Academia-Industry Brainstorm Session 17 th October, 2008

1. Oil & Gas Sector: Academia-Industry Interface & HR Policies Academia-Industry Brainstorm Session 17th October, 2008 Dr.A.K.Balyan, Director(HR), ONGC

2. Presentation Sequence

3. Macro Indian Education & Employability Scenario

4. Oil & Gas Sector : Industry Academia Interface Concerns • Skill Shortages • Skill Mismatch • Quality and Focus in Education • Absence of a structured interface

5. Sector with Major Skill Shortages Source:-FICCI, in its 2007 Survey, has identified Oil Sector as one of the sectors, which deserve immediate attention in terms of promoting skill development and meeting industry requirement.

6. Petroleum Engineering • Chemical Engineering • Civil Engineering • Mechanical Engineering • Electrical Engineering • Electronics Engineering • Instrumentation Engg. Production Engineer Drilling Engineer Cementing Engineer Well Engineer Maintenance Engg. Engineering • MSc(Geology) • MSc(Geophysics) • MSc(Physics+Elex.) • MSc(Botany+Geology) • MSc(Chemistry) • MSc(Mathematics) • Petroleum Engineering • Chemical Engineering Geoscientist Petrophysicist Reservoir Engineer Geo Chemist Field Chemist Geosciences Skill Mismatch : Oil & Gas SectorAcademic Qualifications Vs. Oil Industry Requirements

7. The Focus Issue-Balance the Pyramid • - We need to ensure a correct mix of ITI/Diploma/ Degree Education institutes based on feedback from the Industry • Presently a lot of emphasis seems to be given towards creating facilities for higher education • - Focus on ITI/Diploma courses has to be given to tide over the shortage of technicians in key Industry sectors- Oil Sector requiring it the most

8. Rationale for Interface • In developing countries, onus of development lies mainly with the Government • Govt. faces predicament of multiple demands and limited resources • Govt. alone thus cant meet objectives like interface • On other hand, industry has both resources and purpose to foster interface • However, to ensure a strategic focus, government/ nodal agency needs to set the agenda and monitor the interface

9. Way forwards from earlier meets.. • RGIPT & GERMI set-up • Petrofed Study on Workforce Sustainability and Talent Management in Indian Oil and Gas Industry-2006 • Curriculum developed by DGH in association with IIT, Mumbai , IIT Kharagpur, ISM, Dhanbad,etc…

10. Oil Sector Academia-Industry Structured Interface Model Facilitated by Coordinating Agency Need for setting up a vibrant coordinating agency to promote interface for the oil sector on lines of NASSCOM for the IT Sector

11. Mutual Benefits of Structured Interface • Promote capacity building within academic institutions • Help identify and develop learning opportunities for problem-solving across industries • Eliminate existing voids such as lack of clarity on mutual expectations, lack of trust etc. • Promote applied research

12. Presentation Sequence

13. Critical Talent Trends Shaping HR Practices :Oil & GasSector • Global Trends • Indian Oil and Gas Sector Trends • Challenges for NoCs

14. Global Trends : HR Imperatives for Oil & Gas Sector

15. Talent Trends in the Indian Oil and Gas Sector: HR Imperatives

16. Challenges for the Indian NOCs:HR Imperatives

17. THANK YOU

18. Technical Education in India : An Overview

19. The Quality Issue: State of our ITIs • About 35% of ITIs reported under utilization of seats • Basic industrial trades offered by these ITIs had no market demand • Trades offered by participating ITIs varied between 2- 38 as against 110 government approved trades • 82% of ITIs had placement services • Inadequate supplies of raw material- only 6% of expenses allocated • Shortage of staff- 89% ITIs had staff strength less than the sanctioned strength • 70% of ITIs did not have allocated budget for staff training & development • 28% of the ITIs reported no industry interface • 32% ITIs reported lack of appropriate supervision • TIME for EXCLUSIVE ITI s for Oil Sector Trades

20. Technical Education in India : A Comparison • Challenges For India Vocational Skills in India Compares Unfavorably to other countries. India Receives only 8% formal Vocational Training which is very less. % Source: Efficiency training Study Report by ILO

21. The Oil Sector Structured Interface Roadmap Nodal Agency to:- • Maintain & Analyze Data from Academia( Courses Details being conducted in Academia) and Industry ( Requirement of Fresh Talent –Discipline wise and Competencies required) • Coordinate with national/ global faculty and industry domain experts regarding inputs for upgradation in curricula • Collect and Analyze Data from World Energy Outlook Report/Indian Plan Data/ Hydrocarbon Vision about the long term/ short term projections for the sector • Based on Interpretation from above, prepare annual report on requirement of additional capacities from acacdemia

