Outlook

Oil and Gas revenues has been the mainstay of UAEs economy accounting for one- third of the countrys GDP. Sitting atop 8%of the worlds proven oil reserves (97.8 bn barrels) and almost 5% of the world's natural gas (5.8 trillion cu meters); the UAE's extraordinary hydrocarbon wealth gives it one of the highest GDP per capitas in the world. UAE is a member of the Organization of the Petroleum Exporting Countries (OPEC) since joining in 1967. The emirate of Abu Dhabi is the centre of oil and gas industry followed by Dubai, Sharjah and Ras Al Khaimah. Abu Dhabi owns the lion's share of the oil and gas resources - 95% of the oil and 92% of gas. Abu Dhabi is the heart of UAE's hydrocarbon and industrial power. Abu Dhabi National Oil Company (ADNOC) is the largest state owned company; it operates 17 subsidiaries and has the right to take up to 60% share in all new major oil projects. The Abu Dhabi National Oil Company asserted in August 2006 that the UAE is presently ready to expand production of crude oil to 2.8m barrels per day (bpd) and is targeted to push production to 4m bpd.. Given these vast resources, oil and gas continue to play a crucial role in the country's economic profile. Principal offshore oil fields are Umm Shaif, Lower Zakum, Upper Zakum, Al Bunduq and Abu Al-Bukhoosh. The main onshore fields are Asab, Bab, Bu Hasa, Sahil and Shah. Almost 92 per cent of the country's gas reserves are also located in Abu Dhabi and the Khuff reservoir beneath the oil fields of Umm Shaif and Abu al-Bukhoosh ranks among the largest single gas reservoirs in the world. The UAE exports majority of its crude oil to Japan making it the UAE's largest customer. Gas exports are almost entirely to Japan, the world's largest buyer of liquefied gas, with the UAE supplying almost one-eighth of Japan's entire requirements.

GLOBAL OIL MARKET

The oil market in the end quarter of 2008 and 2009 has been strongly impacted by the financial crisis, global recession and resulting erosion in world oil demand. These factors have substantially magnified the uncertainties affecting the market and contributed significantly to volatility.

World oil demand forecast in the next few years is expected to show the following trends:
World GDP will grow at a slow pace from the contraction. Apart from the slow economic recovery, various factors will slightly thin oil demand growth in Asia such as the removal of price subsidies, fuel switching and energy conservation programmes. There will be stronger utilization of nuclear power plants and usage of biofuels is expected to grow rapidly, adding another 0.15 mb/d. The world will see strong movement toward use of smaller and more economical vehicles, due to which most of the growth in oil usage will be in the transport fuel and petrochemical sectors. Industrial oil consumption will show only moderate growth as a result of delayed and slow economic growth. OECD economic recovery will be moderate and steady.

EVOLUTION OF THE OIL MARKET

Since its discovery in 1859 by Mr. Edwin Drake, oil's application and value in daily life has increased. The earliest deposits of oil were found in the United States, first in Pennsylvania and Ohio then in 1901 with larger reserves in Texas and Oklahoma; the same year Arabian/Persian Gulf exploration began. In 1901, Mr. William D'Arcy, a British businessman, was awarded a 60 year exploration, extraction, and sales concession from the Persian (Iranian) government. D'Arcy in return paid 20,000 and 16% of the profits to Persia. The importance of oil is seen as early as 1905 when the British government provided financial assistance to D'Arcy to prevent bankruptcy, fearing the concession's sale to another government. In 1908, larger oil deposits were discovered.

Between 1908 and 1944, oil reserves were discovered throughout the Gulf region. In 1944, Mr. Everette De Golyer, a prominent petroleum geologist, submitted a report to the U.S. government that a minimum of 25 billion barrels of crude oil were in the region; 5 billion in Saudi Arabia alone. DeGoyler also provided an unofficial estimate of 300 billion barrels, a third in Saudi territory. In 1944, the Middle East produced approximately 5% of the global oil supply, the U.S. supplied over 60% of the global supply. The rate of production from U.S. reserves and its longevity was a concern coinciding with declines in the Saudi Arabian economy due to pilgrims unable to reach Mecca during WWII. This alignment of concerns contributed to the cooperation between the two governments to explore and extract oil within Saudi Arabia and others throughout the region.

UAE IN THE GLOBAL OIL BALANCE

UAE through its dominance of world oil reserve ownership occupies a central position in the global energy balance although the latter is not yet well developed. The continued strength of oil in global energy stems from its dominance of the transportation sector to industrial sector. Power generation sector has lost ground to coal, gas, and nuclear power in these sectors. The rate of substitution away from oil is directly related to how technically feasible such changes are and to the availability of cost-effective substitutes, which explains why oil has continued to dominate the transportation sector, where efforts to introduce alternatives have so far had limited success.

Within Middle East, UAE ranks fourth highest in terms of oil reserves. It has multiple reserves which are being continuously exploited by the established players like ADNOC in UAE. Government is taking many initiatives and investing in research for enhancing the oil production capacity and exploring more reserves in the area. In contrast to oil, the share of natural gas in total primary energy has been on the increase spurred by a combination of higher oil prices, the need for energy self-sufficiency in the major consuming countries, and diversification as well as recent environmental concerns relating to global warming and climate change. The use of natural gas has also increased as a result of secular growth in the petrochemical industry, where it is the main feedstock for a wide variety of petrochemical products.

UAE OIL AND GAS RESOURCE ENDOWMENTS

As part of the region's efforts toward industrialization, and to increase the value added to the oil sector, many Middle Eastern oil producers have built their own refineries, alone or in partnership with international oil companies. As of 2008, UAE crude oil production was 3.6% of the world production which makes United Arab Emirates (UAE) an important provider to global energy markets. As a mainstay to the economy, oil exports now account for about 30 percent of total UAE gross domestic product.

