INTERNSHIP REPORT

On
Oil And Gas Development
Company Limited Head Office
Islamabad
(OGDCL)

Oil and gas development company limited

 My Introdution:

Submitted To: Oil And Gas Development Company Limited

Head Office Islamabad

Submitted By: Zulqarnain Haider Ali

BE-09-51

Institute of Management Science

BZU(Multan)

Oil and gas development company limited

 3

Oil and gas development company limited

(OGDC Head Office Isalamabad)

Oil and gas development company limited

 Table of Content
Sr # Tittle page no
1 Company Introduction 05
2 Vision, Mission statement & Product line 06
3 Company History 07
4 Core values 09
5 Goals & objectives 10
6 OGDC Structure 11
7 OGDC Main Department 13
8 Functions Of Departments 15
9 Career Planning Cell 24
10 Promotion Criteria & Components 27
11 Business Volume 33
12 Graphical represantations of Oil,Gas,LPG, and Sulphur 35
13 OGDC Top Management 38
14 OGDC Fields 38
15 Flow Chart of Oil,Gas And LPG Production 44
16 Ongoing Projects of OGDC 45
17 Business Strategy 48
18 Petro Research and Training Institute 49
19 SWOT Analysis 52
20 Problems and Suggestions 56
21 Conclusion 59
22 Bibllography 59

Oil and gas development company limited

 Brief Introduction of OGDCL:

OGDCL is the National Oil & Gas Company of Pakistan and the
Flagship of the Country’s E&P sector. The Company is a Market
leader in Pakistan, in terms of reserves, production and Acreage.
It is not only listed on the three major stock exchanges of
Pakistan but it is also listed on the London Stock Exchange since
December 2006. The Company is all set to ride the waveof E&P
activity. Equipped with its Vision & Mission, Business and
Strategic Plan, A debt-free and robust balance sheet and healthy
cash reserve OGDCL, is ready to take on the challenges of a
volatile E&P industry. The OGDCL is Pakistan’s leading company
operating in Pakistan as a leader and pioneer in the natural gas
exploration & production market. It holds a top position in all areas
of the country’s gas business. The key aspiration of OGDCL
Group is to be the leader of the liberalized energy market in
Pakistan. And also to achieve a leading position in the region
while maintaining the status of the national leader in the natural
gas market.

Oil and gas development company limited

 Vision statement:
“To be a leading multinational Exploration and Production Company.”
Mission statement:
“To become the leading provider of oil and gas to the country by increasing
exploration and production both domestically and internationally, utilizing all
options including strategic alliances.

To continuously realign ourselves to meet the expectations of our

stakeholders through best management practices, the use of latest
technology, and innovation for sustainable growth, while being socially
responsible.”

Name & Address of Company

Oil and Gas Development Company Limited (OGDCL). House, Jinnah Avenue, Blue
Area, Islamabad, Pakistan.

Telephone: 051-9209701

Fax No: 051-9209708

Product line:

In the product line of OGDCL, the following are its products by which it is earning profits:

 Crude Oil.

 Gas.

 LPG.

 Sulphur.

 Gasoline/High and Low Speed Diesel.

 Kerosene Oil.

Oil and gas development company limited

  Naphtha.

 Solvent Oil.

Company History:
Prior to OGDCL:

Prior to OGDCL's emergence, exploration activities in the country were carried out by
Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL
discovered a giant gas field at Sui in Baluchistan. This discovery generated immense
interest in exploration and five major foreign oil companies entered into concession
agreements with the Government.

During the 1950s, these companies carried out extensive geological and geophysical
surveys and drilled 47 exploratory wells. As a result, a few small gas fields were
discovered. Despite these gas discoveries, exploration activity after having reached its
peak in mid-1950s, declined in the late fifties. Private Companies whose main objective
was to earn profit were not interested in developing the gas discoveries especially when
infrastructure and demand for gas was non-existent. With exploration activity at its
lowest ebb several foreign exploration contracting companies terminated their operation
and either reduced or relinquished land holdings in 1961.

Establishment of OGDC:

To revive exploration in the energy sector the Government of Pakistan signed a long-
term loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27
million Rubles to finance equipment and services of Soviet experts for exploration.
Pursuant to the Agreement, OGDC was created under an Ordinance dated 20th
September 1961. The Corporation was charged with responsibility to undertake a well
thought out and systematic exploratory programmes and to plan and promote Pakistan's
oil and gas prospects.

As an instrument of policy in the oil and gas sector, the Corporation followed the
Government instructions in matters of exploration and development. The day to day
management was however, vested in a five-member Board of Directors appointed by
the Government. In the initial stages the financial resources were arranged by the GOP
as the OGDC lacked the ways and means to raise the risk capital. The first 10 to 15

Oil and gas development company limited

years were devoted to development of manpower and building of infrastructure to
undertake much larger exploration programmes.

Initial sucesses :
A number of donor agencies such as the World Bank, Canadian International
Development Agency (CIDA) and the Asian Development Bank provided the impetus
through assistance for major development projects in the form of loans and grants.
OGDC's concerted efforts were very successful as they resulted in a number of major
oil and gas discoveries between 1968 and 1982. Toot oil field was discovered in 1968
which paved the way for further exploratory work in the North. During the period 1970-
75, the Company reformed the strategy for updating its equipment base and undertook
a very aggressive work programme. This resulted in discovery of a number of oil and
gas fields in the Eighties, thus giving the Company a measure of financial
independence. These include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak
oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields which are
commercial discoveries that testify to the professional capabilities of the Corporation .

Transition to a self finance entity:

Noting the Company's success, due to major oil and gas discoveries in the eighties, the
Government in July 1989, off-loaded the Company from the Federal Budget and
allowed it to manage its activities with self generated funds.

The financial year 1989-90, was OGDC's first year of self-financing. It was a great
challenge for OGDC. The obvious initial target during the first year of self-financing was
to generate sufficient resources to maintain the momentum of exploration and
development at a pace envisaged in the Public Sector Development Programme
(PSDP) as well as to meet its debt servicing obligations. OGDC not only generated
enough internal funds to meet its debt obligations but also invested enough resources in
exploration and development to increase the country's reserves and production.

Conversion into publrc limited company:

Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as
OGDC (Oil & Gas Development Corporation). It has been incorporated as a Public
Limited Company w.e.f. 23 October 1997 and is now known as OGDCL (Oil & Gas
Development Company Ltd.).
9

Oil and gas development company limited

initial public offering:
Government of Pakistan disinvested part of its shareholding in the company in 2003.
Initially 2.5% of the equity with an additional green-shoe option upto 2.5% of equity was
offered to the general public. The said Offer received an overwhelming response from
the general public and was recorded as a landmark transaction in the history of
Pakistan’s capital markets.

GDR( Gross domestic rate):

In December 2006, the Government of Pakistan divested a further 10% of its holding in
the company. The Company is now listed on the London Stock Exchange since on
December 06, 2006

OGDCL core values:

The core values of OGDCL (Oil and Gas Development Company limited) is given
below:

 Merit
 Integrity
 Team work
 Safety
 Dedication
 innovation

Goals and Objectives:

Financial goals:

 Build strategic reserves for future growth/expansion

 Growth and superior returns to all stakeholders
 Double the value of the company in the next five years.

