muntazir ogdcl internship report
DESCRIPTION
very helpful for intrnee studentsTRANSCRIPT
Syed Muntazer Abbas
[1]Comsats Islamabad
INTERNSHIP REPORT
OIL amp GAS DEVELOPMENT COMPANY LIMITED
Submitted by
Syed Muntazer AbbasSpo5_BBA_057
Date of SubmissionJanuary 05 2009
Syed Muntazer Abbas
PRODUCTION OF GAS (MMCFD)
12
11
23
7
6
2
1
1
15
22
OGDCLPPLOMVMGCL
EniBHPBP-PakistanOPI
POLOthers
PRODUCTION OF CRUDE OIL
(Barrels per Day)
47
25
16
6
3
3
0
OGDCLBP-PakistanPOLPPL
OPIBHPEniMOL
OMVPetronas
Internship Report
OIL amp GAS DEVELOPMENT COMPANY LIMITED
Submitted by
Syed Muntazer Abbas
Spo5_BBA_057
Date of Submission
January 05 2009
Muntazer Abbas Naqvi
1 Introduction
Establishment
The Oil amp Gas Development Company Limited (OGDCL) was created under an Ordinance in 1961 to undertake comprehensive exploratory programme and promote Pakistanrsquos oil and gas prospects In 1997 it was converted into a Public Limited Company and is now governed by the Companies Ordinance 1984
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 ndashoperated working interest in another 7 exploration concessions In addition OGDCL has 35 Mining and Development amp Production Leases which are operated by it besides having working interest ownership in 28 non-operated Mining and Development amp Production Leases OGDCL has an extensive database Services of the Companyrsquos 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 ie 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 13 OGDCLrsquos updated estimates for remaining recoverable oil and gas reserves as on 1st July 2003 stood at 9228 billion standard cubic feet (BSCF) of gas and 16425 million barrels of oil including companyrsquos share in non ndash operated Joint Ventures
During the last 42 years OGDCL has grown into a technically and commercially viable organization
Name amp Address of Company
Oil and Gas Development Company Limited (OGDCL) House Jinnah Avenue Blue Area Islamabad Pakistan
Telephone 051-9209701
Fax No051-9209708
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp Gas Company of Pakistan having Head Office in Islamabad The company is engaged in Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Till-date OGDCL is owned by the Government of Pakistan and is working under the control of Ministry of Petroleum amp Natural Resources The Government of Pakistan off loaded a portion of its equity equivalent to 5 of the paid-up capital of the company through Initial Public Offering (IPO) in October 2006 The Company is now listed on all the three Stock Exchanges of the country and has the earning per share of Rs 521
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil and Gas Company in Pakistan The company has achieved all time high net sales revenue of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its Finance amp Accounts Department It also discusses financial growth in profitability of the company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the use of latest technology in exploration drilling and production operations of the company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans 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
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 OGDCs concerted efforts were very successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which paved the way for further exploratory work in the North During the period 1970-75 the Company reformed the strategy for updating its equipment base and undertook a very aggressive work 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 amp Dhodak oilcondensate fields and Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003 Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos capital markets
GDR
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
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
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
middot Merit
middot Integrity
middot Team Work
middot Safety
middot Dedication
middot Innovation
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Managing Director
Company SecretaryChief Staff Officer
ED
(Admin)
GM
(Admin)
Manager
(Admin)
General
Managers
ED
(Finance
Accounts)
ED
(Exploration)
ED
(Drilling)
ED
(Corporate
Affair)
Chief
(Admin)
Dy Chief
(Admin)
Sr Admin
Officers
Admn
Officers
Admn
Section
Managers
Chief
Account
Officers
Senior
Account
Officers
Account
Officers
Finance
Account
Sections
General
Managers
Chief
Engineers
Senior
Engineers
Junior
Engineers
Managers
Principle
Engineers
Exploration
Staff
Sections
General
Managers
Managers
Chief
Engineers
Dy Chiefs
(Corporate)
Senior
Engineers
Junior
Engineers
Drilling
Staff
Sections
General
Managers
Managers
Chiefs
(Corporate)
Senior
Corporate
Officers
Junior
Corporate
Officers
Corporate
Staff
Sections
Principle
Engineers
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 DirectorChief Executive Officer
Following are the main offices located throughout Pakistan
1OGDCL Head Office Jinnah Avenue Islamabad
2Pirkoh Gas Company Private Limited Islamabad
3OGDCL Regional Office Shafi Chamber Karachi
4OGDCL Regional Office Multan
5OGDCL Liaison Office Quetta
6OGDCL Liaison Office Sukkur
7OGDCL West Wharf Office Karachi
8OGDCL Base Store Islamabad
9OGDCL Base Store Khadiji Karachi
10OGDCL Base Store Korangi
11OGDCL Base Store Kot Addu
