Internal factors analysis summary

Indian oil corporation

Internal factors analysis summary of Indian oil

Strength

Strong brand name

Indian Oil is a household name and one of India’s most trusted national brands. This hard-earned brand equity is
a manifestation of the strong relationship the Corporation with its customers. As the Corporation forges ahead
beyond its core business to Petrochemicals, natural gas and biofuels, the value of Brand IndianOil will be a
major plus.

 Indian oil climbs 20 positions to rank 117th place in the fortune 500 companies.
 Indian oil retains the top spot as India’s highest ranked PSU in fortune ‘Global 500’ listing for 2019.
 Indian Oil has a brand of LPG cooking gas called Indane which serves 14 crore households with a
strong distribution network of 14,000 distributors.
 It is a market leader in the lubricant business with the brand Servo.
 The company’s 107 aviation fuel systems fuel 1,750 flights a day.
 The company has been recognized as one of India’s top brands by UK-based Brand Finance.
 Reader’s Digest-AC Nielsen Survey voted the company as India’s “Most Trusted Brands” in the
“Gasoline” category.
 The company has lived up to the vision of the brand by promising to foster customer relationship,
innovating, harnessing technology and caring for environment and community.

Infrastructure

The first and foremost strength of the corporation is its infrastructure spread across the country. The corporation
has a relining capacity of 80.7mmtpa (including its subsidiaries) and accounts for one-third of the country’s
refining capacity. The corporation has advanced and complexrelneries capable of processing 200 types of crude
combinations.The corporation accounts for over 49% of downstream marketing infrastructure in the country. its
wide network of pipelines, marketing infrastructure and spread in every nook and corner of the country marks
its unmatched outreach. a hallmark of its retail network is that it has made inroads into rural areas through the
nofrills low-cost kisan seva kendra (ksk) outlets. The Corporation has automated all its operative retail outlets
and a majority of its terminals have been converted into smart terminals. The Corporation recently become the
first public sector company and the largest installation in india to migrate to SAP HANA technology. The
Corporation has a strong IT infrastructure and e-tendering and e-procurements portals and a digital platform for
CRM, among other digital initiatives, have become a norm.
Strong Pipelines

Your Corporation has an extensive network of pipelines across the length and breadth of the country for supply
of crude oil and products. As on 31.03.2019, the total length of the pipelines was 14,231 km with capacity of
94.16 million tonnes of crude / product pipelines and 21.69 MMSCMD of gas pipelines.

The pipelines of your corporation achieved the highest ever throughput for the fifth consecutive year registering
a throughput of 88.53 million tonnes as against 85.68 million tonnes in the previous year, registering a growth
of 3.3%. the crude oil pipelines achieved a throughput of 51.33 million metric tonnes as against 51.08 million
metric tonnes during the previous year. the petroleum product pipelines recorded the highest ever throughput of
37.20 million metric tonnes as against 34.60 million metric tonnes achieved last year, registering a growth of
7.50 per cent. the gas pipelines also achieved the highest ever throughput of 1,834 mmscm during the year, as
against a throughput of 1,683 mmscm in 2017-18.

Refinering and marketing

While the corporations core business of refining and marketing of petroleum products is inherently a low margin
business its focus on operational effciency cost optimization integration and diversification have been pivotal in
ensuring its growth and competitiveness.

Some of the corporations refineries are quite old and have small capacities, while these have been augmented
and modernised from time to time; their sizes remain sub optimal in the present context the refining capacity of
the corporation is spread out across the regions, necessitating crude movement to the hinterland and not always
resulting in optimisation of crude mix that can be handled.

Also, in view of the mismatch between regional supply and demand, the associated infrastructure of logistics
has to be created and continuously expanded.

As the corporation expands into newer areas, building the requisite manpower capability is a major issue that is
being addressed.

The corporation’s petrochemicals production base is at present concentrated in the north of the country; with
upcoming petrochemicals projects at its various refineries this imbalance is getting addressed.
Focus on sustainability

Indian Oil, a globally admired Energy Company is becoming a key player in the evolution of India’s strategy for
sustainable development by addressing the concerns for environment, aspirations of community and creating
values for stakeholders. Our commitment to sustainability has its roots in our vision. Accordingly we have
formulated our sustainability strategy that supports our communities, enhance our business relationships to
create a brighter future for our next generation. Our sustainability strategy allows us to focus on long-term
sustainable business opportunities, manage risks, enhance our corporate reputation and to get competitive
advantage. In developing plans for the future, IOCL are mindful of our influence on natural resources and their
development. The company understand our responsibility towards society, the role we have to play to address
the menace of climate change and other sustainability challenges. A number of mitigation actions, such as
commissioning of rainwater harvesting systems, solarization of retail outlets, installation of organic waste
converters, organizing carbon neutral events, sustainability seminars and conducting awareness generation
programmes were also carried out during the year. With our sustainability initiatives and conducive policy
environment, Indian Oil has forayed into green energy generation, which is an attractive and rewarding
investment to minimize interactions of our business operations with environment.

