Internship Report t3x6m

DEDICATION

To our loving and kindly Parents, whose sincere prayers have, Guided us through life’s storm and rocky Moments, to my elder brother May ALLH grant us the Strength and ability to live up with their expectations.

“AMEEN”

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CHAPTER – 1 INTRODUCTION OF STUDY 1.1

BACKGROUND OF STUDY

An internship is an academic requirement at Institute of Management Studies, University of Peshawar for the students of Bachelor of Business istration who has recently finished studying and after completion of internship a report on that internship has to be submitted under the guidance of a supervisor. As internship means; “the practical work experience in a job after the completion of the studying. So after studying various subjects theoretically a student must know about their practical implementation in an organization. So to fulfill this requirement I remain as an internee at OMV Group, Main Head Office Islamabad, for eight weeks. After that I prepared this report on the basis of knowledge, which I previously had, and especially from working in OMV during my internship. Also I tried to evaluate and analyze performance of the bank shown in this report with its strengths, weaknesses, threats, opportunities, problems and recommendations etc. it also contain other information about OMV Group as a part of report. 1.2

PURPOSE OF STUDY

Internship and preparing report’s purpose is to observe, analyze and collect relevant data about an organization and to judge my abilities and skills developed during studying and how much am I capable to apply theoretical knowledge in the practical working which result in gaining experience. Also it enhances communication skills. Shortly its purpose is to increase knowledge and skill and to collect relevant data and information about OMV Group to prepare internship report more completely, precisely and more effectively. The ultimate goal of this entire process and study is to prepare myself for job and working in real life.

1.3

SCOPE OF STUDY

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Various functional areas and many aspects of operation of the company has been covered in this report but it was very difficult to cover all the departments in such a short period of time because like other oil industry OMV Group is also a very busy place and big organization whose staff cannot give mere time to internees. Also due to company own rules and regulations and security and secrets there were some things about which we did not get aware. Although I worked in some departments, including record keeping, assistant record etc but my much focus was on banks operations employees’ behavior and performance which is related to my specialization field that is HR.

1.4

REPORT PREPARING METHODOLOGY

The most important task for compiling the report is the relevant and valid data which I collected in the form of quality information about the organization through different techniques. So in methodology of this report I adopted both sources of data collection that is primary data collection and secondary data collection. The primary data was collected through techniques of interviews with manager, discussions and coordination with the executive and officers, and other staff’s personal observation and different types of written material from Company. The sources of secondary data were annual report, record of departments and manuals. I also got some important information when ever needed from internet like history of OMV Group etc.

1.5

LIMITATIONS

Although I tried my best to carry out my internship program in better way but there are certain limitations in writing this report. I faced certain problems, first being the time duration; only two months are not sufficient to understand the functions of all the departments of the organization.

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Another problem was scarcity of written material and the element of secrecy, due to which; I could not get access to all areas. Although they were very cooperative but still I faced great hardship in gathering information and understanding of procedures. For this purpose I studied few previous reports on OMV Group to complete my report.

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CHAPTER-2 OVERVIEW OF ORGANIZATION

Energy Overview

Pakistan’s economy is growing at very steady rate and this growth is demanding higher energy consumption and thus putting a huge pressure over countries limited energy recourses. Oil, natural gas and hydro are tree primary energy resources of the country which are being exploited for fulfilling energy demand of the economy. But due to limited reserve of oil and gas with in country and political nature of hydel energy, has forced country to import large quantity of oil and oil related products from middle east especially Saudi Arabia. Share of natural gas in countries energy use is the largest about 50 percent of the total consumption and within coming years without higher production and critical situation of current Gas reserves country has to look towards imported gas from some neighboring countries to fulfill its increasing gas requirement. Although country is blessed with huge potential of hydel energy yet due to local political situation this is not being exploited to its full extent. Below is primary energy overview of country [EIA 2012].

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Pakistan’s Oil Sector

According to Oil and Gas Journal (OGJ), Pakistan had proven oil reserves of 300 million barrels as of January 2011. The majority of produced oil comes from proven reserves located in the Southern Indus Basin. Additional producing field are located in the middle and upper Indus Basin [EIA, 2012].