12OGDCL Base Store Kot Sarang
13Medical Centers Islamabad Rawalpindi amp Karachi
14OGDCL Workshops Islamabad
15Oil amp Gas Training Institute Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
AdministrationMedical
Human Resource DepartmentCorporate Affairs
PersonnelAviation
SecuritySystem Support
LegalOGTI
Communication G amp R Lab
Supply Chain ManagementSecretariat
Material ManagementInternal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling8 Stimulation
2 EngineeringWorkshops9Geological Geophysical
3 Mud Engineering 10Seismic Data Processing
4 Well Services Department11Logistic
5 Cementation 12Data Logging
6 Geological Well Supervision
7 Wire line Logging
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
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a non-executive Chairman and a full time Managing director The general direction policies and affairs of the Company vests in a Board of Directors which consists of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible for operational and other activities The OGDCL has been re-organized during the last few years it now operates much purely as Oil Company does Emphasis is on Professional Competence and getting things done OGDCL can broadly be divided in to following three companies
middot Corporate
middot Exploration amp Production (Eamp P )
middot 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
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
OVERALL STAFF
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure OGDCL has acquired the services of highly qualified professionals like CAs CMAs MBAs and M com for its Finance and Accounts Department The Executive Director (Finance) heads the Finance amp Accounts Department GM (Finance) GM (Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance) for effective and efficient controlling of OGDCL financial activities Different sections of Finance department are headed by Sectional In-charges who reports to Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive Director
Finance
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of Finance amp Accounts Department The overall structure of the Finance Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific jobassignments of their section only They assisted by Deputy Chiefs Senior Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
middot Imports section
middot Bank Cash section
middot Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
middot Budget and AFE Section
middot Final Accounts
middot MR section
middot EDP Management and Training
middot Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
middot Local Stores
middot Foreign Stores
middot Material in Transit
middot Fixed Assets
middot Petrol oil amp lubricants
middot Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are broadly divided into the following two divisions
middot Operated Joint Venture
middot Non Operated Joint Venture
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are supervised by Manager (Accounts)
middot Payroll
middot Accounts Payable
middot Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which there are 74 Officers and 180 staff members
Amjad Javed
Manager (Personnel)
Khursheed A Hashmi
DCPO (Coord)
PS(G)Khalid Pervez
DM
(BDPenampEOBI)Muhammad Khalid
PO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97
Data Processing Officer
Sections of Personnel Department
ACOMPUTEREOBI PENSIONGBCDEF
Muhammad Iqbal Khan
Programmer
Computer SecJiger Muhammad
DCPO(C)
Mukhtar Ahmad
DCPO(A)
Rana Shaukat
SPO(B)
Sabir Hussain
PO(F)
Sheikh Fareed
PO(E)
Sheraz Muhammad
DPO
Abid Aslam
DPO
Muhammad Younas
PO
(EOBIPen)
FUNCTIONSOF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONs
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department So whenever any new employees recruit OGDC the concerned section maintained this personnel record from the first day Every employee has their own personal file in personnel department
Correspondence
The personnel department also 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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden whenever they want any type of data immediately call to computer They have their own computer section
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 OGDCLrsquos 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
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it performs the function for OGDCLrsquos staff member to hire houses for their accommodation It has many functions they are-
middot Hiring of houses for the employees of OGDCL
middot Hiring of building for offices and lodges at Islamabad
