OGDCL:Oil & Gas DevelopmentCompany Limited

OGDCL was created in 20 sep 1961.OGDCL was created in 20 sep 1961.•OGDCL is an E & P company which OGDCL is an E & P company which means exploration and production means exploration and production company.company.•OGDCL is a multinational company.OGDCL is a multinational company.•This company was converted into This company was converted into public limited company in 23 october public limited company in 23 october 1997. 1997.

Company was created on 20th september 1961 . This company was established just for the exploratory

programmes and to promote the Pakistan`s oil and gas fields because in 1952 Pakistan discovered new field of oil and gas in SUI. Because of this exploration interest of foreign five firms increased toward oil and gas industry of Pakistan.

But in late in fifties all these firms lost their interest in this industry because of infrastructure of Pakistan and because of lack of demand of supply.

So in order to save this industry Pakistani government signed an agreement of loan with USSR and received money of 27 million rubbles.

Pakistani government invest this money to create this company which named as OGDC and latter became a public company and named as oil and gas development company limited.

Vision statement: To be a leading regional Pakistani

E& P company of Pakistan. Mission statement: Mission of a company is to become

a competitive, Dynamic and Growing E & P company. Company rapidly enhancing their reserves through world class force, best management practices and technology and maximizing return to all stakeholders by capturing high value business.

OGDCL head office:

OGDCL head officelocated in Islamabad , Blue area , Jinnah Avenue plot No.3

Major Oil & Gas feilds

Tando alam

Dakhni

Toot Bobi

Dhodak Daru

Chandra

Lashari

Loti Missan Thora Nandpur

Pasakhi Sadqal Sono Kunnar

Chak Naurang Qadir pur Rajian Fimkanar

The main products produced by a company is: Crude oil Gas Liquified petrolium gas (LPG) Naphtha Solvent oil Kerosene oil High speed deisel oil Sulphur

Name of a company % OGDCL 47% BP-Pakistan 25% POL 16% PPL 6% OPI 3% BHP 3% Others 0%

Name of a company % OGDCL 23% ENI 22% OMV 15% MGCL 12% PPL 11% BPH 7% BP-Pakistan 6% Others 1%

First of all the project is assigned by top managers to non managerial employees then they take decisions to achieve their goals.

These goals may be on daily basis or may be for weekly basis or may be for yearly basis.

Employees work on these decision by keeping in their mind all the rules and regulations which are assigned by regulatory authority.

By following all these rules employees achieve their goals of exploration and production successfully.

Manager used strategic management to develop the organization’s strategies. This task involving all the basic management functions

Planning Organizing Leading Controlling staffing

“Panning is something the process of making plans for”.

Decision which made by a manager may be risk taker may be uncertain or may be having certainity.

But when talk about OGDCL their managers says that the chance of risk taking may be less because decision not only take by single person because millions of dollars used for drilling process so decision of millions of dollars .

Different task assigned to different managers there is a proper heirarchy of managers who take decision for the acheivements of goal.

If a decision is given by manager this decision go to top manager or general manager then this decision goes to executive director and then to MD after the approval of different managers this decision goes to employees and daily work force so they start working on it.

“Arranging and structuring work to accomplish goals”.

Organizational structure: “Organizational structure is a formal

arrangement of jobs with in an organization” In OGDCL there are more than 10,000 employees

but if we include daily workers or labors this strength goes upto 14,000 people.

So because of this big force this organization have mix management that is vertical or horizontal management.

There are three main departments of OGDCL:

Corporate department E & P department Technical department

Board of director Managing director Company secretory Chief staff manager

E.D E.D E.D E.D E.D

(admin) (finance accounting) (exploration) (drilling) (corporate

affairs)

GM General manager GM GM GM

Manager manager manager manager manager

Chief admin chief a/c officer chief manager chief engineer chief corporate

Dy.cheif admin a/c officers junior manager senior manager s.corporate

s.Admin officer a/c section exploration jr.engineer corporate staff

Admin officer drilling staff

In OGDCL no. of employees consists of management cadre, executive cadre and overall staff. Each cadre in divided into pay groups and again each pay groups are divided into all over Pakistan merit employees and on the quota of particular province.

Management cadre: Management cadre

M-I EG-IX EG-VIII Only 4 EG-VIII employees are open merit based and

rest of 10 employees are from four provinces, FATA and AK on the basis of quota.

Executive cadre

EG-VII EG-VI EG-V EG-IV EG-III EG-II EG-I And trainees are also include in this list . In it 143 employees are

on Pakistan merit based and rest of 1762 are on the basis of quota from four provinces, FATA and AK.

Overall employees: Overall staff consists of non-executive employees and

trainees. There are 40 employees on allover Pakistan open merit list

and rest of 9150 employees are on the basis of quota from four provinces, FATA and AK.

“Leading is a route or means of access to a particular place or in a particular direction “.

