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OIL INDIA LIMITEDVIGILANCE DEPARTMENT

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transparencycurbs

corruption

Volume 13 No. 4, October-December, 2012

A Q U A R T E R L Y N E W S L E T T E R O F V I G I L A N C E D E P A R T M E N T

Vigilance Department

OIL INDIA LIMITED VIGILANCE DEPARTMENT

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Contents

From CVO’s Desk 2

Editorial 3

A Report on Vigilance Awareness Week 4

The fi rst prize winning best suggestion 6

Prize winners of Vigilance Awareness Week 7

Vigilance Case Studies 15

CVC Circular 17


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From CVO’s Desk

Self discipline, simplicity, striving hard are the

fundamental values over which the growth and

prosperity of every organization and society are built. Rules,

guidelines and procedures are dynamic to accommodate

essential changes, but the fundamental values remain

the same in realizing the growth and prosperity of the

organization. Reemphasizing the values, the rules and the

procedures are essential to keep us in the right path.

Vigilance Awareness Week celibrated in from October 29th

to November 3rd, 2012 under the solemn guidelines of CVC

was such an occasion to reemphasize the values and to

re-dedicate ourselves in reaching the organization’s

goals.

As in the previous years and in line with the directives

received from the central vigilance commission we

observed “Vigilance Awareness Week” from October 29th

to November 3rd, 2012. The theme for this year selected

by Central vigilance commission was “Transparency

in public procurement”. We are making substantial

expenditure in procurement of goods and services and

therefore any saving in procurement directly contributes

to our bottom line. In this age of competitiveness, our

procurements should not only be at the least cost,

but primarily it must also be of a high standard and

reliability. Transparency in public procurement has

the potential of not only getting us procurements

at the least cost, but also of high standards and

reliability.

During Vigilance Awareness Week several programs were

organized at all major locations which provided opportunity

to all personnel of the company to participate and interact

with each other.


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Editorial

It is often said that corruption fl ourishes when there is no

transparency. Vigilance department has attempted to

promote transparency, fairness in procurement, hiring of

services and works. The main idea has been to create an

enabling environment for adherence to procedures on one

hand and improvement of systems on the other.

We look forward to your suggestions on how we can

improve the system together and make our organization a

role model in all aspects.

As in the past we have also organized Vigilance Awareness

Week-2012 at diff erent spheres of Oil India Limited. As

a part of Vigilance Awareness Week we had organized

various participative events under the guidance of our

CVO, Shri Amit Mohan Prasad, IAS. It may be said that

the observance of Vigilance Awareness Week was highly

successful in creating awareness and very much educative

for all concerned in our organization.

Vigilance is generally viewed as a mechanism of obstruction

in an organization whenever it is employed. Its positive

contribution as a protector of the image of intrigity should

be appreciated. In fact Vigilance department works within

the framework of the company’s rule, CVC guidelines and

Government notifi cations. “Prevention is better than cure”.

Hence, it is necessary that measures such as transparency

in working, system improvement, leveraging technology

and other such measures are taken in this direction and

cooperation of all concerned solicited to make the vigilance

function really eff ective.

We thought it is prudent to talk on transparency and

public procurement in this post Vigilance Awareness Week

issue. Government of India is very much concerned about

the Public Procurement as it involves a huge amount of

public fund, may be about 25% of the GDP. In an eff ort to

streamline this public procurement Government of India is

introducing a bill in the parliament on public procurement.

Even CVC is also very much concern about this area and the

theme for this year as proposed by CVC is “Transparency

in Public procurement”. In our company most of you are

involved in the “public procurement” to some extent or

other. When the whole nation is concerned and toiling

hard for a transparent orruption free public procurement

system, let all of us also contribute to this noble eff ort.

In this issue apart from the regular features, we have

published the suggestion by Shri Utpal Nath, which got the

best suggestion award during Vigilance Awareness Week.

Dr. A.K. Pattanaik

Rajumoni Saikia


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A Report on Vigilance Awareness Week……..

1. In pursuance of the directive issued by the Central Vigilance Commission,New Delhi, Vigilance Awareness Week was observed at the various work spheres of OIL INDIA LIMITED, i.e. Registered Offi ce and Field Head Quarters at Duliajan (Assam), Pipeline Head Quarters at Guwahati (Assam), Project Offi ce at Jodhpur (Rajasthan), Branch Offi ce at Kolkata, Project offi ce at Bhubaneswar (Odisha), Project offi ce at Kakinada, besides Corporate Offi ce, Noida.

