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Sr. No.   Descriptions                            Page No.

01        Company History/Introduction               06

02        Establishment of OGDC                      06

03        Initial Success                            06

04        Transition to a self financing entity      08

05        Conversion to Limited Company              08

06        Vision / mission Statement                 08

07        Core Values                                08

08        Goals & Objectives                         09

09        Board of Directors                         09

10        Name & Address of Company                  11

11        Organizational Structure                   12

12        Functions of the Company                   14

13        Departments                                14

14        Managerial Levels                          15

15        Top Management                             15

16        Middle Management                          16

17        Lower Management                           16

18        Operations                                 17

19        SWOT Analysis                              24

20        Strength                                   24

21   Weaknesses          25

22   Opportunities       25

23   Threats             26

24   Competitors         26

25   Social Activities   27

26   Problems            28

27   Suggestions         29

28   Conclusion          30


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 Balochistan. 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 review 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 programs 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.

Initial Successes:

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. Two 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.


A wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited (PGCL) was
established in 1982 to undertake development of Pirkoh gas field located in Dera Bugti
Agency in Balochistan with Asian Development Bank assistance.


       The oil and gas development company limited (OGDCL) was set up in 1961 in the
public sector under the ministry of petroleum and natural resources.

Aims and Objectives of OGTI

       The aims and objectives of OGTI are to identify the training needs of the industry,
offer practical training programmes to professional of the petroleum industry, provide
training advice and guidance to OGDC and to help established standards for training which
will meet the performance needs in the field and on the job. OGTI is dedicated to:

Establish courses and in-house training programmes which will meet the specific needs of
OGDC and the Pakistan petroleum industry. Designing training material that recognizes the
capabilities and specific needs of newly hired employees and those who change their job
assignment. Providing refresher and upgrade training for industry personnel in cost
effective manner.

In-house basic training programmes are being designed and developed to provide a base
level of training which employees require to function in their jobs. OGDC recruits men from
all across Pakistan. The universities and technical schools do not provide the full range of

subject matter necessary for a graduate entering the petroleum industry. It is OGTI’S
intention to ensure that the individual has an opportunity to obtain this training within his
first two years with OGDC. In addition to basic training courses, OGTI will Organizes in-
house technology update seminars.

Transition to a self financing entity

       In July 1989 the company was off-loaded from the Federal budget and allows it to
manage its activities with self generated fund. The Government allows the company to
generate its budget by its own revenue. So know OGDCL manage all of its financial activities
by self generated revenue.

Conversion into Public Limited Company

       Prior to 23 October 1997, OGDCL was a statutory corporation and 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 Company Limited).

The Government of Pakistan privatize its some few parts of its fields. Now OGDCL is listed
on the three stock exchange of Pakistan


To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and


Our mission is to become a competitive, dynamic and growing E & P Company, rapidly
enhancing our reserves through world class workforce, best management practices and
technology and maximizing returns to all stakeholders by capturing high value business
opportunities within the country and abroad, while being a responsible corporate citizen.


In OGDCL merit are highly promoted with integrity. OGDCL also believe on innovation by
using teamwork so the company dedicated different types of products with complete safety
to the country.


OGDCL objective is to expend their business and the company also is in struggle to double
the value of the company in the next five years. Maximize profit by investing surplus funds
in profitable avenues. Reduce cost and time overruns to improve performance result.


   a. Developing E & P Work Flow Models for Data Integration and connectivity.

   b. Conduct geoscientific, algorithms and systems architecture research leading to the
        development of robust, interactive and user-friendly geosciences applications
        software that are tightly integrated into the workflow environment.

   c. Detailed testing of the developed applications to achieve the highest performance.

   d. Detailed testing of the developed applications to achieve the highest performance.

   e. Training and systems support to the end - users.