Background

Pakistan has been considered a petroleum province. First well was drilled in 1866 at kundal in the upper region of Indus valley. Shallow well was drilled in 1866 at Kundal in the following years, and 1886 small scale production of oil started in Khattan (Balucation). In 1915, the first series of commercial oil discovery was made in the Potwar Basin (Punjab). In 1960,s Oil Gas Development Company Limited (OGDCL) was created by the government of Pakistan, which provided successful track in discovery of oil and gas reserves with in country. After the oil crisis in 1973, a number of impressive discoveries were made both by the private sector and OGDCL. In June, 2010, initial recoverable gas reserves are much more modest with initial recoverable reserves of 844 million bbl. and a reaming balance of 309 million bbl. [EIA, 2010].

Current Supply and Demand Situation of Oil Sector Since the late 1980s, Pakistan has not experienced many new oil fields coming online. As a result, oil production has remained fairly flat, at around 60,000 barrels per day. During the first eleven months of 2010, Pakistan produced an average of 58,000 bbl/d of crude oil. However Pakistan has ambitious plans to increase its current output to 10,000bbl/d by 2012. Due to

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Pakistan modest oil production, country is dependent on oil import to satisfy domestic oil demand. As November 2006, Pakistan had consumed approx. 350 thousand barrels of oil and imports come from Middle East, with Saudi Arabia as lead importer [World Bank Report] In recent years, the combination of rising oil consumption and flat oil production in Pakistan has led to rising oil imports from Middle East exporter. In addition, the lack of refining has led to rising oil imports from Middle East exporters. In addition the lack of refining capacity leaves Pakistan heavily dependent on petroleum product imports. Natural gas for the largest share of Pakistan’s energy use amounting to about 50 percent of total energy consumption. Pakistan currently consumes its entire domestic natural gas importer. As a result Pakistan is exploring several pipeline and LNG import option to meet expected growth in natural gas demand [World Bank Report]

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History of OMV OMV is Austria’s largest oil producing company with important activities in other Central European countries the company is market leader in the Danube region, supplying 13 countries will more than 100 million inhabitants. It has begun its existence in Austria in 1956 as a state owned company and has developed into most successful Industrial Corporation in Austria and an international flagship. Today OMV is economical stronger than ever before. The best result in the history of corporation was achieved in 2005 financial year. With its refineries in Austria, , and Romania, as well as its stake in German Bayern oil refineries, OMV achieves the major share in refinery output needed in the entire Danube region. OMV has been involved in the Austrian gas industry since 1955 when the company took over SMV (SowjetischeMineralolverwertung). In the late 1950’s a large gas field was found in Zwerndrof, Austria, which greatly improved OMV’s business capacity. By 1994, a total of 71 oil and gas field has been found in Austria. The latest one found was in 2005 in Strasshof with a quantity of 4 billion cubic meters that can be extracted. Now days with group sales of EUR 23.32 billion and a workforce of 29,000 employees in 2013, OMV is one of largest listed industrial companies. In Exploration and Production, and active in the two core countries Romania and Austria and hold balanced international portfolio. The company is well known among their competitors and customers for the highest quality on the market. OMV IN PAKISTAN In Pakistan OMV has been active as an operator and partner since 1990. The company was incepted as part of a t venture, consisting of OMV Pakistan as the operator, hardy oil& Gas now (ENI group), Pakistan petroleum limited (PPL) and Oil and Gas Development Company limited. As a multinational Company, OMV is very conscious of its adherence to its outlined policies, standards and most importantly, the local laws. OMV has strong commitment to reduce emission to the environment. To achieve the same an “Emission Reduction” project has been initiated for Kadanwari Plant.