2. Vigilance pledge taking: Vigilance Pledge was administered by CMD (OIL), at our Corporate Offi ce, NOIDA and the respective Heads at other work spheres/installations. on 29th October 2012. Banners and Posters were displayed in the prominent places in and around work premises at various spheres.

3. Various competitions among employees and school children: As part of the observance of Vigilance Awareness Week -2012 following competitionswere organized for Executives, Employees and for school students from diff erent spheres of Company activities.

3.1 Field HQ, Duliajan: On the Spot Essay Competition was held on 30th October, 2012 amongst the Executives and Unionized employees. The topic was “Corruption – How to prevent this malady from our organization”. The medium of expression were English, Hindi and Assamese (any one). Total 10 (Ten) numbers of Executives and Unionized employees participated in the competition.

On the Spot Essay, Slogan, cartoon and Painting Competitions amongst school students at Duliajan was also held on 3rd & 4th November, 2012. The competition was held in two groups Group – I (Class VII to IX) and Group – II (Class X to XII ). The medium of expressions were English, Hindi and Assamese (any one). Around 140 students participated in the above competition. The topic for Group – ‘A’ students “Corruption undermines Quality of Public service“ and the topic for Group ‘B’ “ Right to information is an

eff ective tool to curb corruption”. Around 140 students participated in the above competitions.

3.2 Rajasthan Project: To mark the occasion, the Vigilance Department had organized an “On the Spot” Essay Competition amongst school children of OIL Colony on 31st October, 2012 on the spot essay competition for school children was held at Kendriya Vidyalaya, total 205 students participated in two groups.

3.3 Pipelines HQ, Guwahati: ‘On the Spot’ Essay Competition for Executives & Employees was organized on 30th October,2012 total 09 nos. executives & employees participated in the essay writing programme.

On the Spot Essay ,Slogan, Painting & Cartoon Competition amongst School students were also conducted on 01.11.2012 at PHQ, Guwahati, From Class VI to XII in two diff erent groups, about 250 students participated.

3.4 Kolkata Branch: On 30th October 2012, an Essay Competition was held at Kolkata. Offi ce amongst the employees with the active participation of employees and the topic given to them was “Corruption – How to prevent this malady from our Organization”.

3.5 Corporate Offi ce: Essay writing and Painting Competitions were also organized at NOIDA in two groups for OIL executives and employees children.

4. Seminars : A Joint Seminar was organized amongst Executives and Employees on the topic “Better Transparency in Public Procurement will help curbing corruption” on 1st November, 2012 at Duliajan. The chief guest of the seminar was Shri Nishinath Changkakoti, IPS, Ex-DGP of Assam. Theprogramme was well attended by nearly 100 participants including GMs, Heads of various departments and nominated employees and executives of OIL.

A Seminar was also organized on 02.11.2012 at Kolkata with the active participation of employees of Kolkata


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based offi ce. Mr. Gautam Mohan Chakrabarti, IPS, DG& IGP (Traffi c), West Bengal was the Chief Guest and Mr. Nagendra Prasad, Addl. SP, CBI (Head Quarters) was the Guest Lecturer who addressed the gathering on the topic “Transparency in public procurement”.A large number of Executives and workmen participated.

A Joint Seminar on” Better Transparency in Public Procurement will help curbing corruption” was organized for executives and work persons on 2.11.2012 at PHQ, Guwahati. About 59 executives and employees took part in the seminar. Sri Hiren Chandra Nath (IPS), D.I.G & Head C.B.I Guwahati was invitedas speaker as well as chief guest and Sri K. Bhattacharjee, CMM, Oil, Duliajan was also invited as Guest Speaker.

5. Training Program: A training programme by External Faculty on the topic “Transparency in Public Procurement” was organized at Duliajan on 31st October, 2012. There were total 19 nominated participants (Executives) in training programme. The main focus of the training was on how transparency could be eff ective tool in public procurement in curbing corruption. The training was highly appreciated by the participants.

