internship report ogdcl

OGDCL

[email protected]

SCHEME OF THE REPORT

1-Chapter 1

Chapter 1 covers the background of the study, purpose, scope, limitations, merits,

methodology and scheme of the study.

2-Chapter 2

Chapter 2 covers the oil industry in Pakistan, history of OGDCL and the organizational

structure comprehensively. This chapter also presents functions, projects, product line, mission and

objectives as well.

3-Chapter 3

In chapter 3, the organizational structure and its structure is discussed comprehensively. More

attention is given to the different departments working in and under OGDCL and how these

departments operate.

4-Chapter 4

This chapter focuses on human resource department of OGDCL. It explains the

administration and personnel department and its practices in the organization in detail.

5-Chapter 5

This chapter is all about SWOT analysis in which strength, weaknesses, opportunities and

threats are discussed.

6-Chapter 6

In chapter 6, problems of OGDCL are identified and then on these bases some suggestions

are given keeping in view the current situation of the organization. The effort is directed for efficient

performance

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CHAPTER –1

INTRODUCTION

Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan

Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at

Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign

oil companies entered into concession agreements with the Government.

During the 1950s, these companies carried out extensive geological and geophysical surveys and

drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas

discoveries, exploration activity after having reached its peak in mid-1950s, declined in the late

fifties. Private Companies whose main objective was to earn profit were not interested in developing

the gas discoveries especially when infrastructure and demand for gas was non-existent. With

exploration activity at its lowest ebb several foreign exploration contracting companies terminated

their operation and either reduced or relinquished land holdings in 1961.

1.1 Establishment of OGDC:

To review 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 programmes.

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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. Two oil field

was discovered in 1968 which paved the way for further exploratory work in the North. During the

period 1970-75, the Company reformed the strategy for updating its equipment base and undertook a

very aggressive work programme. This resulted in discovery of a number of oil and gas fields in the

Eighties, thus giving the Company a measure of financial independence. These include the Thora,

Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur

and Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of

the Corporation.

1.3 PGCL:

A wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited (PGCL) was established in

1982 to undertake development of Pirkoh gas field located in Dera Bugti Agency in Balochistan with

Asian Development Bank assistance.

1.4 OIL AND GAS TRAINING INSTITUTE (OGTI)

The oil and gas development company limited (OGDCL) was set up in 1961 in the public

sector under the ministry of petroleum and natural resources.

1.4.1 Aims and Objectives Of OGTI

The aims and objectives of OGTI are to identify the training needs of the industry, offer

practical training programme to professional of the petroleum industry, provide training advice and

guidance to OGDC and to help established standards for training which will meet the performance

needs in the field and on the job. OGTI is dedicated to:

Establish courses and in-house training programmes which will meet the specific needs of

OGDC and the Pakistan petroleum industry.

Designing training material that recognizes the capabilities and specific needs of newly hired

employees and those who change their job assignment. Providing refresher and upgrade training for

industry personnel in cost effective manner.

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In-house basic training programmes are being designed and developed to provide a base level of

training which employees require to function in their jobs . OGDC recruits men from all across

Pakistan. The universities and technical schools do not provide the full range of subject matter

necessary for a graduate entering the petroleum industry. It is OGTI’S intention to ensure that the

individual has an opportunity to obtain this training within his first two years with OGDC . In

addition to basic training courses , OGTI will Organizes in-house technology update seminars .

1.5 BACKGROUND OF THE STUDY

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.

1.6 PURPOSE OF THE STUDY

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

in business administration at the COMSAT Institute of information technology. The purpose of the

study is to do practical work in field and apply the knowledge of classroom lectures to the real life

situations.

1.7 SCOPE OF THE STUDY

The scope of my work is focused on the working of Personnel and Human Resource Department.

Review Section of this report not only explains department’s working but also flow of work

activities among the sections. During the internship it, the observation was focused on internal

managerial matters of OGDCL, i.e. work environment, organization structure, decision-making

process, promotion criteria and all such matters. This research facilitates in SWOT Analysis.

1.8 LIMITATION OF THE STUDY

No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was

conducted in accordance with the objectives of the study; the study may not include broad

explanations of facts and figures due to the nature of the study. Second: limitation, which affects the

study, is the availability of required data was problem all the documents and files are kept strictly

under lock and key due to their confidential nature. Third: the problem of short time period also

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makes the analysis restricted as one cannot properly understand and thus analyze all the operations of

an organization just in eight weeks.

1.9 MERITS OF THE STUDY

The study done will benefit the finance students in particular and all type of Management students in

general, because the analysis section of this report comprehensively encompasses all respects of

OGDCL. Furthermore, OGDCL Head office Islamabad may also benefit from the recommendations

made at the end of the report.

1.10 METHODOLOGY OF STUDY

The data collected for analysis and review includes both primary and secondary data. The methods

used for collecting primary and secondary data are as follows:

1.10.1 Primary Data

Data collected for the first time is called primary data. The methods used to collect such data include:

Personal observations and

Interview with organization’s employees.