Projections of Demand for UAE Oil and Gas

In addition to being an important supplier of energy, the UAE is now becoming an increasingly relevant consumer of energy. The UAE will continue its long tradition of responsible energy stewardship as it develops and diversifies its economy, accelerates the development of additional hydrocarbon reserves, and contributes to the development and implementation of alternative energy sources. The UAE is a member of the Organization of the Petroleum Exporting Countries (OPEC) since joining in 1967. The emirate of Abu Dhabi is the center of the oil and gas industry, followed by Dubai, Sharjah, and Ras al Khaimah. In 2004, natural gas supplied 64% of the country's total energy consumption, and oil supplied the remaining 36%. The UAE's crude price is relatively expensive compared to other Middle Eastern benchmarks due to its sweet and light composite. The UAE along with other GCC nations have undertaken significant expansion projects in order to increase production capacity and maintain market stability. The UAE continues to significantly increase its production to supply the global energy markets. While some OPEC nations and many non-OPEC nations have seen production declines over the last five years, the UAE has increased its total production of crude oil by approximately 31 percent.

breakdown of hydrocarbon resources in UAE

UAE has maintained its strong hold in oil exports capitalizing on its huge reserves. Increasing industrialization, inflow of industries, increase in automotive traffic etc has led to increase in internal consumption of oil as well. Oil consumption has grown at a CAGR of 8% from 2001 to 2008. Growth in exports has been more or less constant and there has seen a steady increase of 1 - 2 % year on year where 2003 and 2006 saw high increases of 14% and 8% respectively. Financial crisis in 2008 lead to decline in oil prices and had an adverse impact on the exports resulting in a decline.

UAE does not have huge gas reserves hence the exports of gas are less then consumption. Most of the gas produced is natural and is used mainly for internal consumption. Internal consumption has increased at a CAGR of 9% from 2001 to 2008. Increasing industrialization, population and building construction sector are the key drivers for this growth. Exports have decreased mainly due to increase in internal consumption and extreme competition which UAE faces with Qatar and Iran. UAE continues to identify new projects in the upstream oil and gas sector which aims to boost the nation's crude oil production capacity to nearly 4 million barrels per day by 2020, which would amount to an additional increase of approximately 40 percent over current production levels.

Reaching this ambitious target will represent a massive undertaking of resources and investment, particularly in light of persistent manpower and materials shortages that have afflicted the global oil and gas sector since 2003. UAE has invested roughly $7 billion in upstream production infrastructure since 2004 and anticipates investing some $43 billion more in the coming years. The major projects ongoing in the Oil and Gas sector are Bourouge complex expansion projects which are ongoing in different phases with huge project. Most of the projects involve expansion in processing facilities e.g. Habshan Gas Complex Expansion valued at $1000 mn. At the same time, UAE will invest more than $6 billion to expand its domestic refining capacity, which will significantly expand its ability to export refined products.

Seeking Innovations to Increase Production

Much of the UAE's current crude oil production is made possible by the reinjection of natural gas to boost pressure in the nation's major oil reservoirs. Without this massive program, the UAE's crude production would stagnate and decline. The UAE is testing carbon capture and sequestration technologies to replace the reinjection of natural gas. This would enhance exports of natural gas, create more flexibility in oil production and provide important global environmental benefits.

Lowering Consumption, Boosting Exports

In 2005 the UAE became one of the first major oil-producing countries to ratify the Kyoto Protocol to the UN Convention on Climate Change.

As part of its energy diversification strategy, the UAE is working in a variety of ways to reduce its carbon footprint, meet its own domestic energy needs, and expand exports:

Abu Dhabi is investing more than $20 billion in Masdar, the worlds largest and most comprehensive alternative energy program. US partners include MIT, Columbia University, Colorado-based CH2MHill, Chicago-based Adrian Smith + Gordon Gill Architecture, and other institutions worldwide, such as WWF, Imperial College of London, and Tokyo Institute of Technology.

The UAE is exploring nuclear energy to meet rapidly growing demand for electricity, due to tremendous growth as well as intense water desalination requirements. This reduces domestic demand for natural gas and the need for dirty, oil-burning power plants used to meet peak demand during hot summer months. In the first major cross-border energy deal between Gulf countries, the UAE is importing natural gas by pipeline from Qatar. The gas supports domestic electricity demands and frees Abu Dhabi's natural gas supply for crude oil recovery. The project began delivering gas to power companies in the second quarter of 2007. Among other energy efficiency and environmental projects, Dubai is developing the region's most extensive light rail system, to move cars off the road reduce pollution and ease traffic congestion.

PRICES
From 2002 to mid-2008, crude oil prices have been increasing. Prices as measured by OPEC's reference basket, increased at a rate of 23.1% Compound Annual Growth Rate (CAGR) during the period. The average annual price increased from US$24.36/b in 2002 to US$94.45/b for 2008. Prices almost tripled in the last 6 years due to continued strong demand coming from emerging economies. In addition to geopolitics, the main factors behind the upward trend were US dollar weakness which encouraged inflows of new money into the crude futures market, persistent refinery outages, and weather-related supply disruptions. On the back of strong demand from emerging economies, geo political tensions and supply disruptions; oil prices touched record levels, when it reached $147.27 per barrel in July 2008. Strong demand from the BRIC (Brazil, Russia, India & China) nations and strengthened industrial activities in the Middle East and Western countries provided solid support to the prices. Oil prices have plunged since striking record peaks, as a deteriorating global economy dented demand for energy. Buyer resistance at higher levels, prolonged weakness in the global financial markets and an expected increase in supply with the completion of ongoing oil & gas projects in the Middle East have kept a bearish tone over the energy markets. The steep drop in demand saw oil prices crash from record heights of almost $150 barrels in 2008 to below $40 barrel /day at the beginning of 2009. Since then prices have risen back to around $70/barrel after the OPEC producer group tightened supplies. Prices have also found support from investors betting demand could start to outpace supply growth in years to come. OPEC member countries have tried to cut as much as 4.2 million bpd of oil roughly 5 percent of world demand from the market since September 2009 in a bid to soak up excess supplies.