Mr. Kamran Lashari                    Chairman of the Board of Directors

Mr.Muhammad Naeem Malik               Managing Director/Chief Executive Officer

Mr. Muhammad Ejaz Chaudhry             Director

Mr.Tariq Faruque                       Director

Syed Amir Ali Shah                    Director

Mr.Wasim A. Zuberi                     Director

Mr.FahdShaikh                         Director

Mr. Kaiser Bengali                    Director

Mr.Ahmed Bakhsh Lehri                 Director

Str.Mir Wali Muhammad Badini          Director

Syed Masieh-ul-Islam          Director

Senior Management

Mr. Muhammad Naeem Malik      Managing Director/Chief Executive Officer

Mr. Aftab Ahmad               Executive Director (Strategic Business Planning &

                              Legal Services)

Mr. Masood Nabi               Executive Director (Joint Ventures)

Mr. Asif Saeed Sindhu         Executive Director (Finance)/ Chief Financial Officer

Mr. Arif Ibrahim              Executive Director (HR/Admin)

Mr. Khalid Jamil Khan         General    Manager    (Supply   Chain    &   Material


Mr. Muhammad Rafi             General Manager (Finance)

Mr. M. Zafarullah Chaudhry    General Manager/Incharge (HSEQ)

Mr. Basharat A. Mirza         General Manager (Projects)

Mr. Tariq Majeed Jaswal       General Manger/ Incharge (Exploration)

Mr. Muhammed Riaz Khan        General Manager/ Incharge (Production)

Mr.Shamim Iftikhar Zaidi      General Manager (Drilling Operations)

Mr. Zahid Imran Farani        General Manager (Prospect Generation)

Mr Muhammad Mureed Rahimoon General Manager (Systems)

Mr Aijaz Muhammad Khan        General Manager (Legal Services/HR)

Mr Amjad Javed                         General Manager (CB/IR)

Mr Sarfaraz Siddiqui                   General Manager (OGTI)

Mr Qamar Zaman Samo                    General    Manager-Joint    Ventures    and    Business


Mr Salman Amin                         General Manager (Audit)

Mr Tahir Shaukat                       General Manager (Administration/C&ESS)

Mrs Eram Ali Aziz                      Company Secretary

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:

 a.       Crude Oil.

 b.       Gas.

 c.       LPG.

 d.       Sulphur.

 e.       Gasoline/High and Low Speed Diesel.

 f.       Kerosene Oil.

 g.       Naphtha.

 h.    Solvent Oil.


The main functions of the Corporation are:-

 a.    To plan, organize and implement programmes of exploration of development of oil
       and gas resources.

 b.    To carry out geological, geophysical and other surveys for the exploration of oil and

 c.    To carry out drilling and other prospecting operations to prove and estimate the
       reserves of oil and gas.

 d.    To produce oil and gas.

 e.    To perform other functions as the Federal Government may from time to time
       assign to the Corporation.



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 /
organogram 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:

       1.      OGDCL Head Office, Jinnah Avenue Islamabad.

       2.      Pirkoh Gas Company Private Limited, Islamabad.

      3.    OGDCL Regional Office, Shafi Chamber, Karachi

      4.    OGDCL Regional Office, Multan

      5.    OGDCL Liaison Office, Quetta

      6.    OGDCL Liaison Office, Sukkur

      7.    OGDCL West Wharf Office, Karachi

      8.    OGDCL Base Store, Islamabad

      9.    OGDCL Base Store, Khadiji, Karachi

      10.   OGDCL Base Store, Korangi

      11.   OGDCL Base Store, Kot Addu

      12.   OGDCL Base Store, Kot Sarang

      13    .Medical Centers, Islamabad, Rawalpindi & Karachi.


Corporate Department

      1.    Administration Department

      2.    Human Resource Department

      3.    Personnel Department

      4.    Security Department

      5.    Legal / Regulation Department

      6.    Communication Department

      7.    Procurement Department

      8.     Stores Department

      9.     Finance & Accounts Department

      10.    Audit Department

E&P Departments

      1.     Exploration Department

      2.     Exploitation Department

      3.     Production Department

      4.     Process Department

Technical Services Department

      1.     Drilling Department

      2.     Data Logging Department

      3.     Mud Engineering Department

      4.     Well Services Department

      5.     Cementation Department

      6.     Geological Well Supervision Department

      7.     Engineering Department

      8.     Wire line Logging Department

      9.     Geological Department, Data Processing Department

Managerial Levels

In organizations, there are typically three levels of management: top-level, middle-level, and
first-level. These three main levels of managers form a hierarchy, in which they are ranked
in order of importance. In most organizations, the number of managers at each level is such
that the hierarchy resembles a pyramid, with many more first-level managers, fewer middle
managers, and the fewest managers at the top level. Each of these management levels is
described below in terms of their possible job titles and their primary responsibilities and
the paths taken to hold these positions. Additionally, there are differences across the
management levels as to what types of management tasks each does and the roles that they
take in their jobs. So in OGDCL there are following three types of management levels:




Top Management

Top-level managers, or top managers, are also called senior management or executives.
These individuals are at the top one or two levels in an organization, and hold titles such as
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO),
Chief Information Officer (CIO), Chairperson of the Board, President, Vice president,
Corporate head.