middot Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and housing section All type of documentscases are tabled to the PAO for verification and signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff member of OGDCL Islamabad Various types of vehicle they provide to the officers staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which perform the duty of to pick early in the morning and drop at the end of office time the staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions are always maintained on climax position in OGDCL To deal with court and legal cases whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair then legal service department stands from management side of OGDCL They have their own advocates but mostly they consult with outside advocates on various fees On the other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any employee appeal against any officer under the section rule 25 so if the case is lower level then legal service department delete that claim by negotiation with employee After that if the employee is frustrated then he can go to the court for appeal It is not essential for employee as well as for legal service department that they hire advocate for case Employee can witness in court personally but legal service department are always advocates from the management side It is the information from the department that mostly cases are go in favors of OGDCL
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
middot To manage the medical centers of the corporation
middot To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
middot To check the OPD patients
middot To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is a permanent discount so after check up the patient may receive the drugs from that particular drug store For verification the owner of the drug store send bills to the DCMO at the each month DCMO checks and make verification and signed on those bills After that they refer the bills to the account department for payment Vaccination programmed is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every Monday is specially fixed for this purpose
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
middot To deal with union matters
middot To provide facilities to the staff members of their families
middot Grant of house building advance
middot Conveyance advance to give amount to the staff members after five years in OGDCL for conveyance
middot Distress grant at the time when any staff member die the amount will be given to his wife
middot Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff member qualified for pension and after 25 Years he can demand for pension The super innovation of the pension is maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of the growth monthly pension supposes that on the age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
middot To recruit new candidates as a trainee
middot To recruit the experimental employees for higher jobs
middot To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
SELECTION COMMITTEES FOR RECRUITMENT
FOR EG-VIII AND ABOVE
Managing Director and Members of Human Resource Committee
FOR EG-VII AND EG-VI
Managing Director Chairman
Executive Director (Admin) GM (Admin) Member
Executive Director (Concerned) Member Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-conduct or any offence which occur in fields and offices by the employees In OGDCL there is delegation of powers Every higher authority can take action against that evil After taking action he send a report to discipline section then discipline section help him in penalties with the approval of executive directors and chairman under the rule of 1973
ODGCL Servants (Efficiency and Discipline) Rules-1973
Government servant (efficiency and discipline) rules 1960 which were adopted in the draft service rules vide part-II statutory notification (SRO) govt of Pakistan cabinet secretariat(established division) notification NoSRO-1213(1)73 published in the gazette of Pakistan enter ordinary dated 18-08-1973These 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
Penalties
The following are the minor and major penalties namely
Minor Penalties
middot Censure
middot 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
middot Stoppage for a specific period at an efficiency bar in the time scale other wise then for unfitness to cross such bars
middot 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
middot Reduction to a lower post or time scale or to a lower stage in a time scale
middot Compulsory retirement
middot Removal from service and
middot Dismissal from service
middot Removal from the service does not but the dismissal from the service does disqualify for future in this rule removal or dismissal from service does not include the discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the Personnel department dealing in
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 MNAA 0103-15 dated 12 November 1984 where after a few clarifications were also issued from time to time However there have been some problems in application of the promotion criteria in some cases Therefore to remove these difficulties the promotion criteria has been reviewed and revised under the guidance of the executive directors
The revised promotion criteria are notified herewith which shall be effective from first July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good reasons why they canrsquot 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 relationship 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 managementrsquos time to do what isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals The accuracy and reliability of any scoring system increases with full descriptionsdefinitions and better still with examples for each score band This gives everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