6. Padayatra: Padayatra (Procession ), was organized on 30th October,2012 at Pipelines Head Quarter, Guwahati. A large number of personnel (including executives, employees & WCLs) participated.

7. Cycle Rally: A cycle rally was organized for the citizens of Duliajan which was fl agged off by Resident Chief Executive in the presence of senior executives and employees of the company. About 130 participants including OIL Security Personnel and members of football academy, Duliajan joined the rally creating awareness among citizens in and around Duliajan.

8. “Keep in Touch” an awareness workshop : An awareness program on company’s policies and procedures entitled “Keep in Touch” was organized on 1st November, 2012 at Jodhpur, Rajasthan Project offi ce for the executives to refresh knowledge on various rules, regulations, policies, and procedures of the company, with specifi c focus on contracts and procurement policies and procedures.

At Kakinada, on 30th October,2012 Keep in

Touchprogramme was organized wherein 12 Nos. of participants attended the programme including DGM (Geo science ).

9. Vendors Meet: On 2nd November 2012 a Vendors Meet was organized at Kolkata and around 30 vendors participated to discuss on various issues of mutual interest. A presentation on “Bidding through E-Tendering” system was also organized, to up

date vendors knowledge and queries raised by them were clarifi ed by the team members from purchase, Accounts & ERP Division.

10. Sensitization Program: A sensitization Program was organized at Pump Station-3, Jorhat, for executives. All the 11 (Eleven) executives participated in the program. A presentation on various vigilance matters, CVC guidelines, vigilance observations, do’s and don’ts ,etc. were discussed with the executives, followed by interactive sessions with the executives.

11. Video Messages: Video messages from CMD and CVO were posted on the Company’s intranet “OILWEB” from 29th October 2012 to mark the occasion of observance of Vigilance Awareness Week 2012.

12. Special Publications: To mark the occasion of Vigilance Awareness Week -2012, we have published out 2 booklets on “Check List for Inspection” and“Frequently Asked Questions” (FAQ) compiled by Vigilance department were released by CMD and Director (Finance) respectively.

13. Display of Banners, Posters and Slogans : To create Vigilance Awareness, mass displaying of Award Winning Slogans and Awareness Week Posters were carried out in OIL’s township and operations areas under Field Head Quarter (Duliajan, Digboi, Moran and Arunachal Pradesh) and also at various other spheres and projects like Pipeline Head Quarter, Guwahati, Kolkata branch, BEP-Bhubaneswar, KGB Project-Kakinada, Rajasthan Project besides corporate offi ce at NOIDA. Banners were also displayed at all venues of diff erent events and the offi ce buildings.

14. Quiz Competition: A quiz competition was conducted for Executives & Employees of the Corporate Offi ce, NOIDA, Rajasthan Project offi ce, Jodhpur and Bay Exploration Project offi ce at Bhubaneswar.


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Prize winners of

Vigilance Awareness Week-2012…

Quiz Competition:

First: Team honesty

Team members

Sri Anirban BhagawatiSri Muktikam PhukanMrs Anurag Gohain

Second: Team Truth

Team members

Mrs. Nirmal Jeet MalikMr. A.K. DasMr. J.P. Narayan

Third: Team Integrity

Mr. Ashish BahukhandiMr. Sahil MehraMr. Tabrez Ansari

Drawing Competition : Nursery to

Class VI

First : Suchismita DasSecond: Pragyanabh Bharadwaj

Class VII to Class XII

First; Pradyumna BaruaSecond: Nida Jahan

Essay Writing : Class VII to Class XII

First: Pradyumna BaruaSecond; Nida Jahan

Corporate offi ce Noida:

Suggestions for system improvement

Best suggestor: Sri Utpal Nath, CM (Land)

2nd best Suggestors: Sri K.M. Kumar, Sri D.K. Saikia,


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Results of competitions held on the occasion of

Vigilance Awareness Week at fi eld head quarter

Duliajan, 2012

Sl. No Name of Competition Name of the Winner OIL ID/Class Department/School

1 On the Spot Essay Writing Competition for Employees

Assamese 1st

2nd

3rd

Sarifat Ali P.B. ChetriIlima Baishya

53289748415/0130

G & RBP ProjectT & D

Hindi 1st

2nd

3rd

Anupama UpadhyayaNILNIL

200726--

F&A--

English 1st

2nd

3rd

Parishmita NeogHimanshu DangiManabendra Gogoi

200671200576201297

BP ProjectF & AEmployee Relations

2

Assamese 1st

2nd

3rd

NILNILNIL

---

---

Hindi 1st

2nd

3rd

Sandeep Kr. SinghRajnish Kr. SinghSuman Singh

VIII-AVIII-AIX-A

Kendriya Vidyalaya, DuliajanKendriya Vidyalaya, DuliajanKendriya Vidyalaya, Duliajan