Internal processing goals:

 Evolve consensus through consultative process inter-linking activities of all
departments
 Excel in exploration, development and commercialization
 Be transparent in all business transactions

10

Oil and gas development company limited

  Synergize through effective business practices and teamwork
 Periodic business process reengineering.

Learning and growth:

 Motivate our work force, and enhance their technical, managerial and business
skills through modern HR practices.
 Acquire, learn and apply state-of-the-art technology.
 Attain full autonomy in financial and decision making matters.

Customer:

 Improve reliability and efficiency of supply to the customer.

 Be a responsible corporate citizen

Organizational structure
MAIN OFFICES:
OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional
Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices
in Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational
structure is as under

A Board of Directors comprising twelve Directors, all of whom are nominated by the
Ministry of Petroleum and Natural Resources, is responsible for policy related issues.
The autonomous Board is headed by a non-executive Chairman and there is a
Managing Director/Chief Executive Officer.

Following are the main offices located throughout Pakistan:

 OGDCL Head Office, Jinnah Avenue Islamabad.

 Pirkoh Gas Company Private Limited, Islamabad.
 OGDCL Regional Office, Shafi Chamber, Karachi
 OGDCL Regional Office, Multan
 OGDCL Liaison Office, Quetta
 OGDCL Liaison Office, Sukkur
 OGDCL West Wharf Office, Karachi
11

Oil and gas development company limited

 OGDCL Base Store, Islamabad
 OGDCL Base Store, Khadiji, Karachi
 OGDCL Base Store, Korangi
 OGDCL Base Store, Kot Addu
 Medical Centers, Islamabad, Rawalpindi & Karachi
 OGDCL Workshops, Islamabad
 Oil & Gas Training Institute, Islamabad.

12

Oil and gas development company limited

Organizational Hierarchy

(Organizational Hierarchy of OGDCL)

MAIN DEPARTMENTS:

13

Oil and gas development company limited

Corporate Departments:
 Administration Department
 Human Resource Department
 Personnel Department
 Commercial Department
 Security Department
 Legal / Regulation Department
 Communication Department
 Procurement Department
 Payroll Department
 Joint venture Department
 Stores Department
 Finance & Accounts Department
 Audit Department

E&P Departments:
 Exploration Department
 Exploitation Department
 Production Department
 Process Department

Technical Services Department:

 Drilling Department
 Data Logging Department
 Mud Engineering Department
 Well Services Department
 Cementation Department
 Geological Well Supervision Department
14

Oil and gas development company limited

 Engineering Department
 Wire line Logging Department
 Geological Department
 Data Processing Department

Functions of different Departments

15

Oil and gas development company limited

PERSSONEL DEPARTMENT:
 Maintenance of service record of employees from their induction to retirement
and beyond.
 Transfers –Postings.
 Maintenance of seniority.
 Handling of Personnel grievances.
 Processing of Pension / EOBI and retirement cases.
 Implementation of CBA Management’s agreement’s after every two year’s
duration..
 Maintenance of Database-Computerization.
 Responses to Senate, National Assembly Questions / Other Government
Agencies.
HUMAN RESOURCE DEPARTMENT:

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department.
So whenever any new employees recruit OGDC , the concerned section maintained this
personnel record from the first day. Every employee have their own personal file in
personnel department.

Correspondence
The personnel department also maintained the record of each employee for promotion,
the minimum time for promotion is five years. So at the end of every year they check the
record of each employee, his ACR (Annual Confidential Report) , experience
qualification etc . Similarly if any employee want to leave more than 48 days which are
Official than concerned department will approval them and send to t6he personnel
section. In short any type of personal problem or work will maintain in his personal files
with personnel department. It’s called correspondence.

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for
employees. There are three types of employees in OGDC.

 Executive Group (EGI - EGIII)

 Staff (1 - 16)

16

Oil and gas development company limited

  Contractual Staff

Recently personnel department has computerized the whole process to reduce the
burden, whenever they want any type of data immediately, call to computer. They have
their own computer section.

PUBLIC RELATION DEPARTMENT

Public relation department is one of the permanent departments of OGDC.

Unfortunately it cannot surely say that on which date and year it was established in
OGDCL.

Initially it was started and performs duties in Karachi, but in 1985 shifted to Islamabad
along with whole records.
Public relation department is more concerned with press. The main objective is to
provide accurate and an esteem information to the general public about OGDCL’s
functions that what OGDCL is doing. For the development of oil and gas sometime
press conference also arranged for this purpose.

Public relation department deliberate plan and sustained efforts to established and
maintain natural understanding between an organization and its public.

It also performs the function to maintain the relation between the management and staff.

Public relation department operates various methods and procedures to inform the
public. Various types of newspapers are mostly used to inform the public. Through
newspapers they give advertisement about OGDCL.

HOUSING SECTION:
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCL’s staff member to hire houses for their
accommodation. It has many functions they are:-

 Hiring of houses for the employees of OGDCL.

 Hiring of building for offices and lodges at Islamabad.

 Hiring of lodges, rest houses for staff and officer at big cities like Lahore, Karachi
Peshawar etc.

17

Oil and gas development company limited

Functions :

Actually PAO is the head of two major sections, that in general admin section and
housing section. All type of documents/cases are tabled to the PAO for verification and
signed. He may approve the legal cases and also has the power to reject illegal cases.
Particularly in housing cases the approval of PAO is must.

The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required party/person. He is the in charge of overall staff of both sections.

TRANSPORT SECTION:
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad. Various types of vehicle they provide to the officers /
staff in various shapes.

Vehicle for Entitled Officer

Manager they provide official vehicles for duty.

Vehicle for General Duty

For each department they provide special vehicle for emergency cases.

Vehicle for Pick and Drops

Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties.

Verifier Field Duties

At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency.

Vehicles for Foreigners

Similarly some vehicles are available for engineers and other staff.

ORGANIZATION OF LEGAL SERVICE DEPARTMENT:

Legal service department is one of the most simple and little department but its
functions are always maintained on climax position in OGDCL. To deal with court and
legal cases, whenever occur in OGDCL. If any body from outside accused on OGDCL
in any affair, then legal service department stands from management side of OGDCL.
They have their own advocates, but mostly they consult with outside advocates on
various fees.
18

Oil and gas development company limited

On the other side when OGDCL claims on any person or body of person, so at this also
they deals the cases same as above. But when inside OGDCL any employee appeal
against any officer under the section rule 25, so if the case is lower level then legal
service department delete that claim by negotiation with employee. After that if the
employee is frustrated then he can go to the court for appeal. It is not essential for
employee as well as for legal service department that they hire advocate for case.
Employee can witness in court personally, but legal service department are always
advocates from the management side. It is the information from the department that
mostly cases are go in favors of OGDCL.

Medical Center Department Organogram / Structure:

Manager Medical Services

It is the head of the medical services and is responsible for,

 To manage the medical centers of the corporation.

 To provide medical facilities to the corporation employees.

OGDCL Medical Centre Islamabad Function

 To check the OPD patients

 To check the OPD bills.