In pursuit of this Policy, Indian Oil is committed:

 To conduct business in a sustainable manner while meeting stakeholders’ aspirations for value creation
and growth
 To enrich quality of life of communities around its locations.
 To work towards lowering waste and carbon footprint by judicious and efficient use of resources
 To engage employees & business partners as change agents for sustainable practices

Strong distribution network

uninterrupted availability of petroleum products in Leh & Ladakh during winter season, when the region gets
isolated from rest of the country, the Corporation successfully completed Advance Winter Stocking exercise
much before the closure of roads. as indias leading corporates and a dominant player across a diverse portfolio
of energy offering, Indian oil has established its presence in diverse markets across india and also in the globe.
Besides well established oversees subsidiaries in Srilanka, Mauritius, UAE, Sweden, USA the Netherlands and
Singapore. Indianoil is pursuing diverse business interests with its 20 joint ventures with reputed business
partners from both India and overseas the company’s leading servo brand lubricants are exported to over
25countries while its propel brand petrochemicals are exported to over 70 countries the company has also
opened new overseas offices in Mayanmar and Dhaka, Bangladesh for exploring opportunities in marketing of
finished petroleum products petrochemical lubricants etc in the neighboring countries besides development of
downstream infrastructure. Indian oil is evaluating multiple business opportunities in Bangladesh Mayanmar,
Nepal, saudi Arabia, Azerbaijan and Africa. During the year 2018-2019. Memoranda of understanding
(MOUs) have been signed with partners in Bangladesh and Mayanmar for cooperation in upstream and
downstream hydrocarbons sector.
Indian oil’s overseas E & P portfolio is spread over 10 countries viz, Canada, Gabon, Isrel, Libya, Nigeria,
Oman, Russia, UAE, USA and Venezuela. During the year 2018 -19 Indian oil along with consortium partners
expended its E & P portfolio to include isrel and oman.

Human resource

Human capital is the backbone of any organisation.

The Corporation has over 33,000 employees, who run its country-wide and overseas operations. Armed with
close to 7,000 millennials,

The Corporation’s manpower has strengths of both experience and youthful energy.

The Corporation has a strong culture of learning and development, which is being further enriched through
initiatives such as E-Learning, partnerships with academia, focus on women leadership etc.

The robust HR policies and a culture of learning have ensured that the corporation has in-house expertise in all
areas and the employees are abreast of the latest developments in each field.

This has enabled the corporation to adopt cutting-edge technologies in all areas of operations.

the corporation is recognised as one of the most valued employers in the country with continuous benchmarking
to international standards and a robust working model of HR facilitators, mentor-mentee development and e-
learning, among others.

Integration and diversification

The Corporation has been one of the early adopters OF INTEGRATION AND DIVERSIlCATION DRIVE IN
THE INDIAN downstream oil industry. The Corporation is a major player in petrochemicals business with
ambitious ongoing expansion plans. The petrochemicals business of the Corporation is a major value driver.
Integration with petrochemicals provides it flexibility in operations to align with demand.

The Corporation is also diversifying into other areas, such as fertilisers. The Corporation has formed a JV
Company-Hindustan Urvarak & Rasayan Ltd. (HURL) with the objective of establishing and operating state of
the art energy eflcient natural gas based fertiliser complexes at Gorakhpur, Barauni and Sindri.

IndianOil’s production from its upstream assets is on the rise and its upstream integration ratio is presently over
5%.

The Corporation is growing its presence in the natural gas sector, with presence across the gas value chain in
India. It is the second biggest player in the R-LNG market with massive plans to expand its gas infrastructure.

The Corporation has also been an early investor in the renewable energy space, much ahead of its peers, and has
a growing portfolio.
Bureaucracy

IOCL has incurred huge losses due to government’s handling of fuel pricing policy because at most of the time
the center fails to keeps its promises to maintain the fuel at artificially low prices. The company keeps going
through the cycle of borrowing more and spending more just to ensure uninterrupted fuel supply to the
customers but the rising interest cost shaves their profit which affects their ability to push the new project to
modernize.

State-owned Indian Oil Corp (IOC) saved over Rs1,000 crore last fiscal after the government gave state-owned
refiners the freedom to formulate their own crude import policies. IOC chairman B.Ashok said the freedom
allowed the companies to decide on tenders for purchase of crude oil within a very short span of time.