Key players
Adnoc Emarat ENOC DEL ADCO Others

Abu Dhabi National Oil Company (ADNOC)

Abu Dhabi National Oil Company (ADNOC) was established in 1971, to operate in all areas of the oil and gas industry and since then has steadily broadened its activity establishing companies and subsidiaries and creating an integrated oil and gas industry in Abu Dhabi. Today, the company manages and oversees oil production of more than 2.7 million barrels a day which ranks it among the top ten oil and gas companies in the world. The Supreme Petroleum Council (SPC), chaired by H.H. Sheikh Khalifa Bin Zayed AlNahyan, President of the UAE and Ruler of Abu Dhabi, formulates and oversees the implementation of Abu Dhabi petroleum policies.Over the past three decades, ADNOC has expanded its business activities, enhanced its competitive position and managed to become one of the world's leading oil companies with substantial business interests in upstream and downstream activities, including transportation, shipping, marketing and distribution. ADNOC's efforts in the exploration and production field have concentrated on assessing undiscovered reserves and optimizing hydrocarbon recovery by improving the reservoir management. ADNOC has 14 subsidiary companies working in the various fields of the oil, gas and petrochemical industry as well as crude oil and gas transport and services. They include ADCO, ADMA-OPCO, GASCO, ADGAS, ZADCO, TAKREER, NDC, ESNAAD, IRSHAD, FERTIL, BOROUGE, ADNATCO, NGSCO, and ADNOCDistribution.

Emarat- Emirates General Petroleum Corporation

Founded by the federal government of the UAE in 1981, EMARAT markets and distributes petroleum products throughout the country. The firm is the dominant regional fuels distributor and is looking to expand into other downstream markets. EMARAT operates a network of approximately 170 service stations as well as retailing aviation fuels and lubricants. Emarat's share of lubricants market is approximately 18% and its products are exported to Lebanon, Bahrain, Oman, Afghanistan, Jordan and Pakistan. Oil terminals with a combined storage capacity of 2.3 mm pounds are located in Jebel Ali, Dubai, Sharjah, Ras Al Khaimah and Fujairah. EMARAT is a major supplier and distributor of both natural gas and liquefied petroleum gas.

Natural Gas: EMARAT owns and operates the largest natural gas transmission system in the Northern Emirates. This system consists of a compressor station and approximately 360Kms of underground pipe work, supplying 13 remote operated metering and pressure regulating stations. This system is capable of supplying more than 300 million cubic feet of gas per day and has the capacity to meet all customers' needs well into the 21st century. Liquefied Petroleum Gas (LPG): Emirate commissioned an LPG bottling plant at its facility in the Jebel Ali Free Zone. The current capacity is 40 tons per shift per day. Amounts of 25 lbs, 50 lbs and 100 lbs can be filled at an average of about 2000 cylinders in each shift. Storage tanks of 300 tonnes capacity have been installed, and provision has been made to store liquefied petroleum gas for bulk users, such as hotels and owners of residential property.

Emirates National Oil Company Limited (ENOC)

ENOC a wholly owned Dubai Government company is a global energy group operating 30 active subsidiaries and joint ventures. The division develops and distributes products locally and to a global market and also operates trading and bunkering services. The group's shipping, terminalling at Jebel Ali and Fujairah and operates an international fleet of oil and chemical tankers through its Gulf energy Maritime joint venture.

Dolphin Energy Ltd. (DEL)

Dolphin Energy's overall objective is to create long-term economic wealth for GCC citizens, far into the future. The overall investment in wells, sealines, processing plant, export pipeline and receiving facilities has made this one of the largest energy-related ventures ever undertaken in the Middle East. Dolphin Energy Limited of Abu Dhabi, UAE began gas production in July 2007. This unique strategic energy initiative involves production and processing of natural gas from Qatar's offshore North Field, and transportation of the processed gas by subsea pipeline to the UAE.

Other Multinational Players

BP has various interests in the UAE with its upstream assets concentrated largely in UAE. BP has stakes in ADMA-APCO (14.67%), ADCO (9.5%), ADGAS (10%) and Bunduq company (33.33%). ADMA-OPCO is the operation of the UMM Shaif and Zakum oilfields. ADOC present crude from the ASAB, Bab, Bu Hasa, Sahil and Shah oil fields and is partly owned by BP, Shell, Exxon Mobile and Total each with 10% share. The BP Sharjah business is the largest private producer, processor, and seller of natural gas in UAE in partnership with the Sharjah Government. It operates three gas fields, a processing plant, gas compression facilities and two liquid export terminals. Total has been present in the UAE since 1939. The French firm has a 75% operating interesting Abu Dhabi. The French has a 75% operating interest in the Abu Al Bu Khoosh filed and it holds 9.5% of the onshore producer ADCO which operates the Asab, Bab, Bu Hasa, Sahil and Shah oil fields the five major onshore fields in Abu Dhabi. In 2008, Total's production in the UAE was 243,000boe/day. US major Conoco Philips in July 2008 signed a landmark deal to develop sour gas reserves in the UAE. Conoco will hold a 40% stake in the project to develop the Shah filed, with ADNOC unit GASCO holding the remaining 60. Conoco has been active in the Dubai upstream oil sector through the DPC JV but handed over all operations to the Dubai govt. in April 2007. ExxonMobil has stakes in two upstream concessions in the AUE and is also a major supplier of lubricating oils in the emirates. It has a 9.5%R stake in an onshore concession operated by ADCO which a 131,000 barrels/day of oil in 2007. The company is also working on the giant Upper Zakum filed which has been in the production for years but Abu Dhabi wants Exxon Mobil to extend the life of the project as well as recovery rates. Shell the regional headquarters for the upstream and oil products divisions are located in Dubai while the Abu Dhabi office is responsible for Shell's various investments in the emirates. Shell holds minority stake in two production JVs in Abu Dhabi including a 15% stake in GASCO and 9.5% of ADCO. Dana Gas Private domestic gas company Dana Gas was awarded a 25 year license for the Western Offshore concession off Sharjah in March 2008. This is the company's first offshore upstream asset in the Middle East. The company plans to spend over US$500 mn in 2008 on its projects in northern Iraq, Egypt and the UAE.

