CHAPTER-1

COMPANY PROFILE

Fig1.1 Company Logo

Oil and Gas Corporation limited (ONGC) is an Indian multinational oil and gas company earlier
headquartered in Dehradun, Uttarakhand, India. As a corporation, it's registered office is now at
deendayalurja bhavan, basant kunj, New Delhi 110070 India. It is a public sector undertaking
(PSU) of the government of India, under the administrative control of the ministry of petroleum
and natural gas. It is India’s largest oil and gas exploration and production company. It produces
around 70% of India’s crude oil (equivalent to around 30% of the country's total demand) and
around 62% of its natural gas.

On 31 march 2013, its market capitalization was INR 57.2 trillion (us $billion), making it India’s
first largest publicly traded company. In a government survey for fiscal year 2016-17, it was
ranked as the largest profit making PSU in India. It is ranked 11th among the top 250 global
energy companies by plats.

ONGC was founded on 14 august 1956 by government of India, which currently holds a 68.94%
equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins
of India and owns and operates over 11,000 kilometers of pipelines in the country. Its
international subsidiary ONGC vides currently has projects in 17 countries. ONGC has
discovered 6 of the 7 commercially producing Indian basins, in the last 50 years, adding over 7.1
billion ton of in-place oil & gas volume of hydrocarbons in Indian basins. Against a global
decline of production from matured fields, ONGC has maintained production from its
Brownfield like Mumbai high, with the help of aggressive investments in various

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IOOR(improved oil recovery) and EOR (enhanced oil recovery) schemes. ONGC has many
matured fields with a current recovery factor of 25–33%. Its reserve replacement ratio for
between 2005 and 2013, has been more than one. During 2012–13, ONGC had to share the
highest ever under-recovery of inr 8993.78 billion (an increase of inr 567.89 million over the
previous financial year) towards the under-recoveries of oil marketing companies (ioc, bpcl and
hpcl). On 1 November 2017, the union cabinet approved ONGC for acquiring majority 51.11 %
stake in HPCL (Hindustan petroleum corporation limited). On jan 30th 2018, oil & natural gas
corporation acquired the entire 51.11% stake of Government Of India.

1.1 ORIGIN OF THE COMPANY :

Oil and natural gas corporation limited(ONGC) is an Indian multinational oil and gas company
earlier headquartered in Dehradun, Uttarakhand, India. As a corporation, it’s registered office is
now at Dindayal urja bhavan, basant kunj, New Delhi 110070 India. It is a public sector
undertaking (PSU) of the government of India, under the administrative control of the ministry
of petroleum and natural gas. It is India’s largest oil and gas exploration and production
company. It produces around 70% of India’s crude oil (equivalent to around 30% of the
country’s total demand) and around 62% of its natural gas.

1.2 VISION, MISSION & OBJECTIVES:

Vision:

To be global leader in integrated energy business through sustainable growth, knowledge

excellence and exemplary governance practices.

Mission:

 Dedicated to excellence by leveraging competitive advantages in r&d and technology

with involved people.

 Imbibe high standards of business ethics and organizational values.

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  Abiding commitment to safety, health and environment to enrich quality of community
life.

 Foster a culture of trust, openness and mutual concern to make working a stimulating and
challenging experience for our people.

 Strive for customer delight through quality products and services.

 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.

1.3 BOARD OF DIRECTORS & STAKE HOLDERS:

The company is managed by the board of directors, which formulates strategies, policies and
reviews its performance periodically. The chairman & managing director (cmd) and six whole-
time directors viz. Director (onshore), director (technology & field services), director
(finance),director (offshore), director (exploration) and director (human resource), manage the
business of the company under the overall supervision, control and guidance of the board.

1.3.1 BOARD OF DIRECTORS:

Functional directors

Hashishanker chairperson & managing director

Shashi shanker director (t&fs)

Desh Deepak misra director (hr)

Ajay kumar dwivedi director (exploration)

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Subhash Kumar director (finance)

Rajesh kakkar director (offshore)

Sanjay Kumar moitra director (onshore)

Government nominees:

Amar nath government nominee (joint secretary - exploration)

Rajiv Bansal government nominee (additional secretary & financial adviser)

Independent Director:

Ajai Malhotra (Independent Director)

K m padmanabhan (Independent Director)

Shireesh b kedare (Independent Director)

Deepak sethi (Independent Director)

Sumit Bose (Independent Director)

Vivekmallya (Independent Director)

Dr Santruptmisra (Independent Director)

Smt. Ganga murthy (Independent Director)

Dr. Sambit patra (Independent Director)

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1.3.2 SHAREHOLDERS SHAREHOLDING

Promoter – government of India 68.94%

Government companies 10.09%

Banks, financial inst. & insurance companies 09.69%

Foreign institutional investors (fii) 06.27%

Private corporate bodies 11.83%

Individual shareholders 01.65%

Mutual funds and uti 01.13%

Nri/employees 00.11%

Total 100.0%

1.4 ORGANIZATIONAL STRUCTURE:

ONGC energy center (OEC) is headed by a director-general and has two organizational units:
research and planning unit and coordination unit. The research & planning unit is the key
operational unit responsible for implementation and coordination of research projects. This unit
is also responsible for technology scanning, generating new ideas, economic analysis &
feasibility, evaluation and selection of research projects, IPR related work, development of in-
house research facilities and other work related to projects. The coordination unit provides all
necessary administrative support including secretarial support for meetings of the trust and
expert advisory committee, seminars, hr it, finance & accounting and mm (material
management) to the other units of OEC.

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Fig 1.2 Organizational Structure

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1.5 PRODUCTS/SERVICES:

ONGC supplies crude oil, natural gas, and value-added products to major Indian oil and gas
refining and marketing companies. Its primary products crude oil and natural gas are for the
Indian market.

Product-wise revenue breakup for 2016–17 ( billion)

Product Revenue

Crude oil 562.38

Gas 168.88

Lpg 31.48

Naptha 76.80

C2-c3 13.44

Sko 3.69

Others 1.59

Adjustments – 32.74

Total 825.52

1.6 MILESTONES:

ONGC - ONGC is top energy company of India; 5th in Asia, 21st globally.

Also maintains place as world's 3rd ranked e&p company

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Energy major oil and natural gas corporation has been ranked as the top energy company in
india, in the coveted platts top 250 global energy company rankings 2014.

ONGC has improved on its global ranking up by a notch to feature at 21st place among the global
energy majors. In the asia/pacific rim, ONGC was featured at the 5th position, up from 7th last
year. ONGC has also maintained its position as the 3rd ranked exploration and production
company globally.

