
48
The Seven Sisters (the major oil companies of the west that divided world oil among
themselves after WW-II) now control a minor proportion of world reserves. State
monopolies and emerging partially-privatized oil companies hold the major share.
We have listed here the main world, international or global petroleum companies,
by country. The country normally indicates the headquarters location of that
company, although some have multiple headquarters (for example Royal Dutch
Shell is headquartered in both the UK and the Netherlands).
Citgo, Venezuela
Cupet, Cuba
Ecopetrol, Colombia
Enbridge, Canada
EnCana, Canada
Eni, Italy
50
IB Daiwa, Japan
Inpex, Japan
LUKoil, Russia
MedcoEnergi, Indonesia
Nexen, Canada
NNPC, Nigeria
OMV, Austria
ONGC, India
PSO, Pakistan
Petro-Canada, Canada
Petrobras, Brazil
53
PetroChina, China
PetroKazakhstan, Kazakhstan
Petrom, Romania
PETRONAS, Malaysia
PetroVietnam, Vietnam
Pertamina, Indonesia
54
Sinopec, China
Snpc, Congo-Brazzaville
Sonangol, Angola
Sonatrach, Algeria
SPC, Singapore
StatoilHydro, Norway
Surgutneftegaz, Russia
Syncrude, Canada
Total, France
Wintershall, Germany
YPF, Argentina
YPFB, Bolivia
In short, the rise in prices over the past few years, as in 1973, reveals the
need for consuming countries to make decisions to promote energy savings
and the development of alternative energy technologies. As in the seventies
with the French nuclear program, several steps have already been taken, in
favour of bio-fuels for instance. In spite of growing nationalism and a lack of
opportunities for international oil companies, investment in exploration and
production is increasing. Note, however, that the major part of this increase
in investment is due to the inflation of costs, only a small part corresponds to
an increase in activity.
RUSSIA
OIL COMPANIES IN RUSSIA
Oil
Reserves
According to the Oil and Gas Journals 2008 survey, Russia has proven oil reserves
of 60 billion barrels, most of which are located in Western Siberia, between the Ural
Mountains and the Central Siberian Plateau. Eastern Siberia is one area where little
58
exploration has taken place. The Russian Ministry of Natural Resources estimated in
2005 that A+B+C1 reserves (roughly equivalent to Proven + Probable reserves) in
E. Siberian provinces totaled 4.7 billion barrels.
Production
In the 1980s, the Western Siberia region, also known as the Russian Core, made
the Soviet Union a major world oil producer, allowing for peak production of 12.5
million barrels per day in total liquids in 1988. Following the collapse of the Soviet
Union in 1991, Russias oil production fell precipitously, reaching a low of roughly 6
million bbl/d, or around one-half of the Soviet-era peak (see Fig. 1). According to
observers, several other factors are thought to have caused the decline, including
the depletion of the country's largest fields due to state-mandated production
surges and the lack of investment in field maintenance.
59
A turnaround in Russian oil output began in 1999. Many analysts attribute the
rebound in production to the privatization of the industry following the collapse of
the Soviet Union. The privatization clarified incentives and increased less expensive
production. Higher world oil prices beginning in 2002, the use of technology that
was standard practice in the West, and the rejuvenation of old oil fields also helped
raise production levels. Other experts partially attribute the increase to after-effects
of the 1998 financial crisis, the fall in oil prices, and the subsequent devaluation of
the ruble.
In 2007 Russian total liquids production averaged over 9.8 million bbl/d, including
9.4 million bbl/d of crude oil, a 200,000 bbl/d increase over 2006. This growth rate
was down from annual growth of roughly 700,000 bbl/d annually between 20022004.
Short-Term Outlook
Growth in output from the Sakhalin projects, (see EIAs Sakhalin Fact Sheet) will be a
main contributor to overall Russian oil output growth. In the upcoming decade, a
few major oil fields (listed in Table 1 below) will contribute to most of Russias supply
60
growth and others will offset decreasing production from mature fields. In the short
term, however, there are only a few large new fields that are planned. They include
Gazproms 100,000 bbl/d Prirazlomnoye field (2010), Lukoil's 150,000 bbl/d South
Khylchuyu field (mid-2008), and year-round production from the Sakhalin II field.
Lukoil/ConocoPhillips's TimanPechora project, and Rosneft's Vankorskoye (300,000
bbl/d) and Komsomolskoye fields will also help stem production losses at older
fields. Lukoil also expects around 30,000 bbl/d of production from its North Caspian
fields after 2010.
In 2006, around 24 percent (or 2.3 million bbl/d) of Russias oil production came
from fields that had already produced 60 percent of their total recoverable reserves.
Achieving continued growth at post-peak fields will become more problematic as oil
companies run out of easy and less costly opportunities to manage the rate of
decline.
Updated assessments of EIAs short-term outlook for Russian oil supply growth are
available each month from Table 3b of the Short Term Energy Outlook.
61
62
At current oil prices, the government is also receiving an additional $20 per barrel in
extraction taxes. The government plans to introduce preferential treatment for
those producers that extract resources at fields exceeding 80 percent depletion,
which they hope will encourage oil companies (mostly in the Volga-Urals region) to
bring some idle wells back into production.
Several proposals are currently being discussed to reduce the tax burden. One is a
proposal to raise the non-taxable threshold level from $9 to $15 per barrel. Prime
Minister Putin has also proposed a seven-year mineral extraction tax holiday for oil
companies that develop fields in Timan-Pechora, Yamal, or on the continental shelf
beginning in 2009. A second proposal would provide tax holidays for firms carrying
out offshore exploration or granting them mineral extraction tax breaks. Another
proposal by the Finance Ministry seeks to reduce annual oil company taxes by $4.2
billion from 2009. According to analysts, this is only a fraction of the $40 billion in
extraction taxes and $45 billion in export duties that the government collected from
oil companies in 2007.
