Name List: - Afaque Ahmed Khoso

Mashooque Ali
Akhter Ali
Baber Ali

Roll Num: - 2K19/BBAE/12/79/18/38

 MARKETING MANAGEMENT PROJECT

PAKISTAN STATE OIL

COMPANY

INTRODUCTION

The creation of Pakistan State Oil (PSO) can be traced back to the year 1974,
when on January 1st; the government took over and merged Pakistan National Oil (PNO) and
Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL). Soon after that, on
3rd June 1974, Petroleum Storage Development Corporation (PSDC) came into existence. PSDC
was then renamed as State Oil Company Limited (SOCL) on August 23rd 1976. Following that,
the ESSO undertakings were purchased on 15th September 1976 and control was vested in
SOCL. The end of that year (30th December 1976) saw the merger of the Premier Oil Company
Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO). After PSO’s
inception, the corporate culture underwent a comprehensive renewal program which was fully
implemented in 2004. This program over the years included the revamping of the organizational
architecture, rationalization of staff, employee empowerment and transparency in decision
making through cross functional teams. This new corporate renewal program has divided the
company’s major operations into independent activities supported by legal, financial,
informative and other services. In order to reinforce and monitor this structural change, related
check and balances have been established by incorporating monitoring and control systems.
Human Resource Development became one of the main priorities on the company’s agenda
under this corporate reform. It is due to this effective implementation of corporate reform and
consistent application of the best industrial practices and business development strategies, that
PSO has been able to maintain its market leadership in a highly competitive business
environment.

PSO Step By Step:

January 1, 1974
The federal government took over the management of PNO (Pakistan National Oil) and DPL
(Dawood Petroleum Limited), renamed into POCL (Premier Oil Company Limited) under
marketing of Petroleum Products (Federal Control Act, 1974)
 June 3, 1974
The government incorporates “Petroleum Storage Development Corporation’ PSDC

August 23, 1976

PSCDC renamed to State Oil Company Limited (SOCL)

September 15, 1976

The Government purchases ESSO undertakings, vests their control in SOCL

December 30, 1976

The Government merges PNO and POCL into SOCL (State Oil Company Limited) and renames
it Pakistan State Oil Company Limited (PSO)
 1999
The new vision program is launched with the new logo of PSO.
OUR VISION, MISSION, AND VALUES

Vision
We enrich lives around the world just as we do in our country

Mission
To leverage our strengths in order to grow, diversify, and build value
Values
 Innovation
We are redefining leadership in Energy to build an agile, creative, and future focused
organization.
 Integrity
We are unwavering and transparent. Focused on reliable and consistent quality practices
in everything we do.
 Teamwork
For sustainable productivity and efficiency, we leverage our strengths through coaching
and collaboration.
 Caring and Giving
We value our customers, employees, community and environment, and take pride in
cultivating loyal relationships that foster outreach and cooperation.
 Inclusive Leadership
We welcome all voices and points of view to gain understanding and perspective in
healthy interactions across our organization.
 Our Strategic Objectives

 Compliance with regulatory and legal requirements and assure ethical operations in
all spheres of business
 Focus on HR capital skill development and increased employee engagement for an
effective and motivated entrepreneurial team
 Optimize and ensure efficient supply chain and pursue long term supply arrangements.
 Effective HSE compliance with steps taken to encourage use of fuels that reduce carbon
footprint.
 Increase market leadership and strategize measures to improve the bottom line.
 Continue to create upstream synergy and evaluate diversification opportunities for
growth.
 Focus on responsible corporate citizenship with active CSR initiatives in health,
education, community development and support for special persons.
Our Strategic Investments
 Who We Are
Pakistan State Oil (PSO), is the nation’s largest energy company, and is currently engaged
in the marketing and distribution of various POL products including Motor Gasoline (Mogas),
High Speed Diesel (HSD), Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG,
Petrochemicals and Lubricants.
In addition to these products, we also import other products based on their demand patterns. A
brief overview of each of PSO’s business facets is presented below:

Marketing & Distribution

PSO possesses the largest distribution network in the country comprising of 3,754 outlets out of
which 3,565 outlets serve the Retail sector and 189 outlets serve our bulk customers. Out of the
total of 3,754 outlets, 1,786 Retail and 167 Consumer Business outlets have been upgraded with
the most up-to-date facilities as per the visualization of the New Vision Retail Programmed.
PSO also operates 26 company-owned and company-operated (Co-Co) sites serving the retail
sector. Co-Co sites are flagship stations which combine high levels of supervision and top
quality products to maintain the highest level of efficiency, service and customer care. These
sites act as benchmark for all other retail outlets.
In addition to retail customers more than 2,000 industrial units, business houses, power plants
and airlines are being fueled by PSO.