Occidental Petroleum acquired the rights to explore and develop two oil and gas fields Jarn Yaphour and Rahman in the emirate of Abu Dhabi. Occidental will operate and hold a 100% interest in hydrocarbons output from the fields. Cosmo oil Japan's fourth largest Cosmo Oil was the first non western company to enter the UAE's energy market. It has now been operating in Abu Dhabi since 1967 and has formed a strong mutually beneficial relationship with the leaders of UAE. In January 2009 it was awarded a 20 year concession offshore Abu Dhabi. The contract prolongation may entail additional exploration rights.

FUTURE OUTLOOK OF UAE OIL AND GAS SECTOR

UAE with roughly 8% of the global resources and oil to last for 100 years is definitely at an enviable position. Given the high global demand for energy and supply and increased reliance of transportation sector on oil, economic growth will continue to be strong due to oil revenues. UAE economy has been in a state of boom of the past eight years with the GDP recording double growth rates in each successive year. Despite largely successful efforts at economic diversification, nearly 40% of GDP is directly based on oil and gas output. A number of challenges face the UAE, some relating to the oil industry itself, and others concerning the economic management of the oil wealth. Aside from the need for a large capital infusion into the industry, UAE has the additional challenge of using the sector as a vehicle for increasing intraregional trade. The most important challenge, however, lies in designing appropriate macroeconomic policies to ensure that the oil wealth is managed effectively. The oil market this year in 2009 has been strongly impacted by the financial crisis, global recession and resulting erosion in world oil demand. These factors have substantially magnified the uncertainties affecting the market and contributed significantly to volatility. The UAE's anti-crisis stimulus measures as a percentage of (GDP) are the largest among global emerging markets and is set to boost liquidity. The UAE Central Bank has put in place two support packages worth Dh120 bn and has also guaranteed bank deposits and allowed lenders to perform dirham-dollar swaps. The Abu Dhabi Government pumped about Dh16 bn into a recapitalization exercise involving five banks. These measures constitute about 16% of the country's 2008 GDP.

Measures taken by bank, positive signs of economic recovery and the recent surge in oil prices due to OPEC production cuts have contributed to reviving investor confidence. This coupled with increased demand of oil and gas from developing economies is set to give an optimistic look to the UAE oil and gas sector. World oil consumption is expected to rise for the first time in two years in 2010 as a recovery in the global economy boosts demand. As one of the fastest growing economies in the world, the outlook for the UAE economy is very positive and this scenario is likely to continue in the foreseeable future.

CODE OF ETHICS
Ventures Middle East and its employees adhere to the practices and ethical standards established by the American Marketing Association (AMA), Charter Institute of Marketing (CIM), and the Society of Competitive Intelligence Professionals (SCIP). The firm and its employees abide by the applicable laws for the jurisdiction of the research, Ventures Middle East, and the client organization. Additionally, any request or requirements are incorporated into the practices of Ventures Middle East for the client's engagement.

Company profile

Oil & Gas Construction Company (OGASCO L.L.C) was established in 1994 specializing in all types of steel fabrication and mechanical engineering as per international standards. OGASCO have built its business on the foundation of providing the best customer service available. The company reputation and constant attention to good service sets us apart committing that every customer is their most important customer. As part of these principles, they commit to contribute to sustainable development. OGASCO L.L.C. is a privately owned and operated company with over 16 years of experience in steel fabrication and mechanical engineering. They cater to a diverse clientele base and provide products, services and customized solutions to ensure customer satisfaction throughout the project lifecycle. Attention to safety and detail are key to their continued success in providing our customers with high quality services. Consequently, they have implemented a system that reflects their commitment to quality, health, safety and environment (QHSE). Their goal is to be a leader in QHSE performance in the industry segments.

QHSE SYSTEM
The company believes that the implementation of QHSE management system enhances its ability to meet the required quality in a safe and environmental friendly manner as per the projects budget, schedule and scope. The QHSE management system identifies the means for developing and implementing all policies and objectives concerning the quality and environmental aspects through contingency plans and continuous training.

MAJOR PARTNERS
Danieli Bechtel NDC Takreer Adnoc intl Adma

Technip Gasco Babcock borsig

OGASCOS VISION
To be the most efficient and best equipped construction company in building Oil and Gas, Power and Petrochemical projects.

OGASCOS MISSION
Ogasco strives to be the clients choice for construction services based upon our ongoing record of meeting or exceeding their expectations. They are committed to: Be a highly effective, lean and fast moving organization. Producing the highest quality at the lowest cost. Treating the customers, architects, engineers, employees, subcontractors and vendors as partners. Be a great place to work where people are inspired to be the best they can be.

SERVICES
Pressure vessels Piping Offshore equipments Onshore and offshore steel structures Tank ducts bins and silos Construction and erection Aluminum welding Scaffolding services Crane gliders

 Site repair and maintenance

CORPORATE OBJECTIVES
Sl no. Objectives Target

Cost reduction

To reduce overall operating cost of OGASCO Introduction of new quality aspects to increase the brand equality/product preference Maintenance of profitability turnover ratio higher than the preceding year

Quality Management

Increase in profitability & turnover

OGASCO VALUES
Customer Quality of Services Environment Safety & Health Customer Satisfaction is our top priority Quality of services is our Strength. Extreme care for our environment & society. Safety of our employees and society is our

motto. People Positive attitude and team work sustains &motivates us

OBSERVATIONS IN EACH DEPARTMENT

PRODUCTION/ MANUFACTURING DEPARTMENT

PRESSURE VESSELS & HEAT EXCHANGERS
Using high grade carbon and stainless steel, they are manufacturing Pressure vessels which are used for various applications and are widely demanded in several industries. These Vessels are minutely examined and will meet all the international standards. Their emphasis will be on designing and manufacturing as per the clients specifications, which has made them capable to deliver high efficient pressure vessels. They are capable to work using different types of critical fluids. . Fabrication of pressure tanks and vessels that bear the U & R stamps in accordance with the ASME Boiler and Pressure Vessel Code.