Every year medical centre make an arrangement with any drug store on 6% discount. It
is a permanent discount so after check up, the patient may receive the drugs from that
particular drug store. For verification the owner of the drug store send bills to the DCMO
at the each month. DCMO checks and make verification and signed on those bills. After
that they refer the bills to the account department for payment. Vaccination programmed
is also processed in MC. They keep money for vaccination.

Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at M.C Islamabad.

Hospitalization
Patients are referred for hospitalization as and when required to hospital/nursing, homes
/specialist on the panel of the corporation and re-imbursement is allowed when such facilities
are not availed.

19

Oil and gas development company limited

Medicines
Medicines are provided to patients from entitle panelist chemist through prescription.
Emergency drug are also kept at both medical centre to meet any emergency.

Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose.

Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty..

PENSION AND WELFARE SECTION

Welfare Section
It is just like a bridge between the union and management. It is also a proper channel
between the two bodies.

Functions of Welfare Section

Various types of functions performed by the welfare section are as under:-

 To deal with union matters.

 To provide facilities to the staff members of their families.

 Grant of house building advance.

 Conveyance advance, to give amount to the staff members after five years in
OGDCL for conveyance.

 Distress grant, at the time when any staff member die, the amount will be given to
his wife.

 Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their
income
Similarly large number of facilities they provide to the staff member, due to the
arrangement with management. The union and management make on agreement after
every two years. Welfare section negotiates with union from the management side.

20

Oil and gas development company limited

PENSION SECTION
Pension was introduced in OGDCL after 1984. After 10 years in OGDCL the staff
member qualified for pension and after 25. Years he can demand for pension. The
super innovation of the pension is maximum 60 Years. After 60 years he can not stay
more. Accommodation allowance is 50% of the growth monthly pension supposes that
on the age of 25 years of service his pension will be counted of the 14th scale employee.

As a whole it means that OGDCL will provide pension till 15 years and something. After
that the pension allowance will be counted again.

RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees.

Functions of Recruitment Section

Recruitment section basically performs the following functions.

Analyze the recruitment of employees in each department.

 To recruit new candidates as a trainee.

 To recruit the experimental employees for higher jobs.

 To take examination and interview of new and experimental candidates.

Organogram/ Structure:
After circulation to every department they analyze that how many employees perform
their duties and how many are required and they take a deficiency with his scale. This
procedure is called organogram.

After the completion of organogram they take the official approval from chairman
and give advertisement through public relation department of the most required
vacancies.

The recruitment procedure of the OGDCL is mostly related with CSS of Pakistan .i.e. as
under:-

Merit 10%

21

Oil and gas development company limited

Punjab 50%

Sindh rural 11.4%

Sindh urban 7.6%

N.W.F.P 11.5%

Baluchistan 3.5%

Fata 04%

A.j.k 02%

After the advertisement they receive application from all Pakistan and take written
examination. This examination is held in those departments, where the candidate want
to join and that department send the result to recruitment section.

The selection procedure is recently shortly changed and is as under:-

Written Test 40%weitage

Experience 30%weitage

Academic Qualification 30%weitage

The time for a written test is usually one hour. Those candidates who qualified the test
then they send a call for interview if they are not low merit. It should be kept in mind that
the interview has no value and no marks. It is just only for to and to analyze the
courage, boldness communication skill, convincing power and also his dealing with
other people.

Recruitment Types:

Regular

Contract Basis

Trainees – Special Trainees

Hiring through Contractor

22

Oil and gas development company limited

Classified appointment

DISCIPLINE SECTION:
Functions
Discipline section deals with those matters which depend upon any misbehavior, mis-
conduct or any offence which occur in fields and offices by the employees. In OGDCL
there is delegation of powers .Every higher authority can take action against that evil.
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of
1973.

ODGCL Servants (Efficiency and Discipline) Rules-1973.

Government servant (efficiency and discipline) rules 1960 which were adopted in the
draft service rules vide part-II statutory notification (SRO) govt of Pakistan cabinet
secretariat(established division) notification No.SRO-1213(1)/73 published in the
gazette of Pakistan enter ordinary dated 18-08-1973.These new rules have been
adopted by the oil and gas developing company limited and matters relating to
efficiency and discipline of the employees shall henceforth be governed by the OGDCL
servants rules 1973 being issued as annex.

Penalties
The following are the minor and major penalties namely:

Minor Penalties
 Censure; With holding for a specific period, promotion are increment, otherwise then
for unfitness for promotion financial advancement, in accordance with the rules or
orders pertaining to the service or post.

 Stoppage for a specific period, at an efficiency bar in the time scale, other wise then
for unfitness to cross such bars.

 Recovery from the pay of the whole or any part of any pecuniary (minority) loss
caused to corporation by negligence or breach of orders.

Major Penalties
 Reduction to a lower post or time scale, or to a lower stage in a time scale .
23

Oil and gas development company limited

 Compulsory retirement.

 Removal from service and

 Dismissal from service.

 Removal from the service does not but the dismissal from the service does disqualify
for future in this rule, removal or dismissal from service does not include the
discharge of a person.

Appeal
There will be no appeal against minor penalties. However, a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities.

Provided that whether the penalties are imposed by order of the board of directors,
there shall be no appeal but the person concerned may apply for review of the order .

Note
The chairman’s approval is necessary at all the stages for issuing the show cause
notices and enquiry letter for awarding the final punishment.

CAREER PLANNING CELL:

“Career Planning Cell attained independent status in 1992. Before, it was the
Personnel department dealing in”

Career Planning
Career planning is basically career orientation and career development. Career
planning section is under the control of personnel manager. It informs the employees of
OGDCL about their future planning. That what he performs his duty and also they

24

Oil and gas development company limited

prescribed to the employees their operational set up. It informs the employees that what
they will do after 5 years And 10 years.

Promotion is main figure of career planning section. The elaboration is as under:-

The promotion and recruitment criteria of the corporation was notified vide O. M.N.AA,
0103-15 dated 12 November, 1984, where after a few clarifications were also issued
from time to time. However, there have been some problems in application of the
promotion criteria in some cases. Therefore to remove these difficulties, the promotion
criteria has been reviewed and revised under the guidance of the executive directors.

The revised promotion criteria are notified herewith which shall be effective from first
July, 1991.

Performance appraisal

Yearly performance reviews are critical. Organizations are hard pressed to find good
reasons why they can’t dedicate an hour long meeting once a year to ensure the mutual
needs of the employee and organization are being met. Performance review help
supervisors feel more honest in their relation ship with their subordinates and feel better
about themselves in their supervisor roles. Subordinates are assured clear
understanding of what expected from them, their own personal strengths and areas for
development and a solid sense of their relationship with their supervisor. Avoiding
performance issues ultimately decrease morale, decrease credibility of management,
decreases the organizations overall effectiveness and wastes more of management’s
time to do what isn’t being done properly.

The scoring system is also having a major impact on effective performance appraisals.
The accuracy and reliability of any scoring system increases with full
descriptions/definitions, and better still with examples for each score band. This gives
everyone the same objective scientific reference points, and reduces subjectivity.