IN OGDCL the head of the Top Management is called “Chaireman”. OGDCL Top-level
managers make decisions affecting the entirety of the firm. Top managers do not direct the
day-to-day activities of the firm; rather, they set goals for the organization and direct the
company to achieve them. Top managers are ultimately responsible for the performance of
the organization, and often, these managers have very visible jobs.

In OGDCL top managers have a great deal of managerial experience and have moved up
through the ranks of management within the company or in another firm. An exception to
this is a top manager who is also an entrepreneur; such an individual may start a small
company and manage it until it grows enough to support several levels of management.
Many top managers possess an advanced degree, such as a Masters in Business
Administration, but such a degree is not required.

Middle Management

Middle-level managemet, or middle managers, are those in the levels below top managers.
Middle managers' job titles include General manager, Plant manager, Regional manager, and
Divisional manager.

Middle-level managers of OGDCL are responsible for carrying out the goals set by top
management. They do so by setting goals for their departments and other business units.
Middle managers can motivate and assist first-line managers to achieve business objectives.
Middle managers may also communicate upward, by offering suggestions and feedback to
top managers. Because middle managers are more involved in the day-to-day workings of a
company, they may provide valuable information to top managers to help improve the
organization's bottom line.

In OGDCL the Jobs of the middle management are vary widely in terms of responsibility and
salary. Depending on the size of the company and the number of middle-level managers in
the firm, middle managers may supervise only a small group of employees, or they may
manage very large groups, such as an entire business location. Middle managers may be
employees who were promoted from first-level manager positions within the organization,
or they may have been hired from outside the firm. Some middle managers may have
aspirations to hold positions in top management in the future.

Lower Management

Low-level managers are also called first-line managers or supervisors. These managers have
job titles such as Office manager, Shift supervisor, Department manager, Store manager.
Production manager.OGDCL First-line managers are responsible for the daily management

of line workers—the employees who actually produce the product or offer the service.
There are first-line managers in every work unit in the organization. Although first-level
managers typically do not set goals for the organization, they have a very strong influence
on the company. These are the managers that most employees interact with on a daily basis,
and if the managers perform poorly, employees may also perform poorly, may lack
motivation, or may leave the company.

In the past, most first-line managers were employees who were promoted from line
positions (such as production or clerical jobs). Rarely did these employees have formal
education beyond the high school level. However, many first-line managers are now
graduates of a trade school, or have a two-year associates or a four-year bachelor's degree
from college.

OGDCL starts their operation within a sequence first of all they conduct exploratory
experiments and after that the company installs the production plant. In these operations
many stages are involved which are as under:

Seismic Party

Seismic Party is based on Geologist and Geo physics. First of
all they take inspection of the land. The Geologist also checked
the sample of mud and other relevant material and then after
that they decide that what they should to do.

Human Resource Base

Human Resource Base is an Auto Mobile Laboratory where
experts do their initial experiments relating to Seismic Base.

Survey Machine

It’s a special type of Computer Machine which is used in
inspection & examination of land. It helps to find out the exact
location of Oil & Gas under the land.


Vibrators are used to make plane and smooth the surface of
the relevant land on which initial drillings are going to start.

Seismic Drilling Rigs

It's a small drilling rig. In initial stages these types of rigs are
used for drilling to explore the Oil & Gas. Capacity of this rig
is 110 Meter with mud and it's also worked for 2 weeks.

Drilling Rig

After the success of Seismic Drilling Rigs the company needs
to install huge drilling rig for the purpose of exploration.
These types of rigs are working for 10 to 14 months and
Capacity of this rig is 5700 Meter with mud.

OGDCL Fields:-

Major Oil and Gas Fields:-

The following are the major oil and gas fields of OGDCL


Tando Alam is located in Hyderabad Distt. of Sindh Province.First exploratory well (i.e.
Tando Alam well No. 1 as an oil producer) was drilled and completed in May 1984.


Toot Oil Field is located at a distance of about 120 Kms in
the south-west of Islamabad. The field was discovered in
Jan. 1967.


