Simanta Bora ONGC At a Glance ONGC was formed in 1956 with the vision of great leaders to make our country energy-sufficient. Over the years, the company has discovered 6 of the 7 producing basins in India and added 6.4 Billion tonnes of oil and gas reserves. According to Platts Top 250 Global Energy Ranking (November, 2010) ONGC is the no. 1 E&P company in the world and 18 th overall listing of global energy companies. 2 Contd.. Subsidiaries Of ONGC ONGC Videsh Ltd (OVL) OVL is the wholly-owned subsidiary of ONGC for overseas E&P activities. OVL presently has participated in 33 projects in 14 countries. Joint Ventures/ Associates ONGC Tripura Power Company Ltd (OTPC) ONGC Petro-additions Ltd. Mangalore Special Economic Zone Ltd. (MSEZ) ONGC Mangalore Petrochemicals Ltd (OMPL) ONGC TERI Biotech Ltd (OTBL) Petronet MHB Ltd (PMHBL) Petronet LNG Ltd (PLL) Pawan Hans Helicopters Ltd (PHHL) Dahej SEZ Ltd. (DSL) 3 PRODUCTION PERCENTAGE 4 ONGC 83% PSC-JVS 8% OVERSEAS 9% ONGC VIETNAM 29% SYRIA 8% COLUMBIA 6% VENEZUELA 10% RUSSIA 34% BRAZIL 7% SUDEN & S.SUDEN 6% ONGC (OVL) OVERSEAS SHAREHOLDING PATTERN PRESIDENT OF INDIA 69% BFSI 10% FII 5% MF & UTI 1% GOVT COMPANIES 10% PUBLIC 2% OTHERS 3% SHARE HOLDING PATTERN 5 SWOT ANALYSIS 6 INDIAs largest crude oil and natural gas producer. Strong brand name. Has over 40,000 employees. It produces about 30% of the countrys crude oil requirement. Strong presence in India as well as 14 countries worldwide. Legal issues Bureaucracy Employee management Human rights and rehabilitation issues. STRENGTH WEAKNESSES Contd 7 OPPORTUNITIES Increasing fuel prices. Increasing natural gas market. Expanded export business. More oil well discoveries Government regulations. High competitions. Introduction hybrid and electric machinery in the market. Changing environmental laws Reducing reserves. THREATS PORTERS 5 FORCES MODEL 8 THREAT OF NEW COMPANIES IS VERY LESS AS THE INVESTMENT REQUIRED IS VERY HIGH NEGLIGIBLE BARGAINING POWER OF CUSTOMERS MODERATE BARGAINING POWER OF SUPPLIERS MODERATE POSSIBILITY OF SUBSTITUTE ALTERNATE FUEL STILL INITS NASCENT STAGE OF DEVELOPMENT OIL INDIA LTD. RELIANCE PETROLEUM, PEMEX, PETROBRAS ORGANIZATIONAL STRUCTURE 9 Organization Levels and The Span Of Management ONGC, like most of the organizations follows a mixed balanced organizational span depending on the number of subordinates. At the executive level ONGC follows a wide span while at the mid- level and lower level it follows the narrow span. 10 CMD Organizational Span At the Executive Level 11 Company Secretary Corporate Affairs Chief Vigilance Officer MD OVL Director Onshore Director Tech&Field Director HR Director Exploration Director Offshore Director Finance A.K HAZARIKA Shri S. Vasudeva Shri S. V. Rao Shri K.S. Jamestin Shri U.N. Bose Shri D.K. Sharaff WIDE SPAN Organizational Span At Mid-Level 12 Director Offshore Mumbai High Bassein & Satellite Heera & Neelam Supply Bases Uran Plant Hazira Plant Offshore PSC- JV Director Technical & Field Chief Drill Drilling Cementing Mud Chief Well Services Workover WSS Well Completion and Drilling Chief Logging N A R R O W S P A N NARROW SPAN DEPARTMENTATION AT TOP-LEVEL 13 ONGC follows both Departmentation by Function/Process at the top level and a geographical Departmentation at the mid level. DIRECTOR ONSHORE DIRECTOR FINANCE DIRECTOR OFFSHORE DIRECTOR TECH & FIELD SERV DIRECTOR HR DIRECTOR EXPLORATION DEPARTMENTATION AT MID-LEVEL 14 UNDER DIRECTOR ONSHORE THE DEPARTMENTATION IS DONE BASED ON GEOPGAPHICAL TERRITORY DIRECTOR ONSHORE ANKALESHWAR AHMEDABAD ASSAM KARAIKAL RAJAHMUNDRY(KG) TRIPURA 15