Average gross refining margins improved to $7.77 per barrel in the financial year ended March, compared with
$5.06 per barrel in the 2015-16 period. It's normal for refining margins to improve as crude prices fall, but that's
not what has happened here. Quite simply, under the old purchase regime they could scan the market.

Product innovation

Successful track record of developing new products. IndianOil has a sprawling world-class R&D Centre that is
perhaps Asia's finest. This Centre is India's foremost commercial centre of research excellence in the areas of
lubricants, refinery processes, pipeline transportation, alternative fuels fuel additives, engine testing, materials
sciences and environmental sciences. IndianOil holds over 600 active patents in India & Foreign countries.
Located on a sprawling 65 acre campus in Faridabad on the outskirts of the National Capital, Indian Oil's R&D
Centre plays a key role in supporting the business interests of the Corporation by developing economical,
environmentally and socially responsible technology solutions. With over 4000 lubricant formulations,
the SERVO ® product line is the hallmark of the vibrant and ongoing research at the Centre. The alternative
energy programs of IndianOil include Bioenergy, Solar Hydrogen / HCNG, Synthetic fuels and Shale oil. The
Centre is also focused on cutting edge research in the areas of Nanotechnology, Petrochemicals and Polymers,
Coal Gasification / Liquidation, and Gas to.
WEAKNESS

Frauds

It has come to our notice that different agencies/organisations/individuals are offering jobs to the general public
by sending e-mails or through social media like WhatsApp, etc. We have also received a number of complaints
about money being collected by these unscrupulous elements against the promise of facilitating appointment in
IndianOil/Subsidiary or Group Companies of Indian Oil Corporation Ltd. This is to inform all that IndianOil
does not offer out-of-turn employment to anyone. IndianOil does not recruit anyone on the strength of his/her
resume/biodata. Recruitment in any post, executive or non-executive, is not outsourced to any agency. All the
vacancies in IndianOil are advertised in the leading newpapers and The Employment News/ Rozgar Samachar.
The detailed advertisements mentionining the eligibility criteria for the advertised positions, including academic
qualifications, permissible age, experience requirement, if any, relaxations extended to reserved category
candidates, etc., are hosted on our website www.iocl.com We hereby caution the general public not to fall prey
to the dubious agencies/ organisations/individuals aiming at fleecing money from the innocent public. Do not
believe any advertisement/job announcement of IndianOil circulated through e-mail, social media, etc. Please
rely only on the information hosted on our official website www.iocl.com for any job/career- related
information pertaining to Indian Oil Corporation Ltd

Technological Environment

In today's dynamic business environment, innovation through a sustained process of Research & Development
(R&D) is the only cutting edge tool for organisations to thrive.

Indian Oil has, till date, invested close to Rs. 1,000 crore in setting up world-class facilities at its R&D Centre
and it plans to invest about Rs. 500 crore during the period 2007-12 to maintain its leadership in downstream
R&D activities in the hydrocarbon sector.

This the reason , thats why IOCL have the India's first experimental H-CNG (Hydrogen-Compressed Natural
Gas) dispensing unit at the R&D Centre campus at Faridabad and has been in the forefront of technology
development for Bio-diesel production from various edible and non-edible oils and its application in vehicles.

Pioneering studies by India Oil’s R&D Centre established that Bio-diesel produced from Jatropha seeds were at
par with that produced from vegetable oils.
Pollution Control and Resource Conservation

Waste Water Management

Use of water and quality of effluent discharged are carefully monitored. Our refineries are equipped with a
network of underground sewers for segregated collection of various wastewater streams, which are subjected to
precise treatment in well-designed effluent treatment (ETP) facilities involving physical, chemical and
biological processes.
State of art equipment have been provided in the ETPs like Tilted Plate Interceptor (TPI), Dissolved Air
Floatation (DAF), Bio-tower, activated sludge basins, dual media filters for treating oily wastewater and
hydrogen peroxide / wet air oxidation treatment for spent caustic streams etc. These treatment facilities are
backed by sophisticated instrumentation and real time monitoring systems for close and precise monitoring. In
Marketing and Pipeline locations, effluent water is routed through oil water separator.

Prevention of Air Pollution

Utmost attention is given to control / reduce emissions in our refineries. Major sources of air emissions are flue
gases from boilers and heaters, FCC regenerators and Sulphur Recovery Units. Hydrocarbon leaks and
evaporation during storage, handling and transportation of petroleum products and crude oil are sources of
fugitive emissions. IndianOil has adopted the following measures to control emissions & effectively disperse
pollution from flue gases.

Anti - Corruption and Anti - Competitive Behavior

Indian Oil consistently works against corruption in all its forms. Our Conduct, Discipline and Appeal rules
outline our approach to assessing fraud risks, reporting, investigating and responding to suspected incidents of
fraud and corruption which is mandatory for all our employees to comply with.