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Organogram of OMV

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Products of OMV OMV produce the following product by which it is earning profits: Crude Oil Gas LPG Sulphur Gasoline/High and low speed diesel Kerosene oil Solvent Oil

Function of OMV The main functions of OMV are To plan, organize and implement program of Exploration of development of oil and gas reserves of oil and gas. To carry out geological, geophysical and other surveys for the exploration of oil and gas. To carry out drilling and other prospecting operation to prove and estimate the reserves of oil and gas. To produce, refine and sale oil and gas To perform other function as the Federal Government may from time to time assign to the Corporation.

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Chapter- 3 Overview of Department Operation and Maintenance Department Introduction Effective O&M is one of the most cost-effective methods for ensuring reliability, safety and energy efficiency. Inadequate maintenance of energy using systems is a major cause of energy waste in both by Government and private sector. Energy losses from uninsulated lines, maladjusted or inoperable controls, and other losses from poor maintenance are often considerable. Good maintenance practices can generate substantial energy saving and should be consider a resource. More over improvement to facility maintenance programs can often be accomplished immediately and at a relatively low cost. Definitions O&M are the decisions and actions regarding the control and upkeep of property and equipment. These are inclusive but no limit to, the following: 1) action focused on scheduling, procedures, and work/system control and optimization; and 2) performance of routine, preventive, predictive, scheduled and unscheduled actions aimed at preventing equipment failure or decline with the goal of increasing efficiency, reliability, and safety. Operational Efficiency represents the life cycle, cost effective mix of preventive, predictive and reliability centered maintenance technology, coupled with equipment calibration, tracking, and computerized maintenance management capabilities all targeting reliability, safety and system efficiency. Operations and Maintenance Department is the largest department in OMV. Its plays a very significant and critical role in oil industry. Its aims to achieve excellence in performance by providing “Zero Defective” repair and maintenance services of highest standards to company’s internal and external customers. Following are different sections in Operations dept.:

Sections CSR and EA Drilling Operation and Production

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OMV Corporate Social Responsibility Introduction Nature-the force which maintains the entire universe is both, mysteriously invisible, and vibrantly visible. Remaining physically unseen, nature exhibits glorious control in its precisely perfect system and creations. All working in their own spheres, yet all working in synergy. Nature magnificently maintains this intricate mechanism under one overarching principle. The principle of mutual respect and reciprocation. Definition Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups.

Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. CSR Program of OMV Pakistan is focused on the objective of improved living conditions of OMV's neighboring communities. Since inception, OMV has been working for socio-economic uplift of the communities located in OMV's operational areas in Khairpur and Sukkur Districts of Sindh.

t-Venture (JV) partners' ed community development activities along with OMV's own CSR initiatives are undertaken as a response to the findings of baseline & community needs assessment studies. Program has been growing continuously and gaining recognition in following sectors:

Education

Health

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Agricultural Development

Energy

Environment

Water Supply

Income Generation

Education

'Rising through Education' is the slogan of education program run by CSR Program in operational areas of OMV Pakistan. Education program's efforts are not limited to just enroll more children into schools but also involve children, parents, teachers, communities and government officials for improving schools to the point of usefulness. To achieve this, Program runs 63 primary schools and s TCF School Salehpat and Rangers Public School Chundiko, covering more than 3,500 students.

These schools are also provided infrastructure to ensure that students receive quality education in a learning-friendly environment. The Training & Resource Centre (TRC) has been established at local town Chundiko to improve the teaching skills of local teachers and to monitor the progress of schools.

Introduction of career-oriented courses for local youth was new landmark achievement under the technical education initiative. Five youth from Nara have completed heavy transport Vehicle (HTV) driving course in May 2010 while another 24 are attending various technical & vocational courses at reputed institutions of the country.

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Health

Various initiatives are taken for providing basic healthcare services to the poor in OMV's operational areas. These initiatives are being implemented in partnership with District Governments of Khairpur and Sukkur, health organizations and local communities. The MCH Center at Salehpat and Dispensary at Miano have been handed over to the District Government Sukkur after five successful years of delivering health services with OMV's . As per the project handing over agreement, both these facilities will continue providing healthcare services and will be managed by the District Government Sukkur.

Family Medical Center has been established at Chundiko in partnership with Health Oriented Preventive Education (HOPE) organization and District Government Khairpur to provide healthcare services to the people of Nara. The center will also benefit the surrounding villages through its outreach health services.