Refinery Sector
Russia has 41 oil refineries with a total crude oil processing capacity of 5.4 million
bbl/d, but many of the refineries are inefficient, aging, and in need of
modernization. According to Energy Intelligence, refinery throughput at Russian
refineries increased by roughly 4 percent to around 4.6 million bbl/d in 2007. This
total includes some crude oil exports from neighboring countries. Russian refineries
produced around 1.2 million bbl/d of Mazut (heavy fuel oil), 1.3 million bbl/d of
middle distillates, and 815,000 bbl/d of gasoline.
The draft proposals mentioned above for the oil sector are also geared to provide
incentives for refiners to produce more high-quality and environmentally cleaner
63
fuels. Currently oil companies pay around $21/barrel ($154/tonne) for high-octane
gasoline, $15/barrel for low-octane gasoline, and $6/barrel of diesel.
construction.
Morneftegazproekt - provide integrated development of project documentation for
offshore field development
Murmansk Shipping Company - crude oil transshipment and icebreaking services in
Russian frozen ports and along the Northern Sea Route in Arctic waters
65
66
There is no compelling reason to believe that Russia will break out of the
current plateaupermanent decline?of oil production as it did after 1999.
Even if Russia changes policies that currently stifle investment to promote
future production, that money will work, increasingly in vain, to maintain, not
grow, oil output.
And even if a modest medium-term gain of 2-3% over current production
levels should somehow be achieved by 2012, that will very likely be the end
of the line for Russia production growth.
The fact that the skittish oil markets have finally noticed that Russia's output
growth is flagging doesn't add much to what anyone who has looked at the
situation and can interpret a graph already knows. As for optimistic
expectations, those are usually the product of standard bureaucratic dogma
that "all will be well," ignorance following from an inability to subtract, or our
typically human emotional investment in a happy futurenot the data and
its reasonable interpretation.
67
Reuters cited Russian Energy Ministry data indicating that "oil production
[crude + condensate] edged down to 9.76 million barrels per day from 9.79
million b/d in February, and well below the post Soviet high of 9.93 million
b/d reached in October last year." The preliminary EIA data is slightly higher
than the Russian official data, but shows the same winter trend.
Despite the discouraging results in the 1st quarter, the IEA's March, 2008 Oil
Market Report (graph left) was still forecasting that Russia crude output
would grow this year by as much as 250,000 barrels per day. They have now
revised that forecast down to an all liquids addition of only 0.8% while taking
a "cautious approach" according to IEA analyst David Fife.
68
The IEA's sudden wariness, which has never been apparent before, has
caused them to withhold their future Russian forecast "pending [the] spring
results, which could eliminate weather-related distortions typical of winter
months" (AP, April 15, 2008). Their hesitancy is absurdly shortsighted
Russia's fate does not depend on any winter's weather conditions or what
happens in the Spring quarter of this year. The agency is now, like Napoleon
during the harsh Russian winter of 1812/13, in retreat.
Optimism still abounds in some quarters. The Wall Street Journal cites some
hopeful sources
Many Russian oil officials say the industry could still resume growth. Some Western
analysts point to more optimistic data and forecasts. Citigroup said in a report late
last month that it expects Russian oil volumes to increase by 1.5 million barrels a
day between now and 2012, largely thanks to new projects in eastern Siberia. Still,
it cautioned: "Russian oil production growth is no longer to be taken for granted."
Russia's energy ministry expects a rise of 1.8%...
This added up to $65/barrel as of last February and the net profit for Russian
oil companies was only about $10/barrel at that time. This staggering tax
burden cuts significantly into the amount Russian operators have left over for
exploration & production. It thus comes as no surprise that Rosneft is
borrowing money, secured by crude oil export contracts, to finance its shortterm debt (from Moscow journalist Sergei Blagov in Jamestown Foundation's
Eurasia Daily Monitor, February 28, 2008). Can Rosneft can carry out its
investment plans in Eastern Siberia?
In December 2005, Rosneft paid some $260 million for a license to develop the East
Sugdin oil and gas field, with reserves of some 200 million tons of oil and more than
40 billion cubic meters of gas...
... Rosneft may still acquire new licenses, but developing new oil and gas
fields in Eastern Siberia would require billions of dollars in investments.
Therefore, it remains to be seen whether Rosneft's expansion could prove
economically viable in the longer term.
Deutche Bank oil and gas analyst Leonid Mirzoyan states that "Rosneft is still
unlikely ... capable of footing the expensive bill for developing the Vankor
field on its own" (Moscow Times, April 3, 2007). Rosneft has been snapping
up development licenses and shares, but they are overextended. How will
Rosneft finance future development at Sakhalin-III, Vankor, North Vankor,
Yurubcheno-Takhomskoye, East Sugdinsky, Verkhnechonsk and all the rest
while continuing to drill more and more wells to get expanded production
from older (former Yukos) properties like top Western Siberian subsidiary
Yuganskneftegaz? And still pay their taxes? Rosneft's CEO Bogdanchikov
doesn't know, and neither does anybody else.
Fedun's pessimistic view, Lukoil recently cut its 2008 growth forecast from
5% to 1.8-2.0%.
Various optimistic estimatesincluding Citigroup's overly cheerful private
report, one presumeshave used Russian oil company growth targets to
justify their forecasts. Forward-looking statements from TNK-BP, Rosneft or
Lukoil are becoming increasingly worthless as a guide to future activity in
light of the lack of capital available for exploration & production. Russia also
has a paucity of large new fields coming on-stream and must fight off
declines stemming from depletion in their mature oil basins.
Continuing Depletion and New Oil Fields
Lukoil's Fedun believes Russia has peaked now (Yahoo! News, April 14, 2008).
Here is what he told the Wall Street Journal about the short and longer term
prospects
In an interview, Leonid Fedun, vice president of OAO Lukoil, one of Russia's biggest
oil companies, said a mild winter and higher temperatures mean Siberia's icy
ground is less stable, making it harder to move drilling rigs between oil wells.
offshore Sakhalin-I Chayvo field in the Far East, which peaked at 250,000
barrels per day in February, 2007. Rosneft now expects Sakhalin-I output to
fall to about 160,000 barrels per day in 2008. Exxon Neftegas was drilling
record-setting new wells at Chayvo back in April, 2007 but production will
never return to peak levels at Sakhalin-1.