Chanda field is located in Kohat district of the north west
frontier province at a distance of about 70 KMs from Kohat
city. Two wells have been drilled in Chanda field, i.e. Chanda
# 1 and Chanda Deep # 1.


The field is located at a distance of 60 km from Sui gas field;
district Dera Bughti in Baluchistan Province. Uch gas field
was discovered in 1955. First well was drilled and
abandoned due to higher percentage of CO2 (low BTU) in


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 having shares of 85% and 15%


The field is located in Sanghar district of Sindh province. Bobi field is situated in the East of
Mirpur khas - Nawab-shah railway section. Bobi well # 1 was the first exploratory well
drilled and completed as gas / condensate producer in May 1988.


The Dhodak Gas Condensate field is located in the tribal
area of Dera Ghazi Khan, about 230 Kms north-west of
Multan. The field was discovered in May 1976 and was
brought on regular production in December 1994.


Dakhni 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.


Fimkassar Oil Field is located at a distance of about 80 Kms
in the south-west of Islamabad. The field was discovered in
Sept. 1989 and came on regular production from October


Kunnar gas/condensate field is located in Hyderabad Distt.
about 26 KM away from Hyderabad city. First exploratory
well (i.e. Kunnar well No. 1) was drilled and completed in
Nov. 1987.


Kal Oil Field is located at a distance of about 100 Kms in the south-east of Islamabad. The
field was discovered in June 1995 and came on regular production from August 1995.


Lashari structure lies in Hyderabad district of Sindh
province. Hyderabad is the nearest city, which is about
25kms NWN from the location. Lashari center # 1 was
drilled in April 1988 and was brought on production in
November 1988.


The field is located at a distance of 55 km north west of Sui gas field, district Dera Bughti in
Baluchistan Province. Loti gas field was discovered in March 1985. Regular production
started in Nov. 1989.


Missa Keswal Oil Field is located at a distance of about 60 Kms in the south-east of
Islamabad. The field was discovered in June 1991 and came on regular production from
December 1992.


Nandpur Gas field is situated at a distance of 64 kms near
Distt. Multan. The field was discovered in 1984. The regular
supply of gas in the range of 50 MMSCFD to M/s. FKPCL
started in May 1999 for power generation of 144 MW.


Pasakhi, a seismic structure is in Hyderabad Distt. of Sindh Province. Hyderabad is the
nearest city, located at about 23 KM away from the location. First exploratory well (i.e.
Pasakhi well No. 1 as an oil producer) was drilled and completed in Aug. 1989. The well was
brought on regular production on Oct. 4, 1989.


The field is located at a distance of 8 km from Ghotki in Sindh Province. Qadirpur gas field
was discovered in March 1990. After installation of gas gathering facilities and plant, gas
production was started in Sep. 1995.


Rajian Oil Field is located at a distance of about 110 Kms in the south-east of Islamabad. The
field was discovered in Aug. 1994 and came on regular production from August 1994.


Sadqal Gas Condensate field is located at a distance of 40
Kms in the southwest of Islamabad. The field was
discovered in April 1992 and regular production started on
30th June 1993.


Sono oil field is situated in Hyderabad Distt. Of Sindh Province, about 04 KM away from
Tando Alam oil complex.First exploratory well (i.e. Sono Well No. 1 as an oil producer) was
drilled and completed in Feb. 1988. A total of 05 wells were drilled upto 1990. Sono well # 1
was brought on regular production in May 1988.


Thora oil field was discovered on July 24, 1987. The field lies in Hyderabad distt., of the
Sindh Province.First exploratory well i.e. Thora # 1 was drilled and completed as an oil
Producer in Aug. 1987. Well was brought on regular production on 6th Aug. 1987. A total of
06 wells were drilled up to 1993.


1. Attachment with Mr.Khursheed (Sr. I.A)

I was assigned Account Head 402810 Manpower Contract services at Head Office. I
therefore accompanied with Mr.Khursheed Ahmad started Audit of the above mentioned
Account Head which includes many vendors (contractors) we selected four numbers of
vendors for Analysis Report on word submission to G.M (Audit).Selected Vendors are
identified below,

   (i) Allulinks
   (ii) M/S Fuji Security Services
   (iii) M/S A-sir Guard security Services
   (iv) National Fire Protective Services

We obtained the relevant accounting data from the concerned Department and from Oracle
comprising of vouchers along with invoices and checked in accordance with the terms and
conditions of the contract specifically with payment clause and prepared Analysis report
duly approved/signed by G.M (I.A) and sent to the concerned Departments for compliance.

