Internship report on OGDCL

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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 company’s background and proceeds with its

contribution to Pakistan’s 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.

CENTRAL BACKGROUND INFORMATION

Oil and gas sector has been the oldest industrial base for Pakistan and the world around us. It is the source of all kind of activities geared towards the generation of energy, for the use of other industries and activities that support the economy of a nation. This reason alone has let the

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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 weren’t 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 2005-06. 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 (Geological Survey of Pakistan) is 341.800 million barrels. The average production of crude oil during the 2006-07 was 67,438 barrels per day. During the same period a total of 36 wells were drilled. The number of development wells drilled during 2006-07 was 41. The drilling efforts resulted in 17 discoveries mostly of gas/condensate, out of which, 10 were by OGDCL and 7 by the private sector. The consumption of Petroleum products in 2007 was 1685 million tons. The

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percentage share of different sectors in its consumption is as follows: Households (0.6) Industry (9.5), agriculture (0.6), Transport (47.4), Power (40) and others (1.9) percent. There is excessive increase in the demand for Petroleum since the number of vehicles has increased at an alarming rate. This demand for petroleum is expected to increase consistently over the years

Major products or kinds used and produced in Pakistan are Motor Spirit, Kerosene, HOBC (High octane blending component), Diesel (HSD and LDO), Furnace oil, Aviation Fuels and Naphtha. We export various by-products of petroleum and in fact crude oil itself when it becomes more than necessary and when there is no stocking space left in the storage depots.

INFRASTRUCTURE

At present the publicly owned shipping vessels in the industry are only 3; held by NTC (National Tankers Corporation). Since 80% of our oil requirements are fulfilled through the import of oil, our port facilities are of absolute importance for the Petroleum sector. We have 2 major ports in the country: Karachi and Port Qasim. Bulk of the traffic is handled by the Karachi Port. Pipelines are the major transportation mode in the transfer of oil to different locations. There are a variety of pipelines operating in the country namely PARCO, Mahmood Kot-Faisalabad-Machike (MFM) Pipeline, APL Fuel Oil Pipeline, White Oil Pipeline Project, Machike-Taru Jabba Pipeline Project (MTJPP) and the trans-Karakoram oil pipeline. Refineries and the OMCs have key installations and terminals to receive and store crude and petroleum products in Karachi (Keamari, Korangi, Zulfiqarabad, and so on), Mahmood Kot (mid-country) and Morgah (Rawalpindi). In addition, the PARCO pipeline system has its own terminals at Korangi, Gujrat (mid-country), Faisalabad and Machike.

The structure of firms in the Petroleum industry is summarized as follows:

Upstream (Oil Exploration companies e.g. GSP)

Mid Stream (Oil Refining Companies e.g. PARCO )

Down Stream (Oil Marketing Companies e.g Shell)

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.

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Metrics

Basin

Understanding

Basin

Understanding

Reserves Replacement Rate

Reserves Management

Exploration

Development

Production/Operations

Enabling KPIs

Corporate

Planning

Exploration

Exploration

Development

Development ProductionProduction

Mid

& Down-

stream

Mid

& Down-

stream

Exploration Success Ratio

Finding and Development Cost, Spend Share

Development Spend

Production CostOperations

Effectiveness

HR

Technical Staff GapProductivity

Supply Chain

Requisition to Order cycle time

Safety

Employee Safety

PIPELINE NETWORK

Pakistan has the world’s 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 well. Many companies are operating exploratory wells and development drilling wells in Pakistan. Midstream sector is processing gas and distributing it to networks for transporting and home delivery. Downstream sector is where 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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COMPANY BACKGROUND

ESTABLISHMENT

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

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 32% of gas and 37% of oil, respectively. In addition, OGDCL contributed 22% of the country’s 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 &

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Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified and skilled expertise in the fields of geology and geophysics are frequently availed y the local and foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic surveys and data processing on contract for these companies on extremely competitive rates.

OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total oil and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan is 34% and 28% respectively. On the basis of its activities since inception, the company has until June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCL’s updated estimates for remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including company’s share in non – operated Joint Ventures. During the last 42 years OGDCL has grown into a technically and commercially viable organization.

FUNCTIONS OF OIL AND GAS DEVELOPMENT COMPANY

The main functions of the Corporation are:-

1. To plan, organize and implement program of exploration of development of oil and as resources.

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

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

4. To produce, refine and sale oil and gas

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

In order to achieve this goal, the Company seeks to execute the following strategies:

1. Accelerate Production Growth: by continuing to accelerate production growth, allowing the Company to utilize its significant reserves base and capitalize on the strong economic growth and accelerating energy demand in Pakistan.