As a responsible corporate citizen, Indian Oil undertakes and implements widely accepted initiatives like the
Grievance Re-dressily mechanism and the Whistleblower policy.

Our Vigilance Cell carries out preventive activities like increasing awareness regarding the Central Vigilance
Commission (CVC) rules/guidelines, ensuring quality and quantity of products in transit as well as sales points
across the country, conducting system studies to bring out irregularities/ inconsistencies, bringing transparency
and economy in awarding as well as execution of contracts.

100% of our units are analyzed for anti-corruption and related risks.
Ongoing Projects

The following projects are costing them more than 500 crores

distillate yield improvement project at haldia refinery

polyproplyene unit at paradip refinery

fuel quality upgrdation project (bs 4 and 6) at barauni relnery

BS 6 projects at all refineries

INDMAX unit along with associated facilities at Bongaigaon refinery

atmospheric & vacuum unit and associated facilities of Barauni refinery expansion project

ethylene glycol project at paradip refinery

naphtha cracker unit expansion and mono ethylene glycol & Butadiene extraction unit revamp at panipat
refinery

paradip - hyderabad product pipeline

augmentation of paradip – haldia – durgapur Lpg pipeline and its extension up to patna and muzaffarpur

ennore-thiruvallur-bengaluru-puducherry-nagapattinammadurai-tuticorin natural gas pipeline

haldia-barauni crude oil pipeline and conversion of existing haldia-barauni crude oil pipeline to product and gas
pipelines.

koyali-ahmednagar-solapur product pipeline

paradip-somnathpur-haldia product pipeline

setting up of fertiliser plants at barauni, gorakhpur and sindri through a joint venture company

Hindi Implementation

your corporation is committed to implementation of hindi at its various offices/locations/units in day-to-day

functioning. The provisions offlcial language act,1963 and rules notified thereunder are complied with.
communications received in hindi and any application, appeal or representation written or signed by an
employee in hindi is replied to in hindi. official language implementation committees (olic) have been formed in
all offices/units to review the progress of implementation of official language policies. Due to this many
conflict may arrives in the country, as we already seen in the early Indian history the south and the north had
fight for it as India doesn’t have the official language by the constitution of India. This may arries in the huge
loss to the company and they might loose the faith of South Indians and other.
Competitive scenario

Market Structure:-The Indian petroleum industry can be traced back to 19th century when petroleum was
discovered in Assam. In starting, industry open for international players and global oil majors such as
Caltex,Esso& Burmah-shell were operating in country but after oil crisis of 1970 the government nationalized
the Indian divisions of the international company and also nationalized refining, marketing sector. government
established Oil Coordination Committee for regulatory control on production, import, distribution & pricing&
they are using APM(administered price mechanism) due to government hold on oil company’s there is no
private player &market is oligopoly market where 2-3 government under taking company are major
player.Major player are IOC,BPCL& HPCL are dominating players in downstream sector. In upstream ONGC
&OIL claiming 84% shear of the total market. After liberalization in 1990 government change it’s policy&
policy maker realized that APM no longer work as it had in the past so they opened this sector. Thus the
government initiated the deregulation process in 1995 wherein the APM was replaced with market determined
pricing mechanism. Due to this change some private player come in this industry like Reliance Petroleum
Limited, Essaroil etc.Indian government provide oil bond to oil company’s to over come losses that’s why oil
company’s are protected that is evident by recent oil price hike.

Human resource

A major challenge for an organization is to offer an ambience or environment that will attract, motivate and
retain competent employees who are willing to give their best to the organization. Such employees also need to
be adaptive and innovative to dynamic shifts in the market, rising competition and technological advances.
IndianOil’s work culture encourages openness and trust combined with a commitment to enhancing the bottom
line. The organization ethos is focused on providing opportunities for skill development, enhancing exposure to
a wide range of job roles as well as mentoring of young recruits. A constant dialogue between employees being
assigned new responsibilities and existing processes in their work place helps them perform to the highest level
of expectations.

The Company’s work environment abounds with opportunities to learn, implement and grow which are key
ingredients to employee engagement. An employee engagement survey, undertaken in association with the
International Management Institute (IMI) to measure the level of commitment of the employees in the
organization, showed high levels of commitment. The survey was followed up by a second one conducted by
M/s Hewitt Associates as part of their “Best Employers’ Survey” and the overall engagement level in IndianOil
was found to be more than 80%. It was adjudged as one of the top 25 best employers in the country.

