[Year]

INTERNSHIP REPORT
HASCOL PETROLEUM LIMITED
ABDUL MOIZ TARIQ BBA-8B
INTRODUCTION OF THE ORGANIZATION:
Hascol Petroleum Limited is engaged in the purchase, storage and sale of petroleum products
such as High Speed Diesel, Gasoline, Fuel Oil and FUCHS lubricants.
In February 2005 Hascol was granted an oil marketing license by the Government of Pakistan
and since then, Hascol has been engaged in developing a retail network under Hascol brand and
have commissioned over 500 retail outlets in the four provinces of Pakistan and Azad Jammu
and Kashmir. Hascol Petroleum Limited has extensive links with the domestic and international
oil trading companies and today is the second largest importer of petroleum products after PSO.
Hascol also markets LPG. At present 15 Automax LPG Stations across Pakistan are in various
stages of approvals with the government of Pakistan. Hascol has become a member of the
highly esteemed listed companies of Pakistan Stock Exchange and its share price has
appreciated considerably since the listing in 2014, keeping in pace with the phenomenal growth
of the company. This massive growth has been made possible due to the strategic vision of the
Board and excellent execution by Senior Management. Hascol has made major headway in
constructing storage facilities at Keamari, Daulatpur, Shikarpur, Mehmood Kot, Machike and
Amangarh. New storage facilities are compeleted for Sahiwal, Kotlajam and Thalian.
In 2016 Vitol, the largest independent oil trading entity in the world, had taken 15% equity in
Hascol and has now exercised the option to take 10% more, bringing their shareholding to 25%.
This will make Vitol the single largest shareholder in the company.
We have set up an LNG marketing company VAS LNG (PVT) LTD in a joint-venture with Vitol.
Hascol will have a 30% stake in this company and Vitol 70%. Hascol has also signed a Technical
Services Agreement with Vitol Aviation. This will enable Hascol to start fueling aircrafts at
Karachi, Lahore and Islamabad airports in the country.
A new joint venture company, Hascol Terminals Limited, has also been set up with Vitol and it is
planned to have 200,000 Metric Tons of storage at Port Qasim.

INTRODUCTION OF DEPARTMENT SERVED:

The logistics department of Hascol Petroleum limited is responsible for handling and managing all the
product related payments, contracts, policies, and movements.

NATURE OF THE WORK:

As a supply chain management intern in the department my primary tasks were to handle the freight
billing process and movement of product.

Freight Billing refers to the outgoing payments that the company makes to its transportation contractors
for moving the company product from one-end to another. It is the practical and day-to-day adaptation
of the company’s contracts with its transport vendors, and hence requires constant implementation; in
order to maintain the payment cycles and deadlines.
TRAINING ANALYSIS:
During my six weeks as a supply chain intern in the logistics department, I was entrusted with a total of
three assignments. Those are:

1. Clear May’18 Commercial:

Commercial contractors are company vendors who buy the product off the company at the
supply point, to deliver it to a designated end-customer on their own. However, the company
pays them the freight charges applicable, as per OGRA requirements. Accordingly, I was tasked
to complete the May’18 commercial billing within my first two weeks here.

The work that was assigned had three major tasks

a) Physical Verification:
The physical verification process inculcates ensuring that all the invoices and bills
submitted by the contractor are true in nature. Which essentially means ensuring that
each and every invoice mentioned on the bill summary submitted by the contractor
exists physically and that the figures mentioned are correct.

This process is the first line of control with regards to the payment-details flowing into
the company. All the out-layers are sorted and segregated at this stage. Additionally, all
the relevant information, for example; supply point, delivery, point, product, quantity,
etc. are sorted out at this stage, as per the company standards and requirements.

b) Summary and Shortage Posting:

The second task involved posting all the verified bills onto the payment summary. The
shortages are recorded as a liability of the contractor owed to company. Shortages
essentially mean the product shortages recorded during the transfer, for which the
concerned contractor is liable to the company. Accordingly, the freight payable and the
shortages recorded are posted onto the month summary in order to calculate the net
amount adjustable within the contractor’s account at the company.

c) Re-verification, Filing, and Posting:

Once the figures have been posted in the summary, the bills verified are than filed on
basis of month and contractor. The summary than is re-verified against the bills by
another member of the team using sampling, in order to confirm the amounts and
reduce margin of errors. Once re-verified, the summary is then signed and forwarded to
the finance department so that the net balance can be adjusted in the commercial
contractor’s ledger account at the company.
 2. Resolve General Pending:

The second assignment was a shared one, where I was asked to assist a fellow intern on this
assignment that was to find and post all the pending bills from 2016 to 2017. The specification
of the time period is with regards to the duration that the company has been using tracker
services to maintain supervision of product movement and as a means of internal-control over
product movement.
The task took two weeks to execute as a massive back-log of billing had to be verified. The bills
had to first be found and extracted from the filing cabinets, then the physical verification
process was to be carried out, and the last stage involved maintaining a master-sheet of all the
found and unfound bills that was to be shared with the tracker-sub-department. In the end, all
the found bills (90% of total pending) were handed over the tracker-department for verification.

3. Clear June General:

The final task was again a shared one, this time with two fellow interns. We were asked to verify
and summarize the general-contractor’s payments for the month of June, 2018.

WORK ANALYSIS:
The overall experience at Hascol has been a pleasant one. Within this short span of time I was
able learn a lot about the industry, the company, the department, and all its process. The team
at logistics has been quite welcoming, specially my immediate supervisors i.e. Farhan Ahmed
and Saad Sheikh. The learning opportunity and the industry norms were best described with
the immediate supervisors.

RECOMMENDATIONS:
The whole freight billing process was done manually because of which chances of errors are high, the
department should implement ERP software for freight billing process too. By this chances of error will
be reduced and the work can be done faster and easier than before.

There were too many pending cases because of which all the people there face difficulties in deal with
the contractors and also face problems in matching the records of the contractors and the payment
system.