1.10.2 Secondary Data

The data collected earlier by someone else and which has gone through mathematical and statistical

techniques after its collection, is called secondary data. Methods used to collect secondary data

include:

OGDCL annual reports

OGDCL brochures

Internship reports on OGDCL

Journal and

Newspaper

Internet

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CHAPTER –2

PRESENT STATUS OF THE COMPANY

2.1 VISION STATEMENT

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

performance.

2.2 MISSION STATEMENT

Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing

our reserves through world class workforce, best management practices and technology and

maximizing returns to all stakeholders by capturing high value business opportunities within the

country and abroad, while being a responsible corporate citizen.

2.3 CORE VALUES

Merit

Integrity

Team Work

Safety

Dedication

Innovation

2.4 OBJECTIVES

a. Developing E & P Work Flow Models for Data Integration and connectivity.

b. Conduct geoscientific, algorithms and systems architecture research leading to the

development of robust, interactive and user-friendly geosciences applications software that

are tightly integrated into the workflow environment.

c. Detailed testing of the developed applications to achieve the highest performance.

d. Detailed testing of the developed applications to achieve the highest performance.

e. Training and systems support to the end - users.

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2.5 HISTORICAL BACKGROUND OF THE COMPANY

2.5.1 Establishment

The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in

1961, to undertake comprehensive exploratory programme and promote Pakistan’s oil and gas

prospects. In 1997, it was converted into a Public Limited Company and is now governed by the

Companies Ordinance 1984.

2.5.2 Development

With a balanced, efficient and competitive structure, OGDCL explores and exploits

indigenous resources for optimum production of oil and gas, besides seeking opportunities abroad.

OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration

concessions and holds non –operated working interest in another 7 exploration concessions. In

addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it

besides having working interest ownership in 28 non-operated Mining and Development &

Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified

and skilled expertise in the fields of geology and geophysics are frequently availed y the local and

foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic

surveys and data processing on contract for these companies on extremely competitive rates.

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.

2.5.3 Name & Address of Company

Oil and Gas Development Company Limited (OGDCL). House, Jinnah Avenue, Blue Area,

Islamabad, Pakistan.

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Telephone: 051-9209701

Fax No: 051-9209708

2.5.4 Name of Chief Executive

Mr. Najam Khan Hydar (Managing Director).

2.6 Product line

In the product line of OGDCL, the following are its products by which it is earning profits:

a. Crude Oil.

b. Gas.

c. LPG.

d. Sulphur.

e. Gasoline/High and Low Speed Diesel.

f. Kerosene Oil.

g. Naphtha.

h. Solvent Oil.

2.7 FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY

The main functions of the Corporation are:-

a. To plan, organize and implement programmes of exploration of development of oil and as

resources.

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

c. To carry out drilling and other prospecting operations to prove and estimate the reserves of

oil and gas.

d. To produce, refine and sale oil and gas

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

Corporation.

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2.8 PROJETS

2.8.1 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.

Phase-III of this project was commissioned on 20 march 2004, by installation of two

additional membrane skids and drilling of two wells. Due to this expansion the capacity of plan has

increased to process gas up to 500 MM.

2.8.2 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. 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.

2.8.3 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 will

2.8.4 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.

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Mega Projects

Projects Completion Estimated Cost Prod Capacity

Chanda

Development

Project

January, 2007 $ 9 Million

LPG: 25 MTD

Gas: 8.5 MMscfd

Dakhni

Expansion

Project

February, 2009 Rs.1803 Million

Oil.: 720 BPD

Gas: 12MMscfd

LPG: 12 MTD

Sulphur: 80 MTD

Qadirpur

Compression

Project

September, 2008

December, 2007$ 160 Million

a). To maintain

plateau of gas

production 650

MMscfd

b). Additional 100

MMscfd gas

Dhodak

Expansion

Project

A Bid to be invited

afresh $ 50 Million

Oil.: 4000 BPD

Gas: 64 MMscfd

LPG: 258 MTD

Uch-II

Development

Project

March, 2009

(As conveyed by

PPIB)

$ 250 Million

Gas: 200 MMscfd

TAY

Development

Project

A Bid to be invited

afresh $ 54.1 Million

Oil.: 2500 BPD

Gas: 28 MMscfd

LPG: 85MTD

SinjhoroA Bid to be invited

afresh $ 89 Million

Oil.: 2940 BPD

Gas: 25 MMscfd

LPG: 224 MTD

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Chapter 3

ORGANIZATIONAL STRUCTURE

3.1 MAIN OFFICES

OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional

Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in

Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational

structure / organogram is as under

A Board of Directors comprising twelve Directors, all of whom are nominated by the

Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The

autonomous Board is headed by a non-executive Chairman and there is a Managing

Director/Chief Executive Officer.