Mentoring’ is an integral part of IndianOil’s employee growth plan. It is a vital tool for retention of talent since
it increases engagement and plays an important role in the grooming of the employee and integrating the person
to the values of the organization. The various functional groups of IndianOil undertake this keeping in mind
specific operational requirements. To facilitate the transition of new recruits from the theoretical ambience of
the classroom to the real world of work challenges, a mix of sessions is scheduled as the Corporate Induction
Module. To improve the engagement of newly recruited executives, emphasis has been given to such sessions
including onboarding.
Internal factors analysis summary

Internal factors analysis summary oil and natural gas corporation

Strength

Acquisition
Oil and Natural Gas Corporation (ONGC), the country’s largest oil and gas producer, today completed the
acquisition of government-owned fuel retailer Hindustan Petroleum (HPCL) through an all cash deal worth Rs
36,915 crore, the company said in a Bombay Stock Exchange (BSE) filing today.

The company had tied up Rs 35,000 crore with seven banks including three private and four public sector banks
to fund the acquisition of Hindustan Petroleum (HPCL). While ONGC has secured loans for Rs 35,000 crore
through banks, the details of funding the rest of the acquisition amount, Rs 1,915 crore, are not in public
domain.
The transaction is in furtherance of the Government's objective to combine the various central public enterprises
to give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create
more value for the stakeholders and create and 'Oil Major' which will be able to match the performance of
international and domestic private sector oil and gas companies," ONGC said in a BSE filing.

The company added that post acquisition the integrated oil company will be able to balance upstream and
downstream pressures despite volatility in crude prices, will lead to lower earnings volatility, diversified cash
flows and lower business risk resulting in higher PE multiples and valuations resulting in higher shareholder
value.

Post acquisition, HPCL will continue to operate as a separate listed entity with its board of directors and senior
management separate from ONGC

Infrastructure

ONGC, the 2nd largest E&P company in the world, has been conferred with INFRA Icon Award in the ‘Global
Energy' category at the mid-day INFRA Icons Awards 2018. The award, on behalf of Chairman & Managing
Director, ONGC was received on July 27, 2018 at Mumbai by Executive Director – Head Regional Office,
ONGC Mumbai, S Gopinath. The award was presented by Additional Metropolitan Commissioner, MMRDA,
Pravin Darare.
With the theme for the evening being - Smart cities envisages to take infrastructure development to a next level
(Infrastructure 2022), the event was attended by dignitaries and industry veterans from key infrastructure sectors
such as Construction, Ports, Power, Oil & Gas, Steel, Civil aviation, Road transport etc. along with other
stakeholders in the ecosystem such as policymakers, financial institutions, industry regulatory bodies amongst
others. ONGC has received the top corporate level award in recognition of its valuable contribution which has
not only supported but also upgraded the country as a whole.
During the panel discussion, ED-HRO, ONGC, S Gopinath remarked that to realize the Hon’ble PM’s vision of
10% hydrocarbon import reduction by 2022, along with enhancement in domestic energy production, capacity
building in major infrastructure development like roads etc. has to play a huge role to enable energy savings
Sharing about ONGC’s efforts towards reducing its Carbon Footprints, he informed the audience that the CMD
of ONGC took a pledge in the presence of Hon’ble PM to completely do away with single use plastic within the
organization and efforts are already afoot in this direction. He also shared about the successful implementation
of enterprise wide paperless project, where by all the file work is being done digitally, saving on huge quantities
of paper usage and helping ONGC reduce its carbon footprint.The "INFRA Icons", is an initiative by mid-day,
designed to bring to the forefront the change makers and trend setters associated with the infrastructure of India.
The award recognizes the exemplary performance in the corporate world and is felicitating the top companies
across various sectors.

The award is in recognition of ONGC as one of the most distinguished and admirable icons in the Corporate
World, based on performance and best–practices across the industry.

Distribution and reach

ONGC has a unique distinction of being a company with in-house service capabilities in all areas of Exploration
and Production of oil & gas and related oil-field services. Winner of the Best Employer award, this public sector
enterprise has a dedicated team of over 30,000 professionals who toil round the clock in challenging locations.
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National
Oil Company of India, and is India’s largest international oil and gas Company. ONGC Videsh has participation
in 41 projects in 20 countries namely Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Iran, Kazakhstan,
Libya, Mozambique, Myanmar, Namibia, Russia, South Sudan, Sudan, Syria, United Arab Emirates, Venezuela,
Vietnam and New Zealand. ONGC Videsh maintains a balanced portfolio of 15 producing, 4 discovered/under
development, 18 exploratory and 4 pipeline projects. The Company currently operates/ jointly operates 21
projects. ONGC Videsh has 2P reserves of 675.721 MMTOE as on 01 April 2019.

Global ranking

Company has been ranked number one E&P Company in the world by Platts Top 250 Global Energy Company
Rankings-2018 and 21st among global energy majors based on assets, revenues, profits and return on invested
capital. The leading international business journal Forbes in its 2019 list has ranked the Company 3rd largest in
India and 220th worldwide based on sales, profit, assets and market value

S&P Platts Global Energy Award 2019: 

ONGC awarded for Corporate Social Responsibility - Diversified Program. ONGC is the only Indian company
to bag honors across all categories.

