Transcript PRESENTATION ON SUMMER INTERNSHIP/ TRAINING IN ONGC …

PRESENTATION ON SUMMER
INTERNSHIP/ TRAINING IN
ONGC Ltd
• Oil & Natural Gas Corporation Limited
(ONGC) is the premier company in the
Indian upstream of Petroleum Sector.
• Born in 1956. ONGC was public in 1994.
• Its produces 77 percent of India’s domestic
petroleum and 81 percent of its natural gas.
Company Details
Vision Statement
• To be a world class Oil and Gas Company
integrated in energy business with dominant
Indian leadership and Global Presence.
 Mission Statement
World Class
• Dedicated to excellence by leveraging competitive
advantages in R&D and technology with involved
people.
• Imbibe high standards of business ethics and
organizational values.
• Abiding commitment to Health, Safety and
Environment to enrich quality of community life.
Integrated in Energy Business
• Focus on domestic and international Oil &
Gas exploration and production business
opportunities.
• Provide value linkages in other sectors of
energy business.
• Create growth opportunities and maximize
shareholders value.
Dominate Indian Leadership
• Retain dominant position in Indian
Petroleum sector and enhance India’s
energy availability.
HISTORY
• During pre- independence period the Assam Oil
Company and Attock Oil company was the only
oil company in India.
• After independence, the national Government
realized the importance oil and gas for rapid
industrial development.
• Assam Oil Company was producing oil at Digboi
(discovered in 1889)
• Oil India Ltd is a 50% joint venture between
Government of India and Burma Oil Company.
• In West Bengal, the Indo-Stanvac Petroleum
project is a joint venture between Government of
India and Standard Vacuum Oil Company of
USA.
• In 1955, Oil and Natural Gas Directorate was set
up which was later converted to Oil and Natural
Gas Commission in 1956 August..
• Oil and Natural Gas Commission was later
change to Oil and Natural Gas Corporation in
1994.
• In 1958, ONGC found a oil-well in Cambay now
Khambhat which was a first well owned by
Government of India only.
• ONGC went offshore in early 70's and
discovered a giant oil field in the form of Bombay
High, now known as Mumbai High.
Global Ranking
• ONGC ranks 3rd Oil & Gas Exploration &
Production (E&P) Company in the world and
23rd among leading global energy majors as per
Platts 250 Global Energy Companies List for the
year 2009• ONGC ranks 24th among the Global
publicly-listed Energy companies as per ‘PFC
Energy 50” (Jan 2008)
• Finance Asia 100 list ranks ONGC no 1 among
Indian Blue Chips.
• Occupies 155th rank in “Forbes Global 2000” list
2010 of the world’s biggest companies for 2010
based on sales, profits, assets and market
capitalization.
• ONGC ranked 402nd position as per Fortune
Global 500 - 2009 list;, based on revenues,
profits, assets and shareholder’s equity.
ONGC PRODUCT DETAILS
• ONGC Ltd. has following product profile
Crude Oil
Petrochemical
Petroleum
• Mixed Xylene
• Gas oil
• Para Xylene
• Jet/kero
• Propylene
• LPG
• Benzene
• MS/ Naphtha
 ONGC Ltd. Cambay production of Crude
Oil, Natural Gas and Crude Oil processing
& Transportation. Their customer are:
•
•
•
•
IOCL (Crude Oil)
GAIL (Natural Gas)
GSPC/NIKO (Processing of Crude Oil)
HERAMEC Ltd. (Processing of Crude Oil)
Broad Function
• Stacking of released locations and Handling
over a Drilling & Oil Mining
• Land acquisition
• Preparation of approach roads and drill sites
• Preparation of GTO (Geological Technical
Order) and other related technical data.
• Collection of subsurface geological data during
drilling
• Monitoring of day to day drilling operations for
healthy/timely well completion.
• Planning, provisioning and inventory control of
casing, well heads, floating equipments,
centralizers etc.
• Co-ordination with other services such as
Logging, WSS (well stimulation service),
Cementing, Logistic.
• Planning and monitoring production testing.
• Planning and execution of work over jobs
• Documentation of the data for each well
• Budget preparation
• Well completion reports
• Cost reduction planning
• Other miscellaneous jobs related to DRILLING.