middot 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
middot 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
middot Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family
middot 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
Existing
Quantification of ACRs is carried out as explained in the following
hypothetical example
Formula Formula
A1 = Very Good 10 Marks
A = Good 07 ldquo
B = Average 05 ldquo
C = Below Average 01 ldquo
D = Poor 00 ldquo
Very Good 12 Marks
Good 09 ldquo
Average 05 ldquo
Below Average 00 ldquo
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 VGood Good 2001 VGood
Overall
Grading
2002 Good VGood VGood 2002 VGood
Score
38 37 (365) 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)
Performance Evaluation (ACRs) No of ACRs
middot Issuance of ACR forms to all departments according to time schedule (15th December of each year)
middot Receipt of ACR forms (Ist March of each year)
middot Maintenance of proper record its secrecy amp integrity very important
middot Convey Adverse entries to officersstaff employees
middot Deal with the representationsgrievances related to Adverse entries in ACRs
Activities (ACR)
middot Career Planning Cell issues comprehensive instructions from time to time to educate and clear ambiguities
middot On education of ACR writing lectures are arranged by CPC in Head Office and Field Locations
middot ACR forms have been serialized for officers to minimize duplication misuse
Difficulties (ACR)
middot ACRs are not filledreturned according to the notified schedule Lot of time and efforts are involved in correspondence
middot Clearly written out instructions notwithstanding over-writing use of fluid mere marking instead of initials are the most commonly observed problems
middot Lack of consistency in various parts of ACR is frequently noticed
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 ACRrsquos 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
PROMOTIONS
OFFICERS Promotion Criteria for officers was adopted in 1994 Itrsquos main components are ACRs60
Qualification15Technical Publications05Relevant Experience20Seniority cum fitness is the guiding principal in promotions
PROMOTIONS
STAFF EMPLOYEES The promotion cases of Staff are evaluated as per Promotion Criteria of 1991Its highlights areACRs25Qualification15Seniority05Experience15Evaluations40
Promotions ndashFlow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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
middot Experience for the Post
middot Number of Years in the Vacancy
middot Seniority
middot Performance ACRs SynopsisQuantification
middot Prescribed Qualification
middot Requisite Present Executive Group
middot Disciplinary Profile
Promotions Average ndash Year-wise
Officers
Promotions Average ndash Year-wise
Staff Employees
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as follows-
Difficulties (Promotions)
middot 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
middot Cases are received with inadequate information causing wastage of time and un-necessary correspondence
middot There is lack of effective communication among departments which causes un-necessary wastage in time and efforts
middot Absence or lack of clarity of promotion channels
middot Career Planning begins from the Department of the individual HOD 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
Statement of Promotion ndash Officers
Statement of Promotion ndash Staff
Statement of Promotion ndash Staff
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as remaining recoverable reserves These constitute 46 of total oil and 30 of total gas reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47 of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance permit covering an area of 599686 sq kms which constitute 30 of total exploration area granted to various EampP companies in Pakistan The Company also holds non-operated working interest in another three exploration concessions which are operated by other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has made 60 oil and gas discoveries
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
PRODUCTION OF CRUDE OIL
2007-08
PRODUCTION OF NATURAL GAS
2007-08
LPG(MTons)
Sulphur (MTons)
White pertoulem products (Barrels)
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp Gas Company of Pakistan having Head Office in Islamabad I have done internship in this organization for 6 weeks 30062008 to 20082008 The company is engaged in Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil and Gas Company in Pakistan The company has achieved all time high net sales revenue of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its Finance amp Accounts Department It also discusses financial growth in profitability of the company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the use of latest technology in exploration drilling and production operations of the company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to gain some knowledge about this sector Moreover I studied about the functioning of these particular sections so I got some idea about the corporate level I worked with the intentions to point out the strengths and weaknesses of the oil companies in Pakistan in accordance with foreign companies