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2. Exploit Exploration Opportunities: by building the Company’s future reserves portfolio through its large onshore exploration acreage. For the fiscal year 2007, the Company has set targets for exploration drilling of at least 41 wells and plan to increase this target to 52 wells in fiscal year 2008 and 65 wells in fiscal year 2009.

3. Maintain Low Cost Operations: OGDCL’s operating environment, namely the geographic concentration of its reserves base within Pakistan, will be a major factor in allowing it to control its low cost structure. Within Pakistan, the Company’s leading position also enables it to access economies of scale across its significant reserves base and operations.

4. Pursue Selective International Expansion: while domestic expansion remains OGDCL’s core focus, the Company intends to grow and diversify its portfolio through selective international expansion in the medium to long-term.

5. Implementing International Best Practice: by ensuring an efficient organizational structure and business processes that are focused on core production. As part of our restructuring plan, OGDCL has established an in-house technical services division, the Petroserv Directorate, which separates technical support services from core E&P activities.

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COMPANY’S 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 doesn’t 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, company’s 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 company’s 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

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

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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.

HUMAN RESOURCE ASSESSMENT

COMMENTS ON THE ORGANIZATIONAL STRUCTURE

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

Corporate

Exploration & Production (E& P )

Technical Services

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

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The Executive Director Exploration:

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

Executive Director Drilling:

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

Executive Director Admin:

The administration department manages all the activities from recruitment to training and development and is responsible for management of personnel

Executive Director Corporate Affairs:

Looks after the activities of planning of different development programs and monitors the implementation of that program. It coordinates with all the department of OGDCL and prepares a strategic plan for the activities of OGDCL. This department also acts as a liaison between OGDCL different Ministries.

FUNCTIONS OF PERSONNEL DEPT

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

2. Transfers –Postings and maintenance of seniority.

3. Handling of Personnel grievances.

4. Processing of Pension / EOBI and retirement cases.

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

6. Maintenance of Database-Computerization.

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

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HOUSING SECTION

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

Hiring of houses for the employees of OGDCL.

Hiring of building for offices and lodges at Islamabad.

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

FUNCTIONS

Actually PAO is the head of two major sections, that in general admin section and housing section. All type of documents/cases are tabled to the PAO for verification and signed. He may approve the legal cases and also has the power to reject illegal cases. Particularly in housing cases the approval of PAO is must. The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to the required party/person. He is the in charge of overall staff of both sections.

TRANSPORT SECTION

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

VEHICLE FOR ENTITLED OFFICER

Manager they provide official vehicles for duty.

VEHICLE FOR GENERAL DUTY

For each department they provide special vehicle for emergency cases.

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VEHICLE FOR PICK AND DROPS

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

VERIFIER FIELD DUTIES

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

VEHICLES FOR FOREIGNERS

Similarly some vehicles are available for engineers and other staff.

ORGANIZATION OF LEGAL SERVICE DEPARTMENT

Legal Service Department

Legal service department is one of the most simple and little department but its functions are always maintained on climax position in OGDCL. To deal with court and legal cases, whenever occur in OGDCL. If any body from outside accused on OGDCL in any affair, then legal service department stands from management side of OGDCL. They have their own advocates, but mostly they consult with outside advocates on various fees. On the other side when OGDCL claims on any person or body of person, so at this also they deals the cases same as above. But when inside OGDCL any employee appeal against any officer under the section rule 25, so if the case is lower level then legal service department delete that claim by negotiation with employee. After that if the employee is frustrated then he can go to the court for appeal. It is not essential for employee as well as for legal service department that they hire advocate for case. Employee can witness in court personally, but legal service department are always advocates from the management side. It is the information from the department that mostly cases are go in favors of OGDCL.

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Medical Center Department Organogram

Manager Medical Services

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

To manage the medical centers of the corporation.

To provide medical facilities to the corporation employees.

OGDCL Medical Centre Islamabad Function

To check the OPD patients

To check the OPD bills.

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

Diagnostic Facilities

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

Hospitalization

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

Medicines

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

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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:-

To deal with union matters.

To provide facilities to the staff members of their families.

Grant of house building advance.

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

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

Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their income

Similarly large number of facilities they provide to the staff member, due to the arrangement with management. The union and management make on agreement after every two years. Welfare section negotiates with union from the management side.

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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.

To recruit new candidates as a trainee.

To recruit the experimental employees for higher jobs.

To take examination and interview of new and experimental candidates.

