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

Petroleum

• Gas oil

• Jet/kero

• LPG

• MS/ Naphtha

Petrochemical

• Mixed Xylene

• Para Xylene

• Propylene

• Benzene

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

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

Quick Ratio

*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

• www.ongcreports.com• www.ongcindia.com• www.moneycontrol.com• Annual Reports

Thank You