Ranked 160 in coveted Fortune Global 500 list 2019 :

India’s largest oil and gas producer, has been ranked 160 in the coveted Fortune Global 500 list.

Platts Top 250: Ranked no.1 E&P Company :

ONGC maintained its First Position globally in the industry category “Oil and Gas Exploration and Production”
and achieved overall ranking of 21st position in the Platts Top 250 Global Energy Company Rankings-2018.

Dun & Bradstreet Award 2019 in the 'Oil and Gas Exploration' category :

ONGC has been adjudged the winner in the 'Oil and Gas Exploration' category of the Dun & Bradstreet
Corporate Awards 2019.

ONGC Ranked 220 in Forbes Global 2000 list

Bagged four awards at 5th Dun & Bradstreet PSU Awards :

ONGC has been awarded with four accolades at 5 th Dun & Bradstreet PSU Awards. It has been adjudged the
winner in categories viz. ‘Mining & Exploration: Crude Oil’, ‘Mining & Exploration’, ‘CSR’ and ‘Swachh
Bharat’.

Competative strength

All crudes are sweet and most (76%) are light, with sulphur percentage ranging from 0.02-0.10, API gravity
range 26°-46° and hence attract a premium in the market.

Strong intellectual property base, information, knowledge, skills and experience.

ONGCs performance in OALP Bid rounds: Wins two Blocks in Round 1, one Block in Round 2 & seven
Blocks in Round 3

Maximum number of Exploration Licenses, including competitive NELP rounds. ONGC has bagged 121 of the
254 Blocks awarded in the 9th rounds of NELP.

ONGC owns and operates more than 25,500 kilometers of pipelines in India, including sub-sea pipelines. No
other company in India operates even 50 per cent of this route length.

Technology induction/ up-gradation

in various areas of operations is a continuous process in your Company to remain effective and competitive. The
following technologies were evaluated/ inducted in the year 2018-19:

a) Development of methodologies for oil to oil correlation using compound specific isotopic analysis of
biomarkers (CSIB) and Total Scanning Fluorescence Spectrophotometry (TSF).

b) Development of methodology for estimation of thermal maturity of organic matter through Fourier Transform
Infra-Red spectroscopy (FTIR).

c) Intrepid Software for processing and interpretation of potential field geophysics data: ground, airborne and
marine surveys.

d) Nobel Gas Mass Spectrometer (NGMS): This new dating technology will be used particularly for absolute
dating of basalts which will have bearing on sub-basalt Mesozoic hydrocarbon exploration, particularly in the
Kutch-Saurashtra Basin, as well as to understand thermo-tectonic evolution of basement rocks from different
sedimentary basins of India.

e) GCM Modelling through Landmark: Technology of making GCM through Landmark’s “Earth Modelling
Module” has been inducted.

f) Technology by ESSEME: Pilot Project finalised to carry out “Thin Bed Resolution” study in Linch area
through M/s ESSEME.
g) Broadband Processing has been established in OMEGA System by inducting Adaptive Deghosting (AD)
Technology on marine data to broaden the spectrum and improve the resolution by removing the source and
receiver end ghosts.

h) Integration of reservoir model and 3D-MEM technology: This technique was used for optimization of hydro-
fracturing in Redevelopment project of Gamij field.

Skill labor force

Skill Development is a vital component for Human Resource Development. ONGC has recognized this as a
strategic imperative and for implementing this strategy has set up centers of learning and research in its various
work-centers. All learning and development activities are being coordinated centrally by Corporate HRD and
ONGC Academy.

ONGC has a diversified workforce, with people of many geographical, racial, cultural and educational
backgrounds that help the company by bringing in diverse ideas and methodologies of doing things.

ONGC has qualified and accredited professionals working under in its team.

With this set-up, ONGC provides world class learning opportunities to all levels of executives in different
disciplines commencing with induction training for new graduate trainees, refresher trainings to middle and
senior level executives in technical, techno-managerial and managerial domains, certification programmes,
project management training and leadership development programmes through a planned calendar of training
programmes with pre-identified training partners. In addition to the calendar programmes arranged in India,
executives are also being nominated for a vast number of training programmes, seminars and workshops
organized in India and abroad.