English 1st

2nd

3rd

Atlanta GogoiKr. Nilar RajkhowaPartha Pratim Borah

IX-AVIIVIII

V.K.V, (NEEPCO), BokuloniV.K.V, (NEEPCO), BokuloniV.K.V, (NEEPCO), Bokuloni

Group-B (Class: X-XII)

Assamese 1st

2nd

3rd

Biman BorahPrasujya BorahMasuma Begum

XI-Sc.XI-BX

Duliajan CollegeOil India HS School, DuliajanDuliajan Adarsha Balika Vidyapith

Hindi 1st

2nd

3rd

Kayshap PatraSumit Kumar DeswalPriyanka Dwivedi

X-CX-CX-B


English 1st

2nd

3rd

Snehasmita GhoshSomasurya Nanda Chayan Banerjee

XI-BX-CX-D



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3

Assamese 1st

2nd

3rd

Junali KumariKalpujjal SarmahNIL

IXIX-B-

Duliajan Adarsha Balika VidyapithKendriya Vidyalaya, Duliajan-

Hindi 1st

2nd

3rd

Sandeep Kr. SinghNILNIL

VIII-A--

Kendriya Vidyalaya, Duliajan--

English 1st 2nd 3rd

NILPranab Jyoti PhukanNIL

-IX-C-

-St. Xavier's HS School, Duliajan-

Assamese 1st

2nd

3rd

Priyanka DuwarahMeghali MazumdarMasuma Begum

XIX-BX

Duliajan Girls CollegeKendriya Vidyalaya, DuliajanDuliajan Adarsha Balika Vidyapith

Hindi 1st

2nd

3rd

Priyanka DwivediNILNIL

X-B--

Kendriya Vidyalaya, Duliajan--

English 1st

2nd

3rd

NILNILNIL

---

---

4 On the Spot Painting/Cartoon Competition

Group-A (Class: VII-IX)

1st

2nd

3rd

Zinea DasSatashree RoyNamrata Priyam Bordoloi

VIII-AVIII-CIX-B

Delhi Public School, DuliajanDelhi Public School, DuliajanKendriya Vidyalaya, Duliajan

Group-B (Class: X-XII)

1st

2nd

3rd

Meghali MazumdarAmar LimbooNeelam Jaisy

X-BXX-C

Kendriya Vidyalaya, DuliajanLos Angels English Academy, BordubiKendriya Vidyalaya, Duliajan


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Result of various competitions held in-

connection of Vigilance Awareness Week 2012

at PHQ, Guwahati

A) Result of Essay Competition for OIL Executives and

Employees

Essay Writing In English Category:

1st Prize : Shri Dhiraj Langthasa

Executive Trainee, Telecom PL

2nd Prize : Shri Pallab Chutia

Executive Trainee, (E&C) PL

3rd Prize : Miss Swagata Baruah

Executive Trainee, (Civil) PL

Essay Writing In Assamese category:

1st Prize : Shri Ganga Ram Deka

AE (S&E) PL

2nd Prize : Shri Madan Chandra Karjee

JE – II (E & C), PHQ

3rd Prize : (1) Shri Debajit Das

Executive Trainee (Mechanical)(2) Shri Prakash Baishya

Tech (T) I, PHQ

Consolation prize: Shri J.C. Kalita

J.E. (T) I, PHQ

Note: There was no participant in Hindi category.

