Sei sulla pagina 1di 33

Chapter 1

INTRODUCTION
OGDCL is the National Oil & Gas Company of Pakistan and the Flagship of the Countrys E&P
sector. The Company is a Market leader in Pakistan, in terms of reserves, production and Acreage. It is
not only listed on the three major stock exchanges of Pakistan but it is also listed on the London Stock
Exchange since December 2006. The Company is all set to ride the waveof E&P activity. Equipped
with its Vision & Mission, Business and Strategic Plan, A debt-free and robust balance sheet and
healthy cash reserve OGDCL, is ready to take on the challenges of a volatile E&P industry. The
OGDCL is Pakistans leading company operating in Pakistan as a leader and pioneer in the natural gas
exploration & production market. It holds a top position in all areas of the countrys gas business. The
key aspiration of OGDCL Group is to be the leader of the liberalized energy market in Pakistan and
also to achieve a leading position in the region while maintaining the status of the national leader in the
natural gas market.
1.1.

Company Background:

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
1

activity at its lowest ebb several foreign exploration contracting companies terminated their operation
and either reduced or relinquished land holdings in 1961.
1.1.1

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 programs and to plan and
promote Pakistan's oil and gas prospects.
As an instrument of policy in the oil and gas sector, the Corporation followed the Government
instructions in matters of exploration and development. The day to day management was however,
vested in a five-member Board of Directors appointed by the Government. In the initial stages the
financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the
risk capital. The first 10 to 15 years were devoted to development of manpower and building of
infrastructure to undertake much larger exploration programs.
1.1.2

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
2

aggressive work programme. This resulted in discovery of a number of oil and gas fields in the
Eighties, thus giving the Company a measure of financial independence. These include the Thora,
Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and
Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of the
Corporation.
1.1.3

Transition to a self finance entity:

Noting the Company's success, due to major oil and gas discoveries in the eighties, the Government in
July 1989, off-loaded the Company from the Federal Budget and allowed it to manage its activities
with

self-generated

funds.

The financial year 1989-90, was OGDC's first year of self-financing. It was a great challenge for
OGDC. The obvious initial target during the first year of self-financing was to generate sufficient
resources to maintain the momentum of exploration and development at a pace envisaged in the Public
Sector Development 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.
1.1.4

Conversion into public limited company:

Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC (Oil & Gas
Development Corporation). It has been incorporated as a Public Limited Company w.e.f. 23 October
1997 and is now known as OGDCL (Oil & Gas Development Company Ltd.).

1.1.5

Initial public offering:

Government of Pakistan disinvested part of its shareholding in the company in 2003. Initially 2.5% of
the equity with an additional green-shoe option upto 2.5% of equity was offered to the general public.
The said Offer received an overwhelming response from the general public and was recorded as a
landmark transaction in the history of Pakistans capital markets.
1.1.6

GDR( Gross domestic rate):

In December 2006, the Government of Pakistan divested a further 10% of its holding in the company.
The Company is now listed on the London Stock Exchange since on December 06, 2006
1.1.7

Oil & Gas Training Institute (OGTI):

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 class rooms,
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.

1.2

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 Centre, Geological Analysis Laboratory, Wire
line Logging Unit, Cementing Units and Data Logging Unit.
1.3

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.
1.4

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.
1.1

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

1.6

Corporate Social Responsibility:


5

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 has constructed a TraumaCenter at District Ghotki Sindh,
under President 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 Presidents relief fund, and Rs. 20 million for
medicines and other facilities).
1.6.1

Vision

To be a leading multinational Exploration and Production Company. (OGDCL, 2013)


1.6.2

Mission

To become the leading provider of oil and gas to the country by increasing exploration and production
both domestically and internationally, utilizing all options including strategic alliances. And to
continuously realign ourselves to meet the expectations of our stakeholders through best management
practices, the use of latest technology, and innovation for sustainable growth, while being socially
responsible. (OGDCL, 2013)

1.7

Core Values

The core values of OGDCL are:


6

Merit
Integrity
Team work
Safety
Dedication
Innovation. (OGDCL,2013)

1.8

Product line:

Following are its products by which it is earning profits:

Crude Oil.

Gas.

LPG.

Sulphur.

Gasoline/High and Low Speed Diesel.

Kerosene Oil.

Solvent Oil.
1.9

Departments:

Many departments are working in correspondence with every other department I will discuss only
marketing department here as its my field of interest
1.9.1

Commercial:

Marketing department of OGDCL is not working as a typical marketing department as of other


common organizations, because most of the products of OGDCL dont need to be marketed. So its
working is totally different.
7

1.9.2

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 Ministry on Daily, Weekly, Monthly, Quarterly and Annually basis.