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows:

 Establish a common understanding between the manager (evaluator) and

employee (evaluate) regarding work expectations; mainly, the work to be
accomplished and how the work is to be evaluated.

25

Oil and gas development company limited

 Ongoing assessment of performance and the progress against work expectation.
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations, to correct un acceptable performance before
it was too late, and to reward superior performance with proper praise and
reorganization.
 Formal documentation of performance through the completion of a performance
and development appraisal form appropriate to the job family.
 The formal performance and development appraisal discussion, based on the
completed appraisal form and ending in the construction of a development plan.

All the departments at OGDC are enforce to follow following performance rating

Outstanding 05%

Very Good 20%

Normal 50%

Marginal 20%

Poor 05%

26

Oil and gas development company limited

 Quantification of ACRs (Example)
(EG-II to EG-IX)
Existing
Quantification of ACRs is carried out as explained in the following
hypothetical example
***Formula **Formula

A1 = Very Good 10 Marks Very Good 12 Marks

A = Good 07 “ Good 09 “
B = Average 05 “ Average 05 “
C = Below Average 01 “ Below Average 00 “
D = Poor 00 “
***Work
Year ***Integ-rity **Overall (Out of 60)
Output Quality
1998 Good Good Good 1998 Good Integrity 46
1999 Good Average Good 1999 Good Work 44
2000 Good Average Average 2000 Average Overall 47
2001 V. Good V.Good Good 2001 V.Good Grading
2002 Good V.Good V.Good 2002 V.Good
Score 38 37 (36.5) 36 47 Minimum *44

***Govt Memo Ref # 10(10)-85-C dated 11-08-1985

** OGDC Policy # AAO103-15 dated 13-04-1994
* As per promotion criteria minimum of ACR components marks are added in the
score of qualification, experience, training, technical publication, etc. explained as;

ACRs 44
Requisite Qualification 05
Training course (4 months duration) 02
Technical Publication -
Relevant experience 18
Marks Obtained 69%

27

Oil and gas development company limited

Activities (ACR)

 Career Planning Cell issues comprehensive instructions from time to time to

educate and clear ambiguities.

 On education of ACR writing lectures are arranged by CPC in Head Office

and Field Locations.

 ACR forms have been serialized for officers to minimize duplication/ misuse.
Difficulties (ACR)

 ACRs are not filled/returned according to the notified schedule. Lot of time and
efforts are involved in correspondence.

 Clearly written out instructions notwithstanding, over-writing, use of fluid, mere

marking instead of initials are the most commonly observed problems .

 Lack of consistency in various parts of ACR is frequently noticed.

BASIC COMPONENTS OF THE PROMOTION CRITERIA

Basic component of the promotion criteria with their relatives weight age would be as
under;-

1. Qualification 15%

2. ACR’s 25%

3. Seniority 05%

4. Relevant experience including

experience outside OGDCL 15%

5. Assessment by the promotion

Committee 40%

-------------------------

Total 100%

-------------------------
28

Oil and gas development company limited

 PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994. It’s main components are:

ACRs : 60%

Qualification : 15%
Technical Publications : 05%
Relevant Experience : 20%

Seniority cum fitness is the guiding principal in promotions

PROMOTIONS
STAFF EMPLOYEES
The promotion cases of Staff are evaluated as per Promotion Criteria of 1991
Its highlights are:

ACRs : 25%
Qualification : 15%
Seniority : 05%
Experience : 15%
Evaluations : 40%

Flow chart of promotion of OGDCL employee is given on the next page:

29

Oil and gas development company limited

 Promotions – Flow Chart

Recommendations of the Head of the Department

Incomplete/Pre-mature cases returned. Cases in order retained for processing

Evaluation Sheet, Seniority, ACR Synopsis, Disciplinary Profile and other formalities
completed

Completed case submitted before Departmental Promotion Committee

Approval of the Managing Director/Board of the Directors

Promotion Notification

30

Oil and gas development company limited

 Difficulties (Promotions)
 CPC invites recommendations to reach end February and end August each year.
They are seldom received according to schedule. Consequently, CPC has great
difficulty in meeting the promotion dates of Ist July and Ist December each year.

 Cases are received with inadequate information causing wastage of time and un-
necessary correspondence.

 There is lack of effective communication among departments which causes un-

necessary wastage in time and efforts.

 Absence or lack of clarity of promotion channels.

 Career Planning begins from the Department of the individual. H.O.D has
obligation to pay special attention to the Career development of those in his
Department. Recommendations received in CPC very rarely have that aspect
properly dealt .

Suggestions
 Computerization of record is of great essence for speedy disposal and accuracy
of record.

 CPC is keen for digitalizing ACRs and related record. Consultancy services of a
reputed company will greatly help in this direction.

 Training of staff and officers of CPC in the field of computerization is essential

and primary step.

 On line information system may be developed among Personnel, CPC,

Administration and other related departments. This will speed up information and
provide updated and accurate data.

NO OF EMPLOYEES
31

Oil and gas development company limited

 DOMICILE AND GROUP-WISE SUMMARY

OF OVERALL OFFICIALS

PAY DOMICILE TOTA

GROU L
Mer PUNJA SINDH NWF BALU FAT A
P IN
it B URBA RUR TOT P C- A K
THE
N AL AL
GROU
HISTA
P
N

MANAGEMENT CADRE

M-1 0 0 0 0 0 1 0 0 0 1
EG IX 0 2 1 0 1 0 1 0 0 4
EG VIII 4 3 0 1 11 0 0 0 0 9

EXECUTIVE CADRE

EG VII 3 37 6 1 7 11 1 1 0 60
EG VI 12 102 18 13 31 31 10 4 5 195
EG V 19 116 36 49 85 28 11 10 5 274
EG IV 28 109 29 36 65 34 6 14 6 262
EG III 28 178 57 46 103 28 9 7 3 356
EG II 22 204 17 39 56 38 7 8 3 338
EG I 15 132 28 47 75 18 7 3 2 252
TRAINE 12 69 13 20 33 15 11 8 6 154
ES
TOTAL 143 952 205 252 457 205 63 55 3 1905
0

32

Oil and gas development company limited

 OVERALL STAFF

PAY DOMICILE TOTA

GRO L
Mer PUNJA SINDH NWF BALU FAT A
UP IN
it B URBA RUR TOT P C- A K
THE
N AL AL
GRO
HISTA
UP
N

NON EXECUTIVE CADRE

16 2 163 49 14 63 22 2 1 5 258
15 2 106 12 25 37 20 0 0 5 170
14 0 253 58 109 167 58 7 6 13 504
13 0 4 2 0 2 1 0 0 0 7
12 15 623 59 60 119 113 14 5 31 920
11 0 1 0 0 0 0 0 0 0 1
10 4 148 24 56 80 34 6 2 12 286
9 3 425 45 67 112 79 20 2 12 653
8 5 164 35 95 130 30 11 2 9 351
7 0 93 11 16 27 5 8 0 3 136
6 3 670 94 166 260 102 50 7 17 1109
5 0 99 19 9 28 23 5 0 13 168
4 0 264 28 79 107 30 63 0 17 481
3 0 198 39 31 70 25 29 2 26 350
2 0 324 70 220 290 41 128 1 14 798
1 0 1392 103 705 808 136 566 2 45 2949
TRAINE 6 27 1 2 3 8 8 0 1 53
E

33

Oil and gas development company limited

 TOTAL 40 4954 649 1654 2303 727 917 30 22 9194
3

BUSINESS VOLUME:

OGDCL is using the modern seismic technology for improving its ability to discover the
unexploited oil and gas potential in the country. A number of major institutional reforms
and improvements have been implemented in all areas of operations enabling the
company to take up the challenge of making the country self-reliant in the energy
sector.
As of August 2011, OGDCL has drilled 187 exploratory wells and 239 development
wells since inception. The company has made 60 discoveries with an excellent success
ratio of 1:3. In a short span of only three years OGDCL was successful in making 10
discoveries, 02 Oil discoveries and 08 gas/condensate discoveries. Out of which 09 are
in Sindh and 01 in NWFP. The discovery of well at “CHANDA” kohat is the first
discovery in NWFP and it will open a new era for hydrocarbon exploration in NWFP.

