Syed Muntazer Abbas

INTERNSHIP REPORT

OIL & GAS DEVELOPMENT COMPANY

LIMITED

Submitted by
Syed Muntazer Abbas
Spo5_BBA_057

Date of Submission
January 05, 2009

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Comsats Islamabad
 Syed Muntazer Abbas

Curriculum Vitae
Phone : 0302-5410934
E-mail:
intezar_14@live.com
House #588, Street #9/10,
Allahabad w.3 Rawalpindi
Pakistan

Muntazer Abbas Naqvi

Objective To achieve an optimum growth in my career by working in an

environment that is challenging and rewarding for me to test my
talent and skills.

OGDCL (Internship)
Work experience
RIRSP
COMSATS

Summary of (2009-2010) (continue) APCOMS Rawalpindi Pakistan

qualifications MBA(Finance)

2005-2008 COMSATS University Islamabad, Pakistan

BBA (Finance)

2003-2004 Islamabad Board Rawalpindi, Pakistan

I.C.S (Computer Science)

2002 Islamabad Board Rawalpindi, Pakistan

Matriculation (science)
2002
Diploma in Computer UCAT Rawalpindi,
Pakistan

Personal Skills  English

 French

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 Syed Muntazer Abbas

 Strong communication skills.

 Constant quest for learning and personal development through
self-training and on the job work experience.
 Ability to adapt quickly to a new technical environment.
 Strong abilities to lead and motivate.

Interests and Marketing, Psychology, Sociology.

activities Book Reading, Internet surfing.

Computer Computer Hardware

Proficiency Windows Vista/2000/XP
Internet Browsing
Ms Word
MS Excel
Ms Power Point
Adobe Photoshop

Volunteer Have been participating as an organizer in different events in my

experience University, COMSATS Islamabad.

Personal Father’s name: Muhammad Akram Shah

Information D.O.B: September 9st , 1984
Marital status: Single
Nationality: Pakistani
Religion; Islam
NIC#: 38302-5628555-7

Reference Ghulam Abbas Khan Mohammad Tahir

DPA Assistant
FAB HQs H 10/4 PTCL
Islamabad EWSD OML satellitown 6th Road
Tel : 051-9257560 Rawalpindi
3445203740 Tel : 4410060

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1. Introduction

Establishment
The Oil & Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961, to undertake comprehensive exploratory programme and promote
Pakistan’s oil and gas prospects. In 1997, it was converted into a Public Limited
Company and is now governed by the Companies Ordinance 1984.

Development

With a balanced, efficient and competitive structure, OGDCL explores and exploits
indigenous resources for optimum production of oil and gas, besides seeking
opportunities abroad.
OGDCL has the largest acreage position in Pakistan and currently operates 17
exploration concessions and holds non –operated working interest in another 7
exploration concessions. In addition OGDCL has 35 Mining and Development &
Production Leases, which are operated by it besides having working interest ownership in
28 non-operated Mining and Development & Production Leases, OGDCL has an
extensive database. Services of the Company’s highly qualified and skilled expertise in
the fields of geology and geophysics are frequently availed y the local and foreign oil
companies. It also leases out its drilling rigs to the private sector and carries out seismic
surveys and data processing on contract for these companies on extremely competitive
rates.

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OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of
total oil and 37% of total gas reserves. Its percentage share of the total oil and gas
production in Pakistan is 34% and 28% respectively. On the basis of its activities since
inception, the company has until June 30, 2003 and made 59 discoveries with a success
ratio of 1:3. OGDCL’s updated estimates for remaining recoverable oil and gas reserves
as on 1st July, 2003, stood at 9.228 billion standard cubic feet (BSCF) of gas and 164.25
million barrels of oil including company’s share in non – operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and commercially viable
organization.
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
Since my area of specialization is “Finance”, the organization I have chosen for
internship is “Oil and Gas Development Company Limited (OGDCL)” a major Oil &
Gas Company of Pakistan having Head Office in Islamabad. The company is engaged in
Exploration, Drilling and Production of Oil & Gas resources through-out Pakistan.

Till-date, OGDCL is owned by the Government of Pakistan and is working under the
control of Ministry of Petroleum & Natural Resources. The Government of Pakistan off
loaded a portion of its equity equivalent to 5% of the paid-up capital of the company
through Initial Public Offering (IPO) in October 2006. The Company is now listed on all
the three Stock Exchanges of the country and has the earning per share of Rs. 5.21.

