SUMMER INTERNSHIP PROJECT REPORT

ON

CRIMSON PETROLEUM INTERNSHIP

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF BBA

PROGRAM OF SCHOOL OF MANAGEMENT, GD GOENKA UNIVERSITY, GURGAON

ACADEMIC SESSION

UNDER THE GUIDANCE OF:

NAME OF GUIDE: DR. KISHOR KUMAR MORYA
ASSOCIATE PROFESSOR, OPERATION AND SCM

SUBMITTED BY:
NAME OF STUDENT: APURVA SHUKLA
ENROLMENT NO: 162010201004
 Declaration

I hereby declare that the project work submitted to G.D.Goenka University, is a record of an
original work done by me under the Guidance of Dr. Kishore Kumar Morya, Associate Professor,
operations and SCM, and this project is submitted of the partial fulfillment of the requirements for
the award of the degree of BBA. The result embodied in the report has not been submitted to any
other university or institute for the award of any degree or diploma.

Apurva Shukla
162010201004
 Table of Content

1. Introduction To the industry ……………………………………………………………… 4

2. Introduction to the Company ……………………………………………………………… 5

3. Job Profile / Activities Performed …………………………………………………………. 6

4. Key Learnings Drawn …………………………………………………………………….... 9

5. Contributions to the organization ……………………………………………………………. 9

6. References and Appendix ………………………………………………………………….. 10

Introduction to the Industry

The petroleum industry is enormous and its activities extend all regions of the world. The
petroleum industry extracts and refines crude petroleum and processes natural gas into a
multitude of products. It is also involved in the distribution and marketing of petroleum-driven
products. Their main fields are Oil and gas field operations, gas plant processing operations,
refining and refinery operations and R&D into refining technology. In the year 2017 the
worldwide gross domestic product range between $75 trillion and $87.5 trillion, in the same year
the oil and gas industry made up for 2% of the World GDP. A major part of the industry is
controlled by OPEC Organizations of the Petroleum Exporting Countries, which is lead by Saudi
Arabia, other countries include UAE, Venezuela, Kuwait, Iran, Iraq, and another 8 members. The
Cartel began in 1960 when the initial 5 countries agreed to join hands and set a common price for
crude oil. In the past few years, Crude oil had hit a all-time high at $163.80 per barrel in 2008,
but the industry faced a tough time in the years to come. In that same year, the prices came
crashing down to $58.12 per barrel, and when they started to recover from the drop in prices in
2014 the prices again crashed to $52.85 per barrel. And in the year 2016, they hit an 18 year low
when the prices dropped to $38.45 per barrel. Since then the industry seems to have partially
recovered as the prices have stayed between $62 - $53.50 per barrel. Other than OPEC there are
a lot of countries that are involved in the Petroleum industry. India itself has the biggest refinery
in the world, made and operated by Reliance Industries in Jamnagar. Some of the major
companies involved in the petroleum industry are Shell, British Petroleum, Indian oil, Aramco,
Qatar Petroleum, Gazprom, ExxonMobil, Sinopec and many more.

The company where i interned is a part of a massive ecosystem in a country run by oil exports as
25% of the Omani GDP consists of the oil industry. In this ecosystem we see three tiers, on top,
sit the big companies who run the ecosystem, companies like PDO, Shell, British Petroleum and
Oman Oil, under them we have sub-contractors who do only specific jobs for the companies
above and under them, we have the contractors who get hired to complete specific tasks.

Introduction to the Company

The company with whom I had completed my summer internship is Crimson Petroleum,
Crimson Petroleum is a subcontracting company to the Petroleum Development of Oman and
Shell. The companies main objective is to provide Beam Pump maintenance and operations for
PDO and Shell. Crimson Petroleum is a subsidiary and a part of Al Madin Group, whose
businesses cover a vast array of industries such as real estate, Insurance, trading, petroleum, and
food production. Crimson petroleum was a small company that had a solid strategy behind its
success, they expertise in creating maintenance teams who were efficient and productive on-site
through carefully planned routine and well-experienced managers who could tackle any
problems on the field. To better understand the companies scope of work we must see into the
Beam Pump. The beam pump is a more traditional form of crude oil extraction. Nowadays these
units are only used to extract a relatively small volume wells. A field has an approximate of 100
beam pumps. Crimson Petroleum had the contract for 3 such fields which were PDO and shell
Assets.

The maintenance of the beam pump shown above in a field was done by a team that consisted of
10 technicians, 2 supervisors, and one site manager. These teams ran shifts of 3 months on and 1
month off.
Most of Crimson petroleums work was on the field so the company office only consisted of a
limited number of employees. The company was at a point where they needed to expand their
operation but the industry was moving towards cheaper labor and cutting costs as the petroleum
industry was at a 10 year low. Crimson at that moment found its answer the problems by becoming
the only retailer in the middle east for the trapper system which would give Beam Pumps a overall
90% output compared with a 70% output without the trapper system.