73
appears
that
Putin's
policy
is
to
intentionally
restrain
74
Oil and gas have been the foundation of the regime of Vladimir Putin,
Russias outgoing president, and are also a preoccupation of his successor,
Dmitry Medvedev, who was chairman of Gazprom, the state-controlled gas
giant.
The flow of petrodollars has created a sense of stability, masked economic
woes and given Russia more clout on the world stage. Yet the malaise
afflicting its most important industry is almost entirely man-made.
76
Rising To Challenges
I am glad to say that I regard much of this gloom and doom as vastly overdone. But
we should admit that, in the first decade of the 21st Century, those of us who work
in the energy industry are at the very centre of the challenges which the world
faces. It is not a comfortable position. Yet we should rise to those challenges wisely,
confidently and rationally.
We should remember what our purpose is, and has always been: to ensure the
efficient development of the worlds oil and gas resources and, through that, to
ensure that the demands of consumers the people of the world are met. And we
have a moral duty to act in sustainable manner. We must fulfil our purpose in ways
that minimize the environmental impact, not only of our own operations, but of the
customers who use our products.
It is worth examining some of the origins of this insecurity. Only then can we be
clear about what actions are required. I think there are four sources:
In the industry we tend to dismiss that concern since most of us believe strongly
that there are very large oil and gas resources remaining in the world. We know,
from our own experience and own observations and I speak as a geologist as well
as someone who was, for nearly five years, head of exploration and production at
BP - that there are major basins as yet unexplored; we know that we have, or can
develop, the technology to double the average oil recovery rates from existing
fields; we know that there are enormous resources of so-called unconventional oil
and gas in heavy oil accumulations, in shale oil, in tight gas, in coal bed methane
the list goes on.
But, for the consumer concerned with high energy bills, the price of oil is a powerful,
everyday symbol.
The reality, of course, is that in the oil market, what goes on above ground is as
important as what goes on underground. The oil price is an economic function of
supply and demand and, for the most part, it is driven by the current available
production capacity and not complicated projections of future resources.
Todays high price is caused by the inability of the industry to easily supply rising
demand. This is not because of a lack of available resources, but because of
inadequate investment in both production and complex refining capacity. That lack
of investment happened gradually over many years, not least during the euphoria
of the new Millennium. We just did not predict how fast demand would take off.
2. Source Of Insecurity Is Political Instability In The Producing Nations
The absence of excess capacity in the global supply system stems from
underinvestment forcing more reliance on suppliers in countries which are
frequently politically unstable. Instability in Iraq, Venezuela and Nigeria, and the
apparent use of oil as a lever of political influence in Russia and the Middle East all
78
contribute to a feeling of imminent threat. Will the lights suddenly go out? I dont
believe so.
But the feeling is there. Many consumer countries have consequently turned
inwards in an attempt to counter these threats by exploiting internal resources.
Others, such as China, have embarked on a process of buying up resources
overseas. The world seems to be forgetting Churchills adage that, in energy, the
best security comes from diversity of supply and a well-functioning, competitive
market, rather than a scramble for unilateral deals between countries.
between the need for energy for the basic things of life such as heat, light and
mobility and the threat of climate change. They believe they are faced with the
choice between two equally unpalatable outcomes limiting economic growth and
prosperity, or ruining the planet. This is a daunting list of issues and concerns. It is
particularly daunting for the energy industry because we find ourselves caught in
the eye of the storm.
In summary, when it comes to dealing in a timely and practical manner with the
great insecurities of the early 21st century, the energy industry is not just part of
the solution, it is the solution. In that respect, we are providing a great service to
the world. Through the development of technology, through long term investment
and risk taking, through the application of knowledge and by acting as a catalyst for
cooperation between producers and consumers, we are making enormous
contributions to human progress. I believe that is something to be proud of.
80
DUBAI HISTORY
The modern emirate of Dubai was created with the formation of the United Arab
Emirates in 1971. However, written accounts documenting the existence of the city
have existed at least 150 years prior to the formation of the UAE. Dubai shares
legal, political, military and economic functions with the other emirates within a
federal framework, although each emirate has jurisdiction over some functions such
as civic law enforcement and provision and upkeep of local facilities. Dubai has the
largest population and is the second largest emirate by area, after Abu Dhabi.[4]
With Abu Dhabi, it is one of only two emirates to possess veto power over critical
matters of national importance in the UAE.[5] Dubai has been ruled by the Al
Maktoum dynasty since 1833. The emirates' current ruler, Mohammed bin Rashid Al
Maktoum, is also the Prime Minister and Vice President of the UAE.
Revenues from petroleum and natural gas contribute less than 6% (2006)[6] of
81
Dubai's US$ 37 billion economy (2005).[7] A majority of the emirate's revenues are
from the Jebel Ali free zone authority (JAFZA)[8] and, increasingly, from tourism and
other service-oriented businesses. Dubai has attracted world-wide attention through
innovative real estate projects [9] and sports events. This increased attention,
coinciding with its emergence as a world business hub, has also highlighted human
rights issues concerning its largely foreign workforce.
82
customer. Gas exports are almost entirely to Japan, the world's largest buyer
of liquefied gas, with the UAE supplying almost one-eighth of Japan's entire
requirements.
International Markets
The UAE plays a vital role in achieving stability in international oil markets
through its positive and balanced attitude within OPEC. The UAE participated
in two production cuts in 1998 and also played an important role in the
agreement adopted by OPEC member states in March 1999 to reduce
production by 1.7 mbd. The UAE agreed to reduce its production by 157,000
bd to a low of 2 mbd. By early September 1999 international benchmark
Brent crude oil was trading at a new high of US $21.03 per barrel. Oil prices
were expected to continue rising in the fourth quarter of 1999 when winter
weather in the western hemisphere is expected to increase demand. The
UAE welcomed a proposal to hold an OPEC summit meeting in Venezuela in
late 1999 or the year 2000 in order to reinforce rationalization of the world
supply of oil.