With many great initiatives in the pipeline, the maharatna company is poised to gain bigger
milestones in the times to come as it puts its production plans on fast-lane. This recognition
comes on the heel of ONGC’s recent ranking in bt 500 where it gained two positions to be placed
at number 2 among the Indian corporate biggies.

ONGC has been ranked 5 among 82 companies of the apac region. Asian companies have once
again demonstrated their growing influence and have moved up in both number and position. 13
Indian companies figure in the top 250 global energy company list (as against 12 last year),
including, reliance industries ltd (22), Indian oil corporation (43), coal India ltd (47), ntpc (50),
bpcl (66), gail (97), cairn India ltd (104), power grid Corporation of India ltd (142), hpcl (153),
reliance infrastructure ltd (198), Oil India ltd (208) and essar oil ltd (232).

1.7 FUTURE PLAN:

Business development & joint ventures group of ONGC (bd&jv) is organization’s link to driving
value integration in hydrocarbon molecule beyond the e&p domain and to identifying and
developing futuristic energy portfolio for the company to ensure sustainability of the
organization. The group is headed by director (hr) as the director-incharge of business
development and joint ventures.

FUTURE POSSIBLE:

In the conventional domain of hydrocarbon molecule, Business development & joint ventures is
exploring feasibility of sourcing lng on competitive basis to meet long-term natural gas demand
of India and thereby furthering energy security of the country. ONGC is also planning to invest

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in regasification terminal with total capacity of 5-10 mmtpa as envisaged in perspective plan -
2030.

Oil and gas are going to remain mainstay of the company for a long time to come, however, the
fossil fuel, the source of which is finite would be facing increasingly difficult challenges to
explore and exploit. Further, with the increasing focus of the world community on environment,
clean energy is slated to play increasing role in energy basket of any country.
ONGC has imbibed this emerging reality in its stated mission of providing value linkage to other
sectors of energy business. In order to create growth opportunities and maximize shareholder
value, along with its continued thrust for exploration & production of hydrocarbon, ONGC
intends to play an important role in development of nonconventional energy resource for the
country. ONGC’s resource base is an enabler in creating such growth opportunities.

ONGC has already taken a concrete step in this direction by setting up a 51 mw wind farm in
Gujarat. Business development & joint ventures is now taking the initiative further for significant
addition of capacity in the portfolio. The group is also actively examining and pursuing various
prospects in the domains of offshore wind, solar, hydro and nuclear energy sources while
engaging with some of the best players in the respective domains.

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 CHAPTER-2

INDUSTRY PROFILE

2.1 INTERNATIONAL SCENARIO:

ONGC videsh limited (OVL) is the international arm of ONGC. It was rechristened on 15 June
1989. The primary business of ONGC videsh is to prospect for oil and gas acreages outside
India, including exploration, development and production of oil and gas. It currently has 38
projects across 17 countries. Its oil and gas production reached 8.87 mmt of o+oeg in 2010, up
from 0.252 mmt of o+oeg in 2002/03. ONGC holds 100% stake in ONGC videsh limited.[4]

Hindustan petroleum corporation limited (HPCL) (bse: 500104, nse: hindpetro) is an Indian
state-owned oil and natural gas company with its headquarters at mumbai, maharashtra. It has
about 25% market-share in India among public-sector companies and a strong marketing
infrastructure. Oil and natural gas corporation owns 51.11% shares in hpcl and others are
distributed amongst financial institutes, public and other investors. The company is ranked 367th
on the fortune global 500 list of the world's biggest corporations as of 2016.

Presence of ONGC videsh limited in Latin America;

 Brazil (block bc-10, bm-seal-4, bm-bar-1, bm-es-42, bm-s-73 & s-74)

 Colombia (block lla-69, rc-8, rc-9, rc-10, ssjn-7 & cpo-5)
 Cuba (block n-25, n-26, n-27, n-28, n-29 n-34, n-35 & n-36 block)
 Venezuela (block san Cristobel, block carabobo-1)

Presence of ONGC videsh limited in cis & far-east;

 Vietnam (block 06.1, 127, 128)

 Myanmar (block a-1, a-3, ad-2, ad-3 & ad-9, pipeline project- pipeco-1, pipeco-2)

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 Russia (block sakhalin-i, 69, 70–1, 70–2, 70–3, 77, 80, 85–1, 85–2 and 86)(15% shares in
csjc vancourneft company of vancour)
 Kazakhstan (satpayev exploration block)

Presence of ONGC videsh limited (ovl) in africa;

 Libya (block nc-189, 81–1, contract area 43)

 Nigeria (block opl 279, opl 285, block-2)
 Sudan & south sudan (gnop/gnpoc/gpoc- 1, 2 & 4, block 5a, pipeline- khartoum-port project)

It is an oil refinery at mangalore. Mrpl has a design capacity to process 15 million metric tons
per annum and have 2 hydrocrackers producing premium diesel (high cetane). It also has 2 ccrs
producing unleaded petrol of high octane.

Fig 2.1 Petroleum Products

2.2 INDIAN SCENARIO:

2.2.1 INTRODUCTION:

The oil and gas sector is among the six core industries in India and plays a major role in
influencing decision making for all the other important sections of the economy in 1997–98, the

11
new exploration licensing policy (nelp) was envisaged to fill the ever-increasing gap between
India’s gas demand and supply. India’s economic growth is closely related to energy demand;
therefore the need for oil and gas is projected to grow more, thereby making the sector quite
conducive for investment.

The government of India has adopted several policies to fulfill the increasing demand. The
government has allowed 100 per cent foreign direct investment (FDI) in many segments of the
sector, including natural gas, petroleum products, and refineries, among others. Today, it attracts
both domestic and foreign investment, as attested by the presence of reliance industries ltd (RIL)
and cairn India.

2.2.2 MARKET SIZE:

India is expected to be one of the largest contributors to non-oecd petroleum consumption

growth globally. Oil imports rose sharply year-on-year by 27.89 per cent to us$ 9.29 billion in
October 2017. India’s oil consumption grew 8.3 per cent year-on-year to 212.7 million tones in
2016, as against the global growth of 1.5 per cent, thereby making it the third-largest oil
consuming nation in the world.

India is the fourth-largest liquefied natural gas (lng) importer after japan, South Korea and
China, and accounts for 5.8 per cent of the total global trade. Domestic lng demand is expected
to grow at a cagr of 16.89 per cent to 306.54 mmscmd by 2021 from 64 mmscmd in 2015.

The country's gas production is expected to touch 90 billion cubic meters (bcm) in 2040 from
21.3 billion cubic meters in 2017-2018 (apr-nov). Gas pipeline infrastructure in the country stood
at 16,470 km in September 2017.

