Professional Documents
Culture Documents
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EXECUTIVE SUMMARY
I did six weeks internship at OGDCL as a compulsion for my BBA Hons degree
from Bahria University. It is a necessity for every student to do internship
with any organization relevant to their subject of studies. This stipulation is a
way of familiarizing the students with the practical world which they intend
to enter after completion of their education. During the tenure of my
internship I got an opportunity to understand the organization and apply my
knowledge and theoretical concepts in a better manner. This report precisely
states my experience.
The following report has been written on the format provided by the
university administration. It initiates with an introduction of the companys
background and proceeds with its contribution to Pakistans economy.
OGDCL forms the industrial base of our country and plays a dominant role in
energy generation activities to support the nation on the whole. This sector
dates back to the creation of Pakistan and ever since owing to its importance
it has been pampered by all sectors of production.
I interned in the production department of OGDCL and this report elaborates
my experience and understanding of the production soft wares, marketing
issues and human resource requirements of the company. I have also talked
about the financial standing and progress of the industry in 2009.
Operational, HR and market analysis all show positive results and bright
future of the company in the following industry of our country. Other than a
few pits that I discovered which include lack of use of modern technology,
bureaucratic, hierarchical structure and nepotism the overall analysis of the
company depicts a very positive and influential picture which is why it has
been profitable over the years.
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INTRODUCTION
Oil industry is a lifeline for an economy. It is a world of oil exploration, oil
refining and oil marketing. Pakistan understands the importance of this
industry for its economic uplift. Therefore the government of Pakistan
established OGDCL in 1961. OGDCL is the leading firm providing 23% of total
consumption, saving Pakistan from imports and contributing to economy by
paying different charges to the government.
Prior to OGDCL's emergence, exploration activities in the country were
carried out by Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL).
In 1952, PPL discovered a giant gas field at Sui in Baluchistan. This discovery
generated immense interest in exploration and five major foreign oil
companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and
geophysical surveys and drilled 47 exploratory wells. As a result, a few small
gas fields were discovered. Despite these gas discoveries, exploration
activity after having reached its peak in mid-1950s, declined in the late
fifties. Private Companies whose main objective was to earn profit were not
interested in developing the gas discoveries especially when infrastructure
and demand for gas was non-existent. With exploration activity at its lowest
ebb several foreign exploration contracting companies terminated their
operation and either reduced or relinquished land holdings in 1961.
generation of energy, for the use of other industries and activities that
support the economy of a nation. This reason alone has let the energy sector
to be pampered by all the sectors of production and society around us. The
setup of oil and gas related infrastructure and institutions started with the
formation of Pakistan. The then governments (in the first decade of
formation) did take some very useful decisions for the later generations of
Pakistan. They made sure that our energy needs were made secure enough
so that we could count on them. Many energy generation and exploration
projects were started which really proved useful in that decade of intense
growth of industrial development. These explorations fueled the
development process further to attain one of the fastest growths in the
history of Pakistan. This also proves that if these projects werent initiated
maybe the picture would have been much different and grotesque today.
INDUSTRY OVERVIEW
In the public sector many companies and firms are operating including
OGDCL, PPL, PSO, SSGCL, SNGPL and PARCO. Private sector companies of
Pakistan have done a formidable job in attracting much needed investment
and also in fulfilling much of the strategic fuel needs of Pakistan. Major
Private Sector companies include: British Petroleum (BP), Asia Petroleum
Limited, Shell Pakistan, OMV Pakistan, Attock Petroleum Limited (APL) and
Chevron (Caltex) private limited.
ENERGY SUPPLIES OF PAKISTAN
The primary commercial energy supplies for the year 2006-07 in Pakistan
have been 60.4 million tons of oil equivalent (mtoe) from 57.9 mtoe in 200506. Natural Gas holds a share of 48.5% in primary energy supplies followed
by oil 30.0%, hydro electricity 12.6%, coal 7.3%, nuclear electricity 0.9% and
LPG 0.5% while imported electricity is only about 0.1%.