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a much difficult to study this organization in 06 weeks that is very short period of time But I tried my best to learn as much as I can With shortage of time there was so much security constraints that it was very difficult for an internee to move from the allocated department for working in other departments This report can be help full for other MBA (finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of Pakistan having almost 16 departments and at least 06 weeks training can cover the main functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the procedure to be followed during the course of internship report research methodology provides a guidelines for collecting information The study is both on primary data and secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment are called primary data
middot Personal observation
middot interviews
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that is data have been collected classified tabulated or presented in some form for a certain purpose are called secondary data
middot Departments manuals
middot Annual reports
middot Text books
middot Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record of each employee for promotion the minimum time for promotion is five years So at the end of every year we 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 the personnel section In short any type of personal problem or work will maintain in his personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method and the facilities provided by company and how a employee is able for pension After 10 years in OGDCL the staff member qualified for pension and after 25 Years he can demand for pension The super innovation of the pension is maximum 60 Years After 60 years he cannot 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
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the preparation of Transactions record and final report of the company and make a payment for the suppliers contractors and other stakeholders This section also tell how to make a slip and checks for payments and how to save in company record
In second week I week how to financing for a new project in which first we make a budget than send for suggestions and recommendation after verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned about the dealing of company on different project and how OGDCL make a joint venture with other company In joint venture I made a caution and budget for a project and provide and information about the investment on project and then this file send to other company and its give his investment and duration after the verification and work out it goes to MD and after passing it go for cash and then it consider in Budget section and make a record of this file and when it clear by OGDCL it again send to the MD of other company who is making joint venture on project or products
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first stage of Strategic planning and helps managers to focus on key issues SWOT stands for strengths weaknesses opportunities and threats Strengths and weaknesses are internal factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
middot Largest Oil and gas company in the Pakistan
middot Monopoly of the company and having confidence due to govt support
middot Dynamic amp Strong Financial Position due to the 45 years experience
middot A new Exploration and innovative of Wells
middot Best location of business which is choosing after long process
middot Quality processes and procedures
middot Large number of field of oil and gas
middot Experienced and Technical Staff involving no of expert Geologist
middot Confidence of the Customers
middot All other aspect of the company that adds value to the product or service
WEAKNESSESS
middot Lack of marketing expertise
middot Undifferentiated products or services (ie in relation to the competitors)
middot Lack of coordination of operations
middot Government Influence
middot Untrained Staff
middot Slow promotion process which reduces the performance
middot Lack of Check and balance
middot Weak quality goods or services (can be only one of more than one)
Opportunities and threats are external factors For example
OPPORTUNITIES
middot A developing market such as the Internet
middot Mergers joint ventures or strategic alliances
middot Moving into new market segments that offer improved profits
middot A new international market
middot A market vacated by an ineffective competitor
middot Large workshops for training and development
middot Support of the Ministry of PampNR (Petroleum and Natural Resources)
middot Better Competitive Position
THREATS
middot A new competitor in the home market
middot Price wars with competitors
middot Fear of Privatization
middot Tuff Competition
middot Globalization is the factor which brings the strong companies in Pakistan
middot A competitor has a new innovative product or service