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2.2.3 INVESTMENT:

According to data released by the department of industrial policy and promotion (dipp), the
petroleum and natural gas sector attracted FDI worth us$ 6.86 billion between April 2000 and
September 2017.

Following are some of the major investments and developments in the oil and gas sector:

 World's largest oil exporter Saudi Aramco is planning to invest in refineries and
petrochemicals in India as it looks to enter into a strategic partnership with the country.
 Foreign investors will have opportunities to invest in projects worth us$ 300 billion in
India, as the country looks to cut reliance on oil imports by 10 per cent by 2022,
according to Mr. Dharmendra Pradhan, minister of petroleum and natural gas,
government of India.
 During the bilateral meeting held in Tokyo between Mr. Dharmendra Pradhan, minister
of petroleum and natural gas, government of India and Mr. Hiroshige seko, minister of
economy, trade, and industry of Japan, signed a memorandum of cooperation on
establishing a liquid, flexible and global liquefied natural gas (lng) market by exploring
joint cooperation in the areas of sourcing, swapping and optimization of lng sources.
 State-owned oil and natural gas corporation (ONGC) has come up with the new blueprint
to increase the crude oil production by 4 million tones and to double its natural gas
production by 2020 to curb the country’s import dependency by 10 percent. The company
will raise its crude oil production from 22.6 million tones in 2017-2018 to 26.42 million
tones in 2021- 2022.

2.2.4 GOVERNMENT INITIATIVES:

Some of the major initiatives taken by the government of India to promote oil and gas sector are:

 State-run oil firms are planning investments worth Rs.723 crore (us$ 111.30 million) in
Uttar Pradesh to improve the liquefied petroleum gas (lpg) infrastructure in a bid to
promote clean energy and generate employment, according to Mr. Dharmendra Pradhan,
minister of petroleum and natural gas, government of India.

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  A gas exchange is planned in order to bring market-driven pricing in the energy market
of India and the proposal for the same is ready to be taken to the union cabinet, according
to Mr. Dharmendra Pradhan, minister of petroleum and natural gas, government of India.
 The oil ministry plans to set up bio-cng (compressed natural gas) plants and allied
infrastructure at a cost of Rs.7,000 crore (us$ 1.10 billion) to promote the use of clean
fuel.

2.2.5 ROAD AHEAD:

India’s oil demand is expected to grow at a cagr of 3.6 per cent to 458 million tones of oil
equivalent (mtoe) by 2040, while demand for energy will more than double by 2040 as economy
will grow to more than five times its current size, as stated by Mr.Dharmendra Pradhan, minister
of state for petroleum and natural gas.

Gas production will likely touch 90 billion cubic metres (bcm) by 2040, subject to adjustment to
the current formula that determines the price paid to domestic producers, while demand for
natural gas will grow at a cagr of 4.6 per cent to touch 149 mtoe.

After the completion of certain projects which are undertaken by various refineries, the refining
capacity of india is expected to reach 256.55 mmtpa by 2019-20.

The demand for petroleum products is estimated to reach 244,960 mt by 2021-22, up from
186,209 mt in 2016, and the demand for natural gas is expected to reach 606 mmscmd by 2021-
22 as against a demand of 473 mmscmd in 2016-17.

Exchange rate used: inr 1 = us$ 0.015 as on January 4, 2018

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Fig 2.2 ONGC in India

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 CHAPTER-3

DEPARTMENT PROFILES

3.1 HUMAN RESOURCE DEPARTMENT:

Director (HR) is the head of human resource in the organization. All the recruitment and
promotions in the organization are made under his control he uses to involve in designing hr
policies, manpower planning, manpower deployment and other activities relating to human
resource / employees relation of the organization.

3.1.1 DEPARTMENT HEAD & EMPLOYEE:

Mr.Desh Deepak Misra has taken over as the director (human resource) of India’s most valuable
public enterprise oil and natural gas corporation limited (ONGC) on august 1, 2014. He brings
with him a treasure of experience in various facets of human resources.a masters in public
administration from the University of Lucknow, he joined ONGC in January 1985. Starting his
career from the Baroda office of ONGC, his result-driven and self-motivated approach at work
was noticed soon and led to his relocation to Dehradun as executive assistant to the then member
(personnel) of the ONGC board. The rich exposure in this assignment was buttressed with
experience gained in leading hr teams in various regions of ONGC – Assam, Tamil nadu,
Maharashtra and Uttarkhand. He is the recipient of the ‘young executive of the year’ award and
has been instrumental in ONGC securing the ‘earth care award - 2008’ for mitigating greenhouse
gas emissions. Known for his out-of-box creativity and amicable nature, extra-curricular
passions run deep in mr. Misra’s dna. A suave gentleman, his prime passion is wildlife
photography. His lens has captured a number of endangered animal species, very closely; the
komodo dragons of Indonesia is one recent example. He has a rare distinction of being a part of
the ‘support team’ of the first Indian civilian expedition to kanchenjunga peak in 1988. He was
the deputy leader of the ‘trans-desert safari 1995’ - a 14-day joint venture between ONGC and
bsf, which crossed thar desert on camels along indo-pak border.

Today, ONGC is the flagship company of India; and making this possible is a dedicated team of
nearly 33,000 professionals who toil round the clock. It is this toil which amply reflects in the

16
aspirations and performance figures of ONGC. The company has adopted progressive policies in
scientific planning, acquisition, utilization, training and motivation of the team. At ONGC,
everybody matters, every soul counts. Needless to emphasize, this was made possible by the men
& women behind the machine. Over 18,000 technically-competent experienced scientists,
engineers and specialist professionals, mostly from distinguished universities institutions of India
and abroad form the core of our executive profile. They include geologists, geophysicists,
geochemists, drilling engineers, reservoir engineers, petroleum engineers, production engineers,
engineering & technical service providers, financial and human resource experts and it
professionals.

3.1.2 PROFILE OF THE DEPARTMENT:

This largest energy company has vast pool of skilled and talented professionals – the most
valuable asset for the company. ONGCians dedicate themselves for the excellent performance of
the company. ONGC extends several welfare benefits to the employees and their families by way
of comprehensive medical care, education, housing and social security.