OMV started Hepatitis Prophylaxis project in 2006 with the of District Governments (Khairpur & Sukkur), OMV Aktiengesellschaft and Austrian Development Agency. The project vaccinated 9,574 women & children during its first phase (2006-2009). In the second phase (2009-2012), the project has so far istered first dose (out of three) of Hepatitis B vaccine to 12,076 children of Nara, District Khairpur with the assistance of District Government Khairpur.

Agricultural Development

Modern farming techniques are introduced to the local farmers by setting up fruit demonstration farms in Nara. These farms have helped the local farmers to see, understand and emulate new techniques in farming and get benefit out of it.

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Income Generation

OMV Pakistan is helping the local people increase their income by promoting local handicrafts. Approximately, 53 men and women are being facilitated to ensure that all the produced items are compatible with the present market. Different exhibitions are held at the national and international level to display their crafts and all proceeds from the exhibitions go to the local artisans. This not only helps in preserving the indigenous skills of the local people but also in generating income for the improvement of their lives. Women are also provided vocational skills to not only save family income but generate income too for the family.

Energy Access to energy source is essential for sustainable development and poverty eradication. As a pilot project, electricity has been provided to 189 households in 13 villages of Taluka Nara, District Khairpur.

Environment

40 acres (16.2 hectares) forest has been established in Gambat operational area. Project was implemented in partnership with District Forest Department, District Khairpur.

Water Supply 36,000 liters of water are supplied to 1,142 persons in 22 villages of Miano on daily basis.

HSEQ Health, Safety, Security and Environment, HSSE, is a natural and integrated part of our activities. One of the top priorities for OMV is the creation of a safe work environment for employees and contractors. We believe that all accidents are preventable and strive for all the workplaces and processes to be safe and secure for OMV, for our stakeholders, and for the environment. We maintain strong focus on safety and continue to strive to strengthen our safety culture.

At OMV sites, our health standards are fully implemented and health risks are systematically assessed, reduced, and managed to ensure that employees are fit to perform the work assigned to them. We are committed to minimizing our impacts of our operations on the environment. We

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operate with scrupulous care in the sensitive areas where we operate. We seek to minimize the impacts of our activities on the earth's resources and ecosystems. At the same time we share the global challenge of significantly reducing future greenhouse gas emissions to counter climate change and set ourselves firm targets to address climate change issues.

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SWOT ANALYSIS Internal and External Factors The internal components of analysis are concern with basic strength and weakness of organization. Thus, it depicts the internal environment of the company. The strengths of the company may be its financial or human resource, processes, operational methods, marketing, strategies, segmentation techniques or any expertise that thecompany may feel as its core competencies. Contrary to this, anydiscrepancies in these factors, at the same time, may become theweaknesses of the company. Hence, it is the internal environment of thecompany that shapes its business strategies and provides direction tosurvive in the marketplace. TheExternal componentdeals with the factors that the company faces inits external competitive environment. These factors are categorized asopportunitiesavailable for the company in the market place and thethreatsstrained by its competitors. Theopportunitiesof the companymay by its ability to satisfy the ever arising needs of its customers better than its competitors, new available markets, room for setting newoperations, falling of barriers due to globalization trend etc. If a firm failsto avail the opportunities as soon as they arrive, these opportunities become threats for that company. This is because your competitors willavail that opportunity in their first attempt and attain first mover advantage over you. SWOT Analysisis a popular technique used to analyze some company’s present business situation. It provides us with an overview of company’s major strengths and its critical weaknesses. The external opportunities and threats that the company faces in the external environment are also highlighted in this approach. SWOT ANALYSIS STRENGTHS      

OMV has highly professional manpower. Established gas transmission and distribution network. OMV has enough training facility structure with in country and worldwide. Computerized networking system is prevailing in the OMV. Highly advanced and modern technology and equipment is possessed by OMV. OMV has a number of packages in order to hire best profile of professionals and as well as to motivate them in order to extract best from them.  Annual bonuses are announced to motivate employees.