OGDCL financial performance has been consistently improving with sustainable growth
since the time it became a self-financing Company. The Company is the single largest
contributor of more than Rs. 67 billion to the national exchequer in the shape of royalty,
duties, taxes and other payments. Its share in the total Oil & Gas production has been
34% and 21% respectively in the year 2011-12. Its business volume for the last five
years has shown a steady growth as indicated in the schedules given on next page:

34

Oil and gas development company limited

 Business Volume for last Five Years

Product Measurement 2006-07 2007-08 2008-09 2009- 2010-

10 11
Scale

Crude Oil Thousands 8,907 8,535 8,705 9,413 9,941

Barrels

Gas MMCFD 161,534 217,927 245,537 274,006 277,408

LPG M.Tons 93,004 77,402 93,136 90,304 101,322

Sulphur M.Tons 13,445 16,670 23,234 15,889 18,917

35

Oil and gas development company limited

 White Thousands 1,038 998 989 859 890
Petroleum
Barrels
Products

Graphical Representation of last five year Production:

Oil Production
10500
ntitie
Qua

Barr
Tho
usa
nds

els
s

10000
9500
9000
8500
8000
7500
2006-07 2007-08 2008-09 2009-10 2010-11
Years

36

Oil and gas development company limited

 Gas Production
300,000

ant
Qu

itie

Ba
rre
Th
ou

nd
sa

ls
s

s
250,000

200,000

150,000

100,000

50,000

0
2006-07 2007-08 2008-09 2009-10 2010-11

Years

LPG Production
Quan

120,000
Tons
tities
M.

100,000

80,000

60,000

40,000

20,000

0
2006-07 2007-08 2008-09 2009-10 2010-11

Years

37

Oil and gas development company limited

 Sulphur Production
25,000

Quan

Tons
tities
20,000

M.
15,000

10,000

5,000

0
2006-07 2007-08 2008-09 2009-10 2010-11

Years

The Net sales & other revenues for the last five years are as under:

(Rupees in Million)

YEARS 2006-07 2007-08 2008-09 2009-10 2010-11

Net Sales

Revenue 26,209 39,892 41,845 47,058 52,641

38

Oil and gas development company limited

 Net Sales Revenues

60000
50000
Sales 40000
Revenues
30000
(Rs in Millions)
20000
10000
0
2006-07 2007-08 2008-09 2009-10 2010-11
Years

The business volume and the sales revenues are the reflection of an operator’s
management judgment, execution and skills. OGDCL‘s financial performance has been
consistently improving since becoming a self-financing entity

OGDCL Top Management

Mr. Muhammad Ejaz Chaudhry Chairman
Mr. Basharat A. Mirza Managing Director / CEO
Senator Mir Wali Muhammad Badini Director
Syed Amir Ali Shah Director
Mr. Babar Yaqoob Fateh Muhammad Director
Mr. Abid Saeed Director
Dr. Kaiser Bengali Director
Mr. Wasim A. Zuberi Director
Mr. Tariq Faruque Director
Syed Masieh-ul-Islam Director
39

Oil and gas development company limited

Mr. Fahad Shaikh Director

OGDCL Fields
There are a number of oil and gas fields of OGDCL in different provinces of Pakistan
and these fields are classified on the basis of province.

SINDH:
 Tando Alam oil field
 Lashari oil field
 Thora oil field
 Sono oil field
 Missan oil field
 Pasaki oil field
 Bobi Gas/Condensate Field
 Kunnar oil field
 Qadirpur oil field
 Norai jagir Gas/Condensate Field
 Daru Gas/Condensate Field
 Hundi/Sari Gas/Condensate Field

PUNJAB:
 Fimkassar Oil field
 Missa keswal Oil field
 Toot Oil field
 Chak Naurang Oil field
 Kal Oil field
 Rajian Oil field
 Bahu Gas field
 Nandpur Gas field
 Dakhni Oil and Gas field
 Dhodak Oil and Gas field
 Sadqal Oil and Gas field

Khyber Pakhtoon Khwa:

 Loti Gas field
40

Oil and gas development company limited

  Uch Gas field
 Pirkoh Gas field

Baluchistan:
 Chanda Oil field
 Mela Oil field
 Nashpa Oil field
 Sheikhan Gas field

41

Oil and gas development company limited

 42

Oil and gas development company limited

Brief description about some Oil and Gas Fields of
OGDCL:
Tando Alam Oil Field:
The Company has a 100 percent interest in the Tando Alam Oil Field, which is located
in the Hyderabad District of Sindh province and is approximately 150 kilometers north-
east of Karachi in the Lower Indus Basin. First exploratory well (i.e. Tando Alam Well
No. 1 as an oil producer) was drilled and completed in May 1984.The field was placed
on regular production by OGDCL on 13th Oct 1984.

Toot Oil Field:

The Toot area is an oil field located in the Punjab province approximately 75 miles
south-west of Islamabad. The discovery well, originally called Toot #01, was drilled
under Russian supervision during 1968.

Chanda Oil Field:

Chanda field is located in Shakardarra area in District Kohat of the Khyber
Pukhtoonkhwa province at a distance of about 70 KMs from Kohat city. Chanda oil field,
the first ever discovery of Hydrocarbons in Khyber Pukhtoonkhwa, was brought on to
stream and it started production from 17 July, 2004. Chanda LPG plant was also
installed in October 2006 producing 25-45 M.tons per day of LPG. The field has added
a new dimension to petroleum exploration in the province. It is a joint venture between
OGDCL (72%), Government Holdings (Private) Limited (17.5%) and Zaver Petroleum
(10.5%). First Well Chanda-l was drilled in 1999 and second well was drilled in 2000.
Being the first ever discovery in Khyber Pukhtoonkhwa, start of regular commercial
production from Chanda field marked an important milestone, which generated
revenues in the form of royalty and GST for Khyber Pukhtoonkhwa from oil and gas
production.