ONGC Academy: Executive Induction and Management Development Training and Nodal Centre

Institute of Drilling Technology: Certified Training on Drilling and Well Control

Geo-data Processing & Interpretation Centre: Seismic Data Processing & Interpretation and Seismic
Software Development

Institute of Reservoir Studies: Training on Reservoir Modeling & Management

Institute of Safety Health & Environment Management: Safety Training

Institute of Oil & Gas Production Technology: Training of Production Technology

Institute of Engineering & Ocean Technology: Training on Geotechnical &Structural Engineering

School of Maintenance Practices: Certified training courses of Oil Field Equipment maintenance

Social media
ONGC internal communications website ONGCReports has  secured an international award for ‘Online Internal
Communications’ from the  prestigious ‘Society for New Communications Research’ [SNCR], New York,
USA.  This is the first time ONGCReports has bagged an international  recognition, placing the brand ‘ONGC’
in the world Communications map.
The 2016 SNCR Excellence in New Communications  Awards were publicly  announced by the Society for
New Communications Research at an exclusive reception and awards ceremony  at The Conference Board's
New York Headquarters  on 18 May  2016. ONGC  secured the Top award under the category: nternal
Social/Online Internal  Communications and Communities, Government Division. Click  here to see the Release
by the Society.
he other  winners this year have been global retail brands like Marriott International and  Johnson &
Johnson. This award for  Internal Communications category from SNCR has been bagged earlier by reputed
organizations like Bacardi Limited in 2012, PepsiCo in 2011, Dell in 2008 and  Cisco in 2012. IBM in 2011 and
Netapp Inc. in 2010 have bagged the award for  External Communications. Hence, this award puts ONGC’s
Communications in the  global league. This is a Big  success story scripted by a Small passionate Team.

New market

State-owned Oil and Natural Gas Corp (ONGC) has set a target to double oil and gas output from its domestic
and overseas fields and expand its refining capacity three-fold alongside diversification into renewables in a new
vision document for 2040, its Chairman Shashi Shanker said. ONGC Energy Strategy 2040 envisions the
company as "A diversified energy company with a strong contribution from non E&P business; 3x revenues and
about 5-6x market capitalisation,"

The firm produced 24.23 million tonnes of crude oil in the 2018-19 fiscal year and 25.81 billion cubic metres
(bcm) of natural gas from its domestic fields. Another 10.1 million tonnes of oil and 4.736 bcm of gas were
produced from its overseas assets.

It had a turnover of Rs 109,654 crore and a net profit of Rs 26,715 crore in the year ended March 31, 2019. As
on August 16, it had a market capitalisation of Rs 164,458 crore.

In the company's latest annual report, Shanker said the ONGC board recently approved the business roadmap
for the company and its other group entities -- 'ONGC Energy Strategy 2040'.
The 'Energy Strategy 2040' entails ONGC achieving "three times revenue distributed across exploration and
production, refining, marketing and other businesses; four times current profit-after-tax (PAT), with 10 per cent
contribution from non-oil and gas business; and 5-6 times current market capitalization

With two 35 million tonnes per annum of oil refining capacity vested in its two subsidiaries -- HPCL and
MRPL, ONGC is targeting to raise this capacity to around 90-100 million tonnes. Also, expansion is
petrochemicals will be prioritised.

Besides, ONGC plans to make investments in renewables energy sources with a target to create 5-10 gigawatts
portfolio with a focus on offshore wind power.

Human resource

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 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.
ONGC has a unique distinction of being a company with in-house service capabilities in all the activity areas of
exploration and production of oil & gas and related oil-field services.
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.
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 honours in
sports at national and international levels have been achieved.

Weakness

Research and Development:

Geodata Processing and Interpretation Centre established in 1987 at ONGC, Dehradun provides solutions to
complex E&P problems by integrating seismic with other geoscientific data. Land and marine seismic data of
ONGC of Indian & Foreign basins is processed and interpreted synergistically at this centre which has world
class state-of-the-art infrastructure backed by specialists.
Since inception, GEOPIC transformed itself into a Centre for Excellence and today is one of the premier
institutes of ONGC.
The Institute of Drilling Technology was set up in 1978 at Dehradun. Over the years, the Institute has emerged
as a premier R&D centre in South East Asia. Institute of Drilling Technology (IDT) provides its techno-
economic expertise & solutions to various field problems faced by various services of ONGC with the ultimate
objective to promote cost effective E&P activities of the company.
The Institute of Engineering and Ocean Technology (IEOT) was founded in 1983 for innovation,
development and acceleration of the future plans of ONGC to achieve self- reliance in technology. The Institute
has developed expertise in core fields of Geotechnical Engineering, Structural Engineering, Risk & Reliability
Engineering, Materials & Corrosion Engineering and Alternate Energy section was set up in 2012.

Even though ONGC is spending more than the average research and development expenditure within the
industry, it is spending way less than a few players within the industry that have had a significant advantage as a
result of their innovative products.