Verification of dispatch quantity and their billing for invoicing purpose raised through sales
section of Finance Department.

Look after the transportation and bills of Crude oil through National Logistic Cell (NLC).

Post invoicing disputes resolution.

Arrangement for disposal/sale of petroleum from new sources/fields.

1.9.3

Other Departments:

Production

Finance

Human Resource
8

Corporate Affairs & Joint Venture

Exploration

Mud Logging

Data Acquisition System

Process & Plants

Drilling & Reservoir Management

Medical Services

1.9.4

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.
1.9.5

Main Offices:

OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional Offices are
located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkhur,
and Quetta for operational activities. The overall organizational structure is as under
A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of
Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is
headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer.
Following are the main offices located throughout Pakistan:

OGDCL Head Office, Jinnah Avenue Islamabad.


Pirkoh Gas Company Private Limited, Islamabad.
OGDCL Regional Office, Shafi Chamber, Karachi
OGDCL Regional Office, Multan
OGDCL Liaison Office, Quetta
OGDCL Liaison Office, Sukkur
OGDCL West Wharf Office, Karachi
OGDCL Base Store, Islamabad
OGDCL Base Store, Khadiji, Karachi
OGDCL Base Store, Korangi
OGDCL Base Store, Kot Addu
Medical Centers, Islamabad, Rawalpindi & Karachi
OGDCL Workshops, Islamabad
Oil & Gas Training Institute, Islamabad.
CHAPTER 2
TASKS PERFORMED AT WORK

2.1 EXPERIENCE AND LEARNING:


Internship experience in a reputed organization has surely a huge advantage, it makes one more
professional and professionalism is the key to success.
Working with OGDCL, added a great value to my skills, knowledge and abilities and hence gave me a
chance to relate my studies in the practical working environments. My communication skills improved
10

a lot and I feel more confident then I was before joining ogdcl as an internee, and this internship
experience has helped me broaden my outlook and vision.
Working in an organization does not limit your experience to just one department that you are
assigned with, but actually the organization is running with a systematic collaboration of the
departments, and hence requires communication skills and interaction. Youre not by passing your
boss, because you understand that organizational hierarchy is defined and proper communication
channels are available which should be used. You wont show resistance to change because you had
studied that change is the only constant and hence necessary for organizational development and
employee survival.
I divided my time period of internship into different phases, working with different sections of
the department. Overall, my time spent was full of learning and experience.

2.2 Commercial Department:


Commercial department of OGDCL is not working as a typical marketing department as of other
common organizations, because most of the products of OGDCL dont need to be marketed. So its
working is totally different.
2.2.1 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.


11

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 Ministry on Daily, Weekly, Monthly, Quarterly and Annually basis.

Verification of dispatch quantity and their billing for invoicing purpose raised through sales
section of Finance Department.

Look after the transportation and bills of Crude oil through National Logistic Cell (NLC).

Post invoicing disputes resolution.

Arrangement for disposal/sale of petroleum from new sources/fields.


As the marketing department of OGDCL deals in LPG (Low Pressure Gas, for burning and
cylinder filling), Gas (Conventional Gas used for cooking purpose), Crude (crude the oil which is
the mixture of Petrol, Diesel, Naphtha, Kerosene, Bichomen) and Sulphur. These are the products
which are not in excess in Pakistan so to sale these they need no Marketing tactics. The marketing
department here at OGDCL is much more related to Sales Section, now following are the tasks
which I have performed in 6 weeks by rotating into different subsections.
2.3

Rotation Pattern of 6 weeks:

My concerned supervisor Mr.Majid firstly, took me to the GMs office for a brief introduction and then
I was sent to the office where I was supposed to work for the rest of my internship period. Our
Supervisor introduced me with the organization then I was given a schedule for the rotation in different
sections of the department which is as follows:

12

1st week

Orientation week

2nd week

LPG

3rd week

Oil & Gas

4th week

Crude

5th week

Sulphur

6th week

Billing

2.4 Week1, Orientation:


The first at commercial department was full of new experiences, getting to know different people,
different practices. In this week I with other internees was introduced to the company and company was
introduced to us. We spent each day in a different section and got a brief idea about how they work.
2.5

Week2, LPG (Liquefied Petroleum Gas) Section:

Major Fields of LPG production: Dhodak, Dakhni Rajian, Kunnar, Bobi, Chanda
Major customers of LPG: Muhammadi Gas Company, Petrosin, Synergy resources.
2.5.1

Daily Production Report:

At 8:30 every morning we relieved a daily production report via fax from the field in that production
report the total production was mentioned with the name of that filed. This report contains the heads
like name of field, production at ambient, the temp at that time, total sale, what we have forecast, and
what is the difference (variance). This was my responsibility to first present that report to the table of
manager marketing then to production department, then to sales section, and at last arrange that report
date wise in a production report folder and then to record those figures in a computer database.
2.5.2

Allocating and Responding:


13

At the time when a letter or query has received from other departments or from its customers my duty
was to read that letter carefully then to respond that letter under super vision of my boss who was
Mr.Zulfiqar. Then find the file of same head and arrange letter in that file for example if I received a
letter from Synergy Resources and the letter was about rebate on LPG price see the synergy status,
facts and figures if rebate is mentioned then allow them that this percent of rebate is allowed to this
company otherwise not. Then to allocate that letter in folder having title Rebate on LPG Synergy.

2.5.3

Verification of advance payments from sales section:

If a company wants LPG that company has to pay the asking amount in advance. My job was to copy
that demand draft or pay order then forward to sales section. The purpose of keeping the DD or pay
order in marketing section is that we took it under consideration while issuing the DO (delivery order).
Below I have discussed what a DO is. When sales section completes the process on that draft or pay
order then it comes back to marketing department again my duty was to allocate that DD in file
accordingly. For example if it is demand draft of Muhammadi Gas Company (MGC) of amount 2
million rupees this paper will go in file naming MGC Payments.
2.5.4

Prepare the payment rating:

After filing that demand drafts and pay orders in files I had to jot down all the payments with the name
of company and with the date in an Electronic-File, take a print of that paper and analyze which
customer is most effective an efficient in paying the dues and then present that report to manager
marketing and then he used to suggest that which company deserves this amount or percentage of
rebate. My responsibility then, was to issue a letter to that company via fax heading letter as Rebate on
LPG Price. And this process continued every 2nd week.
14

2.5.5

Responding with customers and refineries:

Here the correspondence with customers and refineries was to compare the total production and the
total sales. Every Friday, I was responsible to issue a fax to major fields that sent me the weekly reports
telling how much quantity of LPG has been produced and how much quantity of LPG we have sold to
different companies. At the same time I had to ask different customers to tell me how much LPG you
have received and from which filed you filled your browsers (special trucks made for LPG
transportation provided by NLC or other contract carriages). Then to compare both lists in order to stop
theft or corruption at fields, and ensure that every operation is going on smoothly and efficiently.
2.5.6

Answering queries under supervision of SMO:

If the third party is asking about some document I was responsible to find that document. Here the third
party means any other department with in the building it can be a production field or can be a customer.
2.5.7

Issuance of Delivery Order (DO):

The DO is a document which issued after verification of demand draft or pay order in favor of a
specific customer. Or it is a willingness proof between OGDCL and its customer. It contains the LPG in
Metric Tons, the amount which customer has paid, date of delivery, company name, and place of
delivery (field). For example Agha Gas Company has issued a pay order of 6 million rupees in favor of
OGDCL for purchase of 60 M Tons of LPG. Marketing department first verifies it from sales section
then marketing department issue a DO which mentioned that. Fill 60 M Tons of LPG in bowser number
this at Kunnar gas fields.
2.5.8

Compare vouchers and Bank Challan numbers:

It was mine optional duty; basically it was the work of PAs to check that the lists which have received
from different fields are error free or not. For example a number 2365897 Bobi (bank Challan number).
Now to check it on Bobi list (which issued from field) this number exists or not.
15

2.5.9

Making Sale/Purchase Agreements:

If a company wants to buy LPG, firstly OGDCL and that company have to agree upon a sale purchase
agreement which contains different clauses, terms and conditions and other duties and obligations, my
duty was to prepare that agreement under supervision of Mr. Majid Kaleem, Personal Communication,
then I was responsible to register that sale purchase agreement in legal section of OGDCL for further
processing.
2.5.10 Assisting to SMO while Meetings:
There were total two meetings during my stay of 6 weeks. My duty was to assist my boss while
meeting regarding interdepartmental issues as well as the rebating price matters to customers.
2.6

Week3, Oil & Gas Section:

Major Fields of Gas production: Sui, Uch, Hundi, Qadirpur, Mela


Major customers of Gas: Sui Northern, Sui Southern Gas Company (SSGCL, SNGCL)
2.6.1

Record readings:

As the gas pipelines are spread all over the Pakistan from SS and SNGCL but they buy it from OGDCL
not like LPG, Gas is a continuous process which explores then filter from impurities the it is injected in
SS and SNGPL pipe lines at the point of injection there is a meter which notes the reading that this
quantity of gas has been injected that reading is daily recorded here at head office Islamabad via fax.
My duty was to receive that fax then record the reading in hard and soft copy then forward to Chief
Marketing (CM) Mr. Moin-ud-din who was my boss in Gas Section.
2.6.2

Filing of that reports:

16

After entering those amounts I was responsible to allocate that fax in the concerned file for record
keeping purpose and for monthly billing purpose which was later on forwarded to sales section for
generation of invoices.