PETROLEUM
Fuel or petrol has many forms and is one of the most important energy
constituent as the world today depends on it. Most of its transportation and
many other needs would remain unfulfilled if this energy source is not
available in a timely manner or as per requirement. The total amount of
identified recoverable reserves of crude oil, according to the report of GSP
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The Upstream sector of our Petroleum industry consists of the Oil exploration
and extraction companies. The Midstream sector represents the oil refineries
operating in the sector. The downstream sector comprises of the firms that
directly market the petroleum and its by-products to the final consumer.
PIPELINE NETWORK
Pakistan has the worlds second largest pipeline network after America in the
world which is being run by two companies namely the SNGPL and SSGCL.
The transmission system of SNGPL is in Punjab and NWFP. The key
installations for Gas are the areas where it is discovered, since it's from there
that the gas is being pumped into the pipeline system of the country. For
example the main Transmission system for most of Pakistan is situated near
Sui.
Gas is brought out from the gas fields, processed sent to the distribution
networks and from there sent to the consumers as required. There is a
vertically integrated environment for Gas sector. The upstream sector
consists of different companies that may or may not be involved in the
petroleum
sector
as
Basin
Basin
Understan
Understan
ding
ding
Mid
Mid
Exploratio
Exploratio
n
n
Reserves
Management
Reserves
Replacement
Rate
Developme
Developme
nt
nt
Production
Production
Metric
Exploratio
Developme
s
n
Exploration
Success Ratio
Finding and
Development
Cost, Spend
Share
nt
Development
Spend
Enabling
KPIs
Supply Chain
Corporate
HR
Planning
&
& DownDownstream
stream
Production/Operatio
ns
Production Cost
Operations
Effectiveness
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Safety
Employee
Safety
COMPANY BACKGROUND
ESTABLISHMENT
The Oil & Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961, to undertake comprehensive exploratory program and
promote Pakistans oil and gas prospects. In 1997, it was converted into a
Public Limited Company and is now governed by the Companies Ordinance
1984.
OGDCL is the largest petroleum exploration & production (E&P) company in
the Pakistan oil and gas sector based on recoverable reserves, hydrocarbon
production and exploration acreage holding. As at June 30, 2006, OGDCL
held the largest portfolio of recoverable hydrocarbon reserves of Pakistan, at
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32% of gas and 37% of oil, respectively. In addition, OGDCL contributed 22%
of the countrys total natural gas production and 48% of its oil production on
net basis.
Prior to 23rd October 1997, OGDCL was a statutory Corporation and was
known as Oil & Gas Development Company. It was incorporated as a Public
Limited Company w.e.f. 23rd October1997 and became known as Oil & Gas
Development Company Limited.
In November 2003, Government of Pakistan (GOP) divested 5% of its
shareholding in OGDCL by way of an Initial Public Offering (IPO) on the
Pakistani Stock Exchanges. Subsequently, in December 2006, GOP divested
another 10% of its stake in OGDCL in the form of Global Depository Shares
and listing of the Company on the London Stock Exchange.
DEVELOPMENT
OGDCL plays a leading role in developing oil and gas resources in Pakistan.
Our principle objective is to first expand and accelerate onshore exploration
and development activities and, contingent upon theses activities, undertake
carefully selected offshore and international development activities to
augment our oil and gas resources. 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
Companys 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.
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
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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. OGDCLs updated
estimates for remaining recoverable oil and gas reserves as on 1 st July, 2003,
stood at 9.228 billion standard cubic feet (BSCF) of gas and 164.25 million
barrels of oil including companys share in non operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and
commercially viable organization.
FUNCTIONS OF OIL AND GAS DEVELOPMENT COMPANY
The main functions of the Corporation are:1. To plan, organize and implement
development of oil and as resources.
program
of
exploration
of
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COMPANYS ANALYSIS
OPERATION ANALYSIS
OGDCL is a government owned organization; most of its customers are
government owned. Everything OGDCL produces is sold under the name of
President of Pakistan there and then. In other words once the oil or gas
comes out of the ground it is no longer the property of OGDCL. There are no
Oil and Gas storage facilities of OGDCL. The fields are operated with the view
of optimizing their output over a length of period of time. This is important
because if the fields are over producing then they might dry out very quickly.