3.1.3 DEPARTMENT STRUCTURE:

DIRECTOR (HR)
HRD
EMPLOYEE RELATIONS
SECURITY
FIRE SERVICE
LEGAL
MEDICAL
CORPORATE COMMUNICATION
CORPORATE ADMINISTRATION
CSR
ONGC ACADEMY

Fig 3.1 Department Structure

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3.1.4 ROLES & RESPONSIBILITIES:

 Enrich and sustain the culture of integrity, belongingness, teamwork, accountability and
innovation.
 Enrich and sustain the culture of integrity, belongingness, teamwork, accountability and
innovation.
 Enhance employee competencies continuously.
 Build a joyous work place.
 Promote high performance work systems.
 Upgrade and innovate hr practices, systems and procedures to global benchmarks.
 Promote work life balance.
 Measure and audit hr performance.
 Promote work life balance. Integrate the employee family into the organizational fabric.
 Inculcate a sense of corporate social responsibilities among employees.

Measuring HR performance:
Hr parameters have been incorporated in the mou by ONGC since 1994-95, to systematically and
scientifically evaluate effectiveness of hr systems, which enables and facilitates time bound
initiatives.

A motivated team:

Hr policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant &
self-driven team. The company cares for each & every employee and has in-built systems to
recognize & reward them periodically. Motivation plays an important role in hr development. In
order to keep its employees motivated the company has incorporated schemes such as reward
and recognition scheme, grievance handling scheme and suggestion scheme.

Incentive schemes to enhance productivity

 Productivity honorarium scheme

 Job incentive
 Quarterly incentive

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  Reserve establishment honorarium
 Roll out of succession planning model for identified key positions
 Group incentives for cohesive team working, with a view to enhance productivity

Training & development :

An integral part of ONGC’s employee-centred policies is its thrust on their knowledge

upgradation and development. ONGC academy, previously known as institute of management
development (imd), which has an iso 9001 certification, along with 7 other training institutes,
play a key role in keeping our workforce at pace with global standards.

ONGC academy is the premier nodal agency responsible for developing the human resource of
ONGC. It also focuses on marketing its hrd expertise in the field of exploration & production of
hydrocarbons. ONGC’s sports promotion board, the apex body, has a comprehensive sports
policy through which top honors in sports at national and international levels have been
achieved.

Transforming the organization:

ONGC has undertaken an organization transformation exercise in which hr has taken a lead role
as a change agent by evolving a communication strategy to ensure involvement and participation
among employees in various work centers. Exclusive workshops and interactions/brainstorming
sessions are organized to facilitate involvement of employees in this project.

Participative culture :

Policies and policy makers at ONGC have always had the interests of the large and multi-
disciplined workforce at heart and have been aware of the nuances and significance of cordial
industrial relations. By enabling workers to participate in management, they are provided with an
informative, consultative, associative and administrative forum for interactive participation and
for fostering an innovative culture.

19
In fact, ONGC has been one of the few organizations where this method has been implemented.
It has had a positive impact on the overall operations since it has led to enhanced efficiency and
productivity and reduced wastages and costs.

Respect and dignity are the key values that underline the relationship ONGC has with its human
assets. Conscious about its responsibility to society ONGC has evolved guidelines for socio-
economic development programmes in areas around its operations all over the country.

 Education
 Health care and family welfare
 Community development
 Promotion of sports and culture
 Calamity relief
 Development of infrastructural facilities

Sports :

Around 150 sportspersons including 95 international level performers are on the rolls of ONGC
representing your company in 15 different games.

Corporate social responsibility:

 ONGC is spearheading the United Nations global compact - world's biggest corporate
citizenship initiative to bring industry, un bodies, ngos, civil societies and corporate on
the same platform.
 During the year, your company has undertaken various csr projects at its work centres
and corporate level.

Women empowerment:
Women employees constitute about 5% of ONGC's workforce. Various programmes for
empowerment and development, including programme on gender sensitization are organized
regularly

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3.1.5 ACHIEVEMENTS OF DEPARTMENT:

1. Petrofed oil and gas industry awards 2009 & 2010 to ONGC
2. ONGC bags fe-evi green business leadership award
3. ONGC won the nipm best hr practices silver trophy
4. ONGC receives the ̳shine. Com HR leadership award‘ for its
csr activities.
5. ONGC bagged certificate for excellence in corporate governance
6. ONGC gets pcra award for best overall performance for energy conservation in upstream
sector
7. ONGC bags safety innovation award instituted by iei
8. ONGC bestowed with ̳the india shining star csr award‘
9. ONGC bestowed with ndtv ̳greenies eco award‘
10. Golden peacock award to ONGC
11. Icc sustainability vision 2011 award to ONGC
12. ONGC bagged awards for best financial performance and corporate governance, and
13. Golden peacock award for climate security

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3.2 FINANCE DEPARTMENT:

The part of an organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and controlling its
company's finances. The finance department also usually produces the company's financial
statements.

3.2.1 DEPARTMENT HEAD & EMPLOYEES:

Mr. Subhash Kumar has taken charge as director (finance), ONGC on 31 January 2018. Mr.
Kumar was recommended to the position by public enterprise selection board (pesb) on 26
October 2017 and has been appointed to the post by the president of India.

Prior to joining as director (finance), ONGC, Mr. Kumar served a brief stint with petro net lng
limited where he joined as director (finance) in august 2017.

Mr. Kumar is fellow member of icmai and associate member of icsi. He is an alumni of panjab
university, Chandigarh, where he obtained his bachelor’s degree and master’s degree in
commerce with gold medal.

Mr. Kumar joined ONGC in 1985 as finance & accounts officer (f&ao). After initially working
in Jammu and Dehradun, he had a long stint at ONGC videsh, the overseas arm of ONGC.
During his tenure with ONGC videsh, Mr. Kumar was associated with key acquisitions and
expansion of company's footprint from single asset company in 2001 into a company with global
presence in 17 countries with 37 assets. He played a key role in evaluation and acquisition of
many assets abroad by ONGC videsh.

He worked as head business development, finance & budget and also as head treasury planning
& portfolio management group at ONGC videsh from April 2010 to march 2015. He then went
on to serve as chief financial officer of mansarovar energy Colombia limited, a 50:50 joint
venture of ONGC videsh and Sinopec of china, from September 2006 to march 2010.

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Mr. Kumar joined back ONGC as chief commercial & head treasury of ONGC in July, 2016
where he played a key role in evaluation, negotiation, and concluding outstanding issues
pertaining to the organization.