2.6.3

Allocation of readings in sales section:

After recording those amounts in files and folders then the most important work for which I was
responsible was to collect all that figures daily then weekly and present them to sales section for
monthly billing purpose and helping the concerned accountant for generating invoices against Gas
customers.
2.6.4

Represent Commercial department in sales section:

Every time when I went to sales section, I was representative of commercial department and it was my
duty to solve their queries under the supervision of my boss (CM). For problem solving I first asked to
my boss he guides that do this work in this manner.
2.7

Week4, Sulphur Section:

Major Fields of Sulphur production: Dakhni


Major Customers of Sulphur: NFC, Century Paper Mill, Arsam Paper, Prime Chemicals.
Sulphur is a chemical which recovers from crude at very last stage, so the quantity of sulphur is slightly
greater then other fields here at Dakhni. OGDCL sale Sulphur when it reaches at the quantity if 100 or
greater M.Tons. Sale process of sulphur is totally different the procedure is to give tender and ask buyer
to offer their bids marketing department sale Sulphur to the successful bidder (who have the highest

17

bid). My duties and responsibilities in this section was not so much because this process repeats after
20 to 25 days when it reaches at quantity of 100 M. Tons.
2.7.1

Proceed the file to sales section:

After successful auction the file then forward to sales section. File contained the price of sulphur the
buyer information the mode of payment and other necessary details my duty was to go with that file in
sales and tell them status of auction for further processing.
2.8

Week5, Crude Section:

Major Fields of Crude production: Rajian, Tndo Alam, Chanda, Kunnar.


Major Customers of Crude: Attock Oil Refinery, National Oil Refinery, Pakistan State
Oil and other oil companies.
2.8.1

Contract Checking:

Before issuing the DO/purchase order of crude oil my job was check the quantity mention in the
agreement. For example National Oil Refinery wants to purchase 200 M. Tons of crude oil I was there
to check that what is the maximum quantity of crude has been mentioned in the crude sale purchase
agreement between OGDCL and National Refinery.
2.8.2

Responding in Salted and Desalted Crude:

Some fields are producing salted crude and some are producing desalted crude the salted crude later on
have to be desalted by adding some chemicals and by heating at specific temperature so the use full
crude is desalted crude. OGDCL refineries have the capacity to desalt the crude before making the
purchase order my duty was to mention and keenly check that there should be quantity, name of filed

18

and type of crude mentioned if anything missing my duty was to confirm from the buyer that you have
missed this thing and kindly issue us a new purchase order with these things.
2.8.3

Report Receiving:

These are the international reports; these reports are here to set the price of crude oil. I was there to
receive the Oil gram reports, and Oman Blend reports. After receiving that my job was photo state that
report and forward the original one in sales section for setting the price of crude by higher management
(GM Finance).
2.8.4

File work:

There was large amount of files in crude section. After all the work I was responsible to arrange these
files at proper places and my job was to arrange them in a way that they are visible from every angle so
that every one there got ease while searching a file.
2.8.5

Status at fields:

The above mention places are major fields that are producing crude the persons at filed were
responsible to fax the daily production reports my job was to receive that report from fax and to send
that report on the table of manager marketing this work should be done before 8:30 morning then
allocate a copy of that report for record keeping purpose in crude section.
2.8.6

Checking vouchers:

Like in the LPG section these Challan and vouchers are made in different fields then they send in
OGDCL head office for cross check with the list present in Islamabad. Simultaneously I was there to
check the Challan numbers.
2.9

Week6, Sales Section:

Tasks Performed in Week6 (Billing Section):


19

2.9.1

Working on Oracle:

In this section I learnt working on oracle which they used for the billing purpose, the bills were sent
from different oil fields to this section. The bills recorded here were related to the transportation
charges incurred while sending bowzers from oil fields to the refineries. We were supposed to keep
their record on oracle and then the invoices were sent to GM to be signed.

CHAPTER 3
SWOT ANALYSIS
3.0 Brief Summary OF SWOT Analysis
Strengths:

Weakness:

Preference
Training facility
High market revenue
Highly Skilled Professionals
Assets
Vast Experience
Joint Ventures with Foreign

Companies Working in Pakistan


Major oil & Gas Company of Pakistan

Oil

Unawareness of Latest Technological Changes.