Job Profile

I was assigned as the assistant GM. My responsibilities were to manage logistics for the various
teams, draft contracts for our contractors, take over the trapper project, and help in the day to day
runnings of the office.

Assistant GM was expected to:

1. Create the logistical planning for 3 months.

2. Draft contracts.
3. Proof check emails.
4. Manage the whole trapper project.
5. Help in managing the teams
6. Handling relations with our site managers.

These were the core areas where they had assigned me to work. Within the duration of the
internship, I had partaken in different aspects of their business which gave me a 360-degree
experience.

Activities performed / Tasks undertaken

● During my first week, I was asked to go through all the material they had on beam pumps
and their existing contracts with the companies. After doing so, I was educated by my
GM and the finance head on how the Omani oil sector works.
● In the second week of office, I was trained on the logistical solutions the company uses to
keep the oil field run smoothly and gradually I was given the charge for all the logistical
work the company undertook. The most common logistical challenge we faced was extra
spare parts are required on the field, so it is my job to source the parts form the city and
get them delivered to the site within 48 hours, or our company would have to pay fines of
$100000 for everyday production gets delayed due to maintenance.
● Within a few days, I got a hang of the job when they asked to handle site manager
relations as well, in the company site manager relation meant that every site manager,
was considered a site head, and due to that they were given extra privileges when they
come to the city for their transit flight. Most of these managers were highly trained
engineers who specialize in beam pump maintenance and due to that, they received a
handsome salary along with additional perks such as 5-star hotels and lavish dinners. I
was given the task where I was to host them and entertain them for the duration of the
stay in the city on behalf of Crimson Petroleum.
● By the fourth week, the GM had given me the responsibility to draft all the contracts
which were to be signed by the company and its business partners.
● Throughout the internship, I was given the trapper project to work on and convince the
chairman of the group to go ahead with the project.

Trapper Project (Sales)

Trapper Project was a venture between Crimson Petroleum and the owner of the idea
Mr.Peter he is the inventor of the trapper system. The system is a hard case that collects
all the spilled oil and collects it in a barrel. The product was a patented product and was
already operational in the US with ExxonMobil, and the product had lasted 3 years
without a problem. At that time Petroleum companies in Oman were very concerned
about their HSE Laws and wanted to make their sites safer for their employees. The plan
was to sell the trapper system to all the middle eastern companies and to do so we signed
a exclusive contract for carrying the product in the middle east region. The next step was
on how to sell the system to these companies, due to 2016s oil prices these companies
were not investing in such systems. So we came up with a way to sell them this product,
the Omani environmental law does not allow the company to cause land pollution. Every
year these companies paid millions in fines due to their leaking Beam pumps and land
pollution, so we pitched the trapper system to the companies where they can avoid these
fines by installing the system for the fraction of the cost. This was seen as a good strategy
by our company chairman and he gave the go-ahead for the project. Due to the chairman's
high reach in the petroleum sector, crimson had got a meeting with the Managing
Directors of 3 different companies who showed interest in the Trapper system. The talks
proceded with two companies, PDO and Shell, in which I was given the task to make the
 whole presentation and help in the negotiations, and successfully we had got both the
contracts which made the company $600000.
This was one of my most elaborate tasks which I was instructed to take over and finish
during my work with crimson petroleum.

These were all the activities I had undertaken during my tenure with crimson petroleum were
Under the guidance of Mr. Alwin Dessa who was the GM of the company.

Key Learning Gained

● This internship was the first time I had got an experience of the corporate side of the business and
there was a lot to learn, due to the experienced staff catching up did not prove to be very hard,
one of the most important things I was taught during the internship was time management, and
time management focused on productivity. They taught me the ways I can manage my time better
at work, which allows me to get done with more work.
 ● I got the opportunity to understand the ins and outs of the Omani bureaucracy behind the oil
industry.
● This internship taught me how to formally communicate with clients in a effective manner where
I get their complete attention.
● Me being for the management side, got a glimpse of the technical aspects of the business because
crimson petroleum is a technical firm, which made me come out of my comfort zone in relation to
work.
● Throughout the trapper project, the most important thing that crimson taught me was the
effectiveness of teamwork and the importance of creating a good team, because there were a lot
of moments throughout the project where it did not seem possible, if the whole team hadn't put in
their effort we would have not sold the product.
● Crimson Petroleum has prepared me to enter the business environment. By giving me the
opportunity to take part in and manage a wide array of tasks in the duration of my internship.

Key Contributions

● My key contribution to the company is my execution of the trapper project, which increased its
revenue for 6 months and opened a new door for the company to expand out of Oman into the
middle eastern market.
● Suggesting the company to change what they were asking for form the trapper project, initially,
the company was only looking for a partnership with Mr. Peter for Oman region, it was my
suggestion that they should ask for becoming the exclusive agent for the middle east as a whole.
Which allowed them to sell to all the middle east oil producers.

References

https://www.macrotrends.net/1369/crude-oil-price-history-chart

Appendix
A.1