3.2.2 PROFILE OF THE DEPARTMENT:

The part of an organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and controlling its
company's finances. The finance department also usually produces the company's financial
statements

Objective of audit:
It audit of financial management in erp environment was conducted to obtain
Assurance on the reliability and integrity of the financial data entered, processed and reported in
the erp system.
Scope of audit:
Audit reviewed accounts payable, asset accounting and cost centre accounting sub-modules of
the financial and controlling modules in eastern region and northern region of the company. Data
was analyzed for the period beginning from the date of implementation of application till march
2007.
Test check by audit revealed incorrect
Mapping of cost centers for allocation of costs and use of inappropriate basis for cost allocation
in amps. The amps were also not being periodically updated to ensure that these remained
current and pertinent. These deficiencies affected cost allocation and consequently cost
accounting done in the controlling module.
A few illustrative instances in this regard are given below:
(i) ‘logistics costs’ were not allocated to maintenance cost centre in forward base at cachar
though it also received logistics services. The management stated
(December 2017) that the cost cycle would be reviewed, if possible.
(ii) Ratio for bifurcation of civil engineering and c&m engineering costs between capital and
revenue costs fixed during initial implementation of erp system in
October 2004 continued to be adopted in Assam asset and Assam & Assam

23
Arakan basin without being updated. The management stated (December 2017) that the
allocation ratio depends upon the service provided by the department. The reply was, however,
silent in respect to not updating the initial ratios fixed in
October 2004.
(iii) Statistical key figures for allocating captive power plant cost in Assam to various
installations fixed during initial implementation of erp system in October 2004 were not updated
resulting in unreasonable allocation ratio. The management
Stated (December 2007) that the allocation of costs of captive power plants was
Being done based on fixed percentages of the power distributed to various
Installations. The reply was, however, silent in respect to not updating the initial
Ratios fixed in october 2004. The management needs to review allocations maintenance
programs across the company for taking necessary corrective action and also put in place
procedures for their periodical review and updating.
input controls and validation checks
Deficient input control, due to which some costs were not entered or appropriate cost element
was not utilized, allowed incorrect cost centre
Assignment in the logistics module. The deficient input control also led to incorrect cost
allocation by the controlling module and its subsequent flow to accounting documents.
Deficiencies in the validation
Checks led to inconsistent tasks being performed.
(i) Eight financial accounting documents involving rs.11.74 lakh were mapped to incorrect cost
centres. The management accepted the facts and stated (December 2007) that action would be
taken to avoid recurrence of such cases in future.
(ii) The information on asset class entered in the master records, which determines the general
ledger account to be automatically updated by the system when transactions were carried out in
asset accounting module, was incorrect resulting in wrong classification and accounting of fixed
assets in respect of 43 assets
Valuing rs.13.69 crore. The management stated (December 2007) that corrective
Action was being taken.
(iii) The information on location and custodian of assets necessary to keep track of physical
location and the person responsible for the custody of the assets was not properly populated in

24
master records as these fields were not being updated by the users. Data on location and the
custodian of assets was not available in the system in 19655 asset records valued at rs.276.54
crore. Due to non availability of this information, location-wise and custodian-wise tracking of
inventory and proper compliance of handing over and taking over of assets in cases of custody
transfers could not be ensured in the system. The management accepted the facts and stated that
data would be updated.

3.2.3 DEPARTMENT STRUCTURE:

DIRECTOR OF FINANCE

CORPORATE FINANCE

INTERNAL AUDIT

COMMERICIAL

CORPORATE ACCOUNTS

BUDGET

TREASURY

RISK MANAGEMENT

DIRECT TAX

INDIRECT TAX

Fig 3.2 Department Structure

3.2.4 ROLES AND RESPONSIBILITIES:

The contributions of finance department ONGC and how these contributions positively affect
organizational performance will greatly depend on factors such as the extent to which the owner

25
or manager is involved in his company. The roles and responsibilities of a finance department
include but are not limited to:

A. ADVISING AND SOURCING LONGER-TERM FINANCING:

It is the duty of the finance department to advise companies on the best financing mix
that could yield the company the best profit and also help them source longer-term financing at
the lowest cost such that there is a profit level of liquidity. Some of the many varied paths a
company can source funds to finance their business as discussed in one of our articles “10 most
common ways to finance your business” include bank credit or private lender debt or, share
issues to private investors (where applicable).

B. MANAGEMENT OF TAXES:
Apart from analyzing and selecting new investments, it is also the duty of the finance
department to manage company’s existing assets. The finance department should be concerned
with current assets apart from fixed assets. The company’s working capital needs to be managed
efficiently in such a way as to maximize profitability relative to the amount of funds tied up
since it has more implication on the firm liquidity than its fixed asset.

G. FINANCIAL REPORTING AND ANALYSIS:

Financial reporting and analysis is the function that takes raw accounting entries and
transforms them into meaningful, usable and comparable financial statements. The finance
department contributes to organizational growth by measuring and reporting on regular bases,
key numbers that are vital to the success of the company. This will likely include a summary of
all funding sources, expenditures and reserves available for future use (excluding those already
committed and budgeted for current period) some non-financial information. And are usually
communicated to managers in a logical and understandable format.

H. ASSIST MANAGERS IN MAKING KEY STRATEGIC DECISIONS:

The finance department provides company management with information necessary to
make strategic decisions such as which markets or projects to pursue, the payback periods for
large capital purchases, decision on what should be given out as dividend out of the company’s
earnings and what to plough back into the business, the best financing mix that could yield the
company the nest profit, decision on how to allocate funds to investment etc., thus, making sure
that money is being used in the best way.
26
3.2.5 BALANCE SHEET:

Fig 3.3 Balance Sheet

27
3.3 MARKETING DEPARTMENT:

3.3.1 DEPARTMENT HEAD:

Shri Marakand dixit, head of the department

Marakand dixit joined in opal in august 2008 and has more than 20 years of experience in
petrochemical business. He has worked and shouldered responsibility in petrochemicals business
& is exposed to all facets of the business i.e from getting finance for the project to launching of
polymers in the domestic.

His career started in 1989 in Oswal petrochemicals moving onto reliance industries in 1990.he
rose to become general manager-marketing in 2006.after which, he worked with indorama’s
nigerian acquisition’eleme petrochemicals” as a head of marketing before taking up his current
assignment in opal.

Shri Marakand is a postgraduate of organic chemistry from Pune University and has done his
mba from symbiosis institute of business management with marketing as a specialization. An
avid sports lover-his commitment to team and team work comes straight from the cricket field as
he has represented Maharashtra in ranji trophy for more than five years.