Consisting of 13 Technical Departments and 17 Serving Departments, it is the major Oil

and Gas Company in Pakistan. The company has achieved all time high net sales revenue
of Rs. 51.294 billion during 2005-2006, representing 14% growth over last year.

The report covers the overall operations of the company with specific emphasis on its
Finance & Accounts Department. It also discusses financial growth in profitability of the
company due to new discoveries of Oil & Gas reservoirs in Sindh & Panjab areas and the

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use of latest technology in exploration, drilling and production operations of the

company.
1.1. 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 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 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 programme and to plan and promote Pakistan's oil and gas
prospects.

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

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. 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 financing 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)

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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 Public 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.).

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

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.

PGCL:

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.

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OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)

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.
1.2. Objectives

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.

VISION STATEMENT

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

partnerships and performance.

MISSION STATEMENT

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.

CORE VALUES
 Merit  Safety
 Integrity  Dedication
 Team Work  Innovation

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ORGANIZATIONAL STRUCTURE

Chairman

Board of Directors

Manag ing Director

Company Secretary Chief Staff Off icer

E.D E.D E.D E.D E.D

(Admin) (Finance/ (Exploration) (Drilling) (Corporate
Accounts) Aff air)
GM General General
(Admin) General Manag ers Manag ers General
Manag ers Manag ers
Manag er Manag ers Manag ers
(Admin) Manag ers
Manag ers
Chief Chief Chief Chiefs
(Admin) Engineers Engineers (Corporate)
Chief
Account Principle Principle
Dy . Chief Off icers Dy . Chief s
(Admin) Engineers Engineers
(Corporate)

Sr. Admin Senior Senior

Senior Senior
Off icers Account Engineers Engineers
Corporate
Off icers Off icers
Junior Junior
Admn Engineers Engineers
Off icers Account Junior
Off icers Corporate
Exploration Drilling Off icers
Admn Staff / Staff /
Section Finance/ Sections Sections
Account Corporate
Sections Staff /
Sections

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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 / 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
14. OGDCL Workshops, Islamabad
15. Oil & Gas Training Institute, Islamabad.

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MAIN DEPARTMENTS
A: CORPORATE DEPARTMENT

Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G & R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance & Accounts
Career Planning Cell
Environment Protection & Safety
B: E&P DEPARTMENTS

1. Exploration Prospect Generation

2. Exploration Studies & Research
3. Exploitation
4. Production
5. Process
C: TECHNICAL SERVICES DEPARTMENT
1. Drilling 8. Stimulation
2. Engineering/Workshops 9. Geological /
Geophysical
3. Mud Engineering 10. Seismic Data
Processing
4. Well Services Department 11. Logistic
5. Cementation 12. Data Logging
6. Geological Well Supervision
7. Wire line Logging

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The Executive Director Exploration:

Supervises all the geophysical and geological and exploration activities and is
assisted by different Manager.

Executive Director Drilling:

when a potential oil or gas field has been identified through seismic surveys, it is
then drilled to assess the quality and quantity of the deposits. This process is
achieved through drilling. ED (Drilling) is responsible for all the drilling activities
carried out by OGDCL in the country.

Executive Director Admin:

Responsible for management of personnel. The administration department

manages all the activities from recruitment to training and development.

Executive Director Corporate Affairs:

Looked after the activities of planning of different development programme and

monitor the implementation of that program. It coordinates with all the
department of OGDCL and prepares a strategic plan for the activities of OGDCL.
This department also liaison between OGDCL different Ministries.

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COMMENTS ON THE ORGANIZATIONAL STRUCTURE

All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director. The general direction,
policies and affairs of the Company vests in a Board of Directors, which consists
of 01 Chairman, 10 Directors and 01 Managing Director (MD). MD is responsible
for operational and other activities. The OGDCL has been re-organized during the
last few years; it now operates much purely as Oil Company does. Emphasis is on
Professional Competence and getting things done. OGDCL can broadly be
divided in to following three companies:

 Corporate
 Exploration & Production (E& P )
 Technical Services
The whole organization has been streamlined on the functional basis and it
has emerged as an efficient unit, while speed and competence are its Hall Mark. It
is now divided into separate departments and each department is in a position to
work independent business unit.
For effective operational activities, different Executive Directors performs
following activities in consultation with General Managers, who are assisted by
the concerned Departmental Managers:

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NO OF EMPLOYEES

DOMICILE AND GROUP-WISE SUMMARY

OF OVERALL OFFICIALS

PAY DOMICILE TOTAL

GROUP IN THE
MeritPUNJAB SINDH NWFP BALUC- FATA AK
GROUP
URBAN RURAL TOTAL
HISTAN

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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905

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OVERALL STAFF

PAY DOMICILE TOT

GRO AL
Mer PUNJ SINDH NW BALU FAT A
UP IN
it AB URB RUR TOT FP C- A K
THE
AN AL AL
HIST GRO
AN UP
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
TRAIN 6 27 1 2 3 8 8 0 1 53
EE
TOTAL 40 4954 649 1654 2303 727 917 30 22 9194
3

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STRUCTURE OF THE FINANCE DEPARTMENT

Finance & Accounts Department plays a vital role in the organizational structure.
OGDCL has acquired the services of highly qualified professionals like CAs, CMAs,
MBAs and M. com for its Finance and Accounts Department. The Executive Director
(Finance), heads the Finance & Accounts Department. GM (Finance), GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities. Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers. The main role and function of ED, GMs, and Managers are as under:

Executive Director
Finance

General Manager

Manager

Chief Accountant

Dy Chief Accountant

Sr. Accountant

Accountant

Assistant Accountant

Accounts Assistant

Jr. Accounts Assistant

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EXECUTIVE DIRECTOR (Finance)

Director Finance is a member of Board of Directors and represents the Finance

and Accounts Department.

G M - Finance/Accounts/Treasury
General Managers reports to DF and is responsible for overall activities of
Finance & Accounts Department. The overall structure of the Finance
Department and the relevant category of professionals is given on next page.

Managers - Finance/Accounts/Budget & Accounts/Joint venture

Managers reports to GMs and is responsible for smooth running of their
respective sections.

Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
job/assignments of their section only. They assisted by Deputy Chiefs, Senior
Accountants, Accountants and assistants.

STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT

MANAGER (Finance)
Manager (Finance) reports to GM (Finance). Following section reports
to Manager (Finance).
 Imports section
 Bank / Cash section
 Sales Section
MANAGER (Budget & Accounts)
Manager (Budget & Accounts) reports to GM (Finance). The work of
Budget & Accounts is distributed between six sections.

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 Budget and AFE Section

 Final Accounts
 MR section
 EDP Management and Training
 Projects

MANAGER (Stores & Fixed Assets)

Manager (Stores & Fixed assets) reports to GM (Finance). He looks

After the whole inventories, fixed assets and material in transit of the
Organization. Following sections are the part and parcel of this
Segment:
 Local Stores
 Foreign Stores
 Material in Transit
 Fixed Assets
 Petrol, oil & lubricants
 Reconciliation

MANAGER (JV Accounts)

Manager (JV Accounts) reports to GM (Finance). He manages the

Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions:
 Operated Joint Venture
 Non Operated Joint Venture

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MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts). Following sections are
supervised by Manager (Accounts):
 Payroll
 Accounts Payable
 Field Imprest

Other section

1. IMPORT SECTION
2. Bank section
3. Sales Section
4. Payroll section
5. Accounts payable section
6. Employee’s advance section
7. Field Imprest Section
8. Final account section

Number of Employees working in Finance Department

Total employees working in the Finance & Accounts Department are 254, out of which
there are 74 Officers and 180 staff members.

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ORGANOGRAM OF
PERSONNEL DEPARTMENT

Amjad Javed
Manager (Personnel)

Khalid Pervez Khursheed A. Hashmi Muhammad Iqbal Khan

Mukhtar Ahmad Jiger Muhammad
D.M DCPO (Coord)/ Programmer
DCPO(A) DCPO(C)
(B,D,Pen&EOBI) PS(G) Computer Sec

Muhammad Younas
Sheikh Fareed Sabir Hussain Rana Shaukat Muhammad Khalid Abid Aslam Sheraz Muhammad
PO
PO(E) PO(F) SPO(B) PO(D) *D.P.O *D.P.O
(EOBI/Pen)

Sections of Personnel Department

A B C D E

EOBI /
F G COMPUTER
PENSION

Total Officers : 13
Total Staff : 97
Data Processing Officer

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FUNCTIONS
OF PERSONNEL DEPTT.

