View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by BRAC University Institutional Repository Internship Report on “A descriptive study of Performance evaluation on PetroBangla” Prepared to Riyashad Ahmed Assistant Professor BRAC Business School Faculty of Business Administration BRAC University Prepared By Oopma Reza ID-09204043 BBA Major in Finance BRAC University Submission Date- 16th September, 2014 “A descriptive study of Performance evaluation on PetroBangla.” i Letter of Transmittal September 09, 2014 RIYASHAD AHMED Assistant Professor BRAC Business School BRAC University Dhaka-1212 Subject: A descriptive study of performance evaluation on Petrobangla. Dear Sir, This is the remarkably overwhelming experiencing of submitting the report which I have prepared with my hard work and being driven by the urge as a finance student always put up with on. I joined Petrobangla in Research and Development Division. During my internship period I was working in different projects of this department. After gathering experience, knowledge finally I endowed myself in “A descriptive study of performance evaluation on Petrobangla”. This report has attempted to focus on the performance evaluation on Petrobangla and its impact from different point of view. I gratefully acknowledge you’re assigning me this topic to work on and your guidance in completing the report. I would like to take this opportunity to request you to kindly go through the report and scrutinize how far I have been successful in my effort. Sincerely Yours ………………………………. OOPMA REZA ID: 09204043 BRAC Business School Bachelor of Business Administration BRAC University. ii Acknowledgement All praises to almighty Allah who has created me and has given me the opportunities and strength to work with people. With deep interest I had started my work. My “Internship Program” is just a part of BBA under BRAC Business School, BRAC University, Bangladesh. The successful accomplishment of this Internship Report is the outcome of the contribution and involvement of a number of people, especially those who took the time to share their thoughtful guidance and suggestions to improve the report. It’s difficult for me to thank all of those people who have contributed something to this report. There are some special people who cannot go without mention. First of all, I would like to thank our honorable academic supervisor Riyashad Ahmed, Assistant Professor, BRAC Business School, BRAC University. I am thankful to him for his continuous support, supervision and suggestions. Then, I express my sincere gratitude to Mr. Nurul Hai, Associate Manager-Strategy and Economy, Research & Development Division. Mr. Tanvir Omar Chowdhury, Manager Consumer Insights, Research & Development Division, BRAC Bank Limited, Mr. Ashique Iqbal, Manage, Product Development, R&D Division, and Mr. Masud Rana, Associate Manager Decision Support System. Without their help I could not have been able to prepare my report so informative. I also like to thank Mr. S. M Anisuzzaman, Head of Research and Development Division. Without their help this report might not have been a comprehensive one. Finally my sincere gratitude goes to my family, friends, classmates and colleagues who helped me whenever I needed. iii Student’s Declaration I hereby solemnly declare that the work presented in this report has been carried by me and has not been previously submitted to any University for and academic qualification or degree. ………………………………. OOPMA REZA ID: 09204043 Bachelor of Business Administration (BBA) Program BRAC Business School BRAC University. iv Certification from the supervisor This is certifying that the report on “A descriptive study of Performance evaluation on Petro Bangla.” is done by OOPMA REZA as a partial fulfillment of requirement of Bachelor of Business Administration Program from BRAC Business School, BRAC University. ………………………………….. Riyashad Ahmed Assistant Professor BRAC Business School BRAC University v Acronyms and Abbreviations MMCFD = Million Cubic Feet per Day. MMCF = Million Cubic Feet MMCM = Million Cubic Meter HSD = High Speed Diesel FO = Furnace Oil LNG=Liquefied Natural Gas LPG= Liquefied Petroleum Gas vi Executive Summary With Socio-economic development of the Country demand for energy is rising very fast. Government is highly aware and active for increase of energy supply which is indispensible for continuation of country's progress. Petrobangla is responsible for overall corporate planning for the gas sector. The relevant specific companies implement most of the investment plans but the final decision and approval authority lies with Petrobangla. The national economic strategy and the role of energy sector embedded in it guide the corporate planning of Petrobangla. Over the last five years gas production has been increased by 895 million cubic feet daily by drilling/work over/production increased from 44 wells. Natural Gas is the most important source of energy in our country as it accounts for about 75% of the total commercial energy of the country. At present, about 37% of natural gas production is used as fuel for electricity generation. Overdependence on the natural gas must be reduced as the present reserve is not sufficient enough to support the country for long term economic growth. Overall, in long term, an intelligent mix of the different available energy sources can enable Bangladesh to ensure a sustainable economic growth of the country. Right conditions and framework at policy and regulatory level is a must. vii TABLE OF CONTENTS Sl.No. Preliminaries Page No. Letter of Transmittal ii Acknowledgement iii Student’s Declaration iv Certification from the v supervisor Acronym vi Executive Summary vii Chapter :1 Organization Overview 1 1.1 About the Organization 2 1.2 History of PetroBangla 2-3 1.3 Planning of the organization 3-5 1.4 Health Safety and 5-6 Environmental aspects 1.5 Exploration 6-7 1.6 Transmission 7-8 1.7 Marketing 9 1.8 Mining 9-12 1.9 Production Sharing 13-15 Contracts Chapter:2 Job 16 2.1 Description/ Name of the 17 Job/s 2.2 Specific responsibilities of 17 the jobs 2.3 Different Aspect of Job 18 performance TABLE OF CONTENTS 2.4 Critical observation and 18 recommendation. Chapter :3 Project Problem 19 3.1 Problem Statement 20 3.2 Introduction of the report 20 3.3 Origin of the report 21 3.4 Rationale of the report 21 3.5 Objective of the study 21-22 3.6 Methodology 22 3.7 Limitations of the study 23 Chapter:4 Analysis & Findings 24 4.1 Qualitative analysis 25 4.2 Present Sector-wise Gas 25 Consumption 4.3 Production and 25-26 augmentation 4.4 Gas Transmission capacity 27-28 enhancement 4.5 Natural gas resource of 28-29 Bangladesh 4.6 Oil and Gas Exploration 29 Activities 4.7 Exploration & Production 29-33 4.8 Import of LNG 33 4.9 Coal 33-35 TABLE OF CONTENTS 4.10 Findings of the study 36 Chapter:5 Recommendations & 37 Conclusion 5.1 Recommendations 38 5.2 Conclusion 39 Reference 40 Chapter One: Organization Overview 1 1.1 About the Organization Bangladesh Mineral Oil & Gas Corporation (BMOGC) was created through the Presidential order #27 on March 26, 1972. The minerals operation of the corporation was segregated and vested with a new organization, Bangladesh Mineral Development Corporation (BMEDC), on 27 September 1972, through the PO # 120. The reconstituted Bangladesh Oil & Gas Corporation (BOGC) was short named Petrobangla through the ordinance # 15 of 22 August, 1974. On 13 November 1976, through the ordinance #88, the importation, refining and marketing of crude and petroleum products and vested with newly formed Bangladesh Petroleum Corporation (BPC). BOGC and BMEDC were merged into a single entity, Bangladesh Oil, Gas & Minerals Corporation (BOGMC), by the Ordinance # 21 of 11 April 1985. In a partial modification of the Ordinance by the Law 11 of February 1989, the corporation was short named Petrobangla and given the authority to hold the shares of the companies dealing in oil, gas & minerals exploration and development. 1.2 History of PetroBangla Initial scattered exploration effort for oil and gas was undertaken by private ventures. The search of oil and gas in the area constituting Bangladesh began in the later part of the 19th century through some isolated geological mapping. The first serious attempt to find oil and gas was undertaken in Sitakund in 1908 by the Indian Petroleum Prospecting Company, 18 years after the first oil discovery in Digboi, Assam. During 1923-31 Burmah Oil Company (BOC) drilled two shallow wells in Patharia. The wells were abandoned though there was a reported occurrence of oil. A total of 6 exploratory wells were drilled, there was however no discovery and the Second World War disrupted further activity. The promulgation of Pakistan Petroleum Act in 1948 introduced formal activity and infused interest of international oil companies in oil and gas exploration. The Standard Vacuum Oil Company (STANVAC) of USA, Pakistan Petroleum Ltd. (PPL) - a Burmah Oil Company affiliate and Pakistan Shell Oil Company (PSOC) took up concessions during early fifties and carried out exploration till the end of 2 sixties. These operations saw the drilling of 16 exploration wells including the first offshore well and resulted in the discovery of 7 gas fields. During this time Oil and Gas Development Corporation (OGDC) was established as the first public sector national organization in 1961 and the root of exploration for oil and gas were firmly set in the country. OGDC started to carry out geological and geophysical survey including gravity, magnetic and seismic, and drilled wells which soon saw success. After the liberation of Bangladesh, exploration activities gathered pace both by the national and international companies. The part of OGDC that was in operation in Bangladesh was reorganized as Bangladesh Mineral Oil and Gas Corporation (Petrobangla) continued its exploration efforts while the Bangladesh Petroleum Act was enacted in 1974 to facilitate international participation under PSC.