However due to the prevalent demand conditions most fields are producing
at their maximum output level. Production is done round the clock without
any scheduled stops except for maintenance.
There are six customers of OGDCL, 4 oil refineries and 2 gas companies.
Crude oil from the fields is transported to the two oil refineries in Karachi,
PARCO in Multan and Attock oil refinery. Gas for further processing is sold to
SNGPL and SSGCL. Transportation of the products is the responsibility of
OGDCL.
Gas is only transported through gas pipelines to the gas processing plants of
the respective companies where it is processed for daily consumption. No
other means are used. However raw gas extracted from underground has
very variable composition; it contains a lot of impurities in various quantities.
Before the raw gas which can be fed into the processing plants, it needs to
be of the required standard. There are several on site gas processing plants
which process it so that the required standards are met and then it is
transported. Oil is transported through pipelines and also through oil tankers.
The gas pipelines are set up in collaboration with the government where
possible. These pipelines take the oil directly from the oil fields to the
refineries. Where pipelines are not present or cannot be made due to any
reason third party carriers are used to transport the oil. NLC tankers are often
used by OGDCL for this purpose. OGDCL doesnt own any oil tankers or any
oil carrying vehicles however it bears the cost.
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FINANCIAL ANALYSIS
OGDCL financial performance has been consistently improving with
sustainable growth since the time it became a self-financing Company. The
Company is the single largest contributor of more than Rs. 37 billion to the
national exchequer in the shape of royalty, duties, taxes and other
payments.
OGDCL financial performance in the current year is quite impressive. Sales
growth is about 25%, the reason for the high sales is rise in oil and is prices
in the country. Gross profit, operating profit, Net profit of the company are
high as compared all companies in the industry, this is because of the less
decommissioning cost, no financial leverage, and other incomes. While in
turnover, companys debtor turnover is less as compared to other companies
showing managerial inefficiency and infectivity. Earning per share of
company is ever rising due to rising net income, while it is less as compared
to companies in industry; this is because of 22times more share of OGDCL
than any other company in industry. OGDCL has a growth of almost 40%. An
in future prospect, the companys growth is expected to be 37.61% under
sustainable growth method, while 35.31% under varying growth method,
showing the company is growing robustly. OGDCL is 85% government owned,
so the major income of it goes to the government revenues
CAPITAL STRUCTURE
OGDCL is 100% equity financed company out of which 85% share is of
Government of Pakistan and remaining 15% is issued to general public and
some shares are also bought by international investors. Government of
Pakistan divested 9.5% of the total shares of the company through
secondary offering in the form of Global Depository Shares to international
and local institutional investors. OGDCL became the first Pakistani E&P
Company listed in the London Stock Exchange with effect from December
2006 and acquired 70% working interest along with the operatorship in
Guddu Block under an assignment agreement executed in 2007 between
GHPL, OGDCL and IPRTOC.
OPERATING LEVERAGE
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OGDCL has high operating leverage as it has high total Fixed Expenditures as
compared to variable expenditure, it gives a magnifying effect. It also shows
that the company is risky one.
GROWTH IN SALES
The sales of OGDCL have also grown insignificantly. In 2002 the sales of
OGDCL million barrels of oil and now it has reached to 14500 barrels of oil.
This growth in sales is due to increasing demand of oil. The sale of Gas has
also increased from 250000 MMcF in 2002 to 300000 in 2005 which was also
same in 2007, now it has increased to 350000.
EARNINGS & DIVIDEND
The EPS of OGDCL has increased from 4 in 2002 to 11.54 in 2008. The
Dividend payout rate of OGDCL is very high because of the government
control due to 85% share in capital. Government covers its losses of petrol by
getting these dividends.
Corporate
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
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HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad
therefore it performs the function for OGDCLs staff member to hire houses
for their accommodation. It has many functions they are:
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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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 reimbursement 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.