3.3.2 PROFILE OF THE DEPARTMENT:

Marketing mix of ONGC analyses the brand/company which covers 4ps (product, price, place,
promotion) and explains the ONGC marketing strategy. The article elaborates the pricing,
advertising & distribution strategies used by the company. Let us start the ONGC marketing mix:

Product:

ONGC is one of the largest companies in India. Being the second largest oil generation and
exploration company in india, ONGC provides a plethora of petroleum products. The product
mix in the marketing mix of the company includes crude oil, natural gas, liquefied petroleum
gas, naphtha, methane propane rich gas, kerosene and other by products. These crude oils are
sold by ONGC to the refineries which further uses them to produce gasoline, diesel, kerosene,
28
cooking gas and primarily for domestic consumption. Natural gas excavated are further
processed to process hydrocarbons like methane, butane, propane, ethane, pentane etc.
Approximately 50% of the crude oil excavated by oil and natural gas corporation are processed
to make gasoline, primarily because of its great demand, 40% is used to produce jet fuel and
heating fuel. Naphtha is a by-product of the distillation process of crude oil and although it is a
residual product; it is widely used in industrial applications to produce other products.

Price:

ONGC is a government owned enterprise and is one of the largest one. Though ONGC faces
competition from other oil companies like Bharat petroleum, Hindustan petroleum, reliance
industries limited and Indian oil corporation limited; yet it prices it products in controlled levels
making a fixed amount of profits from them. The price of the crude oil also depends on the
international price of the crude oil which India depends upon and imports heavily. The price of
crude oil currently hovers around $50 per barrel. In lieu with governments policies towards
making households run on eco-friendly fuels, ONGC prices natural gas at very cheap prices.
These are primarily purchased by household suppliers and gas stations. Lpg which is extensively
used in household for cooking is priced at 600 per cylinder. Price of kerosene oil is highly
subsidized by the central government as it is widely used as cooking oil in rural areas. In such a
case price of kerosene oil typically hovers around 15 per liter.

Place:

ONGC do not directly sell the petrochemicals to the final consumers. There is a step by step
approach by which the products finally reach to its end users. Oil and natural gas corporation
sells the natural gas via bulk marketing channels through gas authority of India limited under
strict regulations and policies of the central government. The pipelines setup by ONGC which in
collaboration with the regional gas line pipes caters natural gas to the states of Tripura, Tamil
Nadu, Maharashtra, Gujarat, Assam and Andhra Pradesh. Also in few of the states like Tripura,
Andhra Pradesh and Pondicherry ONGC sells natural gas directly to its end users. ONGC in
collaboration with mrpl, iocl and gail sells the gasoline, diesel and jet fuel. ONGC has an
extensive distribution and pipeline network in its marketing mix strategy. Naphtha which is a by-

29
product has got wide industrial application is sold to the prospective buyers in bulk business to
business sales.

Promotion:

ONGC promotional activities primarily include print media. ONGC’s advertisements are always
featured in all national and regional dailies across India. It also advertises on television but less
frequently. Advertisements by billboards is done on rare occasions. ONGC concentrate most of
their energy and money on sustainability and corporate social responsibility activities. Carbon
neutral mission particularly targets in achieving and minimizing the carbon footprint and also
reduce the emission of greenhouse gases. National gas star program strives in reduction of
methane emission due to its daily operations, as methane is a very poisonous gas for the
environment.

3.3.3 DEPARTMENT STRUCTURE:

Acquisitio
n

MARKETI
Marcomm Roaming
NG

Usage&Re
tention

Fig 3.4 Marketing Methods

30
3.3.4 ROLES AND RESPONSIBILITIES:

The great crew change:

It has been well acknowledged throughout the oil and gas industry that a massive shift in
experience has happened .due to the highly cyclic nature of the business, a particularly unusual
age gap exists between the younger employees and industry veterans. The requirement of such
seasoned employees will inevitably lead to hiring of younger employees in greater numbers, and
this new demographic must be attracted to companies in ways much different than their
predecessors.

Powerful marketing communications crafted around the understanding that the talent market is
shifting facilitate attracting younger talent informing applicants that the company is a place
where they can grow in their career, make a difference in the world around them, and be part a
modern ,global workforce will help oil and gas companies secure the right talents. Further more,
highlighting the areas in which the company excels while minimizing negative perception will
allow the company to direct the conversation in a positive way. Properly leveraging modern
digital recruitment platforms, as well, will be important as the industry continuous to evolve,
which ties into the second component.

Digital transformation :

Having an online presence is now one of the most important elements of doing business. A
website will often be the first place where a potential customer interacts with a company and will
thus define that customer’s first impression of the company.

Much as the creation of client facing product marketing collateral, marketing communication in
the digital space can often determine if a company will be successful or not. Tying into the
younger age demographic that will be entering the industry, social media will continue its rise in
important in modern marketing communication strategies.

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3.4 PRODUCTION DEPARTMENT :

3.4.1 DEPARTMENT HEAD & EMPLOYEES:

Mr. Ajay Kumar Dwivedi has taken over the reins as the director (exploration) in the maharatna
board of India’s flagship explorer ONGC. A post-graduate from Kanpur university, Mr.
Dwivedi has a distinguished career of more than 34 years in ONGC, holding key exploration-
related assignments at different work centers starting from mumbai, moving to Dehradun in
north, to Chennai in south, then jorhat in the east, vadodara in the west and as basin manager
mba basin, Kolkata, before finally taking over western offshore as basin manager.

Mr. Dwivedi has managed ONGC’s prime exploration portfolios in western offshore –kutch-
saurashtra, Mumbai offshore and Kerala-konkan basin. Under his leadership, western offshore
basin has achieved 109 mmt of oil plus oil equivalent gas including 4 discoveries and won the
coveted cmd’s trophy for best basin. Prior to this, mr. Dwivedi as basin manager, mahanadi,
Bengal & Andaman basin managed the exploration performance of all the three basins. During
his stint as block manager – mehsana-patan-rajasthan blocks of cambay basin, initiated
integrated analysis of geo-scientific data leading to accretion of reserves resulting in two
discoveries from the blocks. As a block manager of north & south Assam shelf blocks at assam-
assam arakan basin, he diligently managed exploration performance of six on land acreages
covering the oil prolific fields leading to two discoveries. Mr. Dwivedi managed performance of
six offshore blocks and two on land blocks of Cauvery basin leading to one on land discovery.
Mr. Dwivedi has played pivotal roles in the management committees of various nell blocks.

His keen analytical acumen coupled with a people-centric approach has been his forte. His
strength has been to encourage multi-disciplinary team working in various capacities across the
organization. As a core team member of joint project team on organizational change program,
Mr.Dwivedi was involved with redesign of structure, systems and business processes aligned to
asset based model and their implementation in two pilot projects. As a member of the task force
formed by director (exploration), he was entrusted with the responsibility of formulating long
term strategy of exploration for ONGC with the aim of doubling the reserve accretion by year
2020.

32
A strong believer in continuous development, Mr. Dwivedi has undergone various development
programs, including those at indian school of business, hyderabad and university of alberta
school of business, Alberta, Canada. He is affiliated to spg - India, aeg – India and spe and
presently holds the office of president, spg-india.