Abu Dhabi
Abu Dhabi is by far the biggest oil producer in the UAE, controlling more than
85 percent of the UAEs total oil output capacity and over 90 percent of its
crude reserves. Principal offshore oil fields are Umm Shaif, Lower Zakum,
Upper Zakum, Al Bunduq and Abu al-Bukhoosh. The main onshore fields are
85
Asab, Bab, Bu Hasa, Sahil and Shah. Almost 92 per cent of the country's gas
reserves are also located in Abu Dhabi and the Khuff reservoir beneath the
oil fields of Umm Shaif and Abu al-Bukhoosh ranks among the largest single
gas reservoirs in the world.
Abu Dhabi National Oil Company (ADNOC)
Oil companies from Japan, France, Britain and
other countries own up to 40 percent of the
energy sector in Abu Dhabi, the only Gulf oil
producer to have retained foreign partners on a
production-sharing basis. More than half of Abu
Dhabis oil production is generated by the Abu
Dhabi Company for Onshore Operations (ADCO), one of the 10 largest oil
companies worldwide and the largest crude oil producer in the southern
Arabian Gulf. The second main producer is Abu Dhabi Marine Operating
Company (ADMA-OPCO). The output of oil and gas from ADMA-OPCO fields is
transported to its center of operations on Das Island for processing, storage
and export. Both ADCO and ADMA-OPCO are part of the Abu Dhabi National
Oil Company (ADNOC) group of companies. ADNOC, established in 1971, is a
fully owned government company controlled and supervised by the Supreme
Petroleum Council (SPC), which is responsible for formulating Abu Dhabi
petroleum policy and overseeing the emirates oil and gas operations and
related industry.
three main oil and gas operating companies (ADCO, ADMA-OPCO and
ZADCO), five support companies providing services to the oil and gas
industry, two natural gas processing companies (GASCO, ADGAS), two
maritime transport companies for crude oil, refined products and LNG
(ADNATCO, NGSCO), a refined product distribution company (ADNOC-FOD)
and two chemical and petrochemical companies (FERTIL, BOROUGE). ADNOC
also owns and operates two refineries at Umm al-Nar and Ruwais, the gas
treatment plants at Habshan, gas pipeline distribution network and the
chlorine industries at Umm al-Nar.
ADNOC Restructuring
ADNOC announced a major management restructuring plan in November
1998 shifting the firm's refinery and gas operations to two new wholly-owned
subsidiaries and bringing the number of subsidiaries up to 17. The two new
ADNOC companies, Abu Dhabi Oil Refining Company (TAKREER) and the Abu
Dhabi Gas Company (ATHEER), were formally established on 19 June 1999.
Along with the creation of refinery and gas subsidiaries the company has set
up five business line directorates (BLDs) to carry out upstream and down
stream activities. Another three directorates will provide support services for
various operations. The new management structure also creates an
executive committee, chaired by a chief executive officer, to oversee the
company's businesses.
87
Dolphin Project
The Dolphin project was launched in March 1999 following an announcement
by the UAE and Qatar of plans for a joint venture aimed at transporting gas
from Qatar's huge reserves to industrial consumers in the UAE, Oman and
other countries. Dolphin, which is being developed under the auspices of the
UAE Offset Group (UOG), is intended to provide a framework to stimulate
investment in a variety of related industries throughout the value-added gas
chain. (For more information see section on Business Environment).
Economic forecasters predict that the UAE's demand for gas will double over
the next decade.
Dubai Joins Dolphin
The Dubai Government also joined the multi-billion dollar Dolphin initiative
with the signing of a memorandum with the UOG where by the Dubai Supply
Authority (DSA) agreed to purchase its requirements for Qatari gas from
Dolphin. Under the terms of the agreement, Dubai plans to purchase gas in
the amount of 200700 mn cfd. The Dubai Government and the UOG also
agreed to cooperate in identifying and maximizing opportunities for
investment arising out of the supply of gas. The Dolphin gas will bridge the
gap between energy supply and demand which will develop over the next
five years as Dubais economy expands.
88
Dubai
Dubais oil reserves have reduced over the past decade and are now
expected to be exhausted within 20 years. The main fields are offshore:
Fateh, Southwest Fateh and two smaller fields, Falah and Rashid. The only
onshore deposit is the Margham field. Dubai Petroleum Company (DPC) is the
main operator. Dubai has a 2 per cent share of the UAE's gas reserves.
Dubais Margham gas/condensate field can deliver up to 140 mn cfd for
domestic use and offshore fields can provide another 100 mn cfd. Sharjah
also supplies Dubai with 430 mn cfd through a pipeline installed in 1992. The
state-owned Dubai Natural Gas Company (DUGAS) is responsible for
processing natural gas produced in Dubais offshore oil fields as well as the
gas piped from Sharjah.
Sharjah
Sharjah owns 5 percent of the UAE's gas reserves, mostly non-associated gas
which is being utilised domestically. The emirates most important gas
deposits are at the offshore Mubarak field and the onshore Sajaa, Move yeid
and Kahaif fields. Gas reserves are estimated at 10,000 billion cubic meters
and around 800 mn cfd of gas are produced. Sharjahs offshore Mubarak
field, operated by the local Crescent Petroleum Company, produces around
30,000 bd of condensate. In July 1999 Crescent Petroleum began drilling
Sharjah-2 some 30 kilometers offshore of Sharjah where gas has already
been discovered. The site is located 800 meters from the Sharjah-1 well. Any
gas finds are expected to contain valuable liquid condensates. Crescent
operates the concession area along with London-based Atlantis. Crescent
Atlantis also announced in July that they were about to begin major seismic
89
work in the gas-proven areas of Sharjah's interior desert and this would be
followed by drilling. The onshore Sajaa and Moveyeid fields, operated by BP
AMOCO, produce 35,000 bd of condensate in addition to natural gas.
plants is a central part of UAE efforts to move away from crude oil exports.