Mela Oil Field:

Mela Oil Field was discovered by OGDCL in September 2006 and it is located in Kohat
district of KPK province at Shakardara. This is a joint venture field of OGDCL, GOVT.
Holdings & PPL. OGDCL is the operator of Mela field with a 65% stake while the other
major company is Pakistan Petroleum Limited (PPL) which holds a 30% stake and Govt
Holdings 5%. OGDCL has the operatorship.
43

Oil and gas development company limited

Nashpa Oil Field:
NASHPA oil field is located in Karak district of KPK Province at a distance of about 40
KMs from Kohat city. The field was discovered in September 2009. This is a joint
venture field of OGDCL as operator, GOVT. Holdings & PPL. OGDCL holds 56.45%
share in Nashpa Oil Field.

Sheikhian Gas Field:

Sheikhan gas field is located in Kohat of KPK Province at a distance of about 12 KMs
from Kohat city. The field was discovered in July 2010. This is a joint venture field of
OGDCL, TPDL (Tullow), MGCL & SEL (Saif). OGDCL has the operatorship.

UCH Gas Field:

Uch gas field is located in the South Western portion of the middle Indus Basin, in the
District Dera Bugti, Baluchistan. The Pakistan Petroleum Limited (PPL) discovered gas
reserves at Uch gas field in 1955. The elevation from the main sea level is 100 M (328
Feet). Well # 1 was abandoned due to the higher concentration of CO2 and low Btu
value. The field was then appraised by OGDCL and started drilling activities in 1986.
OGDCL developed the infrastructures for Gas Gathering; Gas Commingling System,
H2S Removal plant, Gas Dehydration Plant, Utilities and Gas Transmission Pipeline for
supply of gas to UPL’s Power Generation Plant. Uch Gas Field supply treated gas to
UPL for their three gas turbines of 130 mw each.

Chak Nuarang Field:

The Chak Naurang Oil Field is located at a distance of about 90 Kms in the south-west
of Islamabad. The field was discovered in June 1986 and came on regular production
from July 1987. Chak Naurang is a joint venture with M/s. POL, OGDCL & POL shares
are 85% and 15% respectively.

BOBI (Gas/Condensate) Field:

Bobi gas/condensate field is located at 25 kilometers in south of District Sanghar and 85

km north-east of Hyderabad city in Sindh province. Bobi well # 1 was the first
exploratory well drilled and completed as gas / condensate producer in May 1988. Total
of 8 wells were drilled upto 1991. Extended production testing was carried out on Bobi
wells in order to obtain reservoir parameters and estimation of reserves. Bobi Gas
Condensate Field is a part of Second Oil and Gas Development Project funded by

44

Oil and gas development company limited

Asian Development Bank amounting to US $ 52.00 million out of which US $ 20.1
million was allocated for the development of Bobi field. Condensate fractionating
facilities along with gas-recycling system was installed and field was declared as Oil
Complex in 2002.

Dhodak (Gas/Condensate) Field:

OGDCL owns a 100 percent working interest in the Dhodak Gas/Condensate Field. The
field is located on the western margin of the Central Indus Basin, about 200 kilometers
north-west of Multan in the Punjab Province. The field was discovered in December,
1976 with the drilling of exploratory well Dhodak-01 drilled to a total depth of 2,133
meters.

Daru (Gas/Condensate) Field:

Daru structure is located in Thatta Distt. of Sindh province. First exploratory well was
drilled in December. 1988 and was tested as gas/condensate producer. The field was
put on regular production in October 1999.

Dakni (Gas/Condensate) Field:

The Dakni Gas Condensate Field is located at a distance of about 135 Kms in the
south-west of Islamabad. The field was discovered in Feb. 1983 and came on regular
production in December 1989. Gas contains 6-8% H2S in the well stream.

Fimkiassar Oil Field:

The Fimkassar field is located approximately 75 kilometers southwest of Islamabad.

Texas Gulf drilled Fimkassar #01X in 1981. The well was turned over to OGDCL. After
unsuccessfully attempting to stimulate the well, OGDCL decided to abandon the well.
To date, five wells have been drilled on the crest of the Fimkassar structure.

Qadirpur Gas Field:

OGDCL is the operator of Qadirpur gas field, which is the third largest gas field in
Pakistan and is situated in the central Indus basin south of Kandhkot and Sui gas fields.
Qadirpur Gas Field is located at a distance of 08 KM from Ghotki, 70 kilometers to the
north east of Sukkur and 100 km to the east of Jacobabad in Sindh province. OGDCL
have 75% working interest, other partners include KUFPEC Pak B.V.( 8.5 %), PKPEL
(Premier Oil) 4.75%, PKPEL2(KUFPEC): 4.75% and Pakistan Petroleum Ltd. (7%). The
first exploratory well was completed in 1990 to a depth of 1566 meters. After installation
45

Oil and gas development company limited

of Gas gathering and processing facilities at Qadirpur field the commercial prodcution of
gas started from September 1995.

Flow chart of Production of Oil and Gas:

Exploration

Drilling

Process

Production

 These are the major steps till production, a number of sub steps are also
included in these major steps that will be explain in the report.

Ongoing Projects

46

Oil and gas development company limited

Uch-II Development Project:

The Uch gas field is located about 67 km southeast of Dera Bugti in Balochistan
province. The field was discovered in 1955 by Pakistan Petroleum Ltd; however, it was
not developed because of its low BTU content. We reactivated the Uch gas field in the
1980s. To date we have drilled 15 wells and we are currently supplying 220-225
MMSCFD per day to Uch Power Ltd. via a 47 km pipeline at the first mega low heating
value gas-fired 586 MW power plant. After completing a detailed study of the Uch gas
field, OGDCL adopted a development plan under which production at the Uch gas field
is to be increased from 220 to 380 MMSCFD per day, enabling us to commit 160
MMSCFD per day of gas for 25 years to a new power producer. This project involves
the drilling of 15 additional development wells, installation of a gas gathering facility and
installation of dehydration and hydrogen sulphide, (H2S), removal plant and gas
delivery Station. So far 14 development wells have been drilled. GSA with UPL has
been signed. The Engineering Consultant has been engaged to prepare the Design/
Tender documents. Gas supply for Uch-II is expected by February, 2014.

KPD-TAY Integrated Development Project:

47

Oil and gas development company limited

KPD-TAY Plant is located adjacent to Company’s existing Kunnar LPG plant in Sindh
Province and about 25 Kilometers from Hyderabad City. OGDCL decided to set up the
project by itself. The Project will be completed in two phases. Under phase-I, 100
MMSCFD of dehydrated gas would be supplied into SSGCL’s network with 8% CO2
Contents and without extracting of LPG. SSGCL has completed the laying of 30 KM
(Dia 24") Gas Transport line i.e. from Kunnar Plant to Jamshoro Tie-in Point. OGDCL
completed Phase-I project in October, 201I. Gas supply from field started on Jan 12,
2012. In phase-II to fully process 312 raw gas including LPG extraction & removal of 8%
CO2 contents and supply the quality gas to SSGCL’s network. Phase-II project activities
are in progress. Tentative time line of completion is 24-26 months. LOI for engagement
of Consultant has been issued. Expected Production upon the completion of project; Oil
4,400 BOPD, Gas 284 MMCFD , LPG 387 M.Tons/day and NGL 400 BOPD.