(B) Result of Essay Competition for School Children of

Group I (Class VII to IX)


1st Prize: Miss Vaibhavi Sharma Pathak

Class – VIII - B Maria’s Public School, Narangi, Guwahati

2nd Prize: Shri Bhargav Kumar Barman

Class – IX - D Army Public School, Narangi, Guwahati

3rd Prize : ( 1) Miss Chandini Singh

Class – VII - D Army Public School, Narangi, Guwahati

(2) Shri Mustafa Siraj

Class – VIII - B Kendriya Vidyalaya, Narangi, Guwahati

Essay Writing In Hindi Category:

1st Prize: Shri Shubham

Class – IX - A Kendriya Vidyalaya, Narangi, Guwahati

2nd Prize: Shri Iqbal Hussain


3rd Prize : Miss Rashmi Singh


Essay Writing In Assamese Category:

1st Prize: Shri Rajashree Deka

Class – VII S.F.S School, Narangi, Guwahati

2nd Prize: Shri Sanju Aziz

Class – IX S.F.S. School, Narangi, Guwahati

Note: There was no other suitable participant in Assamese category, hence 3rd prize is not given. In Englishcategory 3rd prize is given to two students because of equal score.


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(C) Result of Essay Competition for School Children of

Group II (Class X to XII)


1st Prize: Miss Bipanchi Borah

Class – XI (Science) - D Army Public School, Narangi, Guwahati

2nd Prize: Miss Kalpana Pravin

Class – XI (Science) – D Army Public School, Narangi, Guwahati

3rd Prize : (1) Shri Brinda Kumar

Class – XI (Arts) - A Army Public School, Narangi, Guwahati

(2) Miss Shriya Devi

Class – X Kendriya Vidyalaya, Narangi, Guwahati

Essay Writing In Hindi Category:

1st Prize: Miss Pooja Rani

Class – X - C Kendriya Vidyalaya, Narangi, Guwahati

2nd Prize: Miss Jyoti Shekhawat

Class – X - A Kendriya Vidyalaya, Narangi, Guwahati

3rd Prize : Miss Neha Kumari


Note: There was no participant in Assamese category. In English category 3rd prize is given to two students because of equal score.

(D) Result of Slogan Competition for School Children

of Group I (Class VII to IX)

Slogan Writing In Hindi Category:

2nd Prize: Shri Shubham


3rd Prize: Miss Manisha Roy

Class – VIII - A Kendriya Vidyalaya, Narangi, Guwahati

Note: No suitable slogan found for 1st prize in Hindi category. No prizes given in English & Assamese category because of poor participation.

(E) Result of Slogan Competition for School Children

of Group II (Class X to XII)

Slogan Writing In English Category:

1st Prize: Miss Snigdha Bhaswati

Class – X - E Maria’s Public School, Narangi, Guwahati

2nd Prize: Miss Triveni

Class – XI (Science) S.F.S. School, Narangi, Guwahati

3rd Prize: Miss Sikha Malakar

Class – XII (Science) S.F.S. School, Narangi, Guwahati

Slogan Writing In Hindi Category:

2nd Prize: Miss Jyoti Shekhawat


3rd Prize: Miss Himeli Chatterjee

Class – X -E Maria’s Public School, Narangi, Guwahati

Note: No suitable slogan found for 1st prize in Hindi category. No prizes given in Assamese category because of poor participation.

(F) Result of Painting Competition for School Children

of Group I(Class VII to IX)

1st Prize: Shri Kirti Kamal Das,

Class – VII - B S.F.S. School, Narangi, Guwahati


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2nd Prize: Miss Parishmita Talukdar

Class – VIII - B Maria Public School, Narangi, Guwahati

3rd Prize: Shri Bitopan Sarma

Class – IX - A S.F.S. School, Narangi, Guwahati

(G) Result of Cartoon Competition for School Children

of Group I (Class VII to IX)

1st Prize: Shri Ankeet Bhattacharjee

Class – VII Maria Public School, Narangi, Guwahati

2nd Prize: Shri Nosezo Khieya

Class – IX Maria Public School, Narangi, Guwahati

3rd Prize: Miss Manusa Krichena

Class – IX - C Maria Public School, Narangi, Guwahati

(H) Result of Painting Competition for School Children

of Group II(Class X to XII)

1st Prize: Miss Sagarika Bhattacharjee

Class – XII - A Kendriya Vidyalaya, Narangi, Guwahati

2nd Prize: Miss Liza Chaudhary

Class – X Maria Public School, Narangi, Guwahati

3rd Prize: Miss Anuradha Mazumdar

Class – X - B Army Public School, Narangi, Guwahati

(I) Result of Cartoon Competition for School Children

of Group II(Class X to XII)