Acquisition of Products
The automotive sector is the main consumer of Motor Gasoline (Mogas) and High Speed Diesel
(HSD) whereas Furnace Oil (FO) is marked for power plant usage.
To meet the supply deficit of the country, PSO imports Mogas, HSD, JP 1 and FO as and when
required. The total import of black and white oil in Pakistan last year was 12.4 million metric
tons and PSO had the lion’s share of this import with 11.2 million metric tons which came to
over 90% of the total fuel imports of the country. Other than product imports, PSO acquired 1.75
million metric tons from various refineries based in Pakistan in order to cater to our market
needs.
 Storage
PSO possesses the largest storage capacity in the country. The company’s infrastructure stretches
from Karachi to Gilgit. With 9 installations and 23 depots located across the country PSO’s
storage capacity of approximately a million metric tons represents 68% of the total storage
capacity owned by all the oil marketing companies.

Product Movement
PSO uses three mechanisms for the movement of POL products namely, tank Lorries (road), tank
wagons (railways) and pipelines. We currently have a total fleet of 8,595 tank Lorries out of
which 2202 tank Lorries are New Vision tank Lorries which are complying with the latest ADR
standards and are equipped with pilferage proof tracker systems. With the commencement of
operations of the White Oil Pipeline Project (WOPP) from Karachi to Mahmud Kot via
Shikarpur and the MFM (Mahmud Kot/Faisalabad/Machinery) pipeline, the supply pattern for
white oil from Karachi has switched from tank lorries to pipelines. PSO is present as a partner in
this project and holds a 12% equity share in this venture.

Lubes Manufacturing & Sales

PSO is steadily progressing in the field of lubricants. We are catering to a number of sectors
including automotive, Hi-street and industrial consumers through the provision of various
products.
Building a High Performing PSO - Technology Best Practices

Professional services automation (PSA) software is designed specifically for the

professional services industry. PSA solutions help organizations unravel the
complexities and inefficiencies associated with managing multiple projects, and help
streamline essential business processes. It has been well documented that the
world’s leading PSO’s utilize professional service automation software to complete
projects faster, build stronger customer alliances and increase revenue
opportunities.

In this post we explore how PSA solutions assist professional services organizations
in benefiting from automating basic business functions including customer
relationship management (CRM), project management, resource scheduling, time
and expense capture through to billing, invoicing, and document management − and
how, with careful integration, PSO’s can build a seamless process from bid to bill.

Improving Customer Relationships and Retention

It is a well-known fact that it costs more for a business to gain a new customer than
it does to retain one. PSOs need an efficient and secure method of managing and
accessing valuable customer information. Advanced PSA solutions will include the
most beneficial CRM features that will allow you to organize all clients and contact
information in a central place and enable you to track sales enquiries, manage sales
proposals, log daily communications, and integrate with leading. CRM applications

Optimizing Chargeable Revenue and Project Profitability

Tracking all billable time and expenditure is essential for effective project
profitability. By adopting automated timesheet entry, timesheets can be entered and
approved quickly and easily, reducing errors, speeding up billing cycles, leading to
improved cash flow. With automated expense capture, PSOs can simplify the
expense submission, approval and payment process, dramatically reducing the
overhead associated with processing expense claims, enabling you to recoup more
by accurately passing expense costs on to your clients. Furthermore, by
implementing tighter expense management control you will gain real time visibility
into all company expenditure and ensure your employees are compliant with your
expenses policy.
Improving Cash Flow

Professional services organizations have a unique set of challenges when it comes

to managing the invoicing process. PSA solutions are designed to remove the
complexity of traditional billing and invoicing systems by simplifying the process,
eliminating any wasted effort and avoiding damage to client relationships due to
errors. Advanced PSA solutions will effectively manage all of your billing and
invoicing requirements and include features that will enable you to set up client
contracts and customize billing cycles so you can maximize billing opportunities. In
fact PSA solutions are evolving to support the challenges of the modern PSO
including outcome based and deliverables based billing, fixed price projects, capped
billing and service production.