Corporate Social Responsibility OF
ONGC
• CSR is about how companies manage the
business processes to produce an overall
positive impact on society.
There are four aspects of CSR
1) Work Place:
• Providing a safe and healthy work environment
• Adopting fair labor polices
2) Environment:
• Protecting the environment
3) Market Place:
• Being truthful in advertising
• Avoiding price discrimination
4) Social Welfare:
• Donating to charity
Activities
CORPORATE LEVEL:
 ONGC’ s CSR programs at the corporate level
focused on disaster relief management and
water management projects.
 When a heavy cyclone hit the eastern state of
Orissa in 1999,ONGC provided immediate relief
like food , drinking -water, medicine, clothing etc.
SOCIETY:
 ONGC was involved various community
development programs in India.
 In 1983 ONGC formulated its Environment
Policy for protecting Environment.
 For improving the safety, health, and
environment standard ONGC set up the Institute
of Petroleum Safety, Health and Environment
management in 1989.
ONGC contributed to several socio-economic
developmental programs like building schools
and hospitals, developing agriculture and
cottage industry, building infrastructure
facilities.
ISSUES/ PROBLEMS AREA:
• In 1994, the Nagaland government asked the Oil
and Natural Gas Corporation (ONGC) to shut shop
in the state. Because the state government claims to
have resolved old issues but local people and
militant groups dispute that. They have also raised
the issue of pollution from oil wells.
• ONGC Company has been facing hurdles in its
efforts to invite global bids for high tech drilling
operations
as
the
local
industry
has
been
obstructing the induction of foreign technology.
• The jack-up drilling rig Transocean Nordic, which
was slated to be re-deployed from Bengal offshore
to the Mahanadi basin, got one of its legs stuck
under the sea bed. The loss is estimated at $74,000
per day only on the hiring charges of the rig alone.
Ratio Analysis
Compare With Other Oil Exploration
Company
 Current Ratio
Mar07
Mar08
Mar09
ONGC
1.4
1.56
1.45
Hindustan
Oil
Exploration
ltd
2.23
1.98
1.11
RIL
0.77
1.01
1.08
Cairn India
1.77
0.16
20.48
Quick Ratio
Company
Mar 07
Mar 08
Mar 09
ONGC
1.28
1.39
1.27
HOEC
1.48
1.51
0.83
RIL*
0.69
0.94
0.9
Cairn India
1.78
0.16
20.48
#
*RIL including Reliance Fresh,
# Crain India was public in 2007. There is a lack of information
Debtor’s Turnover Ratio
Company
Mar 07
Mar 08
Mar 09
ONGC Ltd
17.61
16.87
15.16
HOEC
5.24
11.29
17.18
RIL
28.29
26.87
26.29
Cairn India
--
1
2.44
 Investment Turnover Ratio
Company
Mar 07
Mar 08
Mar 09
ONGC Ltd
150.64
122.77
111.98
HOEC
22.79
11.29
17.18
RIL
10.65
10.57
12.92
Cairn India
--
--
--
Inventory Turnover Ratio
Company
Mar 07
Mar 08
Mar 09
ONGC Ltd
19.99
122.77
111.98
HOEC
5.24
11.29
17.18
RIL
10.65
10.57
12.92
Cairn India
--
--
--
 Net Profit Ratio in %
Company
Mar 07
Mar 08
Mar 09
ONGC Ltd
25.79
25.93
23.5
HOEC
1.93
24.53
41.94
RIL
10.64
14.45
10.65
Cairn India
-494.77
-252.62
34.35
 Earning Per Share
Company
Mar 07
Mar 08
Mar 09
ONGC Ltd
73.14
78.09
75.4
HOEC
0.32
1.85
4.1
RIL
85.71
133.86
97.28
Cairn India
-0.17
-0.44
0.29
Finding
• The company having comfortable working
capital position.
• The absolute liquidity of the ONGC Limited is
in favors.
• The collection policy of the company is very
good.
• Inventory turnover ratio is high in 2007-08 as
compare to the previous year but in current
year which is little bit lower than previous
year but ONGC Limited had good Inventory
Turnover Ratio in comparison with other
industries
BIBLIOGRAPHY
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www.ongcreports.com
www.ongcindia.com
www.moneycontrol.com
Annual Reports
Thank You