Organogram

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

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Hiring through Contractor

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 Chairman

Executive Director (Admin) / G.M. (Admin) Member

Executive Director (Concerned) Member Professional / Expert in the relevant field/discipline Member

Preferably having PhD or Master degree in the

Relevant subject

Head of Department Concerned Member

FOR EG-V TO PS-15

Executive Director (Admin) Chairman

Executive Director (Concerned) Member

Head of Department Concerned Member

Head of Department Concerned Professional/Expert Member

Head of Department Concerned Member

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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.SRO-1213(1)/73 published in the gazette of Pakistan enter ordinary dated 18-08-1973.These new rules have been adopted by the oil and gas developing company limited and matters relating to efficiency and discipline of the employees shall henceforth be governed by the OGDCL servants rules 1973 being issued as annex.

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PENALTIES

The following are the minor and major penalties namely:

MINOR PENALTIES

Censure;

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

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

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

MAJOR PENALTIES

Reduction to a lower post or time scale, or to a lower stage in a time scale.

Compulsory retirement.

Removal from service and

Dismissal from service.

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

CAREER PLANNING

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

The scoring system is also having a major impact on effective performance appraisals. The accuracy and reliability of any scoring system increases with full descriptions/definitions, and

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better still with examples for each score band. This gives everyone the same objective scientific reference points, and reduces subjectivity.

PERFORMANCE APPRAISAL PROCESS

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

Establish a common understanding between the manager (evaluator) and employee (evaluate) regarding work expectations; mainly, the work to be accomplished and how the work is to be evaluated.

Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct un acceptable performance before it was too late, and to reward superior performance with proper praise and reorganization.

Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family.

The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a development plan.

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

Outstanding 05%

Very Good 20%

Normal 50%

Marginal 20%

Poor 05%

BARRIERS TO PROMOTIONS

CPC invites recommendations to reach end February and end August each year. They are seldom received according to schedule. Consequently, CPC has great difficulty in meeting the promotion dates of 1st July and 1st December each year

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

There is lack of effective communication among departments which causes un-necessary wastage in time and efforts

Absence or lack of clarity of promotion channels

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

SUGGESTIONS

Computerization of record is of great essence for speedy disposal and accuracy of record

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

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

On line information system may be developed among Personnel, CPC, Administration and other related departments. This will speed up information and provide updated and accurate data

Promotion criteria should incorporate changes reflecting ongoing trends. CPC may be involved in appraising the management on the current issues and difficulties in practical application. (Proposals for improvement in Promotion Criteria have been recently submitted).

MAJOR OIL & GAS FIELDS

Major oil and gas fields of OGDCL are in Tando Alam, Toot, Uch, Bobi, Chanda, Chak Naurang, Dhodak, Daru, Dakhni, Fimkassar, Kunnar, Kal, Lashari, Missan, Missa Keswal, Nandpur, Pasakhi, Pali, Qadirpur, Rajian, Sadqal, Sono and Thora.

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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 OGDCL’s functions that what OGDCL is doing. For the development of oil and gas sometime press conference also arranged for this purpose. Public relation department deliberate plan and sustained efforts to established and maintain natural understanding between an organization and its public.

It also performs the function to maintain the relation between the management and staff. Public relation department operates various methods and procedures to inform the public. Various types of newspapers are mostly used to inform the public. Through newspapers they give advertisement about OGDCL.

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 of gas per day. Chanda LPG plant will also be installed by October 2004 were 25-40 M.tons of LPG will be produced.

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The third well at Chanda field is planned to be in third quarter of 2004- 2005.This will increased the production of field to 5,300 sbarells of oil and 19 MMscf of gas per day.

Bobi Development Project

First phase of the bobi development project has also been commissioned in June 2004 and is producing 1,050 barells of stabilized condensate per day. Phase-II of the project is expected to be streamlined in October 2004. On its completion, the field will produce about 2,800 barrels of oil per day and 125 M.tons of LGP Satellite fields namely Mithrao and chak dim.

Dhodak Plant Enhancement And Dakhni Expansion

Dhodak plant enhancement and dakhni expansion projects are also in progress and are expected to be completed by some time completion, the projects will result in substantial enhancement of production of oil, gas, LPG and sulpher.

Growth Rate for the Entire Industry

Reflecting increasing consumer demand for petroleum products, world crude oil demand has been growing at an annualized compound rate slightly in excess of 2 percent in recent years. Demand growth is highest in the developing world, particularly in China and India (each with a population in excess of 1 billion) and to a lesser extent in Africa (0.8 billion) and South America (0.35 billion). Where high demand growth exists it is primarily due to rapidly rising consumer demand for transportation via cars and trucks powered with internal combustion engines. For economic and/or political reasons, this high demand growth component did not exist in most of the developing world even a decade ago.