Optimizing Resource Usage across Service Delivery

Professional services organizations work within complex multi project environments.

PSA solutions are designed to effectively manage all of your projects − large or
small. Project planning will allow you to quickly create project plans, from a simple
task list to a full work breakdown structure and will provide a clear, consistent
method of planning and tracking project progress.

One of the key benefits of implementing a PSA solution is the ability to integrate
resource scheduling with strategic resource planning, enabling you to better manage
your most valuable assets − your talent. From annual service planning to short term
engagements, this will provide complete visibility and control over your entire
resource pool, helping you to boost productivity levels and reduce costs. With real
time access to utilization analysis, you can better understand resource capacity
levels; and identify skills shortages and training requirements.

Encouraging Knowledge Sharing and Innovation

PSA solutions will enable you to work better as a team and help to shape the future of
your organization with functionality that supports a more collaborative working
environment. Advanced PSA solutions will empower your team by providing central,
shared access to all project related documentation including reports, specifications and
templates; helping you to improve efficiency levels and communication. They will also
allow for the capturing of suggestions, customer feedback and lessons learned so you
can leverage new ideas, better serve your customers and improve project delivery.

The Seas Factor

Seas are quickly becoming the implementation option of choice – as the benefits are
hard to ignore. One of the core features of deploying Seas PSA solution is the
collaborative, 100% web based service. Seas vendors host the software and data
centrally so you no longer have the worry or expense of having the correct technical
infrastructure in place or the in-house expertise to keep it maintained. Accessibility
issues are a thing of the past as your in-house systems are replaced with a 24 x 7
service that can be accessed anywhere in the world over a standard web browser. Seas
software itself is designed to be easily adopted, is scalable and will require minimal
effort to roll out.

In Summary

It’s hard to ignore the fact that the top performing PSO’s have adopted Professional
Services Automation technology to optimize key aspects of professional services
delivery, helping to reduce waste, improve processes, drive governance, improve
customer retention levels and provide a competitive edge.

For a time, professional services automation software was out of the reach of many
new, growing or small to medium sized PSOs − as the cost of the enabling technology −
was inhibitive. With the Seas delivery model − PSA solutions are now in the reach of
most if not all PSOs, offering significant ROI.

PROMOTIONAL ACTIVITIES

 PSO is staunchly carrying out promotional activities by giving presentations, submitting

research reports and corresponding with Federal & Provincial Ministers, Arm Forces
and Senior Official of Federal and Provincial Ministries, AEDB, PARC, FSC&R,
SMEDA. PSO actively participates in seminars arranged for promotion, research and
development work on Jatropha in Pakistan.

 PSO biodiesel initiative was selected as a case study and presented in Corporate Summit
on Climate Change organized by Lead Pakistan

 AEDB recognized PSOs’ efforts and selected PSO as a focal member of Biodiesel
Advisory Committee, which is working on the road map of National Biodiesel Program
  PSO & Ministry of Agricultural, Baluchistan formed a joint team to suggest way forward
to Gob for introducing Biodiesel in Baluchistan Province.

 a. Joint team identified a piece of land for the initiation of pilot project in district
Lasbella, Baluchistan.
 PSO biodiesel initiative was presented in different seminars and got public and
professional appreciation

Consumer Business

For the past 44 years, Pakistan State Oil has been successfully fuelling the needs of the nation.
Acknowledged as the leading Energy Company of Pakistan, PSO has been relentlessly driving
the wheels of the national economy with concentrated focus on the Industrial Sector.
PSO takes pride in the fact that it has been fuelling all strategic units of Pakistan including
Army, Railway and the Power Sector. However today, PSO is even more aggressive in
understanding and catering to the changing needs of its industrial customers. We, at PSO believe
that excellence in our core activities emerges from a passion for satisfying our customers' needs.
The function of Consumer Business (CB) Department is to provide top notch services to
industrial customers and power projects throughout Pakistan. Consumer Business is divided into
7 Divisions in South, Central & North regions with 7 Business Managers for the industrial
sector and 1 Business Manager exclusively for Power Projects in the central region. CB
Department provides POL products to almost every single industry.