middot Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in nine non-operated blocks In addition company has got 34 mining and D amp PL leases Targets have been based on risks and opportunities Physical targets for the year 200-02 was envisage drilling of fourteen wells (nine exploratory and five development) 2950 Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313 metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells with the clear objective of a net increase in oil and gas reserves It is expected that exploratory program will result in increase in OGDCL reservoir in oil and Gas and also to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and competitors in the oil and gas sector OGDCL has drilled different concessions independently as well as it has ventures with other companyrsquos successfully OGDCL Seismic Crews are busy in GampG survey on different concession like Kharar Basal Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new drillable prospects The Company has also started three new development projects ndash Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast track completion of these projects and on progressive project management concepts
24 Recommendationsrsquo
middot Quarterly comparison of actual verses budgeted expenditure is carried out to ascertain weakness and cost over-runs
middot Timely payment to the vendor supplier and contractors is effective tool for image building of OGDCL To achieve this internal procedure should be well defined which will reduce time in these payments
middot To save time of the employees chasing their payments employee related payments should be excluded from the ambit of pre-audit
middot All accountants should be given training on different accounting modules and chart of accounts So that monopoly and dependence on few is eliminated
middot Rotation of duties should be made at regular interval to improve the overall work output and to keep the interest of the employee intact
middot Responsibility of clearingcorrecting the entries should be fixed with the section generating the activities
middot A professional Accountant should be assigned the job to the review of AFEs with the collaboration of technical professionals for proper and effective control to avoid cost over runs
middot For effective cost control standardization of different stationery items and consumable is approved for purchasing in bulk from the manufacturer directly
middot A good internal Control is a key to success for an organization but in OGDCL there is a lack of internal control which should be improved and implemented effectively
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are working day amp nights for the search of Oil amp gas Besides this the corporate sector is equipped with professionals having qualification of CAs MBAs MComs which support the technical wings The time bound necessity is that all these professionals be given a targets and their performance indicators be clearly 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
References
1 Ministry of Petroleum and Natural Resourcersquos site
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with the knowledge gave us the courage and allowed us to accomplish this task We are especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen interest constructive criticism and friendly discussion enabled us to complete this report efficiently Without their support and proper guidance it would be almost impossible to accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to General Manager OGDCL whose cooperation helped us to achieve our target We have fortunate of having a very nice company of friends and seniors especially who cooperated with us in all matters relating to the report
| SNo | Name of Company | MMCFD | |||
| 1 | OGDCL | 856 | |||
| 2 | PPL | 799 | |||
| 3 | OMV | 554 | |||
| 4 | MGCL | 445 | |||
| 5 | Eni | 389 | |||
| 6 | BHP | 258 | |||
| 7 | BP-Pakistan | 230 | |||
| 8 | OPI | 66 | |||
| 9 | POL | 42 | |||
| 10 | Others | 46 | |||
| TOTAL | 3685 |
| SNo | Name of Company | Barrels per day | |||
| 1 | OGDCL | 31370 | |||
| 2 | BP-Pakistan | 16559 | |||
| 3 | POL | 10324 | |||
| 4 | PPL | 3645 | |||
| 5 | OPI | 1880 | |||
| 6 | BHP | 1714 | |||
| 7 | Eni | 330 | |||
| 8 | MOL | 153 | |||
| 9 | OMV | 98 | |||
| 10 | Petronas | 22 | |||
| TOTAL | 66095 |
| Product | Units | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 | ||||||||
| Crude Oil | Thousands Barrels | 8535 | 8705 | 9413 | 9941 | 13045 | 12956 | ||||||||
| Gas | MMcf | 217927 | 245537 | 274006 | 277408 | 329385 | 336059 | ||||||||
| LPG | MTons | 77402 | 93136 | 90304 | 101322 | 120063 | 128654 | ||||||||
| Sulphur | MTons | 16670 | 23234 | 15889 | 18917 | 25884 | 22006 | ||||||||
| White Petroleum Products | Thousands Barrels | 998 | 989 | 859 | 890 | 885 | 959 |
| Pay Scales | 2003 | 2004 | 2005 | 2006 | Total | ||||||
| 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 |
| Pay Scales | 2006 | ||
| 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 |
| 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 |
| Years | Officers (EG-VI amp 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 |
| Year | Average | ||
| 2003 | 07 Officers amp Staff promoted in two days | ||
| 2004 | 08 Officers amp Staff promoted in three days | ||
| 2005 | 04 Officers amp Staff promoted in three days | ||
| 2006 | 01 Officer amp Staff promoted daily |
| 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 |
| 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 |
| Officers | 1600 | ||
| Staff Employees | 4438 |
| PAