Report OGDcl1

Internship Report On OGDCL
Chapter # 01
INTRODUCTION OF STUDY
1.1 BACKGROUND OF STUDY
It is a requirement for the partial fulfillment of BBA degree in

finance to have two months (eight weeks) internship in a bank
or financial institution. OGDC has the unique distinction as
being the oldest and well-organized company. Through my
internship I obtained an in-depth knowledge of the operations
of the OGDC and first hand training in the working
environment of a company of a high repute. In this report I
have explained myself with the practical knowledge gained
during my internship the main operations of the OGDC, on
how it works.
Oil industry is a lifeline for an economy. It is a world of oil
exploration, oil refining and oil marketing. Pakistan
understands the important 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.
1.2 PURPOSE OF THE STUDY
This report is based on study carried out for the fulfillment of

the degree requirement of the Bachelor of business
Administration at the Preston University Kohat campus, Kohat.
The purpose of study is to do practical work in field and apply
Preston University Kohat Prepared by: Farhad 1

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the knowledge of the classroom lectures of the real life
situation.
1.3 SCOPE OF WORK:

The focus of the study is the working operations and
procedures of a marketing department of OGDCL. As an
internee the main focus of my study research was on internal
managerial matters of OGDCL –e work environment,
organization structure, decision-making process, promotion
criteria and all such matters.
1.4 LIMITATION OF STUDY

Two months (eight weeks) is not sufficient for the purpose of
complete research of a specialized and sensitive institution. It is
to admit that the study attempts only those aspects, which are
closely relevant to the purpose of the study. Facts and figures,
which otherwise might be equally important, but not having a
direct bearing on the conclusions arrived at this study, have
been ignored.
The most important limitation from which the study suffers is
the non-availability of information in a manner required for
analysis and the secrecy of the company. Another important
limitation of the study is time and space constraint.
1.5 METHODOLOGY OF STUDY/

RESEARCH:
1.5.1 PRIMARY DATA
• Personal observation
• Interviews of staff
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1.5.2 SECONDRY DATA
• OGDCL Annual Report
• Books
• Magazines
• Manuals
• Journals
• Internship reports
• Newspapers
• Internet
• Brochures

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CHAPTER 2
ABOUT OGDCL
OGDCL VISION:
To be a leading, regional
Pakistani E & P Company,
recognized for its people,
partnerships and
performance.

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2.2 OGDCL MISSION:
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.

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2.1 INTRODUCTION:
Prior to OGDCL's emergence, Pakistan Petroleum Ltd. (PPL)
and Pakistan Oilfields Ltd. (POL) carried out exploration
activities in the country. 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 program 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 GOP arranged the
financial resources 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 programs.
2.4 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 program. 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.
2.4.1 PGCL:
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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.
2.4.2PRTI:
Keeping in view the growing needs of Pakistan's petroleum
industry, OGDC established its own Training Institute. Institute
offers two-year training programs for fresh graduate engineers
and short duration refresher courses in the fields of
Exploration, Drilling, Well Services, Gas Processing,
Production and Computing etc. Lately, professionals from
foreign oil companies based in Pakistan and the Central Asian
Republics have also started attending short courses and
seminars on specific technical and management subjects.
Institute has numerous facilities that include modern
classrooms, auditorium, audio-visual aids, and a huge
collection of professional videos, library, drilling simulator and
a complete electrical and mechanical workshop for training
purposes. Fully equipped laboratories are available for
production, exploration and well service courses. Recently the
function of research has also been included in the domain of
institute and name has been changed to Petroleum Research
and Training Institute.
HUMAN RESOURCES:
During the last 45 years the Corporation has grown into a
technically feasible and commercially viable organization. It
has developed a highly qualified pool of professionals who can
undertake and supervise almost all phases of oil and gas
exploration and production starting from preliminary
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geological surveys and culminating in the operation of oil and
gas processing plants.
As on 1st August 2006 OGDCL has total manpower strength of

11,358 out of which 1,910 are officers and 9,448 is staff. The
company possesses the largest professional/technical human
resource base in the country's oil industry.
2.6 EQUIPMENT BASE

In order to execute the exploratory and development programs
with the ultimate objective of attaining self-sufficiency in oil
and gas by developing the hydrocarbon resources of the
country, OGDCL has also developed a sound equipment and
operational base which includes 7 drilling rigs, 1 Work over
rigs, a Geological Field Party, 5 Seismic parties, 4 Engineering
Field Parties, a Gas Gathering and Pipeline Construction Party,
Seismic Data Processing Center, Geological Analysis
Laboratory, Wire line Logging Unit, Cementing Units and Data
Logging Unit.

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CHAPTER #03
PROGRESS OF OGDCL
TRANSITION TO A SELF FINANCING
ENTITY
An important shift in the policy during the Seventh Five Year
Plan period was a change in the financing of the development
program of various public sector entities, including OGDC.
The Seventh Plan envisaged that OGDC will be strengthened
and restructured and its operations streamlined to transform it
into a financially viable and administratively autonomous
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 OGDCL’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 Program (PSDP) as well as to meet its debt
servicing obligations. OGDC not only generated enough
internal funds to meet its debt obligations but also invested
enough resources in exploration and development to increase
the country's reserves and production.
PHYSICAL AND OPERATIONAL

PERFORMANCE:
OGDCL has also acquired modern seismic technology for
improving its ability to discover the unexploited oil and gas
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potential in the country. A number of major institutional
reforms and improvements have been implemented in all areas
of OGDCL operations enabling the Company to take up the
challenge of making the country self-reliant in the energy
sector. OGDCL is presently carrying out survey and drilling
activities in various areas of the country, and is striving to
achieve self-sufficiency for the national economy.
3.2.1 Exploration & Production:

OGDCL has conducted extensive surveys to identify potential
hydrocarbon bearing structures and has carried out drilling in
order to exploit available oil and gas resources. As of 1st July
2006 OGDCL has drilled 224 exploratory wells and 251
development wells.
3.2.2 Reserves Base:

OGDCL's updated estimates for remaining recoverable reserves
as on 1ST July 2006 stood at 101.075 MMSTB of oil and
10,204.3 BSCF of gas.
3.3 FINANCIAL HEALTH:

OGDCL's financial performance has been consistently
improving since becoming a self-financing entity. The net sales
of OGDCL have increased to Rs.96.755 billion (equivalent to
US$ 1.613 billion) in 2005-06 from Rs.73.710 billion
(equivalent to US $ 1.229 billion) in 2004-05 while its profit
after tax has increased to Rs.45.968 billion (equivalent to US$
0.766 billion) in 2005-06 from Rs.32.968 billion (equivalent to
US $ 0.549 billion) in 2004-05.

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3.4 PROJECTS:
OGDCL has also successfully implemented a number of major
development projects in the past for example Dhodak Gas
Condensate Development Project located in district D.G. Khan,
Punjab, Qadirpur Development Project located in district
Sukkur, Sindh, Pirkoh Gas Compression Project in Dera Bugti
Agency, Balochistan, Nandpur & Panjpir Development Project
in Punjab, and Uch Development Project at Dera Bugti
Agency, Balochistan. The latter two gas field projects were
developed for supply of low BTU gas for power generation.
OGDCL also participated in development of the Kandanwari
gas field under a joint venture with M/s Eni Pakistan, and that
of Miano gas field under a joint venture with M/s OMV of
Austria.
INITIATIVES:
Business and Strategic Plan:
A cross functional exercise has been taken to develop the
Company’s first ever professionally developed Strategic and
Business Plan, which apart from quantifying physical and
financial goals and objectives, defines the strategic intent of the
Company for the next five years.
International Best Practices - Benchmarking and Re-
Engineering of Business Processes:
Keeping in line with international best practices, OGDCL has
embarked upon an exercise to benchmark itself with
international E&P companies. Messrs. Schlumberger Business
Consulting has been engaged to carry out an exercise to
determine Benchmarks and Key Performance Indicators (KPIs)