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Vaccination
Vaccination facilities for children are available at both medical centers and
every Monday is specially fixed for this purpose.
Ambulance
Ambulance equipped with first aid kit is available at medical centre
Islamabad for 24 hours duty.
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management. It is also a proper
channel between the two bodies.
Functions of Welfare Section
Various types of functions performed by the welfare section are as under:
Distress grant, at the time when any staff member die, the amount will be
given to his wife.
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.
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Pension Section
Pension was introduced in OGDCL after 1984. After 10 years in OGDCL the
staff member qualified for pension and after 25. Years he can demand for
pension. The super innovation of the pension is maximum 60 Years. After 60
years he can not stay more. Accommodation allowance is 50% of the growth
monthly pension supposes that on the age of 25 years of service his pension
will be counted of the 14th scale employee.As a whole it means that OGDCL
will provide pension till 15 years and something. After that the pension
allowance will be counted again.
Recruitment Section
Recruitment section is one which is a real base to provide facilities of
selection of new and old employees.
Functions of Recruitment Section
Recruitment section basically performs the following functions.
Analyze the recruitment of employees in each department.
Organogram
After circulation to every department they analyze that how many
employees perform their duties and how many are required and they take a
deficiency with his scale. This procedure is called Organogram.
After the completion of organogram they take the official approval from
chairman and give advertisement through public relation department of the
most required vacancies. The recruitment procedure of the OGDCL is mostly
related with CSS of Pakistan .i.e. as under:
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Merit
10%
Punjab
50%
Sindh rural
11.4%
Sindh urban
7.6%
N.W.f.P
11.5%
Baluchistan
3.5%
Fata
04%
A.j.k
02%
After the advertisement they receive application from all Pakistan and take
written examination. This examination is held in those departments, where
the candidate want to join and that department send the result to
recruitment section.
The selection procedure is recently shortly changed and is as under:Written Test
40%weitage
Experience
30%weitage
Academic Qualification
30%weitage
The time for a written test is usually one hour. Those candidates who
qualified the test then they send a call for interview if they are not low merit.
It should be kept in mind that the interview has no value and no marks. It is
just only for to and to analyze the courage, boldness communication skill,
convincing power and also his dealing with other people.
RECRUITMENT TYPES
Regular
Contract Basis
Trainees Special Trainees
Hiring through Contractor
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Classified appointment
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
Executive Director (Admin) / G.M. (Admin)
Chairman
Member
Member
Chairman
Member
Member
Member
Member
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DISCIPLINE SECTION
FUNCTIONS
Discipline section deals with those matters which depend upon any
misbehavior, mis-conduct or any offence which occur in fields and offices by
the employees. In OGDCL there is delegation of powers .Every higher
authority can take action against that evil. After taking action he send a
report to discipline section then discipline section help him in penalties with
the approval of executive directors and chairman under the rule of 1973.
ODGCL Servants (Efficiency and Discipline) Rules-1973.
Government servant (efficiency and discipline) rules 1960 which were
adopted in the draft service rules vide part-II statutory notification (SRO)
govt of Pakistan cabinet secretariat(established division) notification No.SRO1213(1)/73 published in the gazette of Pakistan enter ordinary dated 18-081973.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.
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PENALTIES
The following are the minor and major penalties namely:
MINOR PENALTIES
Censure;
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
Compulsory retirement.
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.
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NOTE
The chairmans approval is necessary at all the stages for issuing the show
cause notices and enquiry letter for awarding the final punishment.
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.
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 cant dedicate an hour long meeting once a year
to ensure the mutual needs of the employee and organization are being met.
Performance review help supervisors feel more honest in their relation ship
with their subordinates and feel better about themselves in their supervisor
roles. Subordinates are assured clear understanding of what expected from
them, their own personal strengths and areas for development and a solid
sense of their relationship with their supervisor. Avoiding performance issues
ultimately decrease morale, decrease credibility of management, decreases
the organizations overall effectiveness and wastes more of managements
time to do what isnt being done properly.