Following are the main offices located throughout Pakistan:

1. OGDCL Head Office, Jinnah Avenue Islamabad.

2. Pirkoh Gas Company Private Limited, Islamabad.

3. OGDCL Regional Office, Shafi Chamber, Karachi

4. OGDCL Regional Office, Multan

5. OGDCL Liaison Office, Quetta

6. OGDCL Liaison Office, Sukkur

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7. OGDCL West Wharf Office, Karachi

8. OGDCL Base Store, Islamabad

9. OGDCL Base Store, Khadiji, Karachi

10. OGDCL Base Store, Korangi

11. OGDCL Base Store, Kot Addu

12. OGDCL Base Store, Kot Sarang

13. Medical Centers, Islamabad, Rawalpindi & Karachi

14. OGDCL Workshops, Islamabad

15. Oil & Gas Training Institute, Islamabad.

3.2 MAIN DEPARTMENTS

Corporate Department

1. Administration Department

2. Human Resource Department

3. Personnel Department

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4. Security Department

5. Legal / Regulation Department

6. Communication Department

7. Procurement Department

8. Stores Department

9. Finance & Accounts Department

10. Audit Department

E&P Departments

1. Exploration Department

2. Exploitation Department

3. Production Department

4. Process Department

Technical Services Department

1. Drilling Department

2. Data Logging Department

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3. Mud Engineering Department

4. Well Services Department

5. Cementation Department

6. Geological Well Supervision Department

7. Engineering Department

8. Wire line Logging Department

9. Geological Department,Data Processing Department

3.3 Organizational Structure

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BOARD OF DIRECTORS

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Overview of Board of Directors

Jalaluddin Qureshi

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Arshad Nasar Chairman & CEO

o Previously held various positions at Caltex / Chevron since 1968 including

Country Head since 1998

o Over 37 years of experience in Pakistan and overseas

o Director on various Boards

o Chairman of the Oil Companies’ Advisory Committee, President of the American

Business Council

Al-Syed Abdul Qadir Jamaluddin Al-Gillani Director

o Elected for first term as MNA for the PML(Q) party

o Member of the Parliamentary Committee on Water and various National Assembly

Committees

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Alman Aslam Director

1. Currently manages his own investment banking business

2. Previously employed at Citigroup with positions including Head of Corporate Finance

CEEMEA

Jalaluddin Qureshi Director

1. Currently serving as joint Secretary, Ministry of Finance.

2. Associate Member and Fellow Member of Institute of Cost & Management Accounts of

Pakistan.

Azam Faruque Director

1. Currently CEO of Cherat Cement Co Ltd, a member company of the Ghulam Faruque

Group of companies

2. Previous positions: non-executive member of the Central Board of the State Bank,

member of the National Emergency Economic Committee, etc

Asad Umar Director

1. President and CEO of Engro Chemical Pakistan Ltd

2. On the Board of Directors for various companies including PSO and Pakistan Dairy

Development Co.

Khalid Rafi Director

1. Founding member of Si3, Chairman of Ferguson Associates

2. Former Senior Partner of A.F. Ferguson (PwC)

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Naeem Malik Director **

o Director General of Petroleum Concessions (DGPC), Ministry of Petroleum &

Natural Resources

o Director on Boards of SNGPL, SSGCL, Pirkoh Gas Company, Mari Gas Company

Limited, etc

Aslam Khaliq Director

1. Previously held several roles at Pakistan Tobacco (BAT Pakistan), former Chairman of

Pakistan Tobacco

2. On various Boards including Jahangir Siddiqui Capital Markets

Sikander Hayat Jamali Director

1. Chairman of the Balochistan Pakistan Red Crescent Society

2. On the Board of Directors of the National Bank of Pakistan, Pakistan Reinsurance

Company, etc

3. Ex-secretary of the Minister of Education

Zahid Majid Director

o Sui Southern Gas Company Limited

3.4 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

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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:

The Executive Director Exploration:

Supervises all the geophysical and geological and exploration activities and is assisted by

different Manager.

Executive Director Drilling:

when a potential oil or gas field has been identified through seismic surveys, it is then drilled

to assess the quality and quantity of the deposits. This process is achieved through drilling.

ED (Drilling) is responsible for all the drilling activities carried out by OGDCL in the

country.

Executive Director Admin:

Responsible for management of personnel. The administration department manages all the

activities from recruitment to training and development.

Executive Director Corporate Affairs:

Looked after the activities of planning of different development programme and monitor the

implementation of that program. It coordinates with all the department of OGDCL and

prepares a strategic plan for the activities of OGDCL. This department also liaison between

OGDCL different Ministries.