1st Prize: Miss Priyanka Saikia

Class – XI (Com) S.F.S. School, Narangi, Guwahati

2nd Prize: Miss Ria Borthakur

Class – X - E Maria’s Public School, Narangi, Guwahati

3rd Prize: Miss Nikita Singha

Class – X - B

Results of various competitions held during Vigilance Awareness Week-2012 at Rajasthan Project,Jodhpur

Childrens Essay Competitions : Group A : Hindi

First prize : Ayesha Banu, Class IX-A

Second prize : Shubhank Kaushik, Class VII-E

Third prize : Ira Jarwal, Class VII-C

Children Essay Competition :GroupB : Hindi

First prize : Pratibha Sharma, Class X-B

Second prize : Sahil Ayank, Class IX-A

Third prize : Mohit Vyas, Class X-C

Children Essay Competition : Group A : English

First prize : Tarun Verma, Class IX-DSecond prize : Avinash Rath, Class VIII-E

Third prize : Hritvik Ranjan, Class vii-b

Children Essay Competition: Group B: English

First prize : Baldev Choudhary, Class X-A

Second prize : N.Nargis Fatima, Class X-C

Third prize : Puneet Chhangani,ClassXI-B

Employees Essay Competition : Hindi

First prize : Sri S.K. Purohit,

Second prize : Sri V.C. Mathur

Third prize : Sri N.Kalla

Employee Essay Competition : English

First prize : Sri P.MalikSecond prize : Sri P.K.Das

Third prize : Sri G.Buragohain

Poem Competition : Spouse: Hindi

First prize : Smti. Sangeeta Agarwal

Second prize : Smti Sunita Malik

Third prize : Smti, Usha Trivedi

Poem Competition : Spouse :English

First prize : Smti. Indra Mathur


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The fi rst best prize winning suggestion… SUGGESTION FOR SYSTEM IMPROVEMENT : ON LINE

MONITORING OF DRILLING LOCATIONS (OMDL)

Utpal Nath, Cm Land.

It has been felt necessary that the Company should put in place the systems and procedures whereby all drilling locations at Fields may be monitored on-line, right from the stage when the location is released for drilling (ie release of LAF-1) till completion of drilling and rig-down. The matter has been felt by the undersigned for quite sometime after attending the fortnightly Drilling review meeting where members from various related departments congregate to take stock of the status of locations which have been released by Management for drilling operations.

In the above meeting the following was observed :

• On an average OIL has to drill at least 50 locations in a year.

• From the time the location is released on paper by Corporate Offi ce to the time the civil works on the ground are completed before handing over the site for drilling, each of these locations require on an average around 9 months of preparatory time, provided there are no untoward occurrences/incidents over which the Company has very little control.

• Multiple departments, viz. G&R, Civil, Land, Contracts, F&A, Planning, Transport & Drilling are involved in the entire process of getting a location site ready for drilling. Accordingly multiple activities are involved, some independent and some dependant, having to be carried out by the concerned departments, before the fi nal objective can be achieved.

• At any given time multiple drill site locations are being readied simultaneously under various stages of completion.

• Existing system of monitoring and reporting on pre-drilling status of locations is clumsy and ineff ective.

• There is considerable lack of transparency and time gap in fl ow of information.

• There is in-suffi cient co-ordination between various activities/departments.

• Basically the ‘legacy method’ of monitoring and reporting is needed to be replaced by the use of IT .

In short there is an urgent requirement for an IT based on-line monitoring system to be implemented for ease of

monitoring, transparency, better review and decision

making.

The Company’s objective should be to treat each of these drill site locations as a project by itself, which needs to be monitored closely by the use of a system with multiple data input and reporting channels and having the ability to generate various reporting formats in graphical outputs. Thereby there would be multiple projects (representing multiple drill site locations) required to be monitored at any given time through an enterprise wide project management system.

The system would provide a structure to help track

progress and collaborate, and ultimately bring about

accountability for delivering and at the same time

provide the transparency and visibility to ensure

everything is on track and moving forward.

It is suggested that all the major departments involved in the pre-drilling preparation and completion of drilling locations, namely, Geological, Civil & Survey, Land, Contracts, Transport, Drilling, Production, Admin & PR (for PR related issues), be put under the purview of such a system.