Mr. Dwivedi joins the board of ONGC at a crucial juncture when the business environment is not
only challenging but also demanding in respect of exploration.

3.4.2 PROFILE OF THE DEPARTMENT:

Constant efforts by ONGC, one of the leading upstream petroleum companies in India, on the
production front have yielded meaningful results. Standalone domestic output from the ONGC-
operated fields during the year stood at 22.25 mmt, living up to its title of the largest crude oil
producer in India. During fy’17, declining crude oil production trend was reversed – onshore
crude oil production increased in fy’17 to 5.97 mmt against 5.83 mmt in fy’16. The increase is
expected to continue during the current fiscal.

The company also recorded a strong year in terms of domestic gas production, which registered
an increase of 4.3% – from 21.18 bcm in fy’16 to 22.09 bcm during fy’17, the first increase in
last four years. Gas production increased in onshore fields by 9% and in offshore fields by 3%
over fy’16.

Its strong production growth of 4 to 5 per cent is essential for ONGC to maintain its leadership in
India’s hydrocarbon space and provide the country hydrocarbon security. With 4 to 5 per cent
growth, ONGC aspires to increase its share in India’s hydrocarbon consumption from the current
22 per cent to 27 per cent by 2030.

33
Production & processing:

Fig 3.5 Pipeline for transportation

The directorate general of hydrocarbons (DGH) in the last few weeks has issued specific
directives to ONGC and oil India ltd (oil) to submit daily field-wise production report as well as
periodic reservoir management reports.

In pursuit of enhancing hydrocarbon, ONGC makes constant efforts to induct state-of-the-art

technology for higher precision and real time data acquisition in reservoir characterization. The
recent Endeavour is the deployment of wireless surface read out technology during the drill stem
testing operation in well wo-24#3.

Reservoir management:

Reservoir management begins with exploration leading to discovery followed by appraisal of the
reservoir, development of the field under primary and secondary means, ior and eor, and finally
to abandoned.

Boosting oil recovery from mature fields needs bold investment decision and induction of new
technologies. A judicious mixture of classical and new technologies has created the opportunity
for new life for the mature offshore reservoirs. Mature field development practices can divided
into two major groups, surface / well engineering and sub-surface / reservoir engineering.

34
Fig 3.6 Reservoir Management

Fig 3.7 Process Flow Diagram

35
3.4.3 ROLES AND RESPONSIBILITIES:

There are mainly four steps involved in the production of crude oil and gas. They are:

Exploration:

Exploration means a scientific search set by the geologists and geophysicists for locating the
probable regions of oil and gas. In general terms this refer to the entire gamut of search for
hydrocarbons with the help of geological and geophysical surveys integrated with laboratory data
backup, selection of suitable locations of exploratory test-drilling and testing of such wells.
Geophysical technology greatly reduces the risk of drilling. Wells are drilled to test a geological
theory or model that is generated in the wide area geological review and validated by seismic
data. The relative position of rock layers can be imaged from the patterns of acoustic sound
waves that are reflected from subsurface formations. For two dimensional (2d) seismic
operations, field crews run parallel lines of sound recorders at wide intervals to cover large areas
in a relatively inexpensive manner. Once a field is discovered, 3d seismic can be run in a grid
pattern with close sound recorders to delineate the most attractive places to drill additional wells
and determine the areal extent of a formation.

Gas and crude oil production:

According to generally accepted theory, crude oil is derived from ancient biomass. It is a fossil
fuel derived from ancient fossilized organic materials. More specifically, crude oil and natural
gas are products of heating of ancient organic materials (i.e. kerogen) over geological time.
Three conditions must be present for oil reservoirs to form: a source rock rich in hydrocarbon
material buried deep enough for subterranean heat to cook it into oil; a porous and permeable
reservoir rock for it to accumulate in; and a cap rock (seal) or other mechanism that prevents it
from escaping to the surface. Within these reservoirs, fluids will typically organize themselves
like a three-layer cake with a layer of water below the oil layer and a layer of gas above it
according to their densities, although the different layers vary in size between reservoirs.
Because most hydrocarbons are lighter than rock or water, they often migrate upward through
adjacent rock layers until either reaching the surface or becoming trapped within porous rocks
(known as reservoirs) by impermeable rocks above. However, the process is influenced by

36
underground water flows, causing oil to migrate hundreds of kilometers horizontally or even
short distances downward before becoming trapped in a reservoir. When hydrocarbons are
concentrated in a trap, an oil field forms, from which the liquid can be extracted by drilling and
pumping.. The well is completed by perforating holes in the casing at the depth of the producing
formation. Once a successful test well or series of wells has been drilled, the economic potential
of the hydrocarbon discovery must be determined. This step includes estimating how much oil
and gas is present (reserves), the probable selling price, the cost of continuing the exploration
effort as well as the cost of full field development, and the taxes, royalties, and other expenses
associated with producing the oil field. If the venture looks promising, the final step is taken—
development of a newly discovered field.

Processing:

Offshore productions consists of a number of operations that allow the safe and efficient
production of hydrocarbons from the flowing wells. The key operations that will be conducted at
the offshore platform include:

 Produced hydrocarbon separation

 Gas processing
 Oil and gas export
 Well testing
 Produced water treatment and injection
 Utilities to support these processes.

Pipelines and risers facility uses subsea production wells. The typical high pressure (hp)
wellhead at the bottom right, with its christmas tree and choke, is located on the sea bottom. A
production riser (offshore) or gathering line (onshore) brings the well flow into the manifolds. As
the reservoir is produced, wells may fall in pressure and become low pressure (lp) wells. This
line may include several check valves. The choke, master and wing valves are relatively slow,
therefore in case of production shutdown, pressure before the first closed sectioning valve will
rise to the maximum wellhead pressure before these valves can close. The pipelines and risers
are designed with this in mind. Short pipeline distances is not a problem, but longer distances