Major plans are under way to construct new refineries and increase the
capacity of existing ones in order to attain production of 180,000 bd by the
year 2000. Abu Dhabi is presently in the middle of a five - year (19972002)
development project aimed at boosting refining capacity. ADNOCs US $600
million Ruwais refinery upgrading project is just one of the many down
stream projects that are included in the programme. Others include a 35,000
bd refinery plant in Fujairah and the Dh 600 million Sharjah re finery at
Hamriyyah Free Zone, which commenced operations in mid-1999.
91
State Companies:
Abu Dhabi National Oil Company (ADNOC) has controlling interest in 21
domestic oil and natural gas companies.
Joint Ventures:
Abu Dhabi Co. for Onshore Oil Operations (ADCO) is held by ADNOC (60%)
and a consortium comprising British Petroleum (BP) (9.5%), Shell (9.5%), Total
(9.5%), Exxon (4.75%), Mobil (4.75%), and Partex (2%).
Abu Dhabi Marine Operating Company (ADMAOPCO) is held by ADNOC (60%)
and a consortium comprising BP (14.7%), Total (13.3%), and Japan's Jodco
(12%).
Zakum Development Company (ZADCO) is operated by ADNOC (88%) and a
consortium (12%) comprising BP, Jodco, and Total
Original Concession Holders:
Union Oil Co., venture of Union Oil Co. and Southern Natural Gas Co.
Abu Dhabi Marine Areas Ltd., BP, CFP, Continental
Dubai Marine Areas Ltd., Continental Oil, BP, CFP, Deutche Erdol AG, Sun Oil
Co.
92
93
Abu Dhabi-based company engaged in the refining of crude oil and condensate,
supply of petroleum products and production of granulated sulphur; runs the Ruwais
and Umm al Nar refineries
Petroleum
Company in Dubai engaged in refining and marketing of oil, supply of jet fuel and
aviation fuelling services, manufacture of chemicals and lubricants, LPG, etc.
Petroleum Gas Chemicals Lubricants
Business group with interests in lubricants, supply of marine bunker fuels, supply of
jet fuel, commercial sales, procurement, storage of refined petroleum products, and
retail sales through petrol service stations
Petroleum .
Business group based in Sharjah engaged in the trading of oil products (marine gas
oil, marine diesel oil, blending products, etc), shipping, supply of lubricants; a
refinery is also under construction in Sharjah
Petroleum Shipping Companies Lubricants
Ghayasiban Group
Business group based in Dubai & Lucknow (India); activities include software
development, industrial measurement & control instrumentation, petroleum trading,
a college in Lucknow, & a bank
Business Groups Instrumentation Petroleum Software Firms
Portal and e-marketplace for the Middle East and Africa oil and gas marketplace; site
contains a wealth of detail about companies providing products and services for the
oil and gas industry, searchable by country and product category
Petroleum
Annual publication of companies in the oil and gas industries; online searchable
version available; published by Arabian Publications, a company incorporated in the
British Virgin Islands
Petroleum
95
10
Pipeline Magazine
Magazine on the oil and energy industry; circulated across the Arab world; web site
has samples of articles from the magazine and subscription details
risks
and
operational
challenges
among
state-owned
oil
in Dubai shows that newer risks such as the impact of climate change are
moving near the top of the list.
present significant risk. Understanding this risk and prioritizing its potential
impact allowed the client to take measures to address it.
Storms also cited other potential risks faced by national oil companies,
including terrorist acts, the effects of a major natural disaster on production,
the concentration of supply chains especially due to the threat of avian flu
and other risks.
"The world is beginning to become more concerned about climate change. It
would be prudent for all energy producers, not just oil companies, to
understand their footprints in the world, and that there will be more
constituent groups that will produce more challenges than the past."
countries do indeed work with companies, but the basic decisions there are
governmental. These governments are dependent on oil revenue for
infrastructure, social programs, military spending and all the rest. For them,
if revenue stops, the government stops.
The OPEC nations want the oil price to climb to at least $70 per barrel, and to
help make that happen they've agreed to cut production by about 4.3 million
barrels per day. Total world production is now about 85 million barrels per
day, so the OPEC cuts represent about 5 percent of the total. The result
should be a boost in oil prices, but it hasn't worked-at least not yet. Part of
the problem is that while the nations may agree, they may not cut as much
as promised to avoid a drop in revenue.
More drastic cuts in production might do the trick, but no one knows the
"tipping point" at which a large reduction in supply might lead to a rapid
price increase like last summer, and those kinds of prices might hurt
everyone by making the worldwide recession worse.
The $40-per-barrel price is hurting oil companies and oil nations around the
world. You heard the mantra "drill, drill, drill" last summer, but something like
$100 billion in new oil-industry projects have been cancelled since the fall in
prices, and oil rigs, infrastructure and equipment are idle or not being
maintained. Alternative energy projects have also taken a hit, as their worth
is compared to the price of oil, and if oil is cheap, why seek alternatives?
Some of the most negative voices are coming from old hands in the oil patch,
and it's not just because of the current price. The industry's infrastructure is
made predominantly of steel, and many of the rigs, platforms, pipelines and
refineries that were new 40 or 50 years ago are rusting and not being
renewed. The industry also has depended on a generation of workers who
are not only aging, but are too often not being replaced.
99
If demand for oil increases once again as economic recovery begins, where
will the necessary increase in supply come from? Are we, as many analysts
believe, at or beyond the all-time peak of production? Oil at $40 per barreland the financial crisis-has left us a weaker oil industry. And, ironically, a
weaker alternative-energy industry, at a time when we need both to stabilize
future energy resources. If we see serious shortages, prices will spike. Let's
hope it's not the making of another perfect storm.
100
Just when companies were getting used to cheap oil, crude prices have recently
started climbing again, keeping businesses jittery and alert in case last year's
record levels are repeated or prices spiral out of control.
Nouriel Roubini, the well-known New York University professor who predicted the
financial crisis, thinks that crude, which currently hovers above $70 a barrel, may
rise to $100 next year.
A Seoul financier predicts a rise, partly because of the weakening trend of the
greenback and the financial constraints oil producers have found themselves in.