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 Enough physical facilities are provided to its employees in the H.O in order to facilitate the performance of its employees.

WEAKNESSES  Much competition is faced by OMV internationally/globally.  Security issues are faced by OMV in Pakistan.  Cafeteria has limited space as numbers of office based employees are more than 150 &cafeteria only covers across 30-40 employees at a time.  There is no formulized criterion for reserve to production ratio, which can compare their performance with the past.  Company is unaware of the importance of Marketing in the success of one company.  High employee turnover  Non-Corporative culture

OPPORTUNITIES         

Substantial unproven gas and oil reserves exist in Pakistan. Inflationary trend in the prices of oil in the international markets. Massive consumer market. Ever rising demand of gas due to changing attitude of people. Technological improvements Moving forward in cooperation with other of OMV GROUP. Building a refinery group in central & eastern Europe Improving efficiency in all areas of refining & marketing activities. Strengthening the sustainability approach as part of our business operations.

THREATS    

Global trends are rapidly changing which might affect its performance. Any decrease in future oil and gas prices may prove to be a great threat for OMV. Fear of unproductive well is a source of threat for OMV. Law and order situation, economic situation in Pakistan is faulty that is MOL have a bigger security threats.  The biggest threat, right now to OMV is from Government policies.

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 The big threat to OMV is the increasing new competitors. They can compete with them by maintaining its standards and also by expanding.  Understanding and the effective management of the human resources is the most difficult challenge faced not only by the OMV but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed.  Now the world is a global village so competitors may rise from anywhere in the world at anytime.  The merit of recruitment is low as internally reference base employee is selected, ignoring young and talent people.

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Recommendations Although the working with the OMV is really good but there is always some room for improvement. After working in OMV as an intern, based on my experience & observation regarding the operations and policies of OMV, I have tried to stipulate some recommendations for further improvement;  Measures should be taken to resolve internal conflicts (office politics) so that work environment remains smooth and calm.  There should be a proper coordination between the coworkers, so that the desired results could be achieved.  Flexibility should be there in the work environment or working timing to some extent.  Right people should be hired for the respective job..  To improve the services and to remove the problems of staff & employees by making a spread staff & employees complaint department..  Keep the up to date information on OMV web sites.  IT draw backs should be improved.  istration drawbacks should be improved by the strict control of general issues  Instead of preferring the old employees, management should hire new and well-educated talent. This will contribute to the long-term benefits of the OMV.  Employees who perform extraordinary and achieve more than their targets should be given bonuses.  OMV should arrange some seminars to make its visions and objectives, clear to everyone.  The employees in the organization should be insured job security so that there is no pressure on the employees while performing their tasks.  The fresh hiring should be made permanent so that they are secured of their future. Further the allowances and perquisites attached with the permanent jobs will also increase the motivation level of the employees.  The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them.

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If OMV follow these guideline it can create strong identity & achieve new ways of success and OMV can also achieve their objective vision and mission my conclusion and recommendation is based on my finding which I gather during internship period personnel observation and data which I gather both primary source and secondary source OMV has to overcome their weakness and avail the opportunity to create a strong image worldwide.

Conclusion: OMV is an international company which clearly focuses on its work and provides lot of faculties and benefits to its employees. Today OMV has a powerful presence in world markets, building on a tradition of stimulating international trade. This company maximizes value for their customer, staff & employees, while maximizing value for their shareholders as the ultimate proof of, and condition for, success. OMV engaged the services of Access Consulting to develop a complete HRM system based on sound policies in the light of their challenges in the mining operations. It have to

Access Consulting helped in the following areas; Development of

Organization Structure, Development of Job Descriptions & Job Specs (Management & Technical), Development of Human Resource Management System, Development of Performance Management System, Salary Survey (Management & Technical Positions), Training needs Assessment. Thus it can be concluded that the OMV should try to fulfill the expectations of the customers to the best possible level. But competition and market instability can never be ignored and have to be taken care of. Survival of the fittest can only be achieved through innovation and technological capabilities.

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