PIPING
Piping spool fabrication Fabrication of pipe spools in CS, SS, Duplex/Super Duplex Their scope includes: o Preparation of fabrication drawings/Isometric drawings o Procurement of materials o Complete fabrication includes marking , cutting , rolling, and welding as per the required codes/ standards o Welding as per ASME Sec IX o Hydro test, all other non destructive tests o Pickling and passivation of weld joints (for SS and duplex materials) o Complete QA/QC documentation and as-built drawings

OFFSHORE EQUIPMENTS
The thriving experiences that the company possesses in the offshore oil and gas industry helps them to deliver a wide range of complex assemblies, equipments and structures fabricated across the spectrum of the industry codes and standards. They have the honor to execute the projects in accordance with contract specification and under supervision of different classification and verification societies such as ABS, DNV, BV, Lloyds, and RINA and prove their capabilities under first class international offshore construction standards. Available wide range of qualified welders and welding procedures NDT capabilities increases the aptitude of the company which helps them to proceed for the welding of the most of the material and consumer types. Our fabrication services cover a diversified amount of offshore oil and gas equipments and structures; including but not limited to: SPM Buoys (CALM, CBM) PLEMs Anchors Offshore Product Piping Offshore steel structure Subsea structures Jackets Process modules Utility modules Drilling modules Decks

 Ship accessories such as bollards, chocks

With water front facility which is strategically positioned closed to our fabrication premises; they are able to deliver all the products through sea and are able to proceed for all the offshore testing for our products. Sea fastening services is one of their abilities which is helps them to do the complete load out and delivery of equipments on the vessel or barge independently.

TANKS, DUCTS, AND SILOS

TANKS
They offer a complete range of high performance storage tanks that includes industrial liquid resin, chemical, petrochemical tanks, water, wine storage tanks etc. Their industrial storage tanks are manufactured from stainless steel and carbon steel for assurance of efficiency. Their chemical storage tanks are provided in standard designs and can be customized as per the varied requirements of the client. They provide strong and durable storage tanks in varied configurations like vertical, horizontal, above ground and underground. They are counted among the distinguished storage tanks manufacturers and suppliers in UAE.

SILOS AND DUCTS

They offer complete range of fabrication services from simple fabrication to complex, fully engineered skidded system. They fabricate ducts and silos for storage purposes. These are mainly used in the storage of powders and chemicals. Ducts and silos are fabricated at their yard field and the company makes sure that they have defect free finish.

ONSHORE & OFFSHORE STEEL STRUCTURES

Their flourishing experiences in the offshore oil and gas industry means that they are able to deliver a unique and wide range of complex assemblies & structures fabricated across the continuum of the industry codes and standards.

They offer a wide array of services. They have full time QA/QC managers, certified welders, AutoCAD, in-house detailing, material handling systems and surface preparation. The companys shop fabrication and welding procedures are of the highest quality and standards. The company takes pride in meeting the critical schedule milestones set by our clients. The companys structural steel fabrication services routinely include steel structures, pipe bridges, catwalks, stairs, tool pedestals, handrails and ladders, canopies, equipment structures and structural steel frames.

CONSTRUCTION AND ERECTION

The major mechanical construction work where Ogasco is involved is process piping, flare tower erection, equipment erection, site modification of existing ASME stamped vessels, site modification of structural steel, site erection of structural steel etc. they have carried out the process piping for the oil and gas sector such as fire water line, portable water line, process lines which includes installation of pipes in the pipe racks, sleeper structured flare stack which is the tallest in the UAE in Borouge2. The site modification activities for ASME stamped vessels have also been done in the prestigious Habshan and in emirates steel. The company has a highly experienced construction crew with vast amount of equipments and other machineries. They can provide services of IRATA trained professional for carrying out various high risk jobs with highest degree of safety. The companys motto is to provide their services to clients as a complete package for mechanical activities. To support this, they are backed by vast facilities on fabrication at site as well as their workshop includes Scaffolding, fireproofing, chemical cleaning, painting etc. they have received numerous awards for carrying out work safely during the project which reflect our capability to do the job safely in the high risk zone.

TANK ERECTION
They have gained particular reputation of their Field projects in fabrication and erection of all types of fuel storage tanks, Horizontal and Vertical in compliance with the requirements of particular required standards. Their Construction Engineering and Field erection Team utilizes the latest construction techniques to provide a safe, dependable new tank at competitive prices. The field fabrication facility, can handle all cutting, rolling and fabrication of bottoms, shell plates, roofs and steel structures of Tank Erection.

 In addition to their field projects, we also have shop projects, where we can fabricate tank fittings and appurtenances such as Manholes, nozzle (inlet and outlet connections), vertical cage ladders, stairways (spiral and radial), handrails (pipe and angles) etc.

BLASTING, PAINTING, & FIRE PROOFING

OGASCO has in terms of square meters of coated surface, been one of the largest blasting and painting contractor in the Middle East over the last fifteen years having completed in excess of millions of square meters of coating in different array of products, tonnes of structural steel coating to the most stringent quality standards in the industry. Out of nearly 135000 Sq M, 60000 Sq M is dedicated for painting which includes covered and uncovered space. Environmentally compliant painting facility in OGASCO with other facilities and site crews and camps as required across UAE. These facilities are complimented by 700 of qualified manpower with full equipment to cover all aspects of any blasting and painting requirement and have 80000 Sq M/month painting and blasting capacity including internal coating of pipes and licensed application of chemical resistant coatings. OGASCO is approved with almost all the ADNOC group of companies for blasting and painting as a contractor and has extensive experience of their requirements and specifications.

ALUMINIUM WELDING
ALUMINIUM AND AL-ALLOYS OGASCO has executed projects which involved fabrication and welding of Aluminium and Al- alloys including structural and piping jobs. Codes and standards used: EN ISO 15614-2 ASME Sec IX AWS D 1.2 Material thickness range we can handle : 2.5 mm to 20 mm for piping and 4 mm to 50 mm for structural jobs.

Welding processes used SMAW, GTAW and GMAW. Materials which we could fabricate All P21, 22, 23 & 26 materials and their sub groups like SB209, SB210, SB 211, SB 234, SB241, SB247 etc. and equivalent materials in other international standards.