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for all key operational areas in OGDCL, as a performance
measurement tool.
Messrs. IBM Consulting has been engaged to undertake an
exercise to review and re-engineer all existing business
procedures and processes.
GDR:
The Company is now positioning itself for international
scrutiny and due diligence for listing on the London Stock
Exchange and is extending full support for timely
implementation of the same. Focal points have been designated
and are working in close coordination with Messrs. Citigroup
who has been appointed as Financial Advisor and a consortium
of Companies who are handling the transaction.
Good Governance:
Initiatives have and are being taken to effectively establish
Good Governance practices:
• Introduction of Code of Ethics and Business Practices.
• Merit - driven hiring
• Performance - driven promotions and appraisals.
• Transparency in procurement processes and procedures.
• Strict adherence to laid-down rules, regulations and
procedures.
Business Development:
Initiatives have been taken to enhance OGDCL’s business
canvas. OGDCL will avail opportunities, to acquire overseas
acreage by buying stakes in existing viable producing fields.
OGDCL is also looking into the possibility of E&P
opportunities and joint venture collaborations outside Pakistan,

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which would include swap of assets for reserves acquisition
with percentage of working interest in international market.
OGDCL will follow an aggressive business development
strategy to provide an enabling environment for foreign
participation (either as a JV partner or on a stand-alone basis).
The Company is also aiming at fast-track development of its
current and future projects at an aggressive pace without
compromising quality and transparency.
With the situation in Balochistan likely to improve in the near
future, the Company is optimistic about making a major
breakthrough in the province
3.6 CONCESSION PORTFOLIO:

OGDCL not only carried out exploration and development
activities on its own but also entered into joint ventures for oil
and gas exploration. Presently OGDCL is 100% owner in 27
concessions. In addition, OGDCL is operator as well as a
working interest owner in 13 concessions and partner in
another 05 concessions operated by other oil companies. The
company’s concession portfolio comprises area of over 75,906
sq. kms, which constitutes about 39% of total exploration area
granted by the Government of Pakistan to the petroleum sector.
Also have working interests with 14 none operated - Joint
Ventures in different concessions around the country.
3.7 DISCOVERIES:
From inception to date the company has made 66 oil and gas
discoveries in all four provinces of the country. During the
current financial year alone OGDCL has successfully made five
discoveries – Chanda -2, Kunnar Deep -1, Nim-1, Dars Deep-1

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and Bahu-1. Production from these fields will help the
economy to minimize dependence on imported oil.
3.8 CORPORATE SOCIAL

RESPONSIBILITY
The Company endeavors to be a responsible corporate citizen
of the E&P community. Being fully aware of its social
obligations, it continues to proactively promote, develop and
maintain medical, social and welfare facilities and schemes for
the benefit of the local communities affected by its work and
presence. These include employment opportunities for locals,
construction of roads, setting up dispensaries and providing
free first-aid and health care, establishing schools, granting
fellowships and scholarships, supply of drinking water,
donation for charitable causes and financial assistance for
numerous projects to improve the quality of life of peoples and
communities with which it interacts.
OGDCL is providing free health Care facilities worth Rs. 10
million each year to the inhabitants living in and around
OGDCL fields. The Company is constructing a Trauma Center
at District Ghotki Sindh, under President Pervez Musharaf’s
Special Uplift Scheme at a cost of Rs. 16.50 million. The
Company has also provided Rs. 70 million for earthquake relief
(Rs. 50 million to the President’s relief fund, and Rs. 20 million
for medicines and other facilities).
Recently, OGDCL has taken the lead to establish two Technical
Training Schools in Quetta, Balochistan and Karak, NWFP.
OGDCL provides financial assistance for the schools by
meeting all expenditures. Training programmed includes
classroom instructions and on-the-job practical training. The
students are also paid a stipend of Rupees two thousand per
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month. After successful completion of their training, OGDCL’s
Petroleum Research Training Institute will award certificates to
them.
As a gesture towards empowerment of women, OGDCL has
also established a Vocational Training School for girls at Tando
Muree, District Hyderabad, Sindh, to provide livelihood
opportunities to the female youth of the area. The school
imparts skills in stitching, cutting and embroidery. At present,
one hundred girls have been enrolled in this school from
villages near the Tando Alam Oil Complex
OGDCL has joined hands with the World Bank for the
“Pakistan Development Market Place 2006 (PDM-2006)”
initiatives. This program will support the creative and
innovative initiatives to improve the lives of people with
disabilities. OGDCL will to donate US $ 10,000/- for the
purpose.
The Company, apart from meeting its social welfare obligations
under the PCA, spends substantial amounts from its own
resources to augment and improve facilities for water supply,
health care, infrastructure and education.
While fulfilling its responsibility under the provisions of the
PCA, OGDCL has taken the lead in Community Development
in all provinces of Pakistan, in over 60 locations nationwide.
These include 30 producing fields, 4 Seismic Party sites, 3
Base workshop locations, 4 Engineering Field Party sites, 5
Regional Offices and more than 9 drilling locations.
It paves the way for progress of the communities affected by its
work and presence, but while doing so, is also aware of, and
observes traditional and ethnic practices out of mutual respect
for social and cultural differences.

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3.9 PROGRESS TOWARDS

PRIVATIZATION
The Company is now ready for another transformation to
public and private partnership under the Government's dynamic
policy. Prior to 23rd October 1997, OGDC was a statutory
Corporation and was known as OGDC (Oil and Gas
Development Corporation). The Petroleum Policy 1994
emphasized the need for restructuring of OGDC on commercial
lines through Strengthening of its Board of Directors and
allowing it more autonomy in all administrative, operational
and financial matters. The Petroleum Policy 1994 also
envisaged conversion of OGDC from a statutory Corporation
into a public limited joint stock company and restructuring of
Government investment in OGDC.
Hence w.e.f. 23rd October 1997, the statutory Corporation was
converted into a Public Limited Company henceforth known as
OGDCL (Oil and Gas Development Company Limited) with an
authorized capital of Rs.50 billion.
The position of Chairman/CEO has been bifurcated into a non-
executive Chairman and Managing Director/CEO, underscoring
transparency and accountability. The Board of Directors of the
Company has been reconstituted w.e.f. 16th February 2000 and
made independent.
3.10 INITIAL PUBLIC OFFERING:

Messrs Merrill Lynch was appointed as Financial Advisor for
the transaction. Government of Pakistan disinvested part of its
shareholding in the company. Initially 2.5% of the equity with
an additional green-shoe option up to 2.5% of equity was
offered to the general public. The said Offer received an
overwhelming response from the general public and was

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recorded as a landmark transaction in the history of Pakistan’s
capital markets.
Being listed on the Stock Exchange, OGDCL looks forward to
a new corporate culture that will demand an increased degree of
transparency, accountability and responsibility under the code
of Corporate Governance. The company is now listed on all the
three Stock Exchanges in Pakistan with highest market
capitalization and it has around 24% weight age on Karachi
Stock Exchange. The company’s shares are now also traded on
the future counter of Karachi Stock Exchange (Guarantee)
Limited.
3.11 WHAT OGDCL CAN OFFER:

OGDCL can act as an enabler to lead and encourage E&P
companies to actively participation in country’s upstream
activities. The Company offers a number of facilities for joint
venture collaboration to foreign oil companies. It has an
extensive database. It offers valuable local expertise in the field
of geology and geophysics. OGDCL not only carries out
exploration and development activities on its own but also
enters joint ventures for oil and gas exploration. Presently
OGDCL is 100% owner in 37 Concessions; in addition it is the
operator as well as a working interest owner in 13 concessions
with GHPL and other E&P companies.
OGDCL has also acquired state-of-art seismic technology for
improving its ability to discover the un-exploited oil and gas
potentials in the country. A number of recent reforms and
improvement have been made in OGDCL operations giving it a
cutting edge of a petroleum company that taken up the
challenge of making the country self reliant in the energy

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sector.
3.12 FUTURE STRATEGY:

OGDCL is currently on the organizational turnaround path
under a dynamic leadership that foresees the organization to be
a leading energy company to ensure Energy Security of
Pakistan.
The company is positioning itself for international scrutiny and
due diligence for listing of its shares in the London Stock
Exchange. The Strategic Plan of the company will have a
positive impact in enhancing the value of OGDCL’s shares.
3.13 OGDCL GOALS:

3.13.1 Core Values:
• Merit
• Integrity
• Team Work
• Safety
• Dedication
• Innovation
3.13.2Financial:
• To reduce cost and time over runs to improve financial
results
• To maximize profits by investing surplus funds in
profitable avenues
• To make investment decisions by ranking projects on
the basis of best economic indicators
• Growth and superior return to all stakeholders

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• Double the value of the company in next five years.
Customers:
• Improve the quality of service to make it faster and
more transparent
• Quality, dependability, responsible corporate citizen
• Reliable and efficient company
• To provide most reliable supplies to the customers
through cost effective means
Learning & Growth:

• Motivate and train our work force, revitalize our
equipment base and attain full autonomy in financial
and decision making matters
• To enhance the technical and commercial skills through
modern HR management practices
• Continuously develop technical and managerial skills at
all levels and stay abreast of latest technological
developments in the industry
• Utilization of best blend of latest technologies and high
performing human resources
Internal Process:
• To set up task forces with representation from all
relevant departments to improve internal business
decision making and strategic planning
• Excel in exploration, development and
commercialization
• Availability of updated information to the shareholders
and customers

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• To use most effective business practices and formulate a
framework of synergic organization with the change in
culture.