Primary functions include:

1. General trade
2. Defense
3. Pakistan railways
4. Power projects
 Industrial Customers

General trade encompasses all industrial segment of Pakistan. Major customers are dealt either
through contract, tender or our long – term business relationships with them. Our major
customers include OGDC, NLC, HIT, POF Wahl, Pakistan Steel Mills, CDGK, Rural Group, Eng
Chemicals etc. General trade also includes major OMCs namely Chevron Pak Ltd, Barky Trading
Co, Hascol, Overseas Oil trading and Asker Oil.

This business was with Pakistan Refinery Ltd on a ‘Rate-Running Contract’ for more than 40
years. We initiated a dialogue with Pakistan Railways and offered them our services to meet
their HSD/ Lubes demand. Hence, a tender was floated by PR for 206 million liters of HSD which
was won by PSO, being the most competitive participant. This contract was awarded to PSO on
08/09/2008 for three years. On 17/09/2011 another contract for the same quantity was signed
and is valid for three years until 16/09/2014.
PSO continues to enjoy a long-standing and deep-rooted relationship with Pakistan Army. We
strive to be as equipped as possible for the current and future requirements of our armed forces
anywhere, anytime across the country, form Siachen to the Arabian Sea.

Power Projects

Products

 High Sulphur Furnace Oil (HSFO)

 Low
 Sulphur
 Furnace
 Oil
 (LSFO)

Nature of business

 Tender Business (WAPDA)

 Contractual
 Business (FSA’ssignedwith11IPPsnationwide)

Major customers

 WAPDA
 KESC
 HUBCO
  KAPCO
 Private
 Power

Product Flow Diagram

Aviation, Marine & Export

Aviation and Marine

PSO has the leading edge in aviation business of the country with an experience of more than 04
decades in fueling aircrafts, having market share of 95% in Jet Fuel. PSO has extensive
operations across 10 major airports throughout Pakistan. In keeping with our commitment of
fueling the country’s growth; we ensure that all our products and services maintain the highest
standards in quality.
Our Aviation, Marine and Exports department is a leading example of our commitment to
excellence in the fuel sector. We have been providing high quality aviation products and services
to commercial airlines, the military and general aviation customers, both local and foreign.
Aviation function operates under an organization approval issued by the Civil Aviation Authority
(CAA) of Pakistan for storage & distribution of Jet A-1 fuel. The approval requires compliance
with civil aviation rules, air-navigation orders and is renewed every year. CAA Pakistan carries
out regular periodic audits of aviation stations.
Commitment to QA & HSE:
At PSO, we continually meet and exceed consumer expectations by adhering to global quality
standards and constantly improve our services and products by investing in research and
development, conducting routine audits and implementing performance reviews to ensure
customer satisfaction.
We follow the “Ramp Safety” requirements stipulated by CAA Pakistan and written in the Air
Total International Quality Control and Operation Manual. Safety trainings and rehearsals are
regularly carried out at airports.
Operations’ Map:

Strategic collaboration:
Aviation department has a technical and strategic collaboration with Air Total France. ATI
conducts annual inspections to ensure that products and services are at par with globally set
industry standards. Air Total International offers its global expertise by assisting and supporting
PSO in operations such as handling and distribution of aviation fuel.
Refueling Equipment:
PSO Aviation function is equipped with state of the art and technologically advanced refueling
equipment as per international standards.
Hydrant Servicers, manufactured on latest refueling, filtering and interlocking technology serves
aircrafts at hydrant bays, designed in accordance with the latest issues of NFPA Standards and
ATEX Directives, IP Model Code of Safe Practice & JIG recommendations.
Refuellers provide service to aircrafts at apron where underground hydrant lines are not
available. The refueling equipment is loaded with safety features and interlocks that prevent
damage to the aircraft, internal arrangement of equipment, product spill and harming people
and adjacent enclaves.