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It is envisaged that the OMDL system would provide the following information, amongst others.

• A comprehensive on-line status of all the procedures, activities and related work in connection with the preparation of each and every drilling location after it has been released for drilling by Management.

• Gantt chart views and graphical representations of the status of various locations under pre-drilling preparation should be available both as stand-alone and clubbed together to provide an overall analysis. Usage of various color codes denoting progress of various activities, etc. to provide a ‘at-a-glance’ view would be helpful.

• System to pinpoint and highlight delays, obstructions, any untoward occurrences should be in place for facilitating corrective actions through automated alerts and notifi cations.

It is evident that the OMDL system would be eff ective to the extent that prompt and regular updating of all relevant data is entered into the system by concerned offi cials from the related operating and service departments. It is suggested that relevant KPI/KRA parameters be introduced and linked to the PMS module of the responsible Offi cers, so as to ensure timely updating of information into the OMDL system.

The enclosed Annexure provides a preliminary guideline for activities under concerned departments that would be under purview of OMDL.

As suggested by the undersigned a Committee, comprising of members from Drilling, G&R, Civil, Contracts, Land has been formed for implementation of the proposed OMDL in conjunction with IT dept.

The Committee explored the possibility of utilizing the existing infrastructures of SAP as well as the Oracle system for developing a system to address the issue, and found that development and implementation of a system in-house as per our customized requirement will involve lot of

eff orts using the SAP platform, whereas the Oracle platform is not suitable for the purpose at hand. As a result, the end product, as has been envisaged by those concerned, would not meet the desired expectations in termsof user friendliness and explicit reporting in necessary formats.

Moreover, as the whole system needs to be on an integrated platform and the software has to be assessed by various users involving various departments, a separate system has to be adopted exclusively for maintaining the records and updating the status of the pre-drilling forward locations as well as for monitoring and reporting on-line on the status of all the activities involved.

By implementing an integrated enterprise project management (EPM) solution using related software/hardware the Company can meet its requirements. Moreover,

• the proposed system should be able to interface with SAP and be built on for future expansions, etc.

• The system should fl ag up any delays or problems allowing for rescheduling of work as and when required to maximise effi ciency and resources and allowing Managers to make critical, informed decisions based upon up-to-date information.

• System should be user friendly, preferably in the “Windows” application format, so as to provide the greatest ease of adoption and use.

• System to have the ability to be customized according to the end-users requirements.

• System to have the ability to generate various reports in graphical formats.

In order to bring all the users from various departments on board for the system to be fully utilised it is suggested that Training, which can be carried out in-house, should be an essential aspect of the entire package.


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Department Activity

G&R Release of LAF-1Release of LAF-3

Civil Survey Release of LAF-2Release of location mapsDemarcation & pillaringPlot measurement & fi eld map

Land Prelim survey of occupiersDemarcation & plot measurementAssessment for S/C(enumeration & evaluation)Management approval of S/C paymentS/C payment disbursement and release of land

Contracts Receipt of PRTenderingEvaluationManagement approvalAward of contract

Department Activity

Civil Preparation of estimate to issue LAF-2

Raise PR

Civil construction : Approach

: Plinth

: Foundations

: Ancillary jobs

: Prod set-up including fl are if required

: Reclamation of plinthTransport ILM (material movement)Drilling Rig up

Drilling

Rig downProduction Production testing


15

Case studies

Synopsis of Vigilance Complaint No. xxx

1. Background of the Complaint: An Intensive Examination was carried out of the Contract No. xxx for the 3D Seismic Data Acquisition, Processing and interpretation.

2. The CTE referred 12 paras to the CVO for clarifi cations. The replies to the paras were sent to the CTE after obtaining clarifi cations from the Management. The CTE accepted the clarifi cations on 11 paras. The Central Vigilance Commission directed the CVO to fi x responsibility in the matter of payment of US$ 25000.00 as Mobilization Charges again in the Contract.

3. Gist of allegation: The Central Vigilance Commission had inferred that since the record of the price negotiation meeting were not maintained, there was no proof of the due eff ort put by the negotiating offi cers to impress on the contractor to reduce the mobilization charges. Hence the Commission directed the CVO to fi x responsibility.