Sinjhoro Development Project:

48

Oil and gas development company limited

The Sinjhoro field is located in the Sanghar District, Sindh Province, and is a joint
venture among OGDCL (62.5%), OPI (15%) and GHPL (22.5%), with OGDCL serving
as the operator. The scope of work for this project involves the relocation of Ex-Dhodak
Plant (i.e. dehydration and LPG Plant), feed/sales gas compressors at Sinjhoro,
construction of gathering facilities, an amine plant. The projected product yield upon
completion is 3000-3500 bbls per day of oil, 25-31 MMSCFD per day of gas and 120-
140 M.ton per day of LPG. Most of the equipment /packages have been press
advertised. Construction of civil foundations work is in progress. The project is to be
completed in 2- phases, 1st phase by June 2012 and 2nd phase by December, 2012.

Business strategy

49

Oil and gas development company limited

As the leading exploration and Production Company in Pakistan, OGDCL’s primary
objective is to enhance its reserves and production profile and ultimately maximize
value for shareholders. In order to achieve this goal, the Company seeks to execute the
following strategies:

 Accelerate Production Growth: by continuing to accelerate production growth

through utilizing cutting edge technologies, allowing the Company to utilize its
significant reserves base and capitalize on the strong economic growth and
accelerating energy demand in Pakistan.

 Exploit Exploration Opportunities: by building the Company’s future reserves

portfolio through its large onshore exploration acreage. During the fiscal year
2008-09 target of drilling is 52 wells.

 Maintain Low Cost Operations: OGDCL’s operating environment, namely the

geographic concentration of its reserves base within Pakistan, will be a major
factor in allowing it to control its low cost structure. Within Pakistan, the
Company’s leading position also enables it to access economies of scale across
its significant reserves base and operations.

 Pursue Selective International Expansion: while domestic expansion remains

OGDCL’s core focus, the Company intends to grow and diversify its portfolio
through selective international expansion in the medium to long-term.

 Implementing International Best Practice: by ensuring an efficient organizational

structure and business processes that are focused on core production. As part of
our restructuring plan, OGDCL has established an in-house technical services
division, the Petrosery Directorate, which separates technical support services
from core E&P activities.

Petro Research and Training Institute (PRTI)

(A Training Institute of OGDCL)
50

Oil and gas development company limited

OGDCL operate our own training and research institute, the Petro Research and
Training Institute, which offers six-month on-the-job training programs designed for
graduate engineers with the background and skills to become a successful and integral
part of our team. In addition to training provided to graduate students, our institute also
provides refresher courses for existing staff in the areas of exploration, drilling, well
services, gas processing, production and computing, among others. Training takes
place in a class environment or through drilling simulators, electrical and mechanical
workshops and laboratories in order to best assist the students in obtaining the practical
skills necessary to excel in the workplace. In addition to students and staff that
participate in our program, we also conduct short courses and seminars on technical
and management functions for other companies based in Pakistan and occasionally to
companies in other countries in Central Asia.

Facilities
PRTI training complex comprises the main four-storey building, the drilling workshop
and the hostel. It also has a full scale drilling rig in the central quadrangle, which towers
above the surrounding buildings as a prominent landmark in the area. The offices,
classrooms, auditorium, library, laboratories and cafeteria are situated on the ground,
first and second floors of the main building.

Class rooms:
There are four specious class rooms on the first and second floors, each with a seating
capacity for thirty students and equipped with a video player and monitor, overhead
projector and pull down screen, while board, and flip-paper boards. Equipment for 35-
mm slide-tape projection and multimedia projection is also available.

Auditorium:

The auditorium, situated at the east end of the second floor, has a spacious, raised
stage and comfortable terraced seating capacity for 120 people. It is equipped with hi-fi-
51

Oil and gas development company limited

sound system, a large projection screen and a multimedia projector. Other available
provisions are overhead 35-mm slide and 16-mm movie projection systems, together
with all necessary training aids. The auditorium is centrally air conditioned. It is ideally
suited for seminars and lectures.

Roles & Functions:

Training Institute provides basic training to the petroleum industry graduates and
technicians enabling their career induction, as well as refresher and advance training to
experienced professionals in all three streams of petroleum in general, and upstream in
particular.

 In pursuance of this mission, Training Institute identifies diverse training needs of

the industry, evolves progressive and dynamic training programmes in
coordination/collaboration with the entire industry as well as concerned
universities, while also offering valuable advice.
 Training Institute organizes in-house technology update seminars, inviting
outstanding professionals/ expertise, to facilitate absorption of state of the art
techniques.
 Training Institute also organizes short courses and seminars in various other
technical and administrative allied support areas of petroleum industry.
 Training Institute offers all training and administrative to conduct wide ranging
seminars and courses for Pakistan Petroleum Exploration & Production
Companies Association (PPEPCA) Society of Petroleum Engineers (SPE),
Pakistan Association of Petroleum Geoscientists (PAPG), often sponsored by the
industry.

52

Oil and gas development company limited

 Training Institute conducts petroleum industry field trips for industry professionals
& visitors for training and familiarization.
 Training Institute organizes/conducts/facilitates field audits and inspections
various industry installations.
 Training Institute also organizes short courses on specific technology training on
other demand.

SWOT ANALYSIS OF OGDCL

53

Oil and gas development company limited

 STRENGTHS WEAKNESSES

Highly Skilled Political Influences

Professionals

Vast Experience Limited Customer

Joint Ventures with Foreign Limited Marketing

Oil Companies Working in Opportunity
Pakistan

Major oil & Gas Company Political Appointments

of Pakistan

High market cap and Inadequate Financing for

revenue off-shore drilling

OPPRTUNITIES THREATS

Expansion towards a Latest Technology

multinational Company

Expansion towards unproductive wells

Exploration & drilling
Activities

Marketing Opportunity for World Market

LPG & Sulphur

Off-shore drilling Safety Issues / Tribal

Issues

SWOT ANALYSIS
54

Oil and gas development company limited

SWOT Analysis is conducted to identify the organizational strengths (S), organizational
weaknesses (W), environmental opportunities (O), and environmental threats (T). Each
analysis helps to know that how these elements influence organizational performance.

An organizational strength is an internal capability that can be exploited to achieve

goals, where as an organizational weakness is an internal characteristics that may
undermine performance. An environmental opportunity is a situation that offers potential
for helping the organization achieves its goals. In contrast, an environmental threat is an
external element that can develop into a non-crisis or crisis problem, and potentially
prevent organization from achieving its goals.

OGDCL‘s SWOT Analysis is given below;

STRENGTHS:
 OGDCL has highly professional manpower.

 Established gas transmission and distribution network.

 Being Government owned organization; OGDCL is given preference when

Government allows any new concession.

 OGDCL has enough training facility structure in the form of OGTI.

 Computerized networking system is prevailing in the OGDCL.

 Highly advanced and modern technology and equipment is possessed by OGDCL.

 OGDCL has a number of packages in order to hire best profile of professionals and
as well as to motivate them in order to extract best from them.

 Annual bonuses are announced to motivate employees.

 Enough physical facilities are provided to its employees in the H.O in order to
facilitate the performance of its employees.

 Current assets are four times high than current liabilities.