Low current ratio

The current ratio that shows the company’s ability to meet its short term financial obligations, is lower than the
industry average. This could mean that the company could have liquidity problems in the future.

worsening of financial health of Oil and Natural Gas Corporation (ONGC), India’s state-owned hydrocarbon
explorer that alone contributes 61 per cent of the country’s crude oil output. Three different indicators – record
low cash reserves, debt of Rs 25,000 crore and negative working capital – were used to argue the company’s
finances are in the red. The arguments seem partially misplaced, a detailed ETEnergyworld analysis of key data
trends and a survey of expert opinion shows.

CASH RESERVES

Simply put, cash reserves are funds that companies set aside from net profit for unexpected or unplanned costs.
ONGC’s cash reserve has come crashing down to Rs 170 crore at the end of September 2018 as compared to Rs
13,646 crore in September 2017 and Rs 1,000 crore in March 2018. ONGC deployed most of its excess cash to
fund the mega Rs 37,000 crore acquisition of downstream major Hindustan Petroleum. The low cash reserves,
typically, put companies at higher risks since they are left with less funds for meeting emergency needs of
business.

Another industry expert cautioned against reading too much into the half-yearly cash reserve because ONGC
had then just deployed funds for the HPCL buyout and for paying dividends to the government. “I do not think
one should be fixated with the September figure of cash flow. This may be simply because of the dividend pay
outs or the HPCL debt repayment. Their cash balance may have come down drastically but on year-end basis, it
is expected to recover quite sharply,” said Avishek Datta, Research Analyst at Mumbai-based brokerage
Prabhudas Lilladher.

The firm is expected to report a robust fourth quarter led by higher oil prices. Also, within the first nine months
of 2018-19, ONGC had exceeded the net profit numbers for the previous full fiscal year. The oil behemoth’s net
profit stood at over Rs 22,000 crore in the Apr-Dec 2018 period, as against Rs 19,945 crore, reported for full
year 2018-19. Experts say the healthy earnings could take care of the company’s Rs 30,000 crore capital
expenditure plans or any sudden working capital requirement

Technologies

ONGC is one of the largest E&P Company in India with in-house service capabilities in all the activity areas
of exploration and production of oil & gas and related oil-field services. The state-of-the-art technologies
inducted and absorbed over the years such as depth domain processing, stratigraphic inversion, advanced
volume based interpretation tools, stochastic lithofacies modeling using neural network, spectral decomposition,
geo-statistical modeling, etc.
“Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people” –
Mission of ONGC
As India’s premier Maharatna, ONGC has pioneered in research and technology development in the country,
setting up twelve world-class Institutes under the aegis of ‘Committee of ONGC Institutes’ or ‘COIN’. These
twelve institutes have become the backbone of India’s hydrocarbon industry and support the entire spectrum of
Oil and Gas production, which begins at the well bore and culminates at the consumer point.

Compitation
The oil and gas industry is extremely competitive, especially with regard to exploration and development of new
sources of oil and natural gas. The Government of India has implemented the New Exploration Licensing
Policy, or NELP, whereby private participation in the allocation of exploration acreages is permitted through
competitive bidding. In the six rounds of NELP bidding so far, ONGC has been awarded a majority of the
exploration blocks offered by the Government, yet it remains subject to competitive pressure.
The Government of India now automatically approves 100 percent foreign equity ownership in exploration
activities conducted under the NELP. This policy is aimed at encouraging foreign oil companies to invest in
India. New domestic and foreign entrants, including the world oil majors, seek to enter the exploration and
production industry in India, and increased competition could adversely affect ONGCs business by limiting the
number of new exploration blocks that will be available to it in the future. For example, the seventh licensing
rounds under the NELP may involve many of the large international companies seeking to acquire licenses for
exploration through subsidiaries and some joint ventures.

Quality control

Quality is defined as totality of characteristics of an entity that bears on its ability to satisfy stated and implied
needs. Taguchi Genichi looks at quality somewhat differently and defines quality in terms of the final product
rather than in terms of employee activity. He believes that value which forms the basis for quality definition is
too subjective to measure. A product-based definition is that quality is a precise and measurable variable. If one
is to manage quality, one must be able to measure it. American National standards Institute (ANSI)' and
American Society for Quality Control (ASOC) standardized definition of quality in 1978. The intent of
international standards is to clarify and standardize quality terms and to direct and control the organization with
regard to quality. The angel quality standards an over eight quality management principles

series of QMS, which has undergone revision during the year 2000 providing greater emphasis upon

Customer satisfaction and continual improvement through process approach.

Process can be considered as an activity using resourčes and management thereof to enable the transformation
of input into output. The process approach refers to the application of system of processes within an
organization coupled with identification and interaction of these processes and their management. The model or
a piacon-based QMS is depicted.

Though they have these all quality control system they still lacks when it compared with the compitators.