Challenges Faced By SR Limited In Oil And Gas Exploration And Production

1. Challenges faced by SR Limited

2. Analysis of the problem faced by SR Limited?

A brief description about the report presented of the SR Limited which is oil and gas exploration and production organization and the organization facing some challenges regarding finance, drill test, field licensing, and various ethical issues. According to this report analysis the problems facing by the SR Limited and their recommendations will be mentioned over here(Sternberg, E. (2009). SR Limited is facing different kind of problems which is related to exploration and production of oil and gas industry. SR limited has to plan before testing their new field of oil and gas exploration. SR Limited confirmed their license for their new field which faces many problems in the process (Anon, 2015). As in an uncertain military attack affected their outsourcing and partnership activities. And as well as the workers of this company suffers a lot because company stops their production work for some time.(Abbe, Grimes and Fowler, 2011). The recommendationabout the company report is about analysis of problems and different reason affects the business activity of the SR Limited.

SR Limited isfaces various difficulties regarding their financial, ethical, site issues and as well as political activities etc. This company has beenfacing various problems regarding exploration and production of oil and gas (Inkpen and Moffett, 2011). This organization is during testing their new field for exploration of oil and gas, getting confirm license for the new field and other process faces several problems which affect their business production (Anon, 2015). The particular important challenges faced by company which is define with the case study, they need to think when they have to increase or decrease their financial structure for testing. SR Limited has to think about increasing the expenditure cost for drilling process for new field organization having some problems related to field size and drilling length to find oil sources expenses.The company is more dependent on fossil fuels and natural fuels. Lack of fuel may lead company to drill some more new refinery otherwise they need to shut down the production. The SR Limited for the final product development always depends upon the drilling and search of new field. According to case study major factors are related to government policiesCorrigendum. (2013).

SR Limited have all process are coordinated and directed by the corporate governance. Stakeholders and customers are mainly affected by the industries governance structure. Some more corporate responsibilities in UK are facing problems which are related to these industries. Corporate social responsibility helps companies to work under governance which is maintained by the legal authority for oil and gas industry. According to case study of Apache field SR Limited and Boring Holes in UK did partnership within the company. Because of military attack incident affects the work relationship between these companies. The recommendation in the report is after analyze the reason behind the difficulties and the other causes which affects the business process of the company from the depth of SR LIMITED is not available to bear this much negative effects in the business.According to the research it comes to know that this company is unable to manage their outsourced activities. SR Limited planning for its long term process, decided about all the consideration about their need of fossil fuelsCorrigendum. (2013). the lack of fossil fuels and renewable resources may lead company towards loss.Because of limited quantity of fossil fuels mostly company has to face lots of difficulties. There are three kinds of business run by the company is upstream, downstream and midstream. For exploration of production of oil and gas, mainly company uses upstream butif upstream process can be get affected so other two also won’t work. The whole problems in the company regarding production can be because of internal factors.Similarly, all the production activities can get affected because of the external factors as well which is depends upon the scenarios of the workplace which is related to the organization.

Analysis of the Problem Faced by SR Limited

SR Limited has been faced different kind of problems during exploration and production of oil and gas which may lead because of internal and external factors. The external factors are mainly all legal and framework, and policies made by the organization. According to case study, because of the less expenditure limit company is not able to get license for its fourth oil field(Kotler, P. and Lee, N. (2005).

SR Limited is weakest company among its competitors in oil and gas production industry because of that company is not able to fulfill its financial obligation. As according to the financial performance of the company SR Limited that revenue of the organization is same for the two supplies nation in 31march, 2014. The gross profit of company is average of 48% for the year 31march, 2015 and as well distribution cost the company is also unchanged in the year 2014.working capital of the organization is also reduced of $10million and also the level of the accounts payable is increase with $5million because of longer payment period.Taxation activities of the company are also payable at 24% of all earnings of the company after 9 months for the financial year. At the other hand the noncurrent assets of the company is now at $30 million and dividend is also paid to maintain the relationship between shareholders of the company.

The insufficient amount of fossil fuel and renewable energy resources in the future can destroy the production of oil and gas. Companies haverearranged the tasks for their fuel management for future purpose otherwise it may get shut down because of its non-moving production process. The important of the case study which may destroy the production process because of the government regulationsJahdi, K. (2014).

According to the case study, it is mentioned that company with whom SR Limited used to work was affected due to military attack on the area. Company’s corporate governance, financial capability and others activities may arise some difficulties. According to the case study, the company is not able to take proper decision about their production process(Douglass, L. (2011). Company gets affected because of improper planning of the new work. According to the case study SR Limited was not planned about their work plan properly and improper estimation affects the business activities. The problem faced by the company because of license activity due to improper finance allocated by company for their supplier and creditors of SR Limited and its effects the different testing process of new fields .

With the point of view of a management consultant of SR Limited the suggestion regarding all the problems faced by the company because of improper flow of financial capability. By savings and make proper financial planning company can save themselves with future crisis. As in an uncertain military attack affected their outsourcing and partnership activities. And as well as the workers of this company suffers a lot because company stops their production work for some time. The recommendation about the company report is about analysis of problems and different reason affects the business activity of the SR Limited.

Recommendations

Company must be managing the policies and framework which is assigned by the management of the company. In the negotiation process of the SR limited, company always needs to follow ethical way. Oil and gas production is interring dependent on fuels and renewable energy resources.Company has to safe adequate number of fossils for their future performance. And also stop the wastage of resources while production, organization should train their employees for this to avoid misuse of recourses(Norwood, 2014).

The insufficient amount of fossil fuel and renewable energy resources in the future can destroy the production of oil and gas. Companies have rearranged the tasks for their fuel management for future purpose otherwise it may get shut down because of its non-moving production process. The important of the case study which may destroy the production process because of the government regulationsIdowu, S., Capaldi, N., Zu, L. and Das Gupta, A. (2013).

This is kind information for the all companies which is sincerely follow the rules of corporate social responsibility and maintain all the work in an ethical way. Maintaining ethics always gives good impacts to the business process at all manner. According to the study of cases is mainly mention that company is get effected because of unsystematic risk for that any company is not prepared properly.SR Limited must give support to the company by enhancing their power with both internal and external elements. The suggestion regarding maintaining the correlation with government bodies, companyalways have to do planning in a good manner and considering all the government authority and other factors in consideration for decoding about location for production activity.

There are different Step process can be used by the organization for their better future. For example when drill test of field is required they should do it otherwise the production cycle of oil and gas will be affected. SR Limited must have to focus on their initial planning and all the related work which is attached with planning like business environment and as well as rules & expenses manage by the companyEkhator, E. (2014).

This company SR Limited should have estimation of their maintenance of their all cost related to exploration, production, or it can be for outsourcing process for production activities.As shown in the case study that company has faced lots of problems which is related to drilling and licensing issues because of some financial crisis and ethical issues. For starting a new location process this organization should analyze the process cost of all different factors which may related to cost of land or location of fieldEdjenekpo, L. (n.d.).

SR Limited need to plan for their Long term plans by taking into consideration of their all available resources and as well as all needed resources for their production of oil and gas.This company should have all the estimated cost for production and exploration process. The gross profit of company is average of 48% for the year 31march, 2015 and as well distribution cost the company is also unchanged in the year 2014.working capital of the organization is also reduced of $10 million and also the level of the accounts payable is increase with $5 million because of longer payment period.

Taxation activities of the company are also payable at 24% of all earnings of the company after 9 months for the financial year. At the other hand the noncurrent assets of the company is now at $30 million and dividend is also paid to maintain the relationship between shareholders of the company. This company must give afford to inspire their workforce as a team for the better accountability of the company.The results for case study recommendations for SR Limited should try to provide their employees security in oil and gas production locations for this reasons company will give more potentials to the image of the company for future enhancement.

Conclusion

According to the entire discussion in the case study make the conclusions that SR Limited is oil and gas production organization which currently is having various problems regarding their financial and as well others business related issues. According to the case study, industry is completely dependent on raw resources and lack of resources may lead company’s production will be affected. SR limited has to plan before testing their new field of oil and gas exploration. SR Limited confirmed their license for their new field which faces many problems in the process (Anon, 2015).

The inefficient management of company is unable to take decision about their financial ability and also operational activity.All the analysis above is showing the all the difficulty suffers by the company during their production activity of oil and gas. SR Limited is weakest company among its competitors in oil and gas production industry because of that company is not able to fulfill its financial obligation. As according to the financial performance of the company SR Limited that revenue of the organization is same for the two supplies nation in 31march, 2014Blowfield, M. and Murray, A. (2011). According to the market research the company is having stable future ahead. The board of directors of the company discussed in the meeting that SR Limited required defining their long term goals especially about their continuous lack of sustainability of fossil fuels. This organization is already stable in the field of oil and gas industry from long time back but due certain changes in market company is loses its holds in oil and gas market.

Reference

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