Departments In Selected Company

Published Date: 02 Nov 2017

1. Forms of Business (Sole proprietorship, partnership Etc.):

Forms of Business

Sri Lankan Oil Industry

Sole Proprietorship

Partner ship

HUF

Co-operative

In Sri Lankan oil industry two forms of business can be seen. I.e. sole proprietorship and partnership. For example Ceylon plc is the sole proprietor and cairn ltd. Is having partnership with Lanka IOC

2. Business Customs & Practices:

In Sri Lanka The Ministry of Petroleum Industry was established in 2005 for regulation and formulate and implement policies, plans, and programmers to develop the petroleum resources and to meet the demand to levy rules and regulations for the faster growth of emerging petroleum industry.

Companies also link factory performance to management performance reviews and compensation. At one company, "many people at various levels of the organization have social and environmental sustainability targets included in their work plans, and they are evaluated on them annually.

corporate staff and administration on consistence issues, preparing is essential. Staff must comprehend the "greater picture" of the accurate and add up to cost of carrying products to Ceylon is doing all the business exercises identified with importing, refining, mixing saving, conveying and retailing of petroleum items (downstream petroleum industry)

3. Transportation & Communication System needed for specific Industry:

Sri Lanka is having much advantage on the infrastructure conditions for oil industry compare to countries in South Asia mainly due to its strategic location. Present expansion in Bandaranayke airport at Katunayake and also newly suggested port at Hambanthota area will provide positive initiatives towards the transportation infrastructure as input/output port for oil exporters. Also the efficiency in customs procedures complement each other in minimizing transit periods for shipments involved in international trade have made Sri Lanka more internationally competitive.

Modes of Transportation

Modes of Transportation

Sri Lankan Oil Industry

Tanker

Pipeline

Train

Ship

For oil industry there are mainly four modes of transportation are there i.e tanker, pipeline, train, truck. Pipe lines and trains are used to cover long distance while tanker and trucks are used to cover short distance.

Modes of Communication

Sri Lankan Oil Industry

Telephonic

E-Mail

Post

In Sri Lankan oil industry telephone and e-mail are mostly used for communication.

Labor Force (Size, Potential Etc.):

YEAR

WORK FORCE (%)

2002

16.5

2003

16.5

2004

17.7

2005

18.4

2006

19.2

2007

18.9

2008

18.9

2009

17.8

2010

17.1

2011

17.3

It can be concluded from the above Table that Srilankan Oil industry is giving employment to their people at the average rate of 18 percent since 2001. So it can be said that 18 percent of the people are employed by oil industry in Sri Lanka.

Development in science & technology, Current technology Available (Computers Machinery, tools Etc.), Percentage of GNP Invested in R & D, Technological Skills of Labor Force & General Population

Development in science & technology, Current technology Available:

Investment in technology

Innovation utilized as a part of processing is recognized to be a quite significant element as it verify the nature of yield, time expended for generation which eventually chooses the lead time.

Speculations are to be made to redesign the innovation in utilization. This will empower the nation to be in standard with the worldwide movements and the different contestants. Use of out of date engineering will in reality fill in as a restraint in the Oil business. Sri-Lanka is presently tested by the above scenario as numerous production lines other than few impressive players, don't have propel innovation in investigating and refining.

The technology levels of the oil industry vary significantly at present:

The ratio of worker and machine is 1.8:1. This is compared to our competitor high. The ratio of competitors is 1.2:1. The Oil industry and technology both grow with each other.

Technology required for oil industry can be divided in to exploration, production, refining, information and controlling technology.

The exploration technology is used to to explore crude from land.in this process of exploration drilling is mainly used to explore oil from sea as well as from land.

Refining technology is used to refine crude oil in to more useful products such as petrol, diesel, oil, kerosene, gasoline.

http://static.ddmcdn.com/gif/oil-refining-diagram.gif

Information technology is throughout used in all the level in oil industry.

Controlling technology is required at all level in the value chain. Some examples of the controlling technologies are as follows.

Green completions: To stop wastage of natural gas.

Plunger lift systems: To remove back age of oil wells.

TEG dehydrator emission controls: To reduce leakages in refinery.

Desiccant dehydrators: This technology helps in eliminating methane leakages that takes place during the process of removing moisture from natural gas by making the use of special water-absorbing salts.

Dry seal systems: this technology reduces methane leakage from centrifugal compressors which are being used during the processing of natural gas and pipeline transportation by using of more effective seals.

Improved compressor maintenance: this technology controls leakages from the compressors and natural gas processing and pipeline transportation through timely and adequately rod packing replacements.

Low-bleed or no-bleed pneumatic controllers: this technology limits the leakage from phneumatic controllers which control gas pressure and flow as well with the use of special reduced-leakage also referred low-bleed or/and no-bleed systems.

Pipeline maintenance and repair: this technology allows methane flowing through pipelines to be discovered while problems in pipelines are also fixed simultaneously.

Vapor recovery units: this technology capture methane leakages from crude oil when stored in tanks.

Leak monitoring and repair: this technology identify as well as captures methane leakages which are identically colourless and odourless from more than one location at oil and gas facility by using advanced leak monitoring equipment and enhanced operational practice.

http://switchboard.nrdc.org/blogs/vgowrishankar/10_pollution_control_techs.html

Value chain Model:

The crude oil value chain model is comprised of following activities.

Activities:

Exploration

Production

Processing

Transportation

Marketing

Oil and Gas Value Chain

Exploration and Production:

In an oil refinery the crude oil being processed is separated in to different forms on the basis of their range. The value chain model starts with the exploration. In exploration process the resource for the oil is to be found out. After finding the place from where oil can be found the production of oil starts. Heavy machinery is used to explore oil from land. The oil thus collected is in the form of crude so it needs further refining process. In the processing part of value chain the crude oil is to be refined and separated in to different forms like petrol, diesel, oil etc. road tankers with capacities between 10 and 40 tonnes are normally used to take crude oil from refinery to distributor.