The three-digit-mark may seem like a long way off, but the International Energy
Agency's newly revised forecast adds support to the outlook that prices won't go
back to figures seen earlier this year.
101
Crude traded as low as $30 a barrel earlier, a steep crash after it neared $150 a
barrel in the summer of 2008.
The agency projected Thursday that 2009 oil demand would go up on signs the
recession is bottoming out, which fueled trading to spike to a seven-month high on
the same day.
West Texas Intermediate crude for July delivery broke the $70 threshold to nearly
$73 on the New York Mercantile Exchange, while benchmark Dubai crude, Korea's
main import, hit a new high for the first time since last October.
What does all this mean for companies? Anxiety and a rush of worry no matter
the industry.
``Oil prices affect everything, from manufacturing and packaging to transporting,
no industry is insulated,'' said Lee Dal-suk, a senior analyst at the Korea Energy
Economics Institute, a state-run think tank.
102
The foundation of the Oil & Gas Industry in India was laid by the Industrial Policy
Resolution, 1954, when the government announced that petroleum would be the
core sector industry. In pursuance of the Industrial Policy Resolution, 1954,
Government-owned National Oil Companies ONGC (Oil & Natural Gas Commission),
IOC (Indian Oil Corporation), and OIL (Oil India Ltd.) were formed. ONGC was formed
as a Directorate in 1955, and became a Commission in 1956. In 1958, Indian
Refineries Ltd, a government company was set up. In 1959, for marketing of
petroleum products, the government set up another company called Indian
Refineries Ltd. In 1964, Indian Refineries Ltd was merged with Indian Oil Company
Ltd.
to
form
Indian
Oil
CorporationLtd.
During 1960s, a number of oil and gas-bearing structures were discovered by ONGC
in Gujarat and Assam. Discovery of oil in significant quantities in Bombay High in
February, 1974 opened up new avenues of oil exploration in offshore areas. During
1970s and till mid 1980s exploratory efforts by ONGC and OIL India yielded
discoveries of oil and gas in a number of structures in Bassein, Tapti, KrishnaGodavari-Cauvery basins, Cachar (Assam), Nagaland, and Tripura. In 1984-85, India
achieved a self-sufficiency level of 70% in petroleum products.
In 1984, Gas Authority of India Ltd. (GAIL) was set up to look after transportation,
processing and marketing of natural gas and natural gas liquids. GAIL has been
instrumental in the laying of a 1700 km-long gas pipeline (HBJ pipeline) from Hazira
in Gujarat to Jagdishpur in Uttar Pradesh,
103
After Independence, India also made significant additions to its refining capacity. In
the first decade after independence, three coastal refineries were established by
multinational oil companies operating in India at that time. These included refineries
by Burma Shell, and Esso Stanvac at Mumbai, and by Caltex at Visakhapatnam.
Today, there are a total of 18 refineries in the country comprising 17 in the Public
Sector, one in the private sector. The 17 Public sector refineries are located at
Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Vishakapatnam,
Chennai, Nagapatinam, Kochi, Bongaigaon, Numaligarh, Mangalore, Tatipaka, and
two refineries in Mumbai. The private sector refinery built by Reliance Petroleum Ltd
is in Jamnagar. It is the biggest oil refinery in Asia.
By the end of 1980s, the petroleum sector was in the doldrums. Oil production had
begun to decline whereas there was a steady increase in consumption and domestic
oil production was able to meet only about 35% of the domestic requirement. The
situation was further compounded by the resource crunch in early 1990s. The
Government had no money for the development of some of the then newly
discovered fields (Gandhar, Heera Phase-II and III, Neelam, Ravva, Panna, Mukta,
Tapti, Lakwa Phase-II, Geleki, Bombay High Final Development schemes etc. This
forced the Government to go for the petroleum sector reforms which had become
inevitable if India had to attract funds and technology from abroad into the
petroleum sector. The government in order to increase exploration activity,
approved the New Exploration Licensing Policy (NELP) in March 1997 to ensure level
playing field in the upstream sector between private and public sector companies in
all fiscal, financial and contractual matters.
To meet its growing petroleum demand, India is investing heavily in oil fields
abroad. India's state-owned oil firms already have stakes in oil and gas fields in
Russia, Sudan, Iraq, Libya, Egypt, Qatar, Ivory Coast, Australia, Vietnam and
Myanmar. Oil and Gas Industry has a vital role to play in India's energy security and
if India has to sustain its high economic growth rate.
104
India
Indian Oil Corp - major diversified, transnational, integrated energy company
Indiana Gratings Pvt. Ltd. - design, manufacture, supply and erection of gratings all
over the world.
Jagson International Limited (JIL) - offshore drilling in the Indian waters
Jindal Drilling & Industries ltd - deep ocean well drilling engineering and more
Kavin Engineering and Services Private Ltd - Process, mechanical, instrumentation,
piping and structural engineering for oil and gas production and processing
facilities.
M/S Kunj Forgings P LTD - manufacturer of pipeline accesories such as forged &
casted valves & forged flanges
Orion Instruments - manufacturers of pressure switches
Parveen Industries Pvt. Ltd - manufacture metallic conduits of electric cables
Petrodril - providing professional services, technical and corporate, to the petroleum
and other energy related business.
107
HALDIA
INTRODUCTION OF OIL COMPANIES IN HALDIA
increased
to
3.75
MMTPA
in
1997
with
the
study for the project. The study has not yet been conducted in the absence of such
a partner.
In September 2006, IOC had signed a memorandum of agreement (MoA) with the
West Bengal government to develop Haldia as a Petroleum, Chemicals and
Petrochemicals Investment Region (PCPIR). The agreement envisaged setting up of
a refinery of 15-million tonne capacity with downstream petrochemical facilities. IOC
already operates a 6-million tonne refinery at Haldia, which is being expanded to
7.5 million tonnes.
IOC is not the only company that has put on hold its expansion plan. Last week,
Mangalore Refinery and Petrochemicals, a subsidiary of Oil and Natural Gas
Corporation (ONGC) said it has shelved its plan to build a 15-million tonne refinery.