Until 2030, global energy demand is expected to increase by 50% of which around 60% of the energy supply is expected to be met by oil and natural gas. Currently 74% of the energy mix, will still be by far the dominant contributor to the energy mix in 2020. Oil will remain the dominant energy source for the transport sector and feedstock for the petrochemical

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industry. Gas will take an increasing market share in energy supply, essentially for power generation.

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COMPETITOR ANALYSIS

MAJOR COMPETITORS

OGDCL is Pakistan’s 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 Pakistan’s 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 country’s 2nd largest gas field.

PPL

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Pakistan Petroleum Ltd is Pakistan's Premier E&P Company, the oldest Exploration and Production Company in the country was incorporated on 5th June 1950. The gas, LPG and NGL production from PPL operated and non-operated fields for the year 2004-05 in terms of oil equivalent, was about 171,205 barrels of crude oil per day.

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, especially in the upstream sector that includes OGDCL. The prime purpose of the machinery used in this sector is in the use of oil extraction. One oil drill, that can dig up to 100 feet costs around .1- .2 million dollars from

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Germany. The figure is in respect to the fact that if we buy these machinery in bulk. Otherwise the cost is higher. Netherlands is our second option for the import of the Capital Machinery. The small parts used in the machinery like bolts, nuts and some basic electric material are taken from our indigenous production or resellers in Dubai and Arab Countries. Since the capital requirement is quite high, the machinery is updated after every 7 years as its maximum life is said to be 10 years after which the machinery does not work up to its potential and also with time new machinery keeps coming which can extract more oil in the same time due to technological innovations taking place in the sector. However keeping all this in mind it is proposed that machinery should be renewed in 5 years to keep up the supply of oil, but the upstream sector (which obviously includes OGDCL) doesn’t find it economically feasible.

Gas Related Machinery

Pakistan has the latest and the most improvised machinery that is being used in different processes of gas refining, pumping and distribution. The machinery and Capital used in this industry is very tough to use and learn because of the technical expertise needed. Pakistan lacks that know how so they have to call in engineers to setup machinery whenever they buy it to setup a new refining or distribution plant.

All of the equipment that is usually upgraded to or installed on a new project originates from European countries like Germany, Austria and Italy. Some of the equipment also comes from USA and Japan. Lately there has been a lot said about Ukrainian and Russian machinery as well.

Machinery that is being used in the Upstream sector including OGDCL includes Pumps that bring Gas out and pippin’s responsible for taking that gas to the processing plants if the impurity content is too high. This machinery has many parts like piping and nuts and bolts connecting them that are made in Pakistan but like oil most of the rigs that are used to bring gas out from under the crust are made in countries like Italy, Russia and Germany. China has also gone into this sector but yet has not shown any important signs.

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Innovation

Many innovations are taking place in the oil and gas industry. It remains the most lucrative and profitable business in the world as global demand for energy soars disproportionately to the supply. In this scenario a significant amount of resources are invested in R & D for more cost-effective, efficient and productive extraction of gas and oil.

FUTURE PROSPECTS OF THE ORGANIZATION

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

To develop the already discovered oil and gas fields with a view to enhance production and improve revenues of US$ 35 million per annum and 24,500 barrels of oil per day and 565,605 Mmcfd of gas is expected to be produced during 1999-2000. Exploratory wells are being drilled on various points i.e. Sanjharo , Norijagir, Ghari, &, Chanda etc; from these points oil and gas are discoved to achieve the future targets.

To modernize, replace and effectively maintain the drilling, seismic and processing equipment in order to keep the equipment in sound operating condition at all times. To develop OGDCL‘s human resources through transfer of technology and training. To rationalize stores and spares inventory to the optimum level. OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from Nandpur / Panjpir to Fauji Kabirwala Power Limited. All these projects are contributing a lot of income

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to the OGDCL’s current revenues. Despite number of Joint ventures and competitors in the oil and gas sector, OGDCL has drilled different concessions independently as well as it has ventures with other company’s successfully. OGDCL Seismic Crews are busy in G&G survey on different concession like Kharar, Basal, Ranpathani, Sanghar and Zin etc.

FUTURE GOALS & STRATEGY

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

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DEPARTMENT WORKED DURING INTERNSHIP

Personnel (HR) Department Functions

Maintenance of personnel files

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

Correspondence

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

Pay Scale and Fixation

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

1. Executive Group (EGI - EGIII)

2. Staff (1 - 16)

3. Contractual Staff

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

Production Department Functions

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Various measures have been taken in order to augment production levels to reach new heights. This includes setting up of aggressive targets, enduring commitment by its professionals, and induction of latest technologies, pursuing industry best practices, strengthening surveillance techniques, enhancing in-house engineering design and simulation capabilities, utilization of state-of-the art automation systems and fostering use of information technology.

