25-08-2017, 09:32 PM
Internal Audit Functions and its Performance in Oil India Limited
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Research Methodology:
The study is based on survey method. The primary data is collected by personal
interviews through structured questionnaires to knowing the views, comments and
confidence regarding the performance of Internal Audit functions in OIL, Duliajan.
For the purpose of the study executives of different departments were selected and
interviewed. The secondary data is collected from the books, magazines/ journals,
websites and including OIL’s Internal Audit Department office.
Limitation
• The survey was limited to few departments in the organization.
• Unavailability of executives in their cabins as they were engaged in field
work at that time.
• Sampling error might have occurred because no sample in perfect
representation of a give population unless the sample size equals the
population.
• There is a possibility of occurrence of false judgment due to the biased
responses by some of the executive’s staff while giving answers.
• Since the report is based on the primary data and personal interview,
occurrence of personal biased cannot be ruled out.
INTRODUCTION
The story of OIL India Limited (OIL) traces and symbolizes the development and growth of the
Indian petroleum industry. From the discovery of crude OIL in the far east of India at Digboi,
Assam in 1889 to its present status as a fully integrated upstream petroleum company, OIL has
come far, crossing many milestones.
On February 18, 1959, OIL India Private Limited was incorporated to expand and develop the
newly discovered OIL fields of Naharkatiya and Moran in the Indian North East. In 1961, it
became a joint venture company between the Indian Government and Burmah OIL Company
Limited, UK.
In 1981, OIL became a wholly-owned Government of India enterprise. Today, OIL is a premier
Indian National OIL Company engaged in the business of exploration, development and
production of crude OIL and natural gas, transportation of crude OIL and production of LPG.
OIL also provides various E&P related services and holds 26% equity in Numaligarh Refinery
Limited.
The Authorized share capital of the Company is Rs. 500 Cr. The Issued, Subscribed and Paid
share capital of the company is Rs. 240.45 Cr. At present, The Government of India, the
Promoter of the Company is holding 78.43% of the total Issued & Paid-up Capital of the
Company. The balance 21.57% of the Equity capital is held by others.
OIL has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of
it in the Indian North East, which accounts for its entire crude OIL production and majority of
gas production. Rajasthan is the other producing area of OIL, contributing 10 per cent of its total
gas production.
Digboi Well No-1(1889-1890)
The well, started in September 1889, was completed in November 1890 as a producer at a total
depth of 662 ft, with an initial production of 200 gallons per day. The decision to drill was taken
by the Directors of the AR&T Co. in 1888 under the direction of Mr. W L Lake, an employee of
the company and an OIL enthusiast.
Uphill and Downhill (1890 – 1920)
After the successful completion of the first well, Digboi Well No-2 was started in February 1891
in the same area, only to be abandoned as dry at 720 ft. The drilling activities of AR&T
progressed satisfactorily with 11 wells yielding OIL in 1894. A new firm - the Assam OIL
Company (AOC), led by the same Chairman, Lord Ribblesdale - was promoted in 1899 to take
over the petroleum interests of AR&T, including the Digboi and Makum concessions.
The AOC inherited 14 producing wells, with a total production of 50 barrels of OIL per day.
Almost immediately on inception, the company expanded the concessional area of the field by
purchasing the rights of the Assam OIL Syndicate. In 1912 the rotary system was introduced,
Well 47 being the first well to be drilled by this method.