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05%
20%
Normal
50%
Marginal
20%
Poor
05%
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BARRIERS TO PROMOTIONS
SUGGESTIONS
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MARKETING ANALYSIS
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
OGDCLs 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.
The operations of OGDCL are such that it does not require a formal
marketing department. As is evident in the diagram below, OGDCL supplies
gas and oil through pipelines. The product is transported to oil companies
such as PSO, Shell and gas companies such as SSGCL and SGNPL. The
product reaches the end consumers through these companies.
Since the gas is supplied to the end users the main suppliers being SSGCL
and SNGPL who have been marketing and setting the price for different
consumers.
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ENVIRONMENTAL ANALYSIS
INDUSTRY & MARKET ANALYSIS
At home the demand for energy in the form of gas and oil has skyrocketed.
With the shortage of electricity the industrial sector is also looking to gas for
its energy supplies. Therefore right now there is a deficit between demand
and supply.
MAJOR PRODUCT LINES MARKET SEGMENTS
In the product line of OGDCL, the following are its products by which it is
earning profits:
Crude Oil.
Gas.
LPG.
Sulphur.
Gasoline/High
and
Low Speed Diesel.
Kerosene Oil.
Naphtha.
Solvent Oil.
PROJECTS
Qadir Pur Development Project
Qadirpur gas field, one of the large fields in the country was
discovered in 1990. It is located in the central Indus basin,
south of kandhkot and Sui gas field. In accordance with the
consolidated revised development plan dated 30 November,
2002 phase-II revamp project was commissioned on 23
January 2004 to process MMscfd of gas. Under this plan
pretreatment memguard unit and new membrane elements
were installed and drilling of one well was completed.
Chanda Development Project
Chanda oil field, the over discovery in NWFP, was brought on
to stream and it started giving production from 17 July, 2004,
and is currently producing 3,500 barrels of oil and 13 MMscf
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COMPETITOR ANALYSIS
MAJOR COMPETITORS
OGDCL is Pakistans largest E and P Company. It has a major
share in the industry. In the past competition has been
minimum but today things have changed. Its competitors,
though still not in any position to threaten its share, are
gaining strength. Major competitors for OGDCL are discussed
below:
BRITISH PETROLEUM (BP)
BP Pakistan is a truly Pakistan based company and lately it
has hired its entire employee pool from Pakistan. BP has
limited all its operations to southern Sindh in order to keep it
simple and efficient. From the time of its inception BP has
been responsible for 22% of the total exploratory wells
drilled and 43% of all the discoveries made in Pakistan.
Currently BP is responsible for 16% of the oil and 6% of the
gas that is conceived from all of the exploration projects of
Pakistan.
OMV Pakistan
OMV is basically the biggest private E&P Company working in
the gas sector of Pakistan. It is the operator of the Sawan
and Miano gas fields, and the Kadanwari processing facilities,
OMV is reliably producing more than 100,000 boe/d (100%),
covering around 16% of Pakistans natural gas demand.
Mari Gas
Mari Gas Company Limited is one of the largest oil & gas
exploration and production companies in Pakistan. Over the
years with the development of the Field and the subsequent
evaluations its gas reserves were enhanced to 6.8TCF, thus
making Mari the countrys 2nd largest gas field.
PPL
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TECHNOLOGY ANALYSIS
Technology is of crucial importance to enable oil and gas
companies to grow their business. It is important to
benchmark their use of technology with industry peers.
Instilling value management as a key competence supports
business / IT strategy alignment.
OGDCL is using the modern seismic technology for improving
its ability to discover the unexploited oil and gas potential in
the country. A number of major institutional reforms and
improvements have been implemented in all areas of
operations enabling the company to take up the challenge of
making the country self-reliant in the energy sector.