HR DEPARTMENT
The most and vital resource of any organization is its people. An organization that exists to produce goods and services has a good chance to survive and if it consists of right people. Keltron has a total strength of 500 employees

KEY FUNCTIONS

Recruitment Apprentices Ex. Apprentices on contract Establishment Promotion/Increments Performance appraisal Transfer/Deputation Resignation/Retirement/Termination Time office function Attendance records Pay roll system Welfare function Uniforms Canteen

Medical claim/medical check up Welfare schemes Training & development Industrial training On the job training Skill development training Disciplinary cases Workmen certified standing orders Non workmen conduct discipline & appeal rules

RECRUITMENT
It is the process to discover the sources of manpower to meet the requirements of the staffing schedule. Human resource planning is to recruit based on the required quantity and quality to meet the organizational objectives. OGASCO access the surplus or shortage of human resources and take measures accordingly. The HR Sr. officer is in charge of all the recruitment processes and it is based on send interview forms as well as call letters specifying the date. The qualified candidates are listed based on their rank and qualifications for the job.

ESTABLISHMENT
This program covers promotion, performance appraisal, transfer and retirement. Promotion is mainly done on the basis of seniority cum merit. Performance appraisal is done both at supervisory level and executive level. Separate appraisal forms are there for

the executives and the employees. This is mainly done to evaluate how far the results are achieved and to plan for better performance. Retirement usually happens at the age of 60 and no other measures of employee turnover happen in OGASCO.

TIME OFFICE FUNCTION

Attendance, working hours The working hours in OGASCO are from 9.30am -5.30pm. Employees attendance is based on using finger print scanners by which once when the employee has given his thumb signature, his attendance automatically gets recorded. While leaving the company the employee, whether for official or unofficial purposes, he/she has to give in his/her signatures again; and according to that changes will be automatically made in the attendance system.

PAYROLL MANAGEMENT
It is the heart of any human resource system of an organization. The solution has to take care of calculation of salary as per the rules of the company, various deductions to be done from salary including statutory deductions like income tax. The term payroll encompasses every employee of the organization who receives a regular wage or other compensation. Companies often use objective measuring tools such as timecards or timesheets completed by supervisors to determine the total amount of payroll due to each pay period.

WELFARE FUNCTION

Uniform:
At OGASCO the employees in the production dept. has separate uniforms supplied by the organization. Washing as well as stitching allowance are given to the employees.

Canteen:
A well-furnished canteen is present at the field which can accommodate 200 employees at a time in the canteen. Food is provided at 50% subside rate for meals.

Welfare schemes:
There are several welfare schemes like medical allowance etc. For traveling, buses are provided at free of cost.

OGASCO HR PROCEDURES
New recruitment plan Employee grievance Employee appraisal Visa renewal

NEW RECRUITMENT PLAN

Purpose: The purpose of this document is to define the procedures necessary for the effective implementation of the new recruitment plan.

Responsibility: HR Manager HR staff

Procedure: Process Action

Receipt of approved Receives employee requisition form duly approved by the employee requisition form management along with designated duties. Preparation of job description Selection of candidate Conducts interview Pre- Joining Procedure Final approval and preparation Search for shortlisted candidate from the CV archive file. If no, seek advertisement. Call/arrange availability of candidate for interview and forward candidate to concern for interview using interview and test result form. Candidate Accepted: Prepare Job Offer/Appointment Letter duly approved by the Management and signed by the Employee Inform concerned department/site Confirm joining from candidate, ensure all requirements are complete to process the necessary documents for application and forward to concern for further processing Upon release of labor approval: Visa-original labor approval/passport copy/photo Update the job offer status upon receipt of new job offer Updated report to circulate every month 10th Candidate on transfer visa: All documents required for visa processing to receive from candidate Update to the candidate on process and follow up

Candidate offer denial: Inform the management and restart the candidate selection process Candidate Rejected: Inform candidate and concern department/site Candidate confirms Joining Look for other possible candidate When labor approval is release, call employee for confirmation of joining the company and proceed with visa.

EMPLOYEE TRANSFER PROCEDURE

Purpose: The purpose of this document is to define the necessary procedure from one department/site/project to another.

Responsibility:

HR manager HR staff

Procedure: Process Action

Employee Transfer

Request for manpower mobilization of new & re-schedule must be received by agreed format All local transfer, if have security pass shall be mobilized next working day excluding Fridays and public holidays Workers nominated requires security pass will be mobilized subjected to availability of security pass Prepare documents to mobilize employee to site: Provision of the employee transfer sheet Provision of petty cash for transportation Handling over the original security pass to employee Provision of accommodation & confirm mobilization Forwarding the request to the concern for updating the employee status Update the employee personal file

Transfer Procedure

Inform concern site

Update the payroll status of the employee Prepare letter for mobilization of personnel and inform site through fax/phone/email Update monthly salary listing for employee transfer

Update company records

EMPLOYEE GRIEVANCE PROCEDURE

Purpose: The purpose of this document is to define the employee grievance procedure.

Responsibility: HR manager HR staff Site coordinator/foreman Accounts personnel

Procedure: Process Action

Registering employee complaint

All labor issues related to salary, allowances missing and employee documents should be documented by employee grievance prepared by Site Coordinator/foreman Final Report of Grievance by 18th of every month Any request after 18th of any month will be given next month except emergency situation- memo to be raised

Processing of grievance

Compilation of list of grievance by 20th of every month Ensure to follow up the report of the employee Any additional follow up

Furnish grievance form to accounts

Ensuring of all closure Submission of report with log sheet Documenting the necessary documents to the concern person and update site Follow up the procedures of report by every weekend Final copy of closure

Closing of grievance

Update records

The closure report shall be updated

Archiving the records

All reports with closure report shall be done

EMPLOYEE APPRAISAL FORM

Purpose: The purpose of this document is to define the controls needed in appraising an employee.