3.1 COMPARATIVE POSITION OF CRUDE OIL INDUSTRY OF SRI LANKA AND INDIA

Particulars

Sri Lanka crude oil industry

Indian crude oil industry

Technology

Backward

Forward

Pricing

Relatively High

Relatively low

Production

Relatively low

Relatively High

Transportation

Relatively low

Relatively High

GDP Distribution

Relatively low

Relatively High

Usage

All Time

All Time

Purchase Pattern

Direct

Direct

Target Market

Every One

Every One

Natural Resources

Relatively low

Relatively High

Compare Technology Advancement

India is more competitive in technology needed in a crude oil industry, compared to that of Sri Lanka. There is more technology advancement in India. More technological refineries available in India compared to Sri Lanka. Indian Oil Corporation Ltd is anticipating hoist the limit of its Haldia refinery and Panipat refinery plants to 7.5 million tones and 15 million tones separately in 2010. While in Sri Lanka innovation is not generally progressed for unrefined

suppliers apply innovative results for enhance effectiveness throughout midstream forms. Innovation might be utilized throughout clamping of energizes to straightforwardness

move through pipelines; to better recognize emits in pipelines; and to mechanize conveyances for better pipeline and gear monitoring.PricingIn

India Crude oil which incorporate petroleum, gas and so forth. this assets are all the more effortlessly ready moderately Sri Lanka. On the grounds that Sri Lanka itself importing

unrefined petroleum from India. From most recent 3 years 19.1% rough raw petroleum India transport into Sri Lanka. So the cost of unrefined petroleum

generally towering in Sri Lanka contrast with India. ProductionThe extrapolated creation of unrefined petroleum throughout the past five year arrangement is 206.76

while that of common gas is 255.27 BCM. Aggregate creation of unrefined petroleum between April-December 2009 was 25,152 MT, while aggregate

refinery preparation throughout the same period was 119,283 MT. this shows great measure of creation expand in unrefined petroleum. While in Sri Lanka

handling is generally level they likewise import raw petroleum from India and also deferent nations. GDP Distribution India petroleum industry has played

an indispensable part in rapid development of the nation. Raw petroleum industry gives 15% in the aggregate GDP. Further petroleum trades given the

measurement to outside trade profit by drawing US$ 23.64 billion in the FY 2008-09.

While Sri Lanka contributed of petroleum industry lower than India which is only 13%.

Usage

Crude oil is not required only in some special occasion but it will be used all the time like in vehicle, machinery and for other purpose in both the countries.

Purchase Pattern

In India and in Sri Lanka, both, purchasing pattern is same. Both purchase using Direct Purchasing Pattern. The person who wants crude oil, can either purchase himself (Direct Pattern).

Target Market

Generally crude oil is a product which is being consumed by everyone in every country. So the Target Market for this industry is Kids, Youngsters, Men and Women. People of all ages need crude oil and so there is Full Market Coverage and no different segmentation.

Availability of Raw Material in India

India is naturally blessed with easy availability of raw materials required in crude oil sector. Since many year the growth in production of crude has increased the availability of crude at competitive price providing it a push in the global market. Sri Lanka is not blessed with easy availibilty of raw material that is required in crude oil sector as a result it is heavily dependent on imports which affects the pricing pattern.

9. Natural Resources

India is not self sufficient in production of crude that is required in crude oil sector. So India has to import crude oil from different countries. Sri Lankan crude oil market is totally dependent on imports.

4.1. Present Position and Trend of Business with India during last 3 to 5 years

1. Rank as importing or exporting country and quantity imported / exported

(In dollars, Rs & local Currency)

A Sri Lanka rank 93 in terms of export of crude oil is concerned while it ranks 61 as far as import of crude oil is concerned. According to the estimated data of 2012 Sri Lanka imports 41000 barrels per day of crude oil. The country exported 59.13 million metric tons of petroleum products against the imports of 26.31 million metric tons (including 8.95 million metric tons of LNG) during 2010-11 The consumption of petroleum products during 2010-11 was 141.785 million metric tons (including sales through private imports) which is 3.60% higher than that of 138.196 million metric tons during 2009-10.

Major Exports/importsThe

things of Sri Lanka are Textiles and clothing, Tea and flavors, Diamond, Emeralds, Rubies, Coconut features, Rubber produces, Fish.The major

import things of Sri Lanka are as Textile fabrics, Mineral items, Petroleum, Foodstuffs, Machinery and transportation gear and so forth

Month

Price

Change

Sep 2012

14,008.49

-

Oct 2012

13,340.83

-4.77 %

Nov 2012

13,186.94

-1.15 %

Dec 2012

13,003.61

-1.39 %

Jan 2013

13,323.78

2.46 %

Feb 2013

13,635.75

2.34 %

4.2.1. Dollar value & trend of Exports/imports

Year

Imports

Exports

2006

1,822

494

2007

2,785

516

2008

3,007

418

2009

1,710

325

2010

2,463

470

4.2. Present Position and Trend of Business (import / export) with Gujarat during last 3 to 5 years

Mineral richness of Gujarat contributes heavily in the nation’s development as much as 50% of on land crude oil and out of total gas produced 40% of gas production in the country is originated from Gujarat State only. In the previous 6 years, 37 MMT of unrefined petroleum was processed from Gujarat without any block (i.e. without any socio-political issues) and subsequently of which imports worth Rs. 48000 Cr were recovered. In this way, Gujarat donates to the vigor security of the whole country and lessens nation's reliance on foreign unrefined. Gujarat's Export offer in India is most elevated committing to a normal over 14% impart in India.