TECHNICAL METHODS THAT AFFECT THE INDUSTRY
Oil related machinery
Pakistan being an agrarian economy and not having
extensive knowledge in technical fields has always had
problem with industrial developments. No industry in
Pakistan can be said to be 100% self sufficient in the
indigenous production of their machinery and Petroleum is
no exception. In fact, the machinery required in the
Petroleum sector is far more complicated and advanced than
in other industries. According to Total Group of Companies
which is an indenter for many refineries and oil and gas
distribution networks most of the refineries and other
industries related to oil and gas have one common source of
their imports: Germany. Majority of our imports in the
Petroleum capital items are imported from Germany,
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DEPARTMENT
INTERNSHIP
WORKED
DURING
Executive Group
2.
Staff
3.
Contractual Staff
(EGI - EGIII)
(1 - 16)
PROBLEM IDENTIFICATION
During my stay at OGDC head office, I have observed some
weaknesses in the organizational setup functioning of
various departments. The main issues are with the Hr
department and are briefly described below.
PROBLEMS
Lack of Awareness of Employees Regarding Latest
Technological Changes
Technical and non technical employees working at field /
wells sites in far away areas of the country do not have any
access to the latest modern and technological changes,
literature etc.
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RESULT
My stay at OGDCL was a very eye-opening and valuable
learning experience for me. I am awed by how well things
can work in state run organizations. My internship at OGDCL
removed my previous misperceptions regarding the
inefficiency,
chaos
and
unprofessional
attitude
of
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government
organizations.
Despite
the
fact
that
bureaucracy, nepotism and corruption are very much present
in the organization but overall there is a smooth running of
operations and profitability is very much there. There is great
focus on the companys mission of providing oil and gas to
Pakistan and maintaining productivity. Discoveries of energy
reservoirs are made on a regular basis.
The company also maintains a chic, informative and very upto-date website for the public which is quite commendable.
RECOMMENDATIONS
During my stay in OGDC I carefully observed the major flaws
and setbacks face by the company. I put forward my
suggestions the following practicable remedies to improve
the existing practices.
1. Quarterly comparison of actual verses budgeted
expenditure is carried out to ascertain weakness and cost
over-runs.
2. 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.
3. To save time of the employees chasing their payments
employee related payments should be excluded from the
ambit of pre-audit.
4. All accountants should be given training on different
accounting modules and chart of accounts. So that
monopoly and dependence on few is eliminated.
5. Rotation of duties should be made at regular interval to
improve the overall work output and to keep the interest
of the employee intact.
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CONCLUSION
The production of oil and gas is contributing a lot in reducing
the countrys import bill.
Power generation by IPPs
(Industrial Power Projects) in the country is a major source of
energy. OGDCLs Uch Gas field and Panjpir/ Nandpur Gas
Fields are the two main fields, which have now started
supplying Gas to power companies. This is not only meeting
the requirement of the IPPS but also contributing a lot
towards meeting the demand of electricity in the country.
OGDCLs 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.
OGDCL is following the strategy of maintaining balanced
growth through acquisition of new exploration acreage,
maintaining and enhancing production from existing fields,
expeditious production from new discoveries and joint
venture opportunities outside Pakistan. The focus of the
Company, for the period ahead, will be to ensure production
growth and deliver its exploration and development program
with the objective of securing oil and gas reserves and
enhance its production base. Strenuous efforts are on going
to build an extensive, diversified and high quality portfolio of
exploration licenses. The Company expects to continue a
high level of exploration activity including 2-D and 3-D
seismic acquisition in the onshore and offshore areas,
extensive exploratory drilling and follow on its recent
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Bibliography
1. Ministry of Petroleum and Natural Resources site.
2. www.google.com.pk
3. www.kse.com.pk
4. Pakistan industrial Reviews
5. Annual Reports of OGDCL
6. Business Recorder News Paper
7. Observer Journals.
8. Interview of OGDCL MD.Human Resource management
(7th edition) by Descenso.
9. Management theory and practice, (4th edition),by Ernest
Dale
10.
Principle of personnel management, (4th Edition),
by Edwin B.Flippo
11.
12.
Personnel: The management of people at work (5 th
Edition) By Dale S.Beach
13.
Operations management/Theory and Practice (2 nd
Edition), By Joseph G.Monks.
14.
Business research for decision making, By DavisCosenza
15.
www.ogdcl.com.pk
16.
17.
18.
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