Analysts say the economic downturn is not the only reason behind putting such
plans on hold. Such decisions are also being influenced by the increasing surplus
refining capacity in the country. India has surplus refining capacity of nearly 45
million tonnes, which is set to increase further.
The crisis being faced by haldia petrochemicals ltd deepened further with indian oil
deciding to stop naphtha supplies after a rs 21 crore cheque issued by the former
bounced on friday. this is the second time that cheques to the oil major issued by
the rs 5,300 crore joint venture between the west bengal government, the tatas and
the purnendu chatterjee group have bounced. "some consignments are on way so
we can't do anything about them. but after that we are stopping supplies till
110
payments are cleared," a top ioc official said. the official also expressed
unhappiness over the post-dated cheque payment system in the commercial pact
with hpl. two of hpl's cheques issued to ioc for rs 17.33 crore and rs 20.38 crore had
bounced last month. subsequently, hpl revalidated them but requested ioc to delay
encashment siting poor sales. hpl also has a 60-day breather for payments. the
company doesn't have to pay interest for the first 30 days. hpl has been facing
problems for sometime now, with the tatas seeking an exit. the latest incident may
put off ioc which has shown willingness to take up to 26 per cent equity provided it
gets the management control. it also envisages restructuring the existing equity
share capital of the company and significant reduction in the stakes of the existing
promoters. ioc has also been willing to contribute fresh equity share capital of rs
468 crore to acquire a 26 per cent stake in hpl, proposed to be made at par.
111
The project will reduce the transportation cost of crude to both Haldia and
Barauni refineries in West Bengal and Bihar respectively.
The Rs 1,178-crore project - including single-point mooring and storage
facility at sea port at Paradip in Orissa - had run into rough weather following
a series of problems involving project design, environmental clearance and
differences with the Iranian contractor deployed to complete the SPM and
the connecting offshore pipeline.
SPM project contractor
According to sources, to hasten the process, the company recently replaced
the SPM project contractor - Iranian Offshore Engineering and Construction
Company (IOEC) - with Oil and Gas Engineering Systems of Australia.
IOEC was charged with inordinately delaying completion of the project.
Escalation
Though the decision may lead to legal complications between IOC and IOEC,
IOC is now hopeful of completing the project shortly. There are, however,
chances of escalation in project cost depending upon the legal
developments.
"The Australian company has just set foot on the project. There is 30-35 days
residual work left in regard to the offshore pipeline connecting the SPM to
onshore storage facility. However, considering the heavy monsoon in the
East coast, which is about to arrive, there may be some minor delay. Overall
we are now hopeful to complete the project in next two months," a senior
company official said.
Sub-surface pipeline
112
Meanwhile, IOC sources said Punj Llyod has helped overcome technical
problems in laying the 330 km sub-surface pipeline from Paradip to Haldia
crossing a number of river estuaries, including the largest and most difficult
of them all - the estuary of the Mahanadi.
"There were serious problems in laying the pipeline under the Mahanadi
leading even to a change in design. However, the project contractor struck to
work at the agreed cost," the official said, adding that the pipeline project
has been completed.
It is of interest to note that Iranian Offshore Engineering and Construction
Company has previously faced similar charges from ONGC for a pipelinecum-platform modification project.
IndianOil is setting up the Paradip to Haldia pipeline to bring down the cost of
transportation of crude oil to both Haldia and Barauni refineries. Currently, the crude oil
113
is being supplied from the Haldia port in small consignments. At Rs 1,420 crore, the
pipeline is one of IndianOil's most ambitious projects as it is expected to facilitate further
expansion of refinery capacities in the eastern region.
The source said although the project was initiated in 2004, it faced delay due to initial
hurdles. Later, the offshore single point mooring system faced problems. "It is now
ready and the pipeline is almost in place," he said, adding that the pipeline will have a
capacity of 11 mtpa.
The company which had a pipeline network of 9,273 km at the start of this fiscal year,
plans to add 4,000 km before the end of the current Five-Year Plan, which ends in
March 2012. "We are currently working on 13 different projects with a total investment of
Rs 2,500-2,600 crore. The pipelines are an integral part of these 3 projects," the source
said.
The first of the projects was a small Bangalore ATF line pipeline which was
commissioned in October 2008. The second was IndianOil's first LPG pipeline from
Panipat to Jalandhar Spanning 275 km, it was commissioned in November. The third is
the Panipat Haldia pipeline.
The move will enable the oil major to save Rs 400 crore, when compared to
the cost involved for setting up a floating storage offtake (FSO) at the mouth
of the Hooghly, proposed by the Kolkata Port Trust (KoPT). KoPTs river port
Haldia will, however, will lose considerable petroleum cargo.
This pipeline will connect Paradip port in Orissa with IOCs refinery at Haldia in West
Bengal and further with the help of existing Haldia-Barauni pipeline, which carries
crude to IOCs Barauni refinery in Bihar.
GUJARAT
115
GSPC has grown from operator ship of small fields in Gujarat into an expansive oil
and gas exploration and production company across India and overseas within just a
decade. The company has recently drilled its 50th onshore well, which is a landmark
considering the fact that GSPC has been an Operator only since Aprill 2000. Its rise
in the hydrocarbon sector was helped in no small measure by the Central
Government's opening of the sector to private participation in the early 1990s.
(Guwahati Refinery)
PROFILE OF GUWAHATI REFINERY (ASSAM)
The Guwahati Refinery in North East India -- the first Public Sector
refinery of the country -- was commissioned in 1962 with a
capacity of 0.75 MMTPA which was subsequently increased to 1.0
MMTPA through debottlenecking projects. The refinery processes
only indigenous crude oil from the Assam oil fields. With its main
secondary unit, a coking unit, it produces middle distillates from
heavy ends and supplies petroleum products to North-Eastern
India, and surplus products onward to Siliguri in West Bengal in
2003. Hydrotreater Unit for improving the quality of diesel has
been commissioned in 2002. In 2003, the refinery installed an
Indmax Unit, a novel technology developed by Indian oils R&D
Centre for upgrading heavy ends into LPG, Motor Spirit and Diesel
oil.