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3.5 NO OF EMPLOYEES

DOMICILE AND GROUP-WISE SUMMARY

OF OVERALL OFFICIALS

PAY DOMICILE TOTAL

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GROUP

IN THE

GROUP

MeritPUNJAB SINDH NWFP BALUC-

HISTAN

FATA AK

URBAN RURAL TOTAL

MANAGEMENT CADRE

M-1 0 0 0 0 0 1 0 0 0 1

EG IX 0 2 1 0 1 0 1 0 0 4

EG VIII 4 3 0 1 11 0 0 0 0 9

EXECUTIVE CADRE

EG VII 3 37 6 1 7 11 1 1 0 60

EG VI 12 102 18 13 31 31 10 4 5 195

EG V 19 116 36 49 85 28 11 10 5 274

EG IV 28 109 29 36 65 34 6 14 6 262

EG III 28 178 57 46 103 28 9 7 3 356

EG II 22 204 17 39 56 38 7 8 3 338

EG I 15 132 28 47 75 18 7 3 2 252

TRAINEES 12 69 13 20 33 15 11 8 6 154

TOTAL 143 952 205 252 457 205 63 55 30 1905

OVERALL STAFF

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PAY

GROUP

DOMICILE TOTAL

IN THE

GROUP

MeritPUNJAB SINDH NWFP BALUC-

HISTAN

FATA AK

URBAN RURAL TOTAL

NON EXECUTIVE CADRE

16 2 163 49 14 63 22 2 1 5 258

15 2 106 12 25 37 20 0 0 5 170

14 0 253 58 109 167 58 7 6 13 504

13 0 4 2 0 2 1 0 0 0 7

12 15 623 59 60 119 113 14 5 31 920

11 0 1 0 0 0 0 0 0 0 1

10 4 148 24 56 80 34 6 2 12 286

9 3 425 45 67 112 79 20 2 12 653

8 5 164 35 95 130 30 11 2 9 351

7 0 93 11 16 27 5 8 0 3 136

6 3 670 94 166 260 102 50 7 17 1109

5 0 99 19 9 28 23 5 0 13 168

4 0 264 28 79 107 30 63 0 17 481

3 0 198 39 31 70 25 29 2 26 350

2 0 324 70 220 290 41 128 1 14 798

1 0 1392 103 705 808 136 566 2 45 2949

TRAINEE 6 27 1 2 3 8 8 0 1 53

TOTAL 40 4954 649 1654 2303 727 917 30 223 9194

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3.6 BUSINESS VOLUME

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.

As of August 2006, OGDCL has drilled 187 exploratory wells and 239 development

wells since inception. The company has made 60 discoveries with an excellent success ratio

of 1:3. In a short span of only three years OGDCL was successful in making 10 discoveries,

02 Oil discoveries and 08 gas/condensate discoveries. Out of which 09 are in Sindh and 01 in

NWFP. The discovery of well at “CHANDA” kohat is the first discovery in NWFP and it

will open a new era for hydrocarbon exploration in NWFP.

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. Its share in the total Oil & Gas production has been 34%

and 21% respectively in the year 2005-06. Its business volume for the last five years has

shown a steady growth as indicated in the schedules given on next page:

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Business Volume for last Five Years

Product Measurement

Scale

2001-02 2002-03 2003-04 2004-

05

2005-

06

Crude Oil Thousands

Barrels

8,907 8,535 8,705 9,413 9,941

Gas MMcf 161,534 217,927 245,537 274,006 277,408

LPG M.Tons 93,004 77,402 93,136 90,304 101,322

Sulphur M.Tons 13,445 16,670 23,234 15,889 18,917

White

Petroleum

Products

Thousands

Barrels

1,038 998 989 859 890

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Oil Production

7500

8000

8500

9000

9500

10000

10500

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Qua

ntiti

es T

hous

ands

Bar

rels

Gas Production

0

50,000

100,000

150,000

200,000

250,000

300,000

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Qu

ant

itie

s Th

ou

sa nd

s Ba

rre

ls

OGDCL

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LPG Production

0

20,000

40,000

60,000

80,000

100,000

120,000

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Qua

n

titie

s

M.

Tons

Sulphur Production

0

5,000

10,000

15,000

20,000

25,000

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Qu

a

ntit

ie

s M

.

Tons

OGDCL

The Net sales & other revenues for the last five years are as under:

(Rupees in Million)

YEARS 2001-02 2002-03 2003-04 2004-05 2005-06

Net Sales

Revenue 26,209 39,892 41,845 47,058 52,641

The business volume and the sales revenues are the reflection of an operator’s

management judgment, execution and skills. OGDCL‘s financial performance has

been consistently improving since becoming a self-financing entity.

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0

10000

20000

30000

40000

50000

60000

Sales Revenues

(Rs in Millions)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Net Sales Revenues

OGDCL

CHAPTER – 4

ADMINISTRATION AND PERSONNEL (HR) DEPARTMENT

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DESIGNATION WISE BREAKUP

O FFICERS

Manager : 01 Dy. Manager/Chief : 01 Dy Chief Personnel Off : 03 Sr. Personnel Officer : 01 Personnel Officer : 04 Programmer (Computer) : 01 Data Processing Officer : 02

Sub-total : 13STAFF

Superintendent : 10 Stenographer/Steno typist : 03 Admin Assistant : 24 Jr. Admin Assistant : 20 LDC/Typist : 18 Record Sorter/Daftaries : 06 Naib Qasid / Helper : 16

Sub-total : 97OVERALL TO TAL : 110

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FUNCTIONS

OF PERSONNEL DEPTT.

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

2. Transfers –Postings.

3. Maintenance of seniority.

4. Handling of Personnel grievances.

5. Processing of Pension / EOBI and retirement cases.

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

7. Maintenance of Database-Computerization.

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

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4.1 PERSONNEL (HR) DEPARTMENT FUNCTIONS

4.1.1 Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department. So whenever

any new employees recruit OGDC , the concerned section maintained this personnel record from the

first day. Every employee have their own personal file in personnel department.

4.1.2 Correspondence

The personnel department also maintained the record of each employee for promotion, the minimum

time for promotion is five years. So at the end of every year they check the record of each employee,

his ACR (Annual Confidential Report) , experience qualification etc . Similarly if any employee

want to leave more than 48 days which are Official than concerned department will approval them

and send to t6he personnel section. In short any type of personal problem or work will maintain in

his personal files with personnel department. It’s called correspondence.

4.1.3 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.

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Future Targets/Goals with Time Frame

To efficiently facilitate the core functionalities as displayed and required by the core technical departments of oil and gas business.

1.Succession Plan.

01-09Superintendents7.

--Asstt . Personnel Officer

6.

01-04Personnel Officer5.

--01Sr.Personnel Officer4.

01-03Dy.Chief Personnel Officers

3.

0101C.P.O/Dy. Managers2.

-01Manager Personnel1.

Plans to Fill the

Gap up to 2010

Officers Retiring by 2005-

06

Held Position

Existing Manpower

Sr.

No.

Through a) Open advertisement on Merit.b) Promotions

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

2. Transfers –Postings.3. Maintenance of seniority.4. Redressed of Personnel grievances.5. Processing of Pension/EOBI & retirement cases.6. Implementation of CBA Management’s agreement’s after every two year’s

duration.7. Maintenance of Database-Computerization.8. Responses to Senate, National Assembly Questions/Other Government Agency.

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4.2 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.

4.3 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.

4.3.1 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.

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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.

4.4 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.

4.4.1 Vehicle for Entitled Officer

Manager they provide official vehicles for duty.

4.4.2 Vehicle for General Duty

For each department they provide special vehicle for emergency cases.

4.4.3 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.

4.4.4 Verifier Field Duties.

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

4.4.5 Vehicles for Foreigners

Similarly some vehicles are available for engineers and other staff.

4.5 ORGANIZATION OF LEGAL SERVICE DEPARTMENT

4.5.1 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

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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.

4.5.2 Medical Center Department Organogram

4.5.3 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.

4.5.4 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.

4.5.5 Diagnostic Facilities

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

4.5.6 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.

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4.5.7 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.

4.5.8 Vaccination

Vaccination facilities for children are available at both medical centers and every Monday is

specially fixed for this purpose.

4.5.9 Ambulance

Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty.

4.6 PENSION AND WELFARE SECTION

4.6.1 Welfare Section

It is just like a bridge between the union and management. It is also a proper channel between the

two bodies.

4.6.2 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.

4.6.3 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

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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.

4.7 RECRUITMENT SECTION

Recruitment section is one which is a real base to provide facilities of selection of new and old

employees.

4.7.1 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.

4.7.2 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:-

Merit 10%

Punjab 50%

Sindh rural 11.4%

Sindh urban 7.6%

N.W.f.P 11.5%

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Baluchistan 3.5%

Fata 04%

A.j.k 02%

After the advertisement they receive application from all Pakistan and take written examination. This

examination is held in those departments, where the candidate want to join and that department send

the result to recruitment section.

The selection procedure is recently shortly changed and is as under:-

Written Test 40%weitage

Experience 30%weitage

Academic Qualification 30%weitage

The time for a written test is usually one hour. Those candidates who qualified the test then they send

a call for interview if they are not low merit. It should be kept in mind that the interview has no value

and no marks. It is just only for to and to analyze the courage, boldness communication skill,

convincing power and also his dealing with other people.

Recruitment types

Regular

Contract Basis

Trainees – Special Trainees

Hiring through Contractor

Classified appointment

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SELECTION COMMITTEES FOR RECRUITMENT

FOR EG-VIII AND ABOVE

Managing Director and Members of Human Resource Committee.

FOR EG-VII AND EG-VI

Managing Director Chairman

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

Executive Director (Concerned) Member

Professional / Expert in the relevant field/discipline Member

Preferably having PhD or Master degree in the

Relevant subject.

Head of Department Concerned Member

FOR EG-V TO PS-15

Executive Director (Admin) Chairman

Executive Director (Concerned) Member


Head of Department Concerned Professional/Expert Member


4.8 DISCIPLINE SECTION

4.8.1 Functions

Discipline section deals with those matters which depend upon any misbehavior, mis-conduct or any

offence which occur in fields and offices by the employees. In OGDCL there is delegation of powers

.Every higher authority can take action against that evil. After taking action he send a report to

discipline section then discipline section help him in penalties with the approval of executive

directors and chairman under the rule of 1973.

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4.8.2 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.

4.8.3 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.

4.84 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.

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Provided that whether the penalties are imposed by order of the board of directors, there shall be no

appeal but the person concerned may apply for review of the order .

Note

The chairman’s approval is necessary at all the stages for issuing the show cause notices and enquiry

letter for awarding the final punishment.

4.9. CAREER PLANNING CELL:

Career Planning Cell attained independent status in 1992. Before, it was the Personnel

department dealing in;

4.9.1 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.

4.9.2 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.

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The scoring system is also having a major impact on effective performance appraisals. The accuracy

and reliability of any scoring system increases with full descriptions/definitions, and better still with

examples for each score band. This gives everyone the same objective scientific reference points, and

reduces subjectivity.

4.9.3 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%

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Existing Quantification of ACRs is carried out as explained in the following hypothetical example ***Formula **Formula A1 = Very Good 10 Marks A = Good 07 “ B = Average 05 “ C = Below Average 01 “ D = Poor 00 “

Very Good 12 Marks Good 09 “ Average 05 “ Below Average 00 “

***Work Year ***Integ-rity

Output Quality **Overall (Out of 60)

1998 Good Good Good 1998 Good Integrity 46 1999 Good Average Good 1999 Good Work 44 2000 Good Average Average 2000 Average 47 2001 V. Good V.Good Good 2001 V.Good

Overall Grading

2002 Good V.Good V.Good 2002 V.Good Score 38 37 (36.5) 36 47 Minimum *44

***Govt Memo Ref # 10(10)-85-C dated 11-08-1985 ** OGDC Policy # AAO103-15 dated 13-04-1994 * As per promotion criteria minimum of ACR components marks are added in the

score of qualification, experience, training, technical publication, etc. explained as;

ACRs 44 Requisite Qualification 05 Training course (4 months duration) 02 Technical Publication - Relevant experience 18 Marks Obtained 69%

Quantification of ACRs (Example)

(EG-II to EG-IX)

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Performance Evaluation (ACRs)

No. of ACRs

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

each year)

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

Maintenance of proper record, its secrecy & integrity very important

Convey Adverse entries to officers/staff employees

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

Activities (ACR)

Career Planning Cell issues comprehensive instructions from time to time to educate and

clear ambiguities

On education of ACR writing lectures are arranged by CPC in Head Office and Field

Locations

ACR forms have been serialized for officers to minimize duplication/ misuse

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Officers 1600

Staff Employees 4438

OGDCL

Difficulties (ACR)

ACRs are not filled/returned according to the notified schedule. Lot of time and efforts are

involved in correspondence

Clearly written out instructions notwithstanding, over-writing, use of fluid, mere marking

instead of initials are the most commonly observed problems

Lack of consistency in various parts of ACR is frequently noticed

4.10 BASIC COMPONENTS OF THE PROMOTION CRITERIA

Basic component of the promotion criteria with their relatives weight age would be as under;-

1. Qualification 15%

2. ACR’s 25%

3. Seniority 05%

4. Relevant experience including

experience outside OGDCL 15%

5. Assessment by the promotion

Committee 40%

-------------------------

Total 100%

-------------------------

These five basic components are analyzed before promotion criteria. When any employee qualifies

these components then he will be promoted with the approval of the chairman. For every employee it

is necessary to get minimum 60% marks in above components.

Besides this, the promotion also observes that where any position is vacant or not whether the

employee who is promoted, meet the requisition of qualification for that particular job. Where he is

performing job for last five years where his record in past is clear. So, after these observations they

take action for promotion. Deputy Chief Personnel officer is the incharge of the section.

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PROMOTIONS

OFFICERS

Promotion Criteria for officers was adopted in 1994. It’s main components are:

ACRs : 60%

Qualification : 15%

Technical Publications : 05%

Relevant Experience : 20%

Seniority cum fitness is the guiding principal in promotions

PROMOTIONS

STAFF EMPLOYEES

The promotion cases of Staff are evaluated as per Promotion Criteria of 1991

Its highlights are:

ACRs : 25%

Qualification : 15%

Seniority : 05%

Experience : 15%

Evaluations : 40%

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Promotions – Flow Chart

Recommendations of the Head of the Department

Incomplete/Pre-mature cases returned. Cases in order retained for processing

Approval of the Managing Director/Board of the Directors

Completed case submitted before Departmental Promotion Committee

Evaluation Sheet, Seniority, ACR Synopsis, Disciplinary Profile and other formalities completed

Promotion Notification

IMPORTANT FACTORS FOR PROMOTION

Experience for the Post

Number of Years in the Vacancy

Seniority

Performance: ACRs Synopsis/Quantification

Prescribed Qualification

Requisite Present Executive Group

Disciplinary Profile

Promotions Average – Year-wise

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Officers

Year Average

2003 01 Officer promoted daily

2004 03 Officers promoted in five days

2005 01 Officer promoted in three days

2006 03 Officers promoted in four days


Staff Employees

Year Average

2003 05 Employees promoted in two days

2004 02 Employees promoted daily

2005 01 Employee promoted daily

2006 01 Employee promoted in three days


Grand Total Officers & Staff Promoted

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Year Average

2003 07 Officers & Staff promoted in two days

2004 08 Officers & Staff promoted in three days

2005 04 Officers & Staff promoted in three days

2006 01 Officer & Staff promoted daily

Promotions – Year-Wise (2002-2006

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

YearsOfficers

(EG-VI & above)

Officers

(Upto EG-V)Staff

2002 58 247 737

2003 0 191 624

2004 48 44 300

2005 35 187 96

2006 0 22 365

Difficulties (Promotions)

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CPC invites recommendations to reach end February and end August each year. They are

seldom received according to schedule. Consequently, CPC has great difficulty in meeting

the promotion dates of Ist July and Ist December each year

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

correspondence

There is lack of effective communication among departments which causes un-necessary

wastage in time and efforts

Absence or lack of clarity of promotion channels

Career Planning begins from the Department of the individual. H.O.D has obligation to pay

special attention to the Career development of those in his Department. Recommendations

received in CPC very rarely have that aspect properly dealt

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)

Statement of Promotion – Officers

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Executive Group 2006

EG-VIII to EG-IX 0

EG-VII to EG-VIII 0

EG-VI to EG-VII 0

EG-V to EG-VI 0

EG-IV to EG-V 5

EG-III to EG-IV 6

EG-II to EG-III 11

EG-I to EG-II 0

Total 22

Statement of Promotion – Staff

Pay Scales 2006

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Staff to EG-II 18

Staff to EG-I 23

PS-16 0

PS-15 0

PS-14 27

PS-13 0

PS-12 250

PS-11 0

PS-10 0

PS-09 41

PS-08 0

PS-07 0

PS-06 6

PS-05 0

PS-04 0

PS-03 0

PS-02 0

Total 365

Statement of Promotion – Staff

Pay Scales 2003 2004 2005 2006 Total

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Staff to EG-II 4 0 35 1 40

Staff to EG-I 36 61 12 24 143

PS-16 16 10 43 19 88

PS-15 19 16 9 0 44

PS-14 44 55 3 28 130

PS-13 1 0 1 0 2

PS-12 26 83 25 265 399

PS-11 0 0 0 0 0

PS-10 19 5 3 7 34

PS-09 108 54 6 43 211

PS-08 21 62 4 2 89

PS-07 45 0 10 0 55

PS-06 220 66 52 18 356

PS-05 9 5 67 36 117

PS-04 17 191 1 0 209

PS-03 142 16 25 0 183

PS-02 0 0 4 0 4

Total 737 624 318 96 1775

CHAPTER –5

SWOT Analysis table for OGDCL

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STRENGTHS WEAKNESSES

Highly Skilled Professionals Political Influences

Vast Experience Limited Customer

Joint Ventures with Foreign

Oil Companies Working in

Pakistan

Limited Marketing

Opportunity

Major oil & Gas Company of

Pakistan

Political Appointments

High market cap and revenue Inadequate Financing for

off-shore drilling

OPPRTUNITIES THREATS

Expansion towards a

multinational Company

Latest Technology

Expansion towards

Exploration & drilling

Activities

unproductive wells

Marketing Opportunity for

LPG & Sulphur

World Market

Off-shore drilling Safety Issues / Tribal Issues

SWOT ANALYSIS

SWOT Analysis is conducted to identify the organizational strengths (S), organizational weaknesses

(W), environmental opportunities (O), and environmental threats (T). Each analysis helps to know

that how these elements influence organizational performance.

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An organizational strength is an internal capability that can be exploited to achieve goals, where as

an organizational weakness is an internal characteristics that may undermine performance. An

environmental opportunity is a situation that offers potential for helping the organization achieves its

goals. In contrast, an environmental threat is an external element that can develop into a non-crisis or

crisis problem, and potentially prevent organization from achieving its goals.

OGDCL‘s SWOT Analysis is given below;

5.1 STRENGTHS

OGDCL has highly professional manpower.

Established gas transmission and distribution network.

Being Government owned organization; OGDCL is given preference when Government allows

any new concession.

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

Computerized networking system is prevailing in the OGDCL.

Highly advanced and modern technology and equipment is possessed by OGDCL.