Responsibility: General Manager Finance Manager Operations Manager HR Manager

Procedure: Process Action

Receipt of request for increment

Receipt of request for employee appraisal & Authentication: Increment request Approved by immediate project manager/Site In charge Cross Checking of employee appraisal for acceptance Forwarding the request for processing to concern HR Updating the current status of an employee on letter Forwarding this request approval to Opr Manager/HR manager/Finance manager/GM Follow up on feedback Updating on request approval to site/concern Manger Upon Approval employee appraisal, the employee action should be prepared Forward duly accomplished employee action form to management for approval. Update log sheet and salary sheet Provide accounts copy of duly approved employee action. Inform concern manager/supervisor

Processing of request

Employee action procedure

Update company record

Update monthly salary list Send all the approved request to concern department

VISA RENEWAL PROCEDURE

Purpose: The purpose of this document is to define the actions needed in renewal of visa.

Responsibility: HR manager PRO HR staff

Process Preparation of yearly report

Action Report on visa expiry, labor card expiry and passport expiry for whole next year

Forwarding the report of the same to HR manager Validating the report The approved report prepared and forwarded to all concern and recall the old Preparation of the employee contract 60 days prior labor card expiry Preparation of necessary documents for PRO dept for visa renewal 40 days before expiry of labor card Request to renew the passport if required by employee the information to employee and follow up to close it Circulate the new employee contract and confirm the receipt of receiving Follow up to receive the contract by 20 working days from date of receipt Preparation of funds requirement Calling and arranging the person with necessary document to proceed for medical checkup for visa renewal Initializing the renewal of visa request after the receipt of medical Request submission for labor card & visa renewal Receipt of renewed visa/labor card The request follow up Receipt of renewed visa & labor card Forward the receipt of labor card and passport to HR dept concern Proceed to renew the security pass if applicable Update the receipt of the labor card & visa Update the visa renewal report and circulate accordingly

Processing the visa renewal

File documents & transferring to the employee

Scanning the new passport in the ERPO system Update the details for the new labor card in the ERPO Update the personnel file with revised documents Transferring the new labor card to the employee with acknowledge receipt. Follow up

MARKETING DEPARTMENT
OGASCO markets its products through the marketing branches situated in important emirates like Abu Dhabi, Dubai, Sharjah and Ajman. The demand for the product is

identified and the requirement for the same is given to the concerned manufacturing units and the concerned products are manufactured. The corporate office in Mussafah coordinates all the activities of the various branches. The marketing departments are concerned with the following functions: Pricing Customer preference Credit policy Complaint handling

COMPETITORS
HI-TECH engineering services LLC Al-Fattah engineering and mechanical metal works Est Silvertech Engineering LLC ENJ steel Middle East steel

MARKETING STRATEGIES
Building up more advanced production facilities for domestic as well as international design and equipment of offshore plant. Offshore industry development plan for 5 years has been set. Gain market intelligence and leads using qualified email recipients 3-day turnaround for urgent campaigns Government support to help plant business Vigorously attracting foreign capital.

FINANCE DEPARTMENT

Finance is considered to the lifeblood of any business. Financial management is closely linked to all the other areas of management. The firms attitude towards the other areas of management largely depends on its financial position. Financial management is that management activity concerned with the planning and controlling of firms financial resources. The field of finance refers to the concepts of time, money, and risk and how they are interrelated. It is one of the most important and essential part of the organization.

FUNCTIONS
Providing and interpreting financial information Business modeling and forecasting Monitoring performance and efficiency Pricing and competitor analysis Developing complex finance models Assessing the financial implications of new and existing companies Preparing accounts and reconciling balance sheets Overseeing budgetary control Monitoring cash flow Supervising other staff Analyzing performance and efficiency

For immediate functioning there are mainly 4 groups: Cash and compilation group Purchase account and costing group Sales accounts group Payroll group

CASH AND COMPILATION GROUP

Functions: Cash and bank transactions Receipt and disbursement of cash and maintenance of cash group Receipts and issue of cheques, maintenance of bank book and preparation of bank reconciliation statement Passing of miscellaneous bills such as printing and stationery etc Maintenance of general accounts Preparation of monthly accounts Preparation of annual accounts Budget and budgetary control

PURCHASE ACCOUNT AND COSTING GROUP

Passing purchase bills for payment and preparation of vouchers Clearance of purchase documents from banks Preparation of monthly schedule of creditors Scrutiny of purchase proposals for finance consensus

COSTING
Maintenance of stock records Preparation of monthly receipts, issue and stock of inventories of MIS Verification of inventories for preparation of annual accounts Any other work that may come across and assigned to the group by the department head from time to time

SALES ACCOUNTS GROUP

Preparation of sales invoices and maintenances of sales journals Preparation of monthly schedule of debtors, customer wise and invoice wise Arranging transit insurance and matters relating to claims Any other accounting matters connected with sale

PAYROLL GROUP
Preparation of payroll Preparation of monthly journals entries of payroll Remittance of payroll recovery Preparation of payments vouchers for regulation of salary, interest subsidy on housing loan etc

RESEARCH AND DEVELOPMENT DEPARTMENT

The workflow of the research and development department is defined depending on the functions the department is associated with. There are several main functions such as: Researches for and development of new products Product maintenance and enhancement Quality and regulatory compliance Developing products on time Developing products that can be made economically and quickly Developing products that meet the specified quality levels as per quality plan

The primary function of the R&D department is to conduct researches for new products and develop new solutions to existing products and developing them. Each product has a finite commercial life. In order to be competitive, the company continuously needs to find new technological development of product range. R&D managers and their staff take responsibility of performing: Ensuring the new product meets the product specification Researching the product according to allocated budget Checking if the product meets the production costs Delivering products in time and in full range Developing the product to comply with regulatory requirements and specified quality levels

PRODUCT MAINTENANCE AND ENHANCEMENT

This is by far the most important secondary function. It helps to keep the company product range ahead of the competition and enhance the life of the products. Existing products should be maintained ensuring that they should be manufactured according to the specification. If there is shortage for any particular element in a product, then the R&D should come up with another alternative element so as to maintain the product range.