Marketing Department Functions

OGDCL does not do any kind of marketing since its major contacts are regular local and overseas clients. The engineers constantly explore areas for oil and gas reserves in order to see where they can hit the jack pot.

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.

Lack of Career Planning Of Employees

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

Unfair Utilization of Transport

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

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Unnecessary Purchases at Sites

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

Poor Method of Recruitment

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

In just Way of Awarding Training

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

Promotion Policy

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

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 government organizations. Despite the fact that bureaucracy, nepotism and corruption are very much present in the organization but overall there is a smooth

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running of operations and profitability is very much there. There is great focus on the company’s 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 up-to-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.

6. Responsibility of clearing/correcting the entries should be fixed with the section generating the activities.

7. A professional Accountant should be assigned the job to the review of AFEs with the collaboration of technical professionals for proper and effective control to avoid cost over runs.

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8. For effective cost control, standardization of different stationery items and consumable is approved for purchasing in bulk from the manufacturer directly.

9. A good internal Control is a key to success for an organization, but in OGDCL there is a lack of internal control, which should be improved and implemented effectively.

10. Ensure core E&P excellence through Meld exploration, production and reservoir management, hasten and grow reserves to meet Pakistan’s energy requirements, accelerate production, in part via building enhancement competence.

11. Attain new horizons, explore and master remaining Pakistan structures, partner to build new expertise – offshore, heavier oils, Understand potential for and exploit non-conventional hydrocarbons, operationalise international E&P intent

12. Fit with and help shape Pakistan’s downstream capacity gradually take positions and operate downstream to leverage reserves, strategically add reserves/production to enhance domestic infrastructure.

13. With the passage of time many modern technologies changes take place in oil and gas industry, OGDC must take necessary action to acquire modern technologies so that they can compete at international level and in this way they can play more effective role in Pakistan’s economy.

14. They should to pay full attention to the intensive professional training of staff in related fields. The department concerned can organize professional training at OGDC or with outside agencies etc and latest literature newspapers and magazines etc of professional interest should be provided at sites free of cost.

15. Anticipate and support core operations and become commercially competitive.

16. Although the management in recent past takes some initiative in this area, a new department “career planning department “ is created and

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few posting were made in this department . But to achieve excellent and positive results rapid operations are too much essential.

17. Management should try to develop maximum and minimum store inventory levels and also 100% physical verification to be done at least once a year. The powers of location in charges should be reviewed and minimized.

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

19. To offset recruitment bias favoritism should be completely discouraged. And try to eliminate political interference in recruitment, because it will affect the efficiency and ultimately the corporation will be unable to achieve its objective.

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

If appraiser make appraising based on actual performance it will decrease heart burning problem and employees’ efficiency will be increased.

As the promotion policy of the corporation clearly shows merit + seniority, so it should be fully implemented.

Beside this it is also desirable to suggest that in this modern area computerization of record is very much essential .So to facilitate the management computer system in all the section must be introduced.

CONCLUSION

The production of oil and gas is contributing a lot in reducing the country’s import bill. Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy. OGDCL’s Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have now started supplying Gas to power companies. This is not only meeting the

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requirement of the IPPS but also contributing a lot towards meeting the demand of electricity in the country.

OGDCL’s contribution to the national exchequer in the form of royalty; excise duty, debt servicing, and taxes are a huge support as compared to the other state owned organizations. OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil companies to boost up the efforts for increasing the Oil & gas demand of this country.

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 successes with further appraisal drilling leading to potential new field developments. The Company anticipates a significant boost to its existing production on completion of current and future development projects, resulting into strong operating cash flow and sound financial position of the Company, thus leading to significant value addition for the shareholders. We are confident that the pace of growth will continue in times to come and we have every reason to look forward to the future with confidence.

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Bibliography

1. Ministry of Petroleum and Natural Resource’s 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. Behavior in organizations, By H.Joseph Reitr.

12. Personnel: The management of people at work (5th Edition) By Dale S.Beach

13. Operations management/Theory and Practice (2nd Edition), By Joseph G.Monks.

14. Business research for decision making, By Davis-Cosenza

15. www.ogdcl.com.pk

16. Petroleum Policy, 2007, Ministry of Petroleum.

17. Vision 2030, 2007, Ministry of Planning Commission

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18. Strategic Plan, 2006, OGDCL

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