37
may cause multiphase well flow to separate and form severe slugs, plugs of liquid with gas in
between, travelling in the pipeline. Severe slugging may upset the separation process, and also
cause overpressure safety shutdowns. Slugging might also occur in the well as described earlier.
Slugging may be controlled manually by adjusting the choke, or with automatic slug controls.
Further, areas of heavy condensate might form in the pipelines. At high pressure, these plugs
may freeze at normal sea temperature, e.g. if production is shut down or with long offsets. This
may be prevented by injecting ethylene glycol. Check valves allow each well to be routed into
one or more of several manifold lines. There will be at least one for each process train plus
additional manifolds for test and balancing purposes. The check valves systems have been not
included in the diagram to avoid complexity of the diagram. The well-stream may consist of
crude oil, gas, condensates, water and various contaminants. The purpose of the separators is to
split the flow into deale fractions. The main separators are gravity type. As mentioned the
production choke reduces the pressure to the hp manifold and first stage separator to about 3-5
mpa (30-50 times atmospheric pressure). Inlet temperature is often in the range of 100-150
degrees c. The pressure is often reduced in several stages, three stages are used, to allow
controlled separation of volatile components. The purpose is to achieve maximum liquid
recovery and stabilized oil and gas, and separate water. A large pressure reduction in a single
separator will cause flash vaporization leading to instabilities and safety hazards. An important
function is also to prevent gas blow-by which happens when low level causes gas to exit via the
oil output causing high pressure downstream. The liquid outlets from the separator will be
equipped with vortex breakers to reduce disturbance on the liquid table inside. Emergency valves
(ev) are sectioning valves that will separate the process components and blow-down valves that
will allow excess hydrocarbons to be burned off in the flare. These valves are operated if critical
operating conditions are detected or on manual command, by a dedicated emergency shutdown
system there also needs to be enough capacity to handle normal slugging from wells and risers.
Other types of separators such as vertical separators, cyclones (centrifugal separation) can be use
to save weight, space or improve separation there also has to be a certain minimum pressure
difference between each stage to allow satisfactory performance in the pressure and level control
loops. The second stage separator is quite similar to the first stage hp separator. In addition to
output from the first stage, it will also receive production from wells connected to the low
pressure manifold. The pressure is now around 1 mpa (10 atmospheres) and temperature below

38
100 degrees c. The water content will be reduced to below 2%. An oil heater could be located
between the first and second stage separator to reheat the oil/water/gas mixture. This will make it
easier to separate out water when initial water cut is high and temperature is low. The heat
exchangers normally a tube/shell type where oil passes though tubes in a cooling medium placed
inside an outer shell. The third stage basically uses a flash-drum. Further reduction of water
percentage is done in the gdu (gas dehydration unit). On an installation such as this, when the
water cut is high, there will be a huge amount of produced water. Water must be cleaned before
discharge to sea. Often this water contains sand particles bound to the oil/water emulsion. The
environmental regulations in most countries are quite strict, it also places limits other forms of
contaminants. This still means up to one barrel of oil per day for the above production, but in this
form, the microscopic oil drops are broken down fast by natural bacteria. Various equipment’s
are used, first sand is removed from the water by using a sand cyclone. The water then goes to a
hydro cyclone, a centrifugal separator that will remove oil drops. The hydro cyclone creates a
standing vortex where oil collects in the middle and water is forced to the side. Finally the water
is collected in the water de-gassing drum. Dispersed gas will slowly rise to the surface and pull
remaining oil droplets to the surface by flotation. The surface oil film is drained, and the
produced water can be discharged to sea. Recovered oil in the water treatment system is typically
recycled to the third stage separators. The gas train consist of several stages, each taking gas
from a suitable pressure level in the production separator’s gas outlet, and from the previous
stage. Incoming gas is first cooled in a heat exchanger and goes into the compressors. When the
gas is exported, many gas trains include additional equipment for further gas processing, to
remove unwanted components such as hydrogen sulphide and carbon dioxide. These gases are
called sour gas and sweetening /acid removal is the process of taking them out.

Transportation:

the gas pipeline is fed from the high pressure compressors. Oil pipelines are driven by separate
booster pumps. For longer pipelines, intermediate compressor stations or pump stations will be
required due to distance or crossing of mountain ranges.

39
 CHAPTER -4

OBSERVATION AND LEARNING

4.1 HUMAN RESOURCE DEPARTMENT:

 HR executive maintains a proper record of daily attendance of the employees.

 Other department needs for human workforce is fulfilled by the hr department.
 The records maintained by the hr department is used for preparing salary details of the
employees.
 The hr department strictly follows the leave policies of the organization.
 The hr department follows the structure for information flow within the organization.
 The hr department focuses with a open eye on the safety measures for the women
employees.

4.2 FINANCE DEPARTMENT:

 The finance department of ONGC corporation plays a vital role in managing and using
the funds efficiently.
 They keenly observe all the activities and allocate exact amount of funds where ever
necessary.
 Follows the latest pay commission to provide salaries for the employees.
 All assets and liabilities of the company is accounted properly.
 The finance department is keen in improving the assets of the company.
 The tender preparation and quoting of tenders is carried by the finance department.
 The analysis of the tenders floated by the company is under the supervision of the finance
department.

4.3 MARKETING DEPARTMENT:

 The marketing department aims in providing the best service to the national need towards
petrochemical products.
 Solving problems faced with subsidiary companies.
40
  Targets in achieving the maximum supply of products to the demand in the market.
 The department mainly deals with lpg, aviation fuels, auto gas, kerosene etc.
 From this department its understood how the organization reach out to the nations need.

4.4 PRODUCTION DEPARTMENT:

 The production stage is where some geologist go to certain places in order to take survey
about the availability of oil and gas in such places.
 Every year the company generates new projects and helps to select new targets.
 The process of drilling, exploration, production, processing & transporting is known.

41
 CHAPTER-5

SUGGESTIONS AND CONCLUSION

5.1 SUGGESTIONS:

 The organization must review the methods used for employee recruitment and retirement.
 They must look for alternate techniques for production and transportation which helps in
reducing cost of production.
 They have to design a technique that motivates employees thereby increasing the
efficiency of the organization.
 The finance department should device methods reduce the liabilities of the organization.
 The organization should create awareness about natural resources with employees.

5.2 CONCLUSION_

ONGC is a place where an individual can grow to a higher level. Having trained in ONGC for
the summer internship program has taught me a lot like how crude oil is brought into existence
and how it is converted into usable form of fuels.

Working with ONGC has giving a better view of how mba is used to manage all the works in
organization.

This program has helped me a lot in gaining experience in an public sector company and has
taught how to finish a work efficiently and effectively.

Last but not least I would like to thank my mentor Mr.Nallapan (dgm-ONGC) for granting me
such a wonderful experience and guiding me till the last to complete my training.

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REFERENCES:

 ONGC Annual Report 2016-17

 ONGC Annual Report 2015-16
 ONGC Annual Report 2014-15
 ONGC Annual Report 2013-14
 https://www.ongcindia.com
 https://www.ongcindia.com/wps/wcm/connect/en/about-ongc/board-of-directors/
 https://www.ongcindia.com/wps/wcm/connect/en/about-ongc/ongc-at-a-glance/corporate-
profile/

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