Lack of Career Planning Of Employees.

Unfair Utilization of Transport.

Unnecessary Purchases at Sites

Poor Method of Recruitment


Unjust Way of Awarding Training.
Promotion Policy.
Delay of work
Political Influence

20

Opportunities:

Threats:

Low cost of exploration

Government interference

Massive consumer market.

Increasing competition

rising demand

Changing trends

Expansion towards a multinational

Company
Marketing Opportunity for LPG

Latest Technology:
Unproductive wells:

&Sulphur

Moving towards the most important part of the internship report the SWOT analysis after spending
almost 2 months in the company I am now able to carefully analyze these true issues of an
organization.
3.1. STRENGTHS

Preference
Being Government owned organization; OGDCL is given preference when Government allows any
new concession.

Training facility
OGDCL has enough training facility structure in the form of OGTI.

Highly Skilled Professionals


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.

Assets
Current assets are four times high than current liabilities.

High market revenue


Vast Experience
21

Its their strength that they have a big experience than any other oil producing company because
Being Government owned organization; OGDCL is always given preference when Government
allows any new concession.

Joint Ventures
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.

Major oil & Gas Company of Pakistan


OGDCL is Pakistans major oil and gas company and it is biggest as well so its the strength of the
company that it has got no tough competitor and its enjoying monopoly.

3.2. Weakness:

Unawareness of Employees from 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.


OGDCL 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.


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

22

provides pick and drop facilities to stop and officers to some extent with few Buses but it is not
sufficiently only few percent get benefit from this.

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.

Unjust 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 can say that where there is ACR there an id a favoritisms.

Delay of work:
Work that can be done in a day is delayed to a week, due to lack of proper check and balance.

Political influence
23

Political influence affects the daily sales largely.


3.3. Opportunities:

Low cost of exploration


Low cost incur in the exploration of wells due to availability of cheap labor.

Massive consumer market.


Being a government entity OGDCL enjoys Massive consumer market.

rising demand
Ever rising demand of gas due to changing attitude of people.

Expansion towards a multinational Company:


The world is moving towards multinational firm, as OGDCL is expanding to be a

multinational

firms so its an opportunity for the company thats its moving with the pace of the world.

Marketing Opportunity for LPG & Sulphur:

As there is no tough competitor of OGDCL in case of LPG and Sulphur so they are enjoying kind
of monopoly. They can market their LPG and Sulphur in the market to generate more and more
revenues.
3.4. Threats:

Government interference
Government directs the Company while declaring its dividend and deciding its investment policies

Increasing competition
24

Competition is increasing as Government is attracting foreign investors in this Sector.

Changing trends
Global trends are rapidly changing which might affect its performance.

Latest Technology:

Global trends are rapidly changing which might affect its performance. New ad new technologies
are coming each day in the world which is very important for any company to adopt. OGDCLs
some employees are still on manual work , they should shift on systems now.

Unproductive wells:

Whenever drilling take place ,the company has to bear a huge amount of cost for that because
drilling is not an easy task to do. Company has to spend cost on machinery and labor. But the
company is not sure 100% every time that we would get oil from here or not or which amount we
would get from the particular well so the wells who are unproductive would become a threat for the
company.
CHAPTER 4
CONCLUSION
OGDCL is a big organization which is working all over the Pakistan and it is really a much difficult to
study the whole organization in 6 weeks that is 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

25

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. Like 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.
Internship at OGDCL was a great experience for me; I tried to implement all those theories which I
read at my institute.
CHAPTER 5
RECOMMENDATIONS
During my stay in OGDC I carefully observed the major weakness. For this weakness, I suggested the
following practicable remedies to improve the existing practices.
Computerization of record is of great essence for speedy disposal and accuracy of record.
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 Pakistans economy.
There are no specific criteria for training internees. Every department should be given special tasks to
students
There should be proper surveillance system to measure the employees performance and then decision
should be taken for promotion and bonuses.
They should pay full attention to the intensive professional training of staff in related fields. The
department concerned can organize professional training at OGDCL or with outside agencies etc and
26

latest literature newspapers and magazines etc of professional interest should be provided at sites free
of cost.
Al though the management in recent past has taken some initiatives in this area, a new department
career planning department is created and few postings were made in this department . But to
achieve excellent and positive results rapid operations are too much essential.
Management must take necessary actions to control costs i.e. administrative and selling expenses
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.

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

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

27

CHAPTER 6
REFERENCES

www.ogdcl.com.pk
www.rajianogdc.com
www.google.com.pk

Annual Report

28

29

30

ORGANOGRAM

31

32

33