R&D DEPARTMENT INTERNAL STRUCTURE

Development Manager Digital circuit design engineer High level software engineer Low level software engineer Analogue circuit design engineer

Mechanical design engineer

Technician (mechanical)

Technician (electronics)

QUALITY AND REGULATORY COMPLIANCE

Quality is a major issue and R&D dept is deeply involved in ensuring quality of new products and attaining the required levels of regulatory requirements. In cooperation with the quality assurance dept, R&D dept develops a quality plan for new products. When the company sells the product on the market place, it should keep the regulatory compliance with legal requirements.

CUSTOMER FOCUS
The quality management system will be applied for all projects to ensure that requirements of the customer are fully known at the proposals and the scope of work is known in the order that customer requirements are fully met. By keeping in mind customer focus, the existing products can modified whereby there is no compromise on its quality.

QUALITY POLICY
OGASCO declares itself committed to the supply of services/products, meeting or exceeding customers quality, safety and delivery requirements, including statutory and delivery requirements, with optimized order fulfillment costs and without compromising other stakeholders interests. Each supply must serve as a recommendation for further business transactions and enhance the organizations reputation as a quality and reliable supplier. The organization ensures that competent human resources are employed, customer satisfaction is measured, and quality objectives are established, measured, systematically reviewed and revised by top management in order to bring about continual improvement in the effectiveness of the quality management system. Each department head has the responsibility for effectively implementing the quality management system with the involvement of all employees in his department and acts as a role model for promoting improvement in the quality management, thereby, enhancing customer satisfaction.

ANALYTICAL REFLECTIONS

SWOT ANALYSIS
SWOT stands for Strength, Weakness, Opportunities, and Threats of an Organization. The crucial fact of a multinational strategy is to be determining the direction of multinational business and course of action to be adopted to reach the destination. This is possible only when comprehensive SWOT analysis is made in a detached and dispassionate manner. SWOT analysis calls for matching of capabilities of and of compact the threats to the business. The management can identify those opportunities in different countries, which the firm with its existing capabilities can exploit fully its profitability and grow successfully.

STRENGTHS:
Dedicated work force Government work orders Optimum utilization of resources Total quality Management Top customer service to their products 100% quality maintained in each process of work Established track records for their projects Access to international expertise Despite of the recent global economic downfall, OGASCOs market strength remained unaffected. Our successful extensive history and knowledge of the market enabled us to maintain our consistency in providing quality services to our diverse customers.

WEAKNESS:
Lack of technology upgradation Inadequate capital for growth Inadequate marketing capacity Excess capacity in certain sectors Weak financials- high leverage

OPPORTUNITIES:
lots of orders from private firms R&D to undertake new projects Recruitment of young talented professionals Brand name and position Government support New technology introduce in engineering field for easy adaptation with new world technology

THREATS:
Different attitude of changing governments High attrition rate of skilled technicians Uncertainties with regard to the investment decision of oil majors

MCKINSEYS 7s FRAMEWORK

The 7-s model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organizations problems may be diagnosed and a strategy may be developed and implemented.

Strategy: The route that the organization has chosen for its future growth is referred to as strategy Structure: The framework in which the activities of an organizations members are coordinated is called its structure. The four basic structural forms are the functional form, divisional structure, matrix structure and network structure. Style: It refers to the leadership approach of top management and the organizations overall approach; also the way in which the organizations employees present themselves to the outside world, to suppliers and customers. Skills: This refers to what the company does best; the distinct capabilities & competencies that reside in the organization. Staff: The organizations human resources are the generally defined staff. Refers to how people are developed, trained, socialized, integrated, motivated, and how their careers are managed. Shared values: It refers to originally called super ordinate goals; the guiding concepts & principles of the organization, i.e. values and aspirations which are often unwritten. It also refers to the fundamental ideas around which a business is built.

McKinneys model helps clients both in meeting near term performance challenges and in devising strategies to succeed in todays competitive world. The model is balanced between corporate center and the various business units on a variety of strategic, organizational and operational issues. It helps in providing both high level strategic advice and implementing a hands on approach to improving performance. This model clearly shows the relationship between one factor and the other. Upon clearly noticing, it is noticed that the whole process or model is for change. Change can be for anything, it can be for hard components like strategy, structure, systems which are feasible and normally easy to identify in an organization or it can also be for softer components too. As of now in OGASCO, the company does not have all of its sectors making profit. Some of the sectors like painting, piping etc are very high in profits, but some others like offshore equipments are less preferred so they dont make any profit. The main reason is that their strategy is not very broad scoped towards all of the other sectors. There should be a change-management strategy adopted. Changing the culture and overcoming the staff resistance to changes, especially the one that alters the power structure in the organization and the inherent values of the organization is generally difficult to manage. However if these factors are altered, they can have a great impact on the structure, strategies and the systems of the organizations. Over the past few years, there has been a trend to have more open, flexible and dynamic culture in the organization which brings towards a major attitude change in the staff of the company. Now the scenario is that the employees are given preference first and then goes for customers. As a matter of fact a giant named HCL has its tagline as employees first, customers second. So if a similar strategy is used then, the company can bring up its failing factors to come up. So thus by bringing up such a strategy, the company can grow and by this the staff attitude can change which will reflect in their skills and which in turn will bring more success for the company.

CONCLUSION:
OGASCO has helped me in understanding and experiencing how the company functions and how its various requirements are met. This study was very beneficial for me, not to mention my working experience in the HR field at this company. I found the entire one month of work and study very rewarding as I now understand the proper meaning for ergonomics. The organizational study has given me a insightful view of how an organization functions. The organization has a wide range of products along with plentiful other services. Some of the products are customized according to the clients needs. It has a very unique and profound way of testing and making sure that the products are of 100% quality. The analysis has given me a clear cut idea about the present condition of the company and also its near future. This revelation has come from a thorough SWOT Analysis along with Mckinseys 7-s model. Moreover the employees attrition rate has increased. This might have happened due to the lack of efforts taken by the management in satisfying the employees with good working conditions, personnel and professional growth, salary and other benefits etc.

So overall even though the company has earned enough reputation over its years of service, but it has to take care of its stakeholders interests also, so as to maintain a healthy and stable condition. Moreover the company also has to come with a culture that brings about a sense of belongingness in the employees so that the overall employee turnover rate can be decreased.