22. The Oil Sector Structured Interface Roadmap • Coordinate with Industry and obtain requirements for collaborative research projects .Identify academic institutions best suited for taking up such research projects. • Collect , analyse and synchronise requirements from academia and industry for exchange programmes • Conduct coursewise rating assessment of courses being conducted at various academic institutions • Assess/Moderate requirements from Academia for financial support / opening up new centres for petroleum engineering/ geosciences. Forward such requirement to relevant players in the sector( upstream/ midstream/ downstream) • Facilitate student- industry interface by facilitating in identifying The coordinating agency wou can facilitate a more planned ,structured and meaningful academic interface for the entire petroleum industry of India rather than the piecemeal initiatives taken up individual Corporates

23. Oil Industry :Worldwide Investment 250 • Historically, 70% of industry investment has been targeted at the upstream • However, both upstream and downstream projects draw personnel from the same talent pool Source: 2006 IEA 2006 World Energy Outlook

24. Entry Level Talent : India Projected Requirement every year *Geophysics – 150 per annum required from 2009 **Geologist – 100 per annum required from 2009 -2011 Source:- PwC Study for Petrofed -2006

25. Innovative Sourcing • Aggressive Recruitment up 50% over the previous year • Job Fairs for specific disciplines- Two held at the sidelines of the SPG Conference in 2006 and 2008 • Re-employment for executives and Engagement of experienced superannuated professionals as Advisors/Consultants • Tenure Base Recruitment for Executives and Staff- Getting the buy-in of the stakeholders that even for a PSU, tenure employment is the need of the hour for E&P Companies

26. Creating a Strong Employer Brand Sustained Internal and External Communications highlighted through success stories, have helped in creating a perception of ONGC as :- • A major player in country’s economy in an important sector • An ‘Integrated Major’ with a global presence with interests in sectors like Refining, Power, Alternate Energy. • Preferred Employer amongst Corporates

27. Oil Industry-Misperceptions • Not high tech or creative • Running out of oil & gas • No industry growth or advancement opportunity • Not enough jobs for graduates • PE is a narrow discipline • E&P industry has a hire & fire mentality • E&P industry is environmentally unfriendly & unpopular

28. Reality • Stable jobs for the future • Jobs are high tech & exciting • Fossil fuels will continue to play a central role in our energy future • PE is a core engineering discipline that can handle a broad array of subsurface problems • Fiscally & environmentally responsible use of fossil fuels is our best energy option We need to get the message out

29. Image Problem • Dick Chaney (past Halliburton CEO): “As a former member of Congress, I’m probably the only person whose image was improved by coming to the oil industry.” OTC Panel Discussion • R.D. Blue (ExxonMobil): “Our industry has an image problem that comes from lack of getting the message out.” NY TIMES, July 1, 2001

30. Heightened Exploration Activity

31. Functional Excellence and Business Leadership Super Unnati Prayas Multi-skilling ITI Certification Courses

32. Successful Retention Strategies • World Class Training / • e-learning • Work associations with Global Operators • Stretch Assignments and Global exposure • Dual Career Ladders • Re-employment of Former employees • Tenure-Engagement • Hiring Specialists as Advisors and Consultants • Best Social Security, Retiral and Medical Benefits • Generous welfare measures • Comprehensive Education Support to wards • Work-Life Balance Avenues

33. Pay Making Decisions – Examples from across the world Source: Mercer Consulting

34. Prevailing relativities in different countries Source: Mercer Consulting

35. Competitiveness of PSE salariesOil and Gas Sector Bar graph – Private Sector salaries Line graph – PSE salaries Source: Mercer TRS Surveys

36. ONGC: Academia Interface Initiatives

37. Compensation-5TH Biggest factor affecting attrition in 2000 Insufficient career advancement opportunities Better wealth-creation opportunity elsewhere Don’t feel valued by my company Insufficient reward or recognition Higher salary and benefits elsewhere Insufficient development and learning Interesting, exciting people elsewhere Work not interesting or challenging enough Unable to meet personal/family needs Don’t like the company culture Insufficient feedback and coaching Company’s future uncertain or threatened Change in my career goals Little support for my initiatives My supervisor is a low performer Company has too many low performers Job causes too much stress 69 67 65 65 64 57 57 55 55 47 44 44 38 38 36 34 34 (Source-Mckinsey Study-2000 of 35 Top Companies Worldwide)

38. Compensation – Biggest factor affecting attrition in 2007 Source: Hewitt Study-2007

39. Attrition: ONGC