The year that was and the The year that was and the way forward…..way forward…..

22ndnd HR ROUND TABLE 2003 HR ROUND TABLE 2003

Hotel Taj Mahal, Mumbai

DR PARAG DIWANChief Operating Officer

Presented at HR Round Table organized by ISPe & UPES, Dehradun

HR ROUND TABLEHR ROUND TABLEA Forum of Oil & Gas HR ProfessionalsA Forum of Oil & Gas HR Professionals

ISP conducted 1st HR Round Table last year

on July12-13, 2002 with an endeavour to

create a platform for experiential learning and

sharing of HR interventions to keep our Oil &

Gas sector vibrant.

MAJOR TAKE FROM MAJOR TAKE FROM 11stst HR ROUND TABLE HR ROUND TABLE

The need of restructuring, post dismantling of

APM regime, of the oil and gas Organizations was discussed at the 1st HR Roundtable, which revealed that

An era of change and intense competition is ahead.

Therefore, several HR initiatives would be taken by Cos. to remain competitive.

LANDSCAPE OF OIL & GAS LANDSCAPE OF OIL & GAS INDUSTRYINDUSTRY

•New Policies

•New Policies •Contracting•Contracting

•Mergers •Acquisitions

•Cost Optimization

•Cost Optimization

•Change of Guard

•Disinvestment•Disinvestment

•Consolidations

•ProcessImprovement

•ProcessImprovement

IMMINENT POLICY CHANGESIMMINENT POLICY CHANGES

Common Carrier Principle

Petroleum regulatory Bill

Petro Retail rules

Auto fuels policy

LNG Policy

MAJOR CONTRACTSMAJOR CONTRACTS

NELP III Contracts

Farm Out

Gas contracts

CBM I contracts

DISINVESTMENTSDISINVESTMENTS

HPCL

BPCL

ACQUISITIONSACQUISITIONS

ONGC acquires MRPL

RIL acquires IPCL

IOCL acquires IBP

INTERNATIONAL FORAYSINTERNATIONAL FORAYS

OVL & GREATER Nile project

IOC in Sri Lanka

India Bangladesh pipeline

MERGERS / JV’sMERGERS / JV’s

RIL and RPL

Petronet LNG

BG, RIL & ONGC

PRODUCT PRODUCT

Club HP

Pure for Sure

Quantity and Quality

SERVICE BRANDINGSERVICE BRANDING

Speed

Power

Josh

CHANGE OF GUARDCHANGE OF GUARD

IOC, BPCL, HPCL, OIL get new CMDs.

New HR Chiefs assuming charge at ONGC, GAIL, OIL, IOC soon.

PROCESS IMPROVEMENTSPROCESS IMPROVEMENTS

ERP

Business Process Re-engineering

Optimization Programs

THE WAY FORWARD …THE WAY FORWARD …

2003 – 04 will see several business initiatives by the industry to retain its competitive advantage.

STRATEGIC IMPERATIVES FOR THE OIL STRATEGIC IMPERATIVES FOR THE OIL AND GAS INDUSTRYAND GAS INDUSTRY

PROFITABILITY

NEW PARADIGMS

REGULATORYNORMS MARKET SHARE

GROWTH

OPERATING CULTUREOPERATING CULTURE

Global inter company and inter industrial comparisons

Cost Optimization and process improvement

PROFITABILITYPROFITABILITY

Will become and measurable per person, per operation per location per SBU, per outlet, per month, per quarter………..

GROWTHGROWTH

Will largely come from capturing premier segments,

diversification and geographical expansions

MARKET SHAREMARKET SHARE

Will be determined by customer touch point excellence and new product development

NEW PARADIGMNEW PARADIGM

Emergence of specialization's & portfolios, working capital managers, pricing managers, bidding managers, business unit analyst...

REGULATORY NORMSREGULATORY NORMS

Governing, accounting practices, Business ethics,environment practices, health and safety will become stricter

ORGANIZATIONAL TRANSFORMATION ORGANIZATIONAL TRANSFORMATION PROCESSESPROCESSES

To achieve the nimbleness to face competition most oil & gas companies are going through organization transformation processes.

Project Manthan of IOC CRC Project of ONGC Project Parivartan of GAIL

We are all gathered here for 2nd HR Round Table to share and learn from such processes.