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DEDICATION

To our loving and kindly
Parents, whose sincere prayers have,
Guided us through lifes 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 Administration 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 reports 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 staffs 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

Pakistans 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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Pakistans 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 account for the largest
share of Pakistans 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 Austrias 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, Germany, 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 1950s a large gas field was found in
Zwerndrof, Austria, which greatly improved OMVs 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 joint 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 companys
internal and external customers. Following are different sections in Operations dept.:

Sections
CSR and EA
Drilling
Operation and Support
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.

Joint-Venture (JV) partners' supported 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 supports TCF School Salehpat and Rangers Public School
Chundiko, covering more than 3,500 students.

These schools are also provided infrastructure support 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 support. 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 support 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 administered 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 companys present business situation. It provides us with an overview of
companys 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 members of OMV GROUP.
Building a premium 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 shoul d be improved.
Administration 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.