Leader’s motivation: If an employee work in an organization when he

compare this organization internationally or nationally than the employee work for the success of this organization same like that OGDCL compare their working ability of exploration and production internationally because internationally firms are very rich in exploration and production and want to improve their working ability all of this is possible because of a motivating leader. Leader made different rules and regulation for OGDCL.

Few years ago Oil and gas industry in Pakistan not very good because of less demand of supply and poor infrastructure but organization like OGDCL make it possible to take this industry to the peak level of success. This is all because of leader’s motivation.

“A management function aimed at achieving defined goals within an established timetable, and usually understood to have three components: (1) setting standards, (2) measuring actual performance, and (3) taking corrective action”.

There are almost 14000 employees so there is a way to manage every one. For example: OGDC’s timing start at 8:30 so every one have to reach before the time and every one have to pass through the process of attendance.

When somebody wants to enter in OGDC there is a proper system to give permission to enter someone first of all reception give an entrance pass then you pass through security system this security system record the time in or out of that person. This is all include in controlling.

If someone doing an unethical thing in OGDC he should be punish for his act. The manager have to control this type of employee.

Staffing is the process of hiring, positioning and overseeing employees in an organization.

Their staff was well trained. They hire many new employees every

year. They hire new staff on the basis of

quota from four provinces, FATA and AK.

SWOT is a tool for analyzing the environment of the company SWOT helps the manager to focus on different issues. SWOT stands for

strength, weaknesses, opportunities, threats.

Strength and weaknesses are internal factors while opportunities and threats are external factors.

The biggest strength of OGDCL is that this organization is support by government.

OGDCL is a largest oil and gas company in Pakistan. There are large number of fields in Pakistan one of

the most famous is Sui which was found in 1952. They are financially strong due to their long term

experience of 45 years and also financially support by government.

Company’s number of skills and exploration and production is much faster then others.

Company have to improve their production. Production level is low to fulfill demands . Because of less production of oil and gas load shedding is very common all over the Pakistan.

They have same products like their competitor have.

OGDCL have slow promotion process this slow promotion reduce the performances of employees.

Every organization have opportunities. Some of these opportunities of OGDCL are:

OGDCL have better competitive position. Large shop for training such as OGTI which stands

for oil and gas training institute. OGDCL support by the ministry P & NR

( petroleum and natural resources). Expansion of production and drilling activities. Prices less from 100 to 40 to 23 dollars a barrel.

Being one of the largest companies, OGDCL faced many competitors.

The major competition faced by the company is PSO(Pakistan state oil) as well as foreign companies such as MOL(Magyar olaj, meaning Hungrian oil com), etc.

Latest technologies are threat for organization.

Human resource department of OGDCL is one of the main departments of the OGDCL.

Human Resource Deportment at OGDCL is being reorganized to manage people and develop their skills for meeting Company’s requirements

Being the largest exploration and production Company, OGDCL seems to be an attractive company for talented and motivated people in which high levels of  personal and company’s performance are recognized and rewarded.

Human Resource Departmentseems to ensure development of world class workforce, as per OGDCL’s mission statement, target based working and performance based reward system has been evolved.

Everything have quality so to improve quality OGDCL have to see that where is company’s work force in which category this work force falls.

There are different level of qualities so we can say that quality of everything increase day by day.

For example: few year ago people do job after bachelors but now a days they are jobless even after MBA , M.phil .

OGTI: Oil and gas training institute.

OGDCL has well build training institution to conduct the training of its employees known as OGTI. The training institute consists of OGDCL local instructors, outside local instructor (in case of absence of OGDCL instructor) and foreign instructor.

These instructors provide the services of training to employees.

They train the employees appointed by HR department and follow the relevant policies which ultimately leads to organizational development.

Present employees are also sent to foreign countries for trainings.

For CSR OGDCL have a budget of almost 1% in 2014 -2015 invest for CSR activities this amount comes to 907.77 million.

OGDCL has always given top priority to CSR, they want to create good environment between customer and OGDCL.

In the drilling areas when people disturb during training OGDCL provide them funds due to this disturbance.

e.g. if some homes are covered in drilling area they provide these disturbed people, funds for their health, education and also provide them shelter for living.

OGDCL is the best company. So it should maintain its position.

It should Produce more and more products to fulfill the problems of the country like Load shedding.

It has many opportunities to make its self better than Competitors.

It should try to minimize its weaknesses.

The OGDCL company is very successful company. It’s all staff and employees are very hardworking. They all are doing their work in very well manner

to achieve their goals. There are rules and regulations of the company

which implement on each and every employee. The employees and Managers of this company are

very cooperative with the visitors. Their security and guards etc. guides the visitors in

very good manner so that these visitors can easily visit their organization and fulfill their purpose.

They also have competitors but they are capable to sustain their value and successfulness.

Pakistan Oil & Gas to Spend $1 Billion on Exploration..mp4