1. Maintenance of service record of employees from their induction to retirement and

beyond.

2. Transfers –Postings.

3. Maintenance of seniority.

4. Handling of Personnel grievances.

5. Processing of Pension / EOBI and retirement cases.

6. Implementation of CBA Management’s agreement’s after every two year’s duration..

7. Maintenance of Database-Computerization.

8. Responses to Senate, National Assembly Questions / Other Government Agencies.

PERSONNEL (HR) DEPARTMENT FUNCTIONS

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 has 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

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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.

1. Executive Group (EGI - EGIII)

2. Staff (1 - 16)
3. 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.

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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.

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.

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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

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 anybody 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. 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.

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Medical Center Department Organogram

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.

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.

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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.

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.

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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.

Recruitment types
Regular
Contract Basis
Trainees – Special Trainees
Hiring through Contractor
Classified appointment

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SELECTION COMMITTEES FOR RECRUITMENT

FOR EG-VIII AND ABOVE
Managing Director and Members of Human Resource Committee.
FOR EG-VII AND EG-VI
Managing Director Chairman
Executive Director (Admin) / G.M. (Admin) Member
Executive Director (Concerned) Member
Professional / Expert in the relevant field/discipline Member
Preferably having PhD or Master degree in the
Relevant subject.
Head of Department Concerned Member

FOR EG-V TO PS-15

Executive Director (Admin) Chairman

Executive Director (Concerned) Member

Head of Department Concerned Member

Head of Department Concerned Professional/Expert Member

Head of Department Concerned Member

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.

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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 .

 Compulsory retirement.

 Removal from service and

 Dismissal from service.

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 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 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.

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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 relationship 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.

 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.

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 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%

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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%

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Performance Evaluation (ACRs)

No. of ACRs

Officers 1600

Staff Employees 4438

 Issuance of ACR forms to all departments according to time schedule. (15th

December of each year)

 Receipt of ACR forms. (Ist March of each year)

 Maintenance of proper record, its secrecy & integrity very important

 Convey Adverse entries to officers/staff employees

 Deal with the representations/grievances related to Adverse entries in ACRs

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

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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%
-------------------------
These five basic components are analyzed before promotion criteria. When any employee
qualifies these components then he will be promoted with the approval of the chairman.
For every employee it is necessary to get minimum 60% marks in above components.
Besides this, the promotion also observes that where any position is vacant or not
whether the employee who is promoted, meet the requisition of qualification for that
particular job. Where he is performing job for last five years where his record in past is
clear. So, after these observations they take action for promotion. Deputy Chief Personnel
officer is the incharge of the section.

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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%

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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

IMPORTANT FACTORS FOR PROMOTION

 Experience for the Post

 Number of Years in the Vacancy

 Seniority

 Performance: ACRs Synopsis/Quantification

 Prescribed Qualification

 Requisite Present Executive Group

 Disciplinary Profile

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Promotions Average – Year-wise

Officers

Year Average

2003 01 Officer promoted daily

2004 03 Officers promoted in five days

2005 01 Officer promoted in three days

2006 03 Officers promoted in four days

Promotions Average – Year-wise

Staff Employees

Year Average

2003 05 Employees promoted in two days

2004 02 Employees promoted daily

2005 01 Employee promoted daily

2006 01 Employee promoted in three days

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Promotions Average – Year-wise

Grand Total Officers & Staff Promoted

Year Average

2003 07 Officers & Staff promoted in two days

2004 08 Officers & Staff promoted in three days

2005 04 Officers & Staff promoted in three days

2006 01 Officer & Staff promoted daily

Promotions – Year-Wise (2002-2007

Year wise performance in connection with promotions for last five years is as
follows:-

Officers Officers
Years Staff
(EG-VI & above) (Upto EG-V)

2002 58 247 737

2003 0 191 624

2004 48 44 300

2005 35 187 96

2006 0 22 365

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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

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Statement of Promotion – Officers

Executive Group 2006

EG-VIII to EG-IX 0

EG-VII to EG-VIII 0

EG-VI to EG-VII 0

EG-V to EG-VI 0

EG-IV to EG-V 5

EG-III to EG-IV 6

EG-II to EG-III 11

EG-I to EG-II 0

Total 22

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Statement of Promotion – Staff

Pay Scales 2006

Staff to EG-II 18
Staff to EG-I 23
PS-16 0
PS-15 0
PS-14 27
PS-13 0
PS-12 250
PS-11 0
PS-10 0
PS-09 41
PS-08 0
PS-07 0
PS-06 6
PS-05 0
PS-04 0
PS-03 0
PS-02 0

Total 365

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Statement of Promotion – Staff

Pay Scales 2003 2004 2005 2006 Total

Staff to EG-II 4 0 35 1 40
Staff to EG-I 36 61 12 24 143
PS-16 16 10 43 19 88
PS-15 19 16 9 0 44
PS-14 44 55 3 28 130
PS-13 1 0 1 0 2
PS-12 26 83 25 265 399
PS-11 0 0 0 0 0
PS-10 19 5 3 7 34
PS-09 108 54 6 43 211
PS-08 21 62 4 2 89
PS-07 45 0 10 0 55
PS-06 220 66 52 18 356
PS-05 9 5 67 36 117
PS-04 17 191 1 0 209
PS-03 142 16 25 0 183
PS-02 0 0 4 0 4

Total 737 624 318 96 1775

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1.4. Products and Services Offered

Business Volume

Exploration, Development, Reserves and Production

Being largest E & P Company in Pakistan:

OGDCL holds 115 million barrels of oil and 10.5 trillion cubic feet (TCF) of gas as
remaining recoverable reserves. These constitute 46% of total oil and 30% of total gas
reserves of the Country.

OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47%
of crude oil and 23% of Gas in 2004-05.

Average daily production of the Company including share in operated and non-operated
joint ventures is 39,130 barrels of oil, 919 MMcf of Gas and 334 Tons of LPG.
OGDCL’s current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 59,968.6 sq. kms which constitute 30% of total exploration
area granted to various E&P companies in Pakistan. The Company also holds non-
operated working interest in another three exploration concessions, which are operated by
other JV partners.

OGDCL has 39 Development and Production / Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases.

OGDCL’s major oil and gas fields are located at Kunnar, Paskhi, Bobi, Tando Alam,
Thora, Lashari, Sono, Fimkassar, Kal, Sadqal, Rajian, Missakesswal, Dhodak, Dakhni,
Chanda, Chak Naurang, Qadirpur, Uch, Pirkoh, Loti, Nandpur / Punjpir and Hundi/Sari.

OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries.

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Product Lines
The main product lines of the company are as under:

1.4.1. Crude Oil

Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells. Main production Oilfields of the company are Dakhni, Dhodak,
Bobi, Tandoalam, Chanda, Toot & Rajian.

1.4.2. GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs. The major gas fields of the
company are Dakhni, Dhodak, Qadirpur, Nandpur, Panjpir, Pirkoh and Uch.

1.4.3. Liquefied Petroleum Gas (LPG)

A mixture of hydrocarbons found in natural gas and produced from crude oil, used principally as a
feedstock for the chemical industry, home heating fuel, and motor vehicle fuel. The major fields of the
company having LPG production facilities are Dakhni, Dhodak, Sadkal, Kunner and Bobi.

1.4.4. Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry. It is also used in solvent applications. Naphtha is the residual
product of the company and is extracted from various oil / gas fields.

1.4.5. Solvent Oil

A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline, kerosene, diesel
fuel, and various other products. This product is extracted from various oil fields of the company.

1.4.6. Kerosene Oil

Kerosene oil has been distilled from petroleum, and generally used as a fuel for lighting etc. This residual
product is extracted from various oil fields of the company.

1.4.7. High Speed Diesel Oil

It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines; extracted from various
oil fields of the company.