2. Attachment with Mr.Ijaz Hussain Janjua (Sr.I.A)

I helped him in completing his Report on I.9 workshop Islamabad. We verified/reviewed
the following Account Heads on sample basis during the course of Audit and observed some
deficiencies which were bring into consideration to the relevant Departments and persons
for remedial actions to improve the effective internal control system.

   (i) Contract Services
   (ii) Fixed Assets
   (iii) Utilities
   (iv) Office Entertainment
   (v) Salary and other Benefits
   (vi) Medical Expenses
   (vii) Traveling and transport
   (viii)          Repair and Maintenance
   (ix) Stores and Supplies consumed
   (x) Communication

3. Attaachment with Mr.Asif

He helped me in understanding pension procedure.

Formula to calculate Pension

   1. Last pay drawn × Qualifying Service × 7 ÷ 300 = Gross Pension
   2. Gross Pension × 40% × 12.3719* × 12 = Commutation
   3. Gross Pension × 60% = Net Pension

*According to service year


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;


            OGDCL is the Leading Exploration and Production Company in Pakistan. In

             Pakistan there is no company who can compete OGDCL.

            No. 1 Exploration & Production Company all over the world.

            30 % Exploration Licenses & Development and Mining Leases But result


            OGDCL is the one of those companies who generates their funds by their

             own effort

            In Pakistan OGDCL is the single Oil Company which is Independent. All the

             operations and activities used in exploration and production are performed

             by OGDCL is done by own effort.

            The Company listed on all the three Stock Exchanges of Pakistan as well as

             on London Stock Exchange


            All the machinery used in exploration & Production are imported. Which is
             very costly.
            The machinery used in all types of operations is Very expensive and huge
             amount machinery used in.
            As the machinery is import from foreign countries so their spear parts are
             unavailable in Pakistan.
            As all the machinery is imported so it's very difficult to operate and control
             these machines for local labor.
            Company also paid high salaries to foreigner expertise to operate these


             If the Government increase the area of license and allow conducting new
              exploratory experiment at different possible areas of Pakistan.
             To start exploration of Oil in sea is another opportunity for OGDCL. Because
              most of the countries produced their Oil & Gas and other natural resources
              from their seas.
             If OGDCL hired the foreign expertise on permanent bases then it will be a
              good opportunity for it to overcome from their extra expenses.
             It’s an opportunity for OGDCL to sell the LPG individually
             If the Karachi Steel mill or any other company designed the relevant
              machinery for OGDCL, then it will be a very good step for economic
              development of Pakistan and also for OGDCL.
             Giving employment to the local people is a very good opportunity for OGDCL
              to create a good image in the eyes of people.
             If OGDCL Provide Gas to the local Areas then it will be a good step for
              economic development of country.


             Attacked from the Local people are the main threats for OGDCL.
              Because day to day their sights are hit from the people.
             As Government policies are change day to day so it's another
              threats for OGDCL
             Oil is direct linked with international Market. So change in
              international market directly put their effects on Oil Companies.
             As our country political conditions are unstable, so it is very
              dangerous threat for OGDCL to maintain their operations in these
             Terrorism/Extremism is a very serious problem for every company in
             As OGDCL is directly linked with Oil & Gas so fear of fir Blowout is a
              naturally threat for OGDCL and like other companies related with Oil & Gas.

Direct Competitors

OGDCL has no direct competitors, because except it no one can perform
their all operation by own.

In direct Competitors

As we know that OGDCL is the single Government Oil Company in Pakistan so that’s why
there is no direct and big competitors of OGDCL. But there are some companies which are
related with that type of activities which are indirect competitors of OGDCL. These
companies are as under:

            Pakistan Petroleum Limited (PPL)
            Pakistan Oil Limited (POL)
            UNION TAXIS
            MOL
            MS DEWAN

These all are indirect competitors of OGDCL. Because these are not perform their all
operations. Some of these companies are service provider and some of these are production

Social Activities
OGDCL Donates for Flood Victims

The Oil and Gas Development Company Limited (OGDCL) will distribute
225 tons of dry ration worth Rs19.95 million among 7500 families for 15
days. The amount has been paid to managing director Utility Store Head Office, Islamabad.
Earlier OGDCL had contributed Rs 200 million to Prime Minister’s Flood Relief Fund, which
is the highest amount donated by any public sector organization so far. The company will
spent another Rs 100 million for relief and rehabilitation of flood victims.