117
GUWAHATI REFINERY
===========================
====
The Human Resource Department The Personnel, Administration,
Management Services, HRD & Training and Corporate Communication
Department at Refineries are headed by ED (HR) with the following functions
under his charge:
1
2
Personnel
Management Services
Corporate Communication
In Guwahati refinery the functions are divided amongst two senior human
resource managers (SHRM). Each SHRM appoints deputy manager to
subdivide their functions. SHRM also appoints Senior Administrative officers
(SAO) to take care of the administrative functions.
The organogram of Guwahati refinerys HR department is given in the next
page.
Functions of SHRM: They have to look after employee relations which
includes looking after facilities like medical facilities, wages, incentives that
are being provided to the employees or not. They mainly direct their Deputy
Managers to look after these aspects. SHRM is also in charge of looking after
the contract labor related issues. They do this by giving approval to the entry
and exit of contract labor during the contract period after the initial
verification is done by employee relations officer.
The SHRM also has to look after various legal activities like land and estate
matters as and when arise. SHRM looks after the time office matters like
entry and exit of employees and also a very important function that is wage
administration.
Functions of Deputy Managers: They perform the functions of approving
land and estate matters, and then development of surrounding community,
looks into the matters of certain educational undertakings financed by
Guwahati refinery, forwards the requests for loans and advances by
119
120
Manpower planning
Job description
Recruitment
Personnel records
Promotion
Transfer
PERSONNEL MAINTENANCE
o
Motivation
121
Performance Appraisal
Recreation
Communication
Safety
Medical Services
Security
INDUSTRIAL RELATIONS
o
Productivity Bargaining
Grievance Handling
Discipline Administration
COMPENSATION
o
Negotiations
122
Incentives/bonus
(e) E ( )
INTERPRETATION:
28.57
%
14.29
%
28.58
%
GRADE A
GRADE B
GRADEC
123
14.29
%
14.29
%
GRADE D
GRADE E
3) What was your Compensation Package before the commencement of 9th Pay
Commission?
a) Below 10,000(
) (b)10,000-20,0000(
) (c)20,000-30,000( )
14.29
%
42.86
%
28.58
%
7.14%
7.14%
124
ANALYSIS: It was analyzed that before the commencement of 9th Pay Revision
maximum of the employees compensation package was between 10 000 to 20 000
respectively.
(b) No ( )
INTERPRETATION
Yes
No
85.71
%
14.29
%
125
ANALYSIS: It was analyzed that maximum of the employees were satisfied with
their working condition prevailing in this organization.
5) Are you satisfied with your payroll along with your working condition?
a) Yes ( )
( b) No ( )
Interpretation:
71.42
%
28.57
%
Yes
No
126
Analysis: It was analyzed that maximum of the employees were satisfied with
their payroll along with their working condition in this organization. The ratio of
their Payroll in respect to their Working Condition was beneficial to them.
( b) No (
INTERPRETATION:
Yes
No
57.14
%
42.85
%
127
Analysis : Maximum of the respondants stated that there should be a rise in the
salary package in respect to this organization.
( b) No ( )
INTERPRETATION
Yes
No
71.42
%
28.57
%
128
ANALYSIS: It was analyzed that maximum of the respondants stated that the 9th
Pay Revision should be implemented in this organization.
8) What was the reimbursement in your salary package after the commencement
of 9th pay revision?
a) 10% ( )
(b) 20%( )
(c) 30% ( )
( d) 40% ( )
(e) 50% ( )
INTERPRETATION:
10%
20%
30%
40%
50%
28.58
%
14.29
%
28.58
%
14.29
%
14.29
%
Here , 1=10%, 2=20%, 3=30%, 4=40% and 5=50% as indicated in the graph below.
129
9) Now are you satisfied with the payroll along with your working condition after
the commencement of 9th Pay Revision?
a) Strongly Dissatisfy ( )
(b) Dissatisfy (
130
INTERPRETATION
14.29
%
14.29
%
14.29
%
28.58
%
28.58
%
Strongly Dissatisfy
Dissatisfy
Neither Satisfy Nor Dissatisfy
Satisfy
Strongly Satisfy
131
132
CONCLUSION
Taking into consideration the 5 Rating Scale i.e strongly satisfied,
satisfied, neither
strongly
satisfied nor
dissatisfied
it
was
dissatisfied,
found
out
dissatisfied
and
that
the
after
brief
graph
has
been
enumerated
below
showing
the
Dissatisfy:14.29%
Neither
Satisfy
Dissatisfy:14.29%
Dissatisfy:14.29% , Satisfy:28.58%, Strongly Satisfy:28.58%
133
Nor
134
REFERENCE
135
Websites Referred:
www.iocl.in
www.monetarycontrol.com
www.quickmba.com
www.netmba.com
www.investorwords.com
www.answers.yahoo.com
www.motorcyclist.com
www.businessmirror.com
www.adnoc.ae.com
www.iloveindia.com
www.valuenotes.com
INTRANET REFERRED
Intranet of Indian Oil Corporation Ltd, Guwahati Refinery.
136
Questionnaire
ON
137
1) For how many years have you been working in this organization?
2) What is your grade in this organization?
a) A ( ) (b) B ( ) ( c) C ( ) (d) D ( )
(e) E ( )
3) What was your Compensation Package before the commencement of 9th Pay
Commission?
a) Below 10,000(
) (b)10,000-20,0000(
) (c)20,000-30,000( )
(b) No ( )
5) Are you satisfied with your payroll along with your working condition?
a) Yes ( )
(b) No ( )
( b) No (
a) Yes ( )
( b) No ( )
8) What was the reimbursement in your salary package after the commencement
of 9th pay revision?
a) 10% ( )
(b) 20%( )
(c) 30% ( )
( d) 40% ( )
(e) 50% ( )
9) Now are you satisfied with the payroll along with your working condition after
the commencement of 9th Pay Revision?
a) Strongly Dissatisfy ( )
(b) Dissatisfy (
139
140
141
142