4. Facts: One of the Project of Oil India Limited had awarded a contract for 3D Seismic Data Acquisition, Processing and Interpretation for an area of 250 Sq. Km. The report of the same was submitted to the contractor at New Delhi on 21st and 22nd Feb.’2005. During the presentation it was felt that data acquisition, processing and interpretation is required for an additional area of 62.5 Sq Km. in the adjoining area. The Management nominated a team of fi ve offi cers to carry out the negotiations with the contractor. The team negotiated with the contractor to carry out the job at the same rates, terms and conditions of the original contract as it was mentioned in the contract the company had an option to get an additional job of 25% carried out at the same rates terms and condition as of the original contract. However, the contractor while agreeing to carry out the job at the same rates, terms and conditions also demanded the same

mobilization charges of US$ 25000.00 as the original contract since he had demobilized the equipment and the manpower from the site. The CTE asked for the minutes of the negotiation meeting which Management could not provide. CVC then opined that since the minutes of the negotiation meeting are not available it seems that the negotiating team did not put in enough eff ort to convince the contractor notto charge the mobilization charges or to reducethem. The CVC therefore desired that CVO fi x responsibility

5. Findings: After obtaining the clarifi cations from the offi cers involved in the negotiations it was revealed that:

a. The company neither had the procedure nor the practice to record the minutes of the negotiation meetings. The proposals are put up on the basis of the letter of off er received from the vendor after the negotiations.

b. The contractors/service providers normally move their equipment out of the site as soon as the data acquisition job is completed and this was the accepted

c. Practice in the industry. The terms of the contract that the company had the option of ordering for acquisition, processing and interpretation of additional data was valid only if the same is asked from the contractor immediately after the original data acquisition job was over.

d. The Management did not mention that there was no system of recording the minutes of negotiation meetings in their replies to the queries from the CTE. The Management also held the offi cers negotiating in the matter responsible for the payment of the mobilization charges.

e. However in view of the clarifi cations provided by

Case Study I


16

the suspected offi cers and further clarifi cations sought from the Management it was reasoned by the vigilance dept. that no malafi de was intended in the payment of the mobilization charges to the contractor. The same was conveyed to the CVC.

6. Observation of the CVC:

The Central Vigilance Commission advised the CVO that the offi cers should be warned to be more careful in future.

Case Study 2

Synopsis of Complaint No. yyy

Source of complaint:

A complaint was registered on the basis of study of documents relating to complaint No. yyy, in which irregularity relating to performance bank guarantee (PBG) for contract no zzz (laying of HDPE duct) were observed.

Gist of Allegation :

1) PBG was not renewed though the contract period was extended.

2) PBG was not enhanced though contract value was enhanced from Rs. 13.51 Crore to Rs. 22.09 Crore.

Brief background:

The job of laying HDPE duct for Optical Fibre Cable along Oil Pipeline from Naharkatiaya, Assam to Barauni, Bihar. For one part of 942 km was given to M/s qqq Ltd, vide contract zzz dated 18.09.2003. The original contract value was

Rs. 13.51 Crore with target completion date of 31.07.2004. However it was extended to 31.12.2005 without imposition of LD, and contract value was enhanced by Rs. 8.58 Cr to Rs.22.09 Crore with approval of CBC dated 14.09.2005 . The target date was further delayed to 30.04.2007 with imposition of LD.

During investigation it emerged that PBG was renewed up to 31.03.2008, which was one year beyond revised project completion date of 30.04.2007. Hence PBG was valid. OIL offi cers made suffi cient eff ort to obtain enhanced PBG from the contractor, on failure of which, it was decided to withhold 10% of all payments against actual job done by contractor till PBG is not furnished to safeguard the interest of the Company. However, since approval to adopt this procedure to deduct 10% from running bills of the vendor was not obtained from the competent authority this could be perceived as procedural lapse.

Conclusion: Since no malfi de intention was found, it was decided to close the complaint. The Management was advised vide letter to issue warning letter to the concerned offi cers.


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Vigilance Circular I:


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Corporate Offi ce: OIL House, Plot Number 19, Sector 16A, Noida, District Gautam Budh Nagar, Uttar Pradesh 201301, IndiaTel: +91 (120) 2488 333. Website : www.oil-india.com

Disclaimer: For internal circulation only. Opinions published are personal opinions of authors.

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