1.4.8. Sulphur
A yellow mineral extracted from petroleum for making fertilizers, pharmaceuticals and other products. The
sulphur is produced at the Dakhni oil & Gas field near Jand, Attock

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 Syed Muntazer Abbas

Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Crude Oil Thousands 8,535 8,705 9,413 9,941 13,045 12,956

Barrels
Gas MMcf 217,927 245,537 274,006 277,408 329,385 336,059
LPG M.Tons 77,402 93,136 90,304 101,322 120,063 128,654
Sulphur M.Tons 16,670 23,234 15,889 18,917 25,884 22,006
White Thousands 998 989 859 890 885 959
Petroleum Barrels
Products

PRODUCTION OF CRUDE OIL

2007-08

S.No. Name of Company Barrels per day

1 OGDCL 31,370
2 BP-Pakistan 16,559
3 POL 10,324
4 PPL 3,645
5 OPI 1,880
6 BHP 1,714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66,095

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PRODUCTION OF CRUDE OIL

(Barrels per Day)

3% 3% 0%
6%

16%
47%

25%

OGDCL BP-Pakistan POL PPL

OPI BHP Eni MOL
OMV Petronas

PRODUCTION OF NATURAL GAS

2007-08

S.No. Name of Company MMCFD

1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3,685

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PRODUCTION OF GAS (MMCFD)

1%
6% 2% 1%
7% 23%
11%

12% 22%

15%

OGDCL PPL OMV MGCL

Eni BHP BP-Pakistan OPI
POL Others

LPG(M.Tons)

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Sulphur (M.Tons)

White pertoulem products (Barrels)

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 Syed Muntazer Abbas

2. Learning & Experience

2.1. Internship Duration & Rationale for Selection

Since my area of specialization is “Finance”, the organization I have chosen for
internship is “Oil and Gas Development Company Limited (OGDCL)” a major Oil &
Gas Company of Pakistan having Head Office in Islamabad. I have done internship in
this organization for 6 weeks 30.06.2008 to 20.08.2008. The company is engaged in
Exploration, Drilling and Production of Oil & Gas resources through-out Pakistan.

Consisting of 13 Technical Departments and 17 Serving Departments, it is the major Oil

and Gas Company in Pakistan. The company has achieved all time high net sales revenue
of Rs. 51.294 billion during 2005-2006, representing 14% growth over last year.

The report covers the overall operations of the company with specific emphasis on its
Finance & Accounts Department. It also discusses financial growth in profitability of the
company due to new discoveries of Oil & Gas reservoirs in Sindh & Panjab areas and the
use of latest technology in exploration, drilling and production operations of the
company.

Significance of study

Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because it’s a compulsory part of it. Secondly, it attracts me and I was keen to
gain some knowledge about this sector. Moreover, I studied about the functioning of
these particular sections, so I got some idea about the corporate level. I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies.

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Scope of study

OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time. But
I tried my best to learn as much as I can. With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments. This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus.

Limitations of study

06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL. To prepare a report I have a very limited time.

Methodology of Study

The research methodology is a prerequisite for carrying out research. It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information. The study is both on primary data and
secondary data.

Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data.

 Personal observation
 interviews

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Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected, classified, tabulated or presented in some form for a certain
purpose are called secondary data.
 Departments manuals
 Annual reports
 Text books
 Internet research
2.2. Details of Training Department Wise / task performed
I have done work in 6 departments in OGDCL these are:

2.2.1 Correspondence (A section)

I have work in this section for 1 week. In personnel I learned how to maintain the record
of each employee for promotion, the minimum time for promotion is five years. So at the
end of every year we 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 the
personnel section. In short any type of personal problem or work will maintain in his
personal files with personnel department. It’s called correspondence.

2.2.2 PENSION SECTION (F section)

I have work in this section for 1 week.In this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension. 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 cannot 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.

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2.2.3 IMPORT SECTION

I have work in this section for 1 week. In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported.
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods.
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received

2.2.4 Payroll section

In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions, record and final report of the company and
make a payment for the suppliers, contractors and other stakeholders. This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash.

2.2.5 Joint venture

In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company. In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products

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2.3 SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of Strategic planning and helps managers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal
factors. Opportunities and threats are external factors.

Strengths and weaknesses are internal factors.

STRENGTHS

 Largest Oil and gas company in the Pakistan.

 Monopoly of the company and having confidence due to govt. support.
 Dynamic & Strong Financial Position due to the 45 years experience.
 A new, Exploration and innovative of Wells.
 Best location of business which is choosing after long process.
 Quality processes and procedures.
 Large number of field of oil and gas.
 Experienced and Technical Staff involving no. of expert Geologist.
 Confidence of the Customers.
 All other aspect of the company that adds value to the product or service.

WEAKNESSESS

 Lack of marketing expertise.

 Undifferentiated products or services (i.e. in relation to the competitors)
 Lack of coordination of operations.
 Government Influence.
 Untrained Staff.
 Slow promotion process which reduces the performance.
 Lack of Check and balance.
 Weak quality goods or services (can be only one of more than one)

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Opportunities and threats are external factors. For example:

OPPORTUNITIES

 A developing market such as the Internet.

 Mergers, joint ventures or strategic alliances
 Moving into new market segments that offer improved profits
 A new international market
 A market vacated by an ineffective competitor.
 Large workshops for training and development.
 Support of the Ministry of P&NR (Petroleum and Natural Resources).
 Better Competitive Position.

THREATS

 A new competitor in the home market.

 Price wars with competitors.
 Fear of Privatization.
 Tuff Competition
 Globalization is the factor which brings the strong companies in Pakistan
 A competitor has a new, innovative product or service.
 Competitors have superior access to channels of distribution.

Future prospects of the organization

Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in

nine non-operated blocks. In addition company has got 34 mining and D & PL leases.
Targets have been based on risks and opportunities. Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development), 2950
Km of seismic survey, production of 28,111 barrels per day, 730 MMcf per day gas, 313
metric tons per day pf LPG and 60 tons per days pf sulphur. To accelerate exploration
activities by covering 3,200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves. It is expected that

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exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the country‘s reservoir.

To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24,500 barrels of oil per day
and 565,605 Mmcfd of gas is expected to be produced during 1999-2000. Exploratory
wells are being drilled on various points i.e.
Sanjharo , Norijagir, Ghari, &, Chanda etc; from these points oil and gas are discoved to
achieve the future targets.
To modernize, replace and effectively maintain the drilling, seismic and processing
equipment in order to keep the equipment in sound operating condition at all times.
To develop OGDCL‘s human resources through transfer of technology and training.
To rationalize stores and spares inventory to the optimum level.
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur / Panjpir to Fauji Kabirwala Power Limited. All these projects are contributing
a lot of income to the OGDCL’s current revenues. Despite number of Joint ventures and
competitors in the oil and gas sector, OGDCL has drilled different concessions
independently as well as it has ventures with other company’s successfully. OGDCL
Seismic Crews are busy in G&G survey on different concession like Kharar, Basal,
Ranpathani, Sanghar and Zin etc.

FUTURE GOALS & STRATEGY:

OGDCL plans to drill 45 wells during current financial year (2005-06), to explore new
drillable prospects. The Company has also started three new development projects –
Tando Allah Yar, Sinjhoro and Uch-II. The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts.

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2.4. Recommendations’

Quarterly comparison of actual verses budgeted expenditure is carried out

to ascertain weakness and cost over-runs.
Timely payment to the vendor, supplier and contractors is effective tool for
image building of OGDCL. To achieve this, internal procedure should be
well defined which will reduce time in these payments.

To save time of the employees chasing their payments employee related

payments should be excluded from the ambit of pre-audit.

All accountants should be given training on different accounting modules

and chart of accounts. So that monopoly and dependence on few is
eliminated.

Rotation of duties should be made at regular interval to improve the overall

work output and to keep the interest of the employee intact.

Responsibility of clearing/correcting the entries should be fixed with the

section generating the activities

A professional Accountant should be assigned the job to the review of

AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs.

For effective cost control, standardization of different stationery items and

consumable is approved for purchasing in bulk from the manufacturer
directly.
A good internal Control is a key to success for an organization, but in
OGDCL there is a lack of internal control, which should be improved and
implemented effectively.

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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 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 given a
targets and their performance indicators be clearly 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.

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References

1. Ministry of Petroleum and Natural Resource’s site.

2. www.ogdcl.com
3. www.google.com.pk
4. www.kse.com.pk
5. Pakistan industrial Reviews
6. Annual Reports of OGDCL
7. Business Recorder “ News Paper”
8. Observer Journals.
9. Interview of OGDCL MD.

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Acknowledgment

All the praise is for Allah, the most merciful and beneficent, who blessed us with
the knowledge, gave us the courage and allowed us to accomplish this task. We are
especially indebted to our supervisors and teachers.

Their inspiring guidance remarkable suggestions, constant encouragement, keen

interest, constructive criticism, and friendly discussion enabled us to complete this report
efficiently. Without their support and proper guidance, it would be almost impossible to
accomplish this task successfully.

We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target. We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report.

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