WEAKNESSES
 Outdated procurement procedures and stores inventory management system of
OGDCL undermines OGDCL‘s performance.
55

Oil and gas development company limited

 There is no formulized criterion for reserve to production ratio, which can compare
their performance with the past.

 No job description concept is prevailing in OGDCL.

 There is injustice distribution of work among the employees.

 There is no check and balance to monitor.

 No experts for ORACLE software in spite of its implementation in OGDCL.

 No planning is being done before initiating any project e.g. Implementation of

ORACLE financial.

 Environment is initiative killer, as there is no say of its employees.

 Bureaucratic form of administrative setup.

 Greater distances in hierarchy.

 Delayed decisions due to prolonged procedures.

 Adhoc approach to resolve major issues.

 Political influence is being exercised for recruitment.

 Members of Board of Directors are all outsiders, and selected by Government.

 No concept of Diversification like other oil companies like BP.

 Company is unaware of the importance of Marketing in the success of one company.

 There is no huge HR Department, and Personnel Department only deals with

recruitment and termination cases and a little bit other.

 Attitude of the employees towards work is not prudent because of job security factor.
They have fair idea that no one can expel them from this organization.
OPPORTUNITIES

 Substantial unproven gas and oil reserves exist in Pakistan.

 Low cost incur in the exploration of wells.

56

Oil and gas development company limited

 Inflationary trend in the prices of oil in the international markets.

 Massive consumer market.

 Ever rising demand of gas due to changing attitude of people.

 Government incentives to Energy Sector for doing better projects.

 There is no tough competition faced by OGDCL from any company having the same
large setup with such huge finances.

THREATS
 Being a Government owned organization; Government has maximum interference
while deciding its investment policies.

 Government directs the Company while declaring its dividend.

 Competition is increasing as Government is attracting foreign investors in this

Sector.

 Global trends are rapidly changing which might affect its performance.

 Iraq and America situation can also have negative impact on Oil and Gas Industry.

 Any decrease in future oil prices may prove to be a great threat for OGDCL.

 Fear of unproductive well is a source of threat for OGDCL.

PROBLEMS AND SUGGESTIONS

During my stay in OGDC head office, I have observed some weakness in the
organizational setup functioning of various departments.

57

Oil and gas development company limited

PROBLEMS:
 Unawareness of Employees from Latest Technological Changes.
Technical and non technical employees working at field / wells sites in far away
areas of the country do not have any access to the latest modern and
technological changes, literature etc.

 Lack of Career Planning Of Employees.

OGDC is only organization in the field of exploration and development of oil and
gas resources of the country, but unfortunately does not use scientific techniques
in career planning of employees.

 Unfair Utilization of Transport.

OGDC have a large number of vehicles, mostly at sites but they are misused by
their location in charge. While officers of Equ. Grades 19 are not entitled to have
official transport. OGDC also provides pick and drop facilities to stop and officers
to some extent with few Buses / Cosdters but it is not sufficiently only few percent
get benefit from this.

 Unnecessary Purchases at Sites

Due to less accountability and more delegate powers, location in charge uses
their powers towards petty cash purchases from local market. OGDC have a
centralized procurement department but stocks are accumulated in the absence
of the strict rules and policies regarding purchases and stock position.

 Poor Method of Recruitment

To recruit the employees both internal and external methods are used but the
corporation gives preference to the internal method. The main draw back of this
method is that it blocks the way for new generation which carry new ideas and
knowledge. Further more the recruitment system is also influenced by the
nepotism of politicians.

 Injustice Way of Awarding Training.

Training is used to develop the skills of the employees in this regard lot
expenditure is made on training but unfortunately training facilities is also
awarded to the employees based on nepotism.
 Promotion Policy.
58

Oil and gas development company limited

 Promotion policy is the mixture of both merit and seniority, but in practice
emphasis is given to ACR and can say that where there is ACR there an id a
favoritisms.

SUGGESTIONS
During my stay in OGDC I carefully observed the major weakness. For this weakness, I
suggested the following practicable remedies to improve the existing practices.

 With the passage of time many modern technologies changes take place in oil
and gas industry, OGDC must take necessary action to acquire modern
technologies so that they can compete at international level and in this way they
can play more effective role in Pakistan’s economy
 OGDC have a plot at blue area Islamabad for office building, the construction
work may be started as soon as possible as OGDC have no shortage of funds,
and the only mile stone in this way is administrative approval.
 They should to pay full attention to the intensive professional training of staff in
related fields. The department concerned can organize professional training at
OGDC or with outside agencies etc and latest literature newspapers and
magazines etc of professional interest should be provided at sites free of cost.
 Al though the management in recent past takes some initiative in this area, a new
department “career planning department “ is created and few posting were made
in this department . But to achieve excellent and positive results rapid operations
are too much essential.
 Management should try to develop maximum and minimum store inventory levels
and also 100% physical verification to be done at least once a year. The powers
of location in charges should be reviewed and minimized.
 Management must take necessary action to control costs i.e. administrative and
selling expenses
 To offset recruitment bias favoritism should be completely discouraged. And try
to eliminate political interference in recruitment, because it will affect the
efficiency and ultimately the corporation will be unable to achieve its objective.

59

Oil and gas development company limited

  Training facilities should be awarded according to the requirement of the job.

 If appraiser make appraising based on actual performance it will decrease heart

burning problem and employees’ efficiency will be increased.

 As the promotion policy of the corporation clearly shows merit + seniority, so it

should be fully implemented.

 Beside this it is also desirable to suggest that in this modern area

computerization of record is very much essential .So to facilitate the
management computer system in all the section must be introduced.

CONCLUSION
The production of oil and gas is contributing a lot in reducing the country’s import bill.
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy. OGDCL’s Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main
fields, which have now started supplying Gas to power companies. This not only
meeting the requirement of the IPPS but also contributing a lot towards meeting the
demand of electricity in the country.
OGDCL’s contribution to the national exchequer in the form of royalty; excise
duty, debt servicing, and taxes are a huge support as compared to the other state
owned organizations.

OGDCL entered into new JV agreements in various exploration Blocks with the foreign
oil companies to boost up the efforts for increasing the Oil & gas demand of this
country.

Oil and gas Training Institute (OGTI) is providing training facilities and meeting
the requirements of highly trained, motivated, and improved human resources. OGTI
designs and implements programme to develop and expand the technical and
managerial skills of professional to meet the fast changing challenges to the company.
A total of about 150 courses in service disciplines are conducted during every year.

The quality of an organization is dependent on the quality of its work force. OGDCL has
engaged top professionals in Geology, Drilling, Engineering, and production who are
working day & nights for the search of Oil & gas. Besides this, the corporate sector is
equipped with professionals having qualification of CAs, MBAs, M.Coms, which support
60

Oil and gas development company limited

the technical wings. The time bound necessity is that all these professionals be given a
targets and their performance indicators be clealrly defined. A good leadership and the
motivation will surely boost-up the efforts and the collective efforts will result in a huge
reservoir of Oil or Gas INSHALLAH.

BIBILLOGRAPHY:
 www.ogdcl.com.pk
 www.rajianogdc.com
 www.google.com.pk

61

Oil and gas development company limited

 62

Oil and gas development company limited