OGDCL has a number of packages in order to hire best profile of professionals and as well as to

motivate them in order to extract best from them.

Annual bonuses are announced to motivate employees.

Enough physical facilities are provided to its employees in the H.O in order to facilitate the

performance of its employees.

Current assets are four times high than current liabilities.

5.2 WEAKNESSES

Outdated procurement procedures and stores inventory management system of OGDCL

undermines OGDCL‘s performance.

There is no formulized criterion for reserve to production ratio, which can compare their

performance with the past.

No job description concept is prevailing in OGDCL.

There is injustice distribution of work among the employees.

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There is no check and balance to monitor.

No experts for ORACLE software in spite of its implementation in OGDCL.

No planning is being done before initiating any project e.g. Implementation of ORACLE

financial.

Environment is initiative killer, as there is no say of its employees.

Bureaucratic form of administrative setup.

Greater distances in hierarchy.

Delayed decisions due to prolonged procedures.

Adhoc approach to resolve major issues.

Political influence is being exercised for recruitment.

Members of Board of Directors are all outsiders, and selected by Government.

No concept of Diversification like other oil companies like BP.

Company is unaware of the importance of Marketing in the success of one company.

There is no huge HR Department, and Personnel Department only deals with recruitment and

termination cases and a little bit other.

Attitude of the employees towards work is not prudent because of job security factor. They have

fair idea that no one can expel them from this organization.

There is no check to measure performance of the employees.

5.3 OPPORTUNITIES

Substantial unproven gas and oil reserves exist in Pakistan.

Low cost incur in the exploration of wells.

Inflationary trend in the prices of oil in the international markets.

Massive consumer market.

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

Government incentives to Energy Sector for doing better projects.

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There is no tough competition faced by OGDCL from any company having the same large setup

with such huge finances.

5.4 THREATS

Being a Government owned organization; Government has maximum interference while deciding

its investment policies.

Government directs the Company while declaring its dividend.

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

Global trends are rapidly changing which might affect its performance.

Iraq and America situation can also have negative impact on Oil and Gas Industry.

Any decrease in future oil prices may prove to be a great threat for OGDCL.

Fear of unproductive well is a source of threat for OGDCL.

CHAPTER – 6

PROBLEMS AND SUGGESTIONS

During my stay in OGDC head office, I have observed some weakness in the organizational setup

functioning of various departments.

6.1 PROBLEMS

1. 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.

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2. 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.

3. 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

provides pick and drop facilities to stop and officers to some extent with few Buses / Cosdters but it

is not sufficiently only few percent get benefit from this.

4. Unnecessary Purchases at Sites

Due to less accountability and more delegate powers, location incharge use 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.

5. 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.

6. Injustice 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.

7. 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.

6.2 SUGGESTIONS

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.

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1. 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

2. OGDC have a plot at blue area Islamabad for office building, the construction work may be

started as soon as possible as OGDC have no shortage of funds, and the only mile stone in this

way is administrative approval.

3. 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.

4. Al though the management in recent past takes some initiative in this area, a new department

“career planning department “ is created and few posting were made in this department . But to

achieve excellent and positive results rapid operations are too much essential.

5. 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.

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

7. 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.

6.3 Conclusion

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The production of oil and gas is contributing a lot in reducing the country’s import bill. Power

generation by IPPs (Industrial Power Projects) in the country is a major source of energy.

OGDCL’s Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have

now started supplying Gas to power companies. This not only meeting the requirement of the IPPS

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

OGDCL’s contribution to the national exchequer in the form of royalty; excise duty, debt

servicing, and taxes are a huge support as compared to the other state owned organizations.

OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil

companies to boost up the efforts for increasing the Oil & gas demand of this country..

Oil and gas Training Institute (OGTI) is providing training facilities and meeting the

requirements of highly trained, motivated, and improved human resources. OGTI designs and

implements programme to develop and expand the technical and managerial skills of professional

to meet the fast changing challenges to the company. A total of about 150 courses in service

disciplines are conducted during every year.

The quality of an organization is dependent on the quality of its work force. OGDCL has engaged

top professionals in Geology, Drilling, Engineering, and production who are working day & nights

for the search of Oil & gas. Besides this, the corporate sector is equipped with professionals having

qualification of CAs, MBAs, M.Coms, which support the technical wings. The time bound

necessity is that all these professionals be given a targets and their performance indicators be clealrly

defined. A good leadership and the motivation will surely boost-up the efforts and the collective

efforts will result in a huge reservoir of Oil or Gas INSHALLAH.

BIBILLOGRAPHY

1. Human Resource management ( 7th edition) by Descenso.

2. Management theory and practice, (4th edition),by Ernest Dale

3. Principle of personnel management, (4th Edition), by Edwin B.Flippo

4. Behavior in organizations, By H.Joseph Reitr.

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

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

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

8. www.ogdcl.com.pk

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http://www.ogdcl.com.pk/

internship report ogdcl

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