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CHAPTER # 04
STRUCTURE OF THE OGDCL
4.1 DEPARTMENTS:
4.1.1 Marketing:
Marketing department of OGDCL is not doing working as
marketing departments of common organizations because the
most products of OGDCL don’t have need for marketing
activities. So its working is totally different. Here we will look
at functioning of marketing department.
Mission Statement:
Our aim is to deliver our product to customers effectively and
efficiently and adding value to the image of company.
Functions:
• Effective delivery of oil, gas, Sulphur and LPG from
OGDCL fields in cost effective manners.
• Appropriate transportation arrangements and quantity
compliance.
• Negotiations, execution and administration of
Petroleum products and sales/purchase agreements.
• Sulphur auctions for better price.
• Crude condensate allocation to Refineries through
Ministry.
• Maintain minimum stock level of products at site to
accommodate daily production.
• Liaison and Co-ordination with fields, refineries,
transporters, buyer companies and other stakeholders.
• Compilation, reconciliation and submission of
petroleum products sale reports to Management and

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Ministry on Daily, Weekly, Monthly, Quarterly and
Annually basis.
• Verification of dispatch quantity and their billing for
invoicing purpose rose through sales section of Finance
Department.
• Look after the transportation and bills of Crude oil,
Condensate, and Naphtha through National Logistic
Cell (NLC).
• Post invoicing disputes resolution.
• Arrangement for disposal/sale of petroleum from new
sources/fields.
Futuristic Outlook:
• Marketing department need to be strengthened
restructured and empowered to effectively perform the
following functions:
• Organize the Marketing department as an asset
management department, which would look after
OGDCL’s field’s production/ and dispatches.
• Commercialize OGDCL’s petroleum products under the
prevailing regulated/ de-regulated regime/policy.
• Overseas business opportunities for marketing OGDCL
products purely on commercial grounds.
• Effectively administer and execute petroleum
sales/purchase agreements.
• Develop detailed product packages pertaining to natural
gas from marginal fields and sell the same on
competitive basis.

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Types of Reports:
A) Daily:
• DCM
• Gas Report to OGRA and MP&NR.
B) Weekly:
• Rechecking of Dhodak white products report on the
basis of daily reports for onward submission to sales
section for invoicing. (Every Wednesday)
C) Monthly:
• Production/Dispatch Report to corporate affairs.
(3rd of every month)
• LPG production/Sale report to OGRA.
(6th of every month)
• LPG production/Sale reports to Director (LPG)
MP&NR. (7th of every month)
• Dhodak POL product Report to Direction (Refineries)
MP&NR. (7th of every month)
• Rechecking of LPG Reports/White Products/Sulphur on
basis of daily reports for submission to sales section for
invoicing. (4th of every month)
• Dhodak White Products reports M/S Ferguson
Association. (7th of every month)
• Dhodak white Products and other POL Product OCAC.
(2nd of every month)
D) Quarterly:
• Field wise production/Dispatches of Oil, Gas, LPG and
Sulphur (7th of every month)
• Opening/Closing Stock of Products.

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• OGDCL Performance Report of Corporate Affairs.
E) Half-Yearly:
F) Financial Year:

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Structure of Marketing Department
Manager Marketing
DM/Chief
DM/Chief Marketing (Operation)
Planning/Development
Chief Chief
Marketing Marketing Chief Chemist Chief Marketing
(Operation) (Operation) (Planning
(Field Labs) &Dev.)
HO RO
Sr. Chemist Sr. Sr.

Sr. Marketing Sr. Marketing Sr. Marketing Sr.
Marketing Marketing Marketing
Officer (Bye) Technician Officer (Crude)
Officer Officer Officer
Marketing Marketing Marketing Marketing Marketing Marketing

Officer Officer Officer Officer
Officer Officer
ORGANOGRAM of Marketing Department

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4.1.2 Productions:
Mission Statement:
Our mission is to converge to all activities, towards oil and gas
production enhancement and to implement available “use-it-
now” technique to achieve the targets
OIL & GAS PRODUCTION FIGURES:
PRODUCTION REPORT FOR SEP 2006
Products Production (Avg. / Day)
OIL (Barrels) 38,839
GAS (MMSCF) 1,039
LPG (M.TONS) 297
SULPHUR (M.TONS) 19
Note:-
"Production includes OGDCL's Share from non-operated
Joint Ventures."
Functions and Technology:

Production department is aggressively deploying various stat-
of-art-technologies, aspiring technologies, aspiring reliability in
operations, augmentation in efficiency, endorsing safety of
personnel and protection to environment and also to ensure the
production optimization. Some of these include,
• Remote monitoring and control of well sites though
SCADA systems on wireless microwave and fiber optic
cables.
• Down hole electronic memory recordings at reservoir
level.
• Surveillance cameras at well sites.
• Pipeline leak detection system.

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• Solar power operated gas monitors and early warning
system.
• Tank gauging system.
• Solar power operated online gas chromatographs and
gas metering systems.
• Maintenance management system.
• Field data management system.
• Facilities design and simulation package.
• Gas stream mixing and commingling system.
4.1.3. Finance:
Functions:
• Produce reliable budget, forecasts and plans for showing

profit, working capital and cash flow and highlighting any
additional resource required in order to improve capital and
cash flow management.
• Review and improve, as appropriate, business structures
and financial controls and reporting processes.
• Oversee the completion of all statutory annual accounts and
the preparation and consolidation, in a timely and accurate
manner, of separate monthly management accounts and
budgets.
• Review the effectiveness of all existing accounting systems
and advising on, and implementing any improvements to be
made, (including the introduction of a new Purchase Order
system).
• Determine financial performance indicators and targets for
the delivery of all programmes and objectives, including

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relevant inputs, outputs, outcomes, systems and impacts to
measure performance.
• Managing the payroll system of the OGDCL’s.
• Performing internal audit that is supervised by GM (Audit).
• Look after the account receivable and account payables.
• Setting prices for products as per notification by OGRA (oil
and gas regulatory authority).

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Structure of Finance Department
ED (Finance)
GM (Finance) GM (Audit) GM (Acc.)
Manager Manager Manager Manager

Manager (JV A/C) (Payroll)
(A/C (A/C
(Bank)
payable) Receivable)
Sr. Auditor
Sr. A/C Sr. A/C

Sr. A/C Sr. A/C Sr. A/C officer officer
officer officer officer
ORGANOGRAM of Finance Department

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4.1.4. Human Resource:
Mission Statement:
People are our most valuable asset and our mission is to
maintain a pool of highly qualified people.
Personnel Department of OGDCL:

Personnel department aims at improving a company’s output
by serving the employees who are the real asset. The
companies look after the employee’s right from their induction
till death/retirement and in most cases even after that. The job
is extremely demanding and carries vital importance in every
employee’s career path.
This department looks after the service matters of the
employees and maintains all records database for the
Management decision-making and for the future
development/welfare of the employees.
Human Resource Background:

During the last 44 years OGDCL has grown into a technically
and commercially viable organization and possesses the largest
professional/technical human resource base in the country’s oil
and gas industry. It has developed a highly qualified pool of
professionals who can undertake and supervise almost all
phases of oil and gas exploration and production, from carrying
out preliminary geological surveys to operation of oil and gas
processing plants.
Functions of Personnel department:

• Maintenance of personnel files/data
• Maintenance of Seniority
• Transfers/Postings

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• Pay Fixation
• Maintenance of Leave Record
• EOBI/Pension Cases
• Personnel Grievances
• Retirements
• Correspondence with Ministry
• Reply to the National Assembly/Senate Questions
• Implementation of CBA Union’s Agreements
• Maintenance of Medical Record

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STRUCTURE OF HUMAN RESOURCE

DEPARTMENT:
ORGANOGRAM
General
Manager (HR)
Manager Manager Manager Manager

(Recruiting) (Personnel) (HR Policy) (Career Planning Cell)
Hiring Recruiting DCPO(A) Coordinator Discipline ACR Promotions
DCPO(C)
D.M
(B, D, Pen &
EOBI)
DCPO (Coord.)
PS-G
Programmer
Comp. Sec
(HUMAN RESOURCE DEPARTMENT)
Human Resource Development:

Human Resource function needs further improvement and the
management of the Company is now focusing on this area as it
aims at motivating its employees through Proper placements,
employee recognition, effective appraisals, empowerment,
communication and promoting employees skill development
programs.
A transparent recruitment system is being implemented and
various HR policies are being reviewed and rationalized by
taking into account the industry norms to bring about an

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effective change in order to meet the challenges of the highly
competitive business environment.
General Manager (HR) has been recently appointed to
implement all such plans. It is the endeavor of the Company to
be recognized as an equal opportunity employer with its
congenial atmosphere. Regular interactive meetings are being
held to provide an open forum to all employees to share their
achievements, grievances, ideas and observations regarding
various corporate issues with the top management apart from
gaining their valuable suggestions.
Functional Analysis:
Here we will discuss two functions of OGDCL personnel
department,
(1) Staffing (Recruitment & Selection)
(2) Training and Development
1- Recruitment and Selection

Recruitment Sources:
The vacancies for employees are advertised, though lower
vacancies of workers may be filled up by direct receipt of
applications by hand. OGDCL is bound or restricted to use only
one source of recruitment for new employees (i.e. through
advertisement in Public News papers).
The advertisement will clearly indicate: -
• Name of the post or posts
• Scale of salaries and other benefits.
• Academic and other qualification of candidates required
filling up the post.
• Place of work.
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• Other necessary requirements such as age etc.
• Date by which applications are to be received.
• Documents, which are to be submitted with the
application.
Selection Process at OGDCL
Flow of Selection Process at OGDCL is as follows:
Completion of Application
Employment test
Panel Interview
The Selection Interview
Permanent Job Offer
Benefits:
If one is hired, there are a variety of employment benefits that
accompany most of OGDCL positions:
• An award winning employee training and development
program providing all employees an opportunity to
acquire and enhance job specific and professional skills,
which includes a Tuition Reimbursement Program at
OGTI.
• Medical facility is offered by OGDCL, (i.e. Paid
medical and life insurance provided upon employment

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and dental insurance coverage after you serve a
qualifying period)
• Paid retiree health benefits that include qualifying
dependents.
• Liberal vacation policy, which increases with additional
years of service.
• Paid holidays
2. TRAINING AND DEVELOPMENT

Training is the systematic development of the attitude,
knowledge, skill pattern required by a person to perform a
given task or job adequately and development is 'the growth of
the individual in terms of ability, understanding and awareness
OGDCL believes that employees’ training is one of the most
important investments.
Company makes for long-term advantage as competition
intensifies employees competence to become increasingly
important to operate and maintain the operations and technical /
other services at the highest standards.
The Company provides various learning and training
opportunities to its employees at the Oil and Gas Training
Institute (OGTI) not only in the areas of technical fields but
also in developing management skills.
a) Oil and Gas Training Institute (OGTI):

Recognizing the fact that, only through the acquisition of state-
of-the-art petroleum technology, OGDCL would be able to
fulfill its mandate of achieving self-sufficiency in Oil & Gas for
Pakistan; the Oil & Gas Training Institute (OGTI) was
established at Islamabad in 1979. In 1986 the OGTI

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was relocated in I-9 Sector of Islamabad in a newly constructed
four-story building. In 2005 after the merger of OGTI with
Geological & Reservoir Laboratory (G&R Labs), a new
mandate is assigned and named as PETRO RESEARCH &
TRAINING INSTITUTE (PR&TI)
b) Roles & Functions

• Training Institute provides basic training to the
petroleum industry graduates and technicians enabling
their career induction, as well as refresher and advance
training to experienced professionals in all three streams
of petroleum in general, and upstream in particular.
• In pursuance of this mission, Training Institute
identifies diverse training needs of the industry, evolves
progressive and dynamic training programs in
coordination/collaboration with the entire industry as
well as concerned universities, while also offering
valuable advice.
• Training Institute organizes in-house technology update
seminars, inviting outstanding professionals/ expertise,
to facilitate absorption of state of the art techniques.
• Training Institute also organizes short courses and
seminars in various other technical and administrative
allied support areas of petroleum industry.
• Training Institute offers all training and administrative
to conduct wide-ranging seminars and courses for
Pakistan Petroleum Exploration & Production
Companies Association (PPEPCA) Society of
Petroleum Engineers (SPE), Pakistan Association of
Petroleum Geoscientists (PAPG), often sponsored by
the industry.
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• Training Institute conducts petroleum industry field
trips for industry professionals & visitors for training
and familiarization.
• Training Institute organizes/conducts/facilitates field
audits and inspections various industry installations.
• Training Institute also organizes short courses on
specific technology training on other demand.
c) Geological and Reservoir Laboratories (G&R):

Petro Research and Training Institute Laboratories formally
known as Geological and Reservoir Laboratories (G&R Labs)
were established in 1963 with the inception of OGDCL. PRTI
Labs have five branches: Geochemistry, Sediment logy,
Micropaleontology, Analytical Chemistry and Core Analysis.
OGDCL Core House is also maintained by PRTI Labs.
For understanding petroleum systems, it is equipped with all
necessary apparatus for routine analysis required by an E&P
company. But up gradation and inclusions of certain modern
gadgets and manpower are needed.
The objective of the PRTI Labs is to perform the standard set
of analyses on rock, fluid and gas samples received from
OGDCL wells and fields, and thus generated data is very
helpful for Exploration, Reservoir Management and Production
departments to identify various
• Sediment logical parameters.
• Age of rocks
• Hydrocarbon potential
• Chemical & physical properties.
• Reservoir characteristics

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of rocks and fluids from wells for maximizing productivity and
minimizing risks.
4.2 Joint Venture:
4.2.1 Functions:
• Application for new block

• Preparation and finalizations of the PCA’s for the newly
granted blocks.
• Rental payment for the blocks.
• Technical approvals (work programs) of the
Concessions through TCMs/OCMs, AFEs and Circular
resolutions.
• Liaison with the Govt. for various kinds of Approvals
and Information.
• Liaison with the Partners for future planning with
respect to a joint venture Concession/field.
• Internal communication and correspondence with
regard to the 100% owned, operated and non-operated
Concessions/fields.
• Daily production and drilling reports with regard to
OGDCL operated Concessions.
• Transmitting Well Logs, GDOs and other programs
concerning exploration and drilling activities on the
regular basis

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Structure of Joint Venture Department:
Exec. Dir. (JV)
JV (Optd. Manager(Offs-
&Non Optd.) hor and
Inshor)
Corp. Profile Corp. Profile Sr. Eng. JV officer

officer officer (Production)
Staff Staff Staff Staff
Organ gram of Joint Venture Department

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4.3 EXPLORATION:
OGDCL is the major player in Pakistan Petroleum industry.
Since its creation, it has been actively involved in the
hydrocarbon exploration all over the Pakistan. The Exploration
team is geared up through strengthening of seismic crews,
interdepartmental mobilization of manpower and equipment,
introduction of state-of-the-art interpretation facility on
workstation and reorganization of exploration department. The
sustained and concentrated efforts resulted into recent
discoveries and success in appraisal of discovered fields.
4.3.1 Exploration Department offers:

• Devising and proposing best economic geophysical
solution for exploration and development programs for
acquisition and processing to interpretation.
• Expertise in seismic interpretation on geo
quest/landmark/systems.
• Latest in house facility handling varieties of 2D and 3D
seismic interpretation.
4.3.2Research and Development:

R & D group is an innovative team involved in geo scientific
research, computational mechanics, algorithms
developments, system architecture and indigenous software
development.
4.3.3 Functions:
• Develop and E&P work flow model for data integration
and connectivity.
• Conduct geo scientific, algorithms and system
architecture research leading to the development of
robust, interactive and user-friendly geoscience’s
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application software that are tightly integrated into the
highest performance.
• Detailed testing of the developed applications to
achieve the highest performance.
• Training and system support to the end-users.
4.4. MUD LOGGING

OGDCL Mud Logging Services Department functions as a part
of Geological Services wing of the Exploration Directorate.
The Department over the years has rendered integrated mud
logging and geological well supervision services to well over
400 wells drilled by OGDCL and other E & P companies
operating in Pakistan. The list of notable clients includes M/s
Canterbury Resources Pakistan Ltd., Canoxy, Albion Pakistan
Ltd., Tullow Pakistan (Developments) Ltd., Hycarbex, POL
and PPL. The services have also been provided at wells drilled
by M/s UTP, Hunt, Premier Exploration Pakistan Limited
Occidental and ARCO.
4.5 EQUIPMENT AND SERVICE

FLEXIBILITY
OGDCL Mud Logging Units provide vast choice of
measurements. The modular design concept enables each
system to be configured to provide a service level most
appropriate to the requirements of your drilling program. Thus
a complete range and variety of sensors and other equipment
starting from basic mud logging to latest on-line series is
available.
Hallmarks:
• Comprehensive choice of measurements.
• Variety of online & offline display.
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• Several data acquisition and data transfer options.
• Rugged / Robost and reliable sensors with sensitive and
accurate instrumentation.
• Rapid deployment capability and flash mob. & De-mob.
• Very strong back-up supply and maintenance.
• Track record of Trouble free operations with
practically no Down Time.
4.6 DATA ACQUISITION SYSTEM:

The advanced data acquisition and processing system
provides real time monitoring and analysis of drilling,
engineering and geological data. Simultaneous access to a
comprehensive offline library of application programs to
assist in drilling optimization and cost control, maintaining
effective safety.
Features:
• Safe & efficient operations at minimum cost
• Real time graphic display of a wide choice of Drilling &
Gas parameters as function of time or depth.
• Easy to follow menu driven software.
• User selectable multi-page screen displays.
• Multi-track plots, cross-plots and variable format report
generator.
• Available both in real time and off-line modes.
• On-line data transfer option (voice quality
communication) from remote Well-site locations to
town office.

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• Your office-based expertise can be applied to monitor
and advice during critical sections of the drilling
program.
4.7 PERSONNEL
Latest equipment is not just enough. No matter how sensitive
and accurate system is deployed, dependable results cannot be
achieved without professional expertise to interpret and
intelligently process the acquired data within short time.
OGDCL's Mud Logging Services Department has a pool of
highly qualified and experienced Geologists and Engineers to
assist the decision making process to control, evaluate and if
need be, foresee and prevent drilling problems.
4.8 DRILLING OPERATIONS:

Functions:
• Well Design and project manuals for all exploratory &
development wells.
• A.F.E / Wells cost estimate,
• Drilling engineering studies.
• Drilling Operations as per approved programs.
• Supervision of drilling & work over operations.
• Work over operations as per approved programs.
• Preventive maintenance, repair and overhauling of rig
equipments.
• Fishing operations on limited scale on OGDCL.
• +Marketing of drilling and work over rigs.
• Monitoring of non-operated joint venture.
Resources:
OGDCL owns 7 drilling & 2 works over rigs as under: -
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Deep drilling up to 6000 M
01 Rig
Deep drilling up to 5000 M 03
Rigs
Medium drilling up to 4000 M 01
Rig
Shallow drilling up to 2800 M 02
Rigs
Work over medium depth up to 3500 M 01
Rig
Work over shallow depth up to 1700 M 01
Rig
• All rigs are operated by OGDCL’s own experienced &

qualified crew.
• The rigs crews have vast drilling & work over
experience of wells scattered all over the country.
• Maintenance standards at rigs have been improved.
Contractor Rigs
Deep drilling 08
Rig
Medium Depth
02 Rigs
4.9 Exploitation and Reservoir Engineering

Exploitation & Reservoir Engineering Department was
established in 1988 to establish a vital missing link between
Exploration and Production departments. Canadian
International Development Agency (CIDA) played an

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important role in the formulation and training of professionals
of this department. This department is presently responsible for
development and reservoir management of more than 45
OGDCL oil and gas fields and 30 non-operated joint venture
fields. Main objectives of Exploitation & Reservoir
Engineering Department are given below.
Objectives:
• To Develop Oil & Gas Discoveries into full fledged
producing fields.
• To Optimize the Field Production Rates for maximum
ultimate recovery from the oil & gas fields.
To Evaluate the Hydrocarbon Reserves & undertake the
Economic Evaluation of oil & gas fields.
• To Design Enhanced Oil Recovery Schemes for
depleting reservoirs.
• To Evolve and update the Geological & Petro physical

models of reservoirs in new and developed oil/gas
fields.
• To conduct fully integrated In-House Reservoir
Simulation Studies of oil & gas fields.
• To Monitor the Development and Reservoir
Management of all non-operated joint venture fields.
Divisions:
In order to achieve above-mentioned objectives, the
Exploitation & Reservoir Engineering Department is divided
into four divisions.
• Development Geology Division
• Petro physical Division

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• Reserves Monitoring and Planning Division
• Reserve and Economic Evaluation Division
All four divisions have their separate setup and are headed
by a Dye. Manager but at the same time their professionals
work very closely and in an integrated manner. Recently a
new Reservoir Studies Group has also been introduced in
this department to conduct In-House Full-Fledged Integrated
Reservoir Studies of our oil & gas fields.
4.10 PROCESS AND PLANTS:

4.10.1 Mission Statement:
Conditioning, treating and processing of raw natural gas/oil to
obtain marketable products i.e. fuel gas, stabilized oil, motor
spirit, kerosene, diesel, LPG & Sulphur through processing
plants via optimum safe & environment friendly process plants
operation and maintenance.
4.10.2 Objectives:
• Well fluids are often a complex mixture of liquid
hydrocarbons, gas and some impurities. It is necessary
to remove liquid hydrocarbons & objectionable
impurities from natural gas before the gas is supplied to
the buyer. Impurities that might be found in well stream
are hydrogen sulphide (H2S), carbon dioxide (CO2),
nitrogen (N2), helium (He), free water (H2O), water
vapors, mercaptans, etc.
• The separation/purification of natural gas, liquid
hydrocarbons and removal of impurities is
accomplished by various processes such as gas
dehydration, gas sweetening, dew point control,
LPG/condensate fractionation, liquid recovery etc.
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depending upon the composition of the well stream and
the desired specifications of the end products.
To achieve our objectives, Process & Plants Department
operates 13 Gas Processing Plants.
4.10.3Functions:
• To ascertain plant availability in year for more than
98%
• Safe process plants operations and maintenance
• Quality control of products as per contractual
specifications.
• Planning & execution of preventive maintenance &
annual shut down/turn around of processing plants.
• Pre-commissioning/commissioning and startup of
oil/gas processing plants.
• Technical input to process related projects both
OGDCL and joint venture.
• Preparation of specifications for plant equipment spares,
plant chemicals and laboratory, their technical
evaluation for procurement and to maintain their
inventory
• Selection & training of operation & maintenance
personnel for initial start-up & normal operation.
• Assistance in preparation of tender documents &
evaluation of bids for selection of a consultant.
• Assistance in preparation of basic design data for tender
documents to purchase gas/oil processing plants
• Participation during contract negotiations with
contractor, consultant and sales agreement with the
buyer, etc.

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• Checking & verification of P&ID’s & suggesting
process modifications.
• Preventive & day-to-day maintenance of process plants
& equipment.
• Sales gas calculation and its joint verification with
buyer.
• Planning & Scheduling of ATA of Processing Plants
• Shifting & relocation of Dehydration & Condensate
Stabilization unit from one location to other after
necessary modifications & Engineering Review.
• Entered as operation & maintenance contractor for
processing of Badar Gas at Qadirpur
• To optimize production and control process losses to
minimum

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4.11 ENGINEERING SUPPORT

4.11.1 Civil Engineering Services:
• To plan and construct site preparation works for drilling
rigs comprising Rig foundation, access roads, camp
utilities, water supply etc.
• To supervise and construct residential camps,
foundations for process plants, Store warehouses, office
and technical buildings, Water treatment plants, Sewage
treatment plants & metalled roads etc Production Fields.
4.11.2 Human Resource Base:

General Manager (C & ESS) heads the Department, having two
wings, Civil and Mechanical Civil Division has three major
sections: Fields, Projects and Contracts. Field Division has tow

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Regions; Northern Region looks after all Civil work in Punjab
& NWFP, while Sindh and Baluchistan are in Southern Region.
The works are undertaken through Engineering Field Parties
(EFP) in both the regions. About 50 qualified Engineers of
different disciplines and about 400 skilled and semi skilled staff
members are posted in the EFPs to undertake all types of
engineering works.
4.11.3 Equipment:
Major equipment with EFPs includes the following:
1 Bulldozer 12 Nos
2 Loaders 8 Nos
3 Motor graders 6 Nos
4 Road rollers 10 Nos
5 Dump truck 18 Nos
6 Haulage trucks 28 Nos
7 Water bowser 23 Nos
8 Generators 22 Nos
9 Shovel Loaders 03 Nos
10 Prime movers 08 Nos
11 High lift pumps 50 Nos
4.11.3 Existing Capabilities:

The Civil Engineering set up has the capability to undertake
and complete more than 30 rig sites each year, about 50,000
SFT of residential buildings, 60,000 SFT of Warehouses,
about 30 Km metalled roads, can drill about 20 tube wells
and are capable of handling any assignment in tough &
harsh site conditions.

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4.11.4 Mechanical Engineering Functions:
• To plan any lay oil and gas pipelines, install well head
assemblies,
• To arrange mechanical fabrications e.g. oil storage
tanks, caravans, drilling mud tanks and water tanks.
• To manage auto workshop at Karachi.
4.11.5 Human Resource Base

Mechanical division has three district sections: Workshop
and Transport, Fabrication and Pipeline. Field working is
through two Field Gathering and Construction Parties
(FGCP) where about 10 qualified Engineers and about 150
skilled and semi skilled staff members are available for all
kinds of Pipeline construction jobs, Fabrication works and
other mechanical jobs. The two FGCPs are stationed at
Guddu and Tando Alam. Both the Parties are well equipped
and to swiftly move to any work site through out Pakistan.
4.11.6 Equipments
Major equipment available with FGCPs includes:
i. Pipe layer 7 Nos
ii. Crane 2 Nos
iii. Welding Plants 15 Nos
iv. Pipe bending machines 02 Nos
v. Hot tapping machine 01 Nos
vi. Trucks & vehicles 10 Nos
4.12 OGDCL HEALTH SAFETY

ENVIRONMENT QUALITY
OGDCL is concerned with the exploration and development of
oil and gas fields. It delivers crude oil to refineries, process
natural gas to the point where it can be distributed by pipeline;
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sell LPG, Sulphur and other by-products. As an Exploration &
Production Company, its prime responsibility is to the people
of Pakistan. Its role is to provide energy products, which
enhance the quality of life and sustain the economy. The use of
such products helps to preserve the environment and raises
standards of health and safety. OGDCL thus deliver great
benefit. However, its responsibility extends also to the way to
which it operates. In our activities we are committed to using
the most modern methods to protect the environment and to
preserve health and safely. Our aim is to maximize the benefit
of our operations, taken as a whole. We strive to ensure a
reliable supply of high-grade energy products and an economic
return on investment. At the same time we use the best practical
means to minimize any adverse effect that our activities may
have.
To meet the Health, Safety & Environmental challenge and
implement the corporate principles of HSE policies, OGDCL is
in a process of developing the Health, Safety and
Environmental Management System in an integrated way. The
system will describe the way OGDCL is managed with respect
to its stated HSE policies and objectives. This management
system will be based on the basic principal of 'plan', 'do', 'check'
and 'feedback - improve' loop.
Integrated Management System viz. a viz. International
Best Practices:
The emerging HSE Management System will be an integrated
management system for managing risks within a company, to
assure the protection of the company's people, assets and
reputation. Incorporated in the HSE Management System will
be the means to meet the requirements of the HSE policies,

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including those of continuous improvement and sustainable
development specifically derived from Quality Management
System ISO 9001, Environmental Management System ISO
14001 and Occupational Health & Safety Management System
OHSAS 18001.
In first phase of bringing HSEQ cultural and behavioral
revolution in the company, following certification and
accreditation ventures are simultaneously in process in the
company and hopefully by the end of first quarter 2007 our
three major locations will be certified as per the management
system requirements of most international standards:-
• Quality Management System (ISO 9001:2000) at G&R
Laboratories Islamabad
• Laboratory Management System (ISO 17025:2005) at
G&R Laboratories Islamabad
• Environmental Management System (ISO 14001:2004)
at Qadirpur Gas Processing Plant
• Occupational Health and Safety Management System
(OHSAS 18001:1999) at Qadirpur Gas Processing Plant
• Environmental Management System (ISO 14001:2004)
at Dhodak Condensate Plant
• Occupational Health and Safety Management System
(OHSAS 18001:1999) at Dhodak Condensate Plant
Recently a consultant from DuPont Safety Resources (DSR)
Australia was engaged for the Process Safety Risk Management
& Safety Management Evaluation (PSRM & SME) of Qadirpur
Gas Processing Plant and Field based on the DuPont’s 22
Elements of Safety Excellence: The findings of the consultant
are very well taken as improvement opportunities for the
company as the root causes are being determined in quick

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succession and action plans being chalked out to eradicate and
prevent the non conformities auditor pointed out during the
assessment visits.
4.13 RISK MANAGEMENT PROCESS:

By having attained the international certifications, the Risk
Management Process will be applied to current and new
activities, operations, products and services in a much better
and multifaceted way. Yet at present it involves the assessment
of HSE impacts or potential impacts on people and on assets
and includes the full life cycle of the activity from inception to
termination.
Environmental Studies:
Initial Environmental Examinations (IEEs) are done by the In-
house resources for the semi-critical-to-environment projects of
the company while all major projects and activities to be
conducted by OGDCL subject to an assessment of the impacts
(by the third party environmental firms) that the project or the
activity may have severely on the environment. This
assessment is documented, and is called an Environmental
Impact Assessment (EIA).
Occupational Health Management

OGDCL ensures that personnel are medically fit for the work
they are asked to do by the company. The company strives to
reduce risks to health by the implementation of good working
conditions and the use of personal protective equipment
provided by the company. All OGDCL Managers are
responsible for ensuring that where OGDCL employees or
contractors are potentially exposed to hazards through their
work, they are aware of any requirement to use personal

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protective equipment and that it is available to them either from
OGDCL or the contractor. OGDCL maintains procedures to
identify foreseeable emergencies by systematic review and
analysis. A record of such identified potential emergencies is
made, and updated at appropriate intervals in order to ensure
effective response to them.
Monitoring and Data Analysis

OGDCL maintains procedures for monitoring relevant aspects
of health and safety performance, both for its own operations
and those of its contractors, and for establishing and
maintaining records of the results. Procedures are provided for
both active and reactive monitoring. Active monitoring
provides information in the absence of accidents or incidents. It
includes checking that HSE Management System requirements
(e.g. procedures) are being complied with, and that objectives
and performance criteria are being met. Reactive monitoring
provides information on incidents (including near-miss
incidents) that have occurred and provides insights into the
means of preventing similar incidents in the future.
4.14 Strengthening Of HSEQ Department

In order to promptly address with the growing needs of the
company pertaining to health, safety, and environment, the
HSEQ Department is being uplifted under the supreme
command of CEO / Chairman of OGDCL by engaging domain
experts and appointing a dedicated General Manager to ensure
implementation of HSEQ corporate plan starting with the
capacity building as given below:

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• Safety Section: Risk Assessment Specialist,
Emissions/Effluents Management Associates, and
Field-Coordinators/Apparatus Handing Technicians
• Environment Section: Environmental Study Specialist,
IEE/EIA Study Associates, and Field-
Coordinators/Biological & Soil Surveyors
• Quality Section: Capability Studies & Energy
Conservation Specialist, HSE MS Specialist,
QMS/EMS/OH&S Auditors, and Field-
Coordinators/Safety & Emergency Handling
Technicians
Trainings:
To inculcate safety and environmental culture in the company,
HSEQ Department is introducing some very beneficial training
courses on health, safety, environment, and quality subjects as
listed below:
• Mines Act 1923
• Environmental Law 1997
• Environmental Concerns (Pre-Drilling, During Drilling
and Post Drilling)
• Environmental Friendly Disposal of Wastes
• Oil Industry Waste Management (Regulations)
• Emergency Preparedness & Response Planning
• Identification of Aspects/Impacts & Operational
Controls
• Hazards Identification & impact Magnitude
Calculations
• Pollution Charge For Industry Rules, 2001 (Calculation
& Collection)
• Safety Case Development & Emissions Reduction
Techniques
• Plant Safety Assessment Techniques
• Air Emission Dispersion & Noise Pollution Modeling
• Behavioral Based Safety Process

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• Incident Reporting, Root Cause Analysis and
Improvement Opportunities
• Internal Integrated Management System Auditing
Process
• HSE Key Performance Indicators & Data Analysis
• Process Capability Studies & Problem Solving Through
Six Sigma

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CHAPTER # 05
MY ANALYSIS:
INPUT STAGE:
5.1 SWOT ANALYSIS:
SWOT Analysis is conducted to identify the organizational
strengths (S), organizational weaknesses (W), environmental
opportunities (O), and environmental threats (T). Each analysis
helps to know that how these elements influence organizational
performance.
An organizational strength is an internal capability that can be
exploited to achieve goals, where as an organizational
weakness is an internal characteristics that may undermine
performance. An environmental opportunity is a situation that
offers potential for helping the organization achieves its goals.
In contrast, an environmental threat is an external element that
can develop into a non-crisis or crisis problem, and potentially
prevent organization from achieving its goals.
OGDCL‘s SWOT Analysis is given below;
5.1.1 STRENGTHS
• OGDCL has highly professional manpower.
• Established gas transmission and distribution network.
• Being Government owned organization; OGDCL is
given preference when Government allows any new
concession.
• OGDCL has huge finances.
• OGDCL has enough training facility structure in the
form of OGTI.
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• Computerized networking system is prevailing in the
OGDCL.
• Highly advanced and modern technology and
equipment is possessed by OGDCL.
• OGDCL has a number of packages in order to hire best
profile of professionals and as well as to motivate them
in order to extract best from them.
• Annual bonuses are announced to motivate employees.
• Enough physical facilities are provided to its employees
in the H.O in order to facilitate the performance of its
employees.
• OGDCL has zero debt to equity ratio.
• Current assets are four times high than current
liabilities.
5.1.2 WEAKNESSES
• Outdated procurement procedures and stores inventory
management system of OGDCL undermines OGDCL‘s
performance.
• There is no formalized criterion for reserve to
production ratio, which can compare their performance
with the past.
• No job description concept is prevailing in OGDCL.
• There is injustice distribution of work among the
employees.
• There is no check and balance to monitor.
• No experts for ORACLE software inspite of its
implementation in OGDCL.
• No planning is being done before initiating any project
e.g. Implementation of ORACLE financial.

Ali Marwat
• No training programs for finance people about
ORACLE except 3-5 days training.
• Environment is initiative killer, as there is no say of its
employees.
• Bureaucratic form of administrative setup.
• Greater distances in hierarchy.
• Delayed decisions due to prolonged procedures.
• Adhoc approach to resolve major issues.
• Political influence is being exercised for recruitment.
• Members of Board of Directors are all outsiders, and
selected by Government.
• No concept of Diversification like other oil companies.
• Investment is only being done in Government
securities, as it is Government owned organization.
• Company is unaware of the importance of Marketing in
the success of one company.
• Attitude of the employees towards work is not prudent
because of job security factor. They have fair idea that
no one can expel them from this organization.
• There is no check to measure performance of the
employees.
• Annual bonuses are announced for whole organization
irrespective of their individual performance, which
never motivates people to work.
5.1.3 OPPORTUNITIES
• Substantial unproven gas and oil reserves exist in
Pakistan.
• Low cost incur in the exploration of wells.

Ali Marwat
• Inflationary trend in the prices of oil in the international
markets.
• Massive consumer market.
• Ever rising demand of gas due to changing attitude of
people.
• Government incentives to Energy Sector for doing
better projects.
• There is no tough competition faced by OGDCL from
any company having the same large setup with such
huge finances.
• Minimum price allowed by the Government at different
location is a great support for those fields where price
after discount is less than official price.
5.1.4THREATS
• Being a Government owned organization, Government
has maximum interference while deciding its
investment policies.
• Government directs the Company while declaring its
dividend.
• Competition is increasing as Government is attracting
foreign investors in this Sector.
• Global trends are rapidly changing which might affect
its performance.
• Iraq and America situation can also have negative
impact on Oil and Gas Industry.
• Any decrease in future oil prices may prove to be a
great threat for OGDCL.
• Fear of unproductive well is a source of threat for
OGDCL.

Ali Marwat
5.2 MATCHING STAGE:

TOWS Matrix:
STRENGTHS OPPURTUNITIES
Govt. Support Govt. Support to Oil & Gas
Strong financial position Sector
Technologically better Substantial Oil & Gas unproven
Heavy exploration strategy reserves in Pakistan
Professional manpower Technology import easy
Industrial growth
More Oil & Gas Consumption
Field of HR Developing in
Pakistan
WEAKNESSES THREAT
Weak HR Practices Foreign Competitors
Latest Technology Rising Consumption Shortage
Greater distance in of Oil & Gas
hierarchy Government interference in
Unaware with importance policies
of Marketing Iraq and America situation
No concept of
diversification like BP
Key Internal Key External Resultant

Factor Factor Strategy
Govt. Support + Govt. Support to = Take Advantage
(Strength) Oil & Gas Sector of Govt. Policies
(Opportunity)
Heavy + Rising = To meet the
Exploration Consumption, shortage threat
Strategy Shortage of Oil & with heavy
(Strength) Gas (Threat) exploration.
Weak HR + Field of HR = Develop the HR

Ali Marwat
Practices Developing in with the help of
(Weakness) Pakistan Multinational
(Opportunity) HR Consultants.
Latest + Foreign = With financial
Technology Competition strength import
(Weakness) (Threat) latest
technology.
5.3 SPACE Matrix:

5.3.1Two Internal Dimensions
a) Financial Strength [FS]

Rating from +1 to +6
As we studied the financials of the company we found the
company financially very strong & sound so the rating
according to our assessment is +4
b) Competitive Advantage [CA]

This factor is rated from -1 to -6
As the company is technologically better than the locally
operating companies and also the support of the Government
to the company, the company owns the largest percentage of
the exploration area held. So we rate company as rating -3.
5.3.2 Two External Dimensions
a) Environmental Stability [ES]

ES is rated from -1 to -6
So as the country environment from the Oil & Gas Sector is
very stable as compared to the others so it is rated as its
environmental stability as -3.

Ali Marwat
b) Industry Strength [IS]
Industry Strength is rated from +1 to +6
As the Oil & Gas Industry is on the boom because of heavy
support from Govt. and greater oil & gas consumption so it is
rated as +5
As in the fig.1 below after plotting the graph you can see that,
We have got 2 points (+5, +4) and (-3,-3)
According to formula
x1 + x2 , y1 + y2
2 2
+5-3 , +4-3
2 2
2/2 , 1/2
(1 , 0.5)

Ali Marwat
FS
Conservative Aggressive
+6
+5
Fig. 1 +4 (+5, +4)
+3
+2
+1 (+1, +0.5)
Resultant Vector
CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6
-2
-3
(-3,-3)
-4
-5
Defensive -6 Competitive
ES
After putting the values in the graph we can see that the graph
is showing an aggressive growth policy by the company.

Ali Marwat
BCG Matrix:
Relative Market Share Position
High Medium Low
1.0 .50 0.0
High
+20
Stars
Question Marks
II
I
OGDCL’s Position
Medium
0
Cash Cows Dogs

III IV
Low
et a R ht wor Gs el a S yrt s udnI
-20
The company has the highest market share as compared to all

other companies to whom the Government of Pakistan has
given the Licenses to work in Oil & Gas exploration sector.
The sales Growth rate is also very high as the local exploration
cannot meet the consumption necessities of the country and all
what explored and produced is fully consumed in the country
making the industry sales growth rate very high.
So OGDCL is in the square of Stars, and is enjoying its market
share and the growing industry benefits.

Ali Marwat
5.4 GRAND STRATEGY MATRIX:

As in this matrix we have two evaluative dimensions
• Competitive Position
• Market Growth
As the rating of the company in the SPACE Matrix is Very
Strong for Competitive Position and the market has also very
rapid growth and the company with an aggressive growth
policy the company lies in the Quadrant I.
RAPID MARKET GROWTH
Quadrant II Quadrant I
Market development Market development
Market penetration Market penetration
Product development Product development
Horizontal integration Forward integration
Divestiture Backward integration
Liquidation Horizontal integration
Concentric diversification
WEAK
COMPETITIVE STRONG
POSITION COMPETITIVE
Quadrant III POSITION
Retrenchment Quadrant IV
Concentric diversification Concentric diversification
Horizontal diversification Horizontal diversification
Conglomerate diversification Conglomerate diversification
Liquidation Joint ventures
SLOW MARKET GROWTH

Ali Marwat
5.5 DECISION STAGE:

QSPM Matrix:
All the matrices discussed above show that the company has an
aggressive growth strategy all the matrices are give direction to
the company that the circumstances are feasible for the
aggressive growth strategy.
QSPM Matrix is used to evaluate the alternative strategies
available to the company from the applications of the above
matrices; the company has no alternative strategies as all the
matrices are guiding in one direction and same strategy. So
QSPM is not applicable OGDCL. So OGDCL should
concentrate on more and more exploration inside company to
fulfill the increasing demand.

Ali Marwat
CHAPTER# 06
TRAINING PROGRAM
I selected OGDCL for my internship, which is necessary during
two year MBA programmed. The OGDCL was established in
1961. The head office of the company is situated at Blue Area
Islamabad. OGDCL mainly deals with Petroleum products.
OGDCL is only biggest public sector company with sound
financial condition. I worked in head office of OGDCL for 8
weeks in different departments of the company but according to
my major subject I concentrated on Marketing department and
Human Resource department. It is a govt. organization where
working of internee is so much limited but I tried my best to
learn as much as possible. Due to restriction I could not work
very well on finance department and joint venture department
that were also of my interest. I could spend most of my time in
Marketing and after that in Human Resource Department. My
learning in these departments is as follows:
6.1 MARKETING DEPARTMENT:

During 8 weeks of internship I spend about 4 weeks in
marketing department. It is the responsibility of marketing
department to generate different reports related to production
and dispatches. These reports are based on data given by
different fields all over the country. It is the responsibility of
Data Processing officer to fetch required data from these faxes
and put it in pre-designed excel file for making daily report. I
learnt to make this report and help DPO to make it and show
him for any expected mistake before sending this report to
manager marketing and others.

Ali Marwat
It is the responsibility of marketing department to confirm the
payment form different buyer that is given by sales section of
finance department. After that a letter is faxed to corresponding
fields to allow the buyer to uplift product. I assist in sending
these messages and also caution messages to different buyers if
payment date is getting over.
The auctions of LPG and Sulphur are held quarterly and
supervised by different people in marketing department. I
understand the whole procedure for bidding and uplifting.
I also worked with admin assistant whose job was to check
NLC transportation bill and maintaining the record of those
bills. This is all about my learning in marketing department of
OGDCL.
6.2 HUMAN RESOURCE DEPARTMENT:

Due my specialization in marketing I was bound to work in
marketing department only but I spent hardly one week in HR
department. During this short period of time I learnt something
that is given below:
OGDCL also hire contract base worker. So I did work with the
person who is responsible for the hiring and keeping all record
about them and allocating duties and controlling all matters. He
is responsible for sending reports about this staff to hire
authorities.
I also worked with a person who deals with all matters like as
health, bonus, hospital cards and allocation of plots in OGDCL
housing scheme of permanent staff. Further I did analysis of
procedure for Recruiting and Selection and Training and
development that have been discussed above in HR
Department.

Ali Marwat
6.3 Conclusion:
OGDCL is a big organization which is working all the Pakistan
and it is really a much difficult to study this organization in two
months that are very short period of time. But I tried my best to
lean as much I can. With shortage of time there were so much
security constraints that it was very difficult for an internee to
move from the allocated department for working in other
departments. OGDCL growing at very great pace and has a big
pool of qualified professionals but if department heads
concentrate more on their employees and at the same employee
do concentrate on work then the speed of growing might be
much greater than now.
I learned a lot during my internship period. This was my very
first experience of working in any professional organization.
This experience might help me more, if i join the oil and gas
industry but it would be helpful in other case because working
environment might be almost same in all organization like as
how to prepare reports, how to send letters to other departments
or other organization and what is the procedure for auction of
anything. So I can say that it was a really good experience of
working.
6.4 Recommendations
• OGTI is responsible for selecting internees and allow
working in any department. So if any one is sent in one
department then it is very difficult for him to go to any
other department unless having some reference in that
department. So OGTI should revise its policy.
• Contract base employees should be given some extra
benefits and chances for promotion as permanent
employee.

Ali Marwat
• Marketing Department head should visit the department
frequently to ensure that every one is present in office
and working especially after lunch break and should
engage all employees.
• There are no specific criteria for training internees.
Every department should be given special tasks to
students.
• There must be proper manpower planning and work
assignment planning by time to time. It can be made by
restructuring the department.
• There is no central data storage system in the OGDCL.
Initiatives have been taken but no further process after
sending letters all departments.
• There should be proper surveillance system to measure
the employee’s performance and then decision should
be taken for promotion and bonuses.

Ali Marwat
Bibliography
• www.ogdcl.com
• www.ogdc.com
• www.oil&gas.com
• Annual Report of OGDCL
• Marketing Department
• HR Department
• Finance Department
• Joint Venture Department

Ali Marwat

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Internship Report On OGDCL

It is a requirement for the partial fulfillment of BBA degree in

1.2 PURPOSE OF THE STUDY

This report is based on study carried out for the fulfillment of

Preston University Kohat Prepared by: Farhad 1

1.3 SCOPE OF WORK:

1.4 LIMITATION OF STUDY

1.5 METHODOLOGY OF STUDY/

Preston University Kohat Prepared by: Farhad 3

Preston University Kohat Prepared by: Farhad 4

2.2 OGDCL MISSION:

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.

Preston University Kohat Prepared by: Farhad 5

Preston University Kohat Prepared by: Farhad 6

2.4 INITIAL SUCCESSES

As on 1st August 2006 OGDCL has total manpower strength of

2.6 EQUIPMENT BASE

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PHYSICAL AND OPERATIONAL

3.2.1 Exploration & Production:

3.2.2 Reserves Base:

3.3 FINANCIAL HEALTH:

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3.6 CONCESSION PORTFOLIO:

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3.8 CORPORATE SOCIAL

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3.9 PROGRESS TOWARDS

3.10 INITIAL PUBLIC OFFERING:

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3.11 WHAT OGDCL CAN OFFER:

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3.12 FUTURE STRATEGY:

3.13 OGDCL GOALS:

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Learning & Growth:

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Structure of Marketing Department

Sr. Chemist Sr. Sr.

Marketing Marketing Marketing Marketing Marketing Marketing

ORGANOGRAM of Marketing Department

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Functions and Technology:

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• Produce reliable budget, forecasts and plans for showing

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