Muhammad Naeem Malik, Managing Director/CEO OGDCL constituted a Social Welfare
Council under instructions of OGDCL’s Board of Directors to supervise flood relief activities
in transparent manners.

Annual Environmental Excellence Award

OGDCL was acknowledge as a socially responsible and environment friendly organization,
that has adopted policies which strike a balance between profitability and social
responsibility. The award was conferred upon OGDCL by the National Forum for
Environment and Health after careful scrutiny of its track record, services and performance.

Corporate Social Responsibility

OGDCL's social responsibility is a continuing commitment to act ethically and contribute to
economic development while improving the quality of life of the workforce and their
families as well as of the local communities and society at large.

Health care

OGDCL firmly believes that healthcare especially vision is perquisite for a healthy society
and a base for economic development. At present OGDCL have 17 welfare dispensaries and
two mobile dispensaries providing free health care to the people of those areas.


During my stay in Audit Department F-8 markaz, I have observed some weakness in the
organizational setup.

6.1     PROBLEMS

1. Unawareness of Employees from Latest Technological Changes.

Employees working in the Audit Department do not have any access to the
latest modern and technological changes, literature etc. Even some Auditors don’t have

2. 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.

3. Unfair Utilization of Transport.

OGDC have a large number of vehicles, mostly at sites but they are misused by their location
in charge.

4. 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.

5. 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 drawback of this method is that it blocks
the way for new generation which carry new ideas and knowledge. Furthermore the
recruitment system is also influenced by the nepotism of politicians.


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.

1. 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

2. 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.

3. 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.

4. 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

5. 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.

6. Management must take necessary action to control costs i.e. administrative and selling

7. 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.

•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.


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 are 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 that 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 the
technical wings. The time bound necessity is that all these professionals be



                                          Board of Directors

                                          Managing Director

      Company Secretary                                                           Chief Staff Officer

       E.D (Admin)           E.D                   E.D           E.D (Drilling)          E.D (Corporate
                        (Fin/Accounts)        (Exploration)                                  Affair)

          General      General Managers          General            General            General Managers
         Managers                               Managers           Managers

         Manager           Manager              Manager             Manager                 Manager

       Chief (Admin)    Chief Account        Chief Engineers    Chief Engineers        Chief (Corporate)

         Dy.Chief       Senior Account          Principle       Principle                   Dy.Chief
                           Officers            Engineers        Engineers
         (Admin)                                                                          (Corporate)

        Sr. Admin      Account Officers         Senior          Senior Engineers         Sr. Corporate
         Officers                              Engineers                                    Officers

      Admin Officers   Finance/ Account          Junior         Junior Engineers        Junior Corporate
                           Sections            Engineers                                    Officers

      Admin Section                            Exploration       Drilling Staff /       Corporate Staff /
                                             Staff / Sections       Sections                Sections

                       Financial Highlights 2009-10

Financial Period                             2009              2010

                                                     (Rupees in 000)

Equity and Liabilities
Share capital                         43,009,284       43,009,284
Capital reserves                      3,859,682        3,658,318
Unappropriated profit                 110,523,520      79,503,794
Deferred taxation                      21,499,184      17,710,497
Deferred employee benefits            2,699,773        2,008,499
Provision for decommissioning cost    12,435,365       10,814,506
Trade and other payables              28,624,204       18,747,328
Provision for taxation                6,216,639        2,540,170
Grand Total                           228,867,651      177,992,396

Fixed assets
Property, plant and equipment         34,998,898 2     9,855,966
Development and production assets-
                                      58,630,857       4 9,057,766
Exploration and evaluation assets ,   9,551,394        8779,699
Long term investments                 3,231,435        2 ,903,133
Long term loans and receivable        1,902,330        1,849,707
Long term prepayments                 1 18,937         85,357
Stores, spare parts and loose tools   14,527,278       1 6,090,579
Stock in trade                        172,084          108,301
Trade debts                           82,992,291       5 6,140,092
Loans and advances                    2,216,881        2 ,643,354
Deposits and short term prepayments   616,641          419,621
Interest accrued                      17,031           27,156
Other receivables                     9 26,951         969,930
Other financial assets                11,120,823       5,087,917
Cash and bank balances                7,843,820        3 ,973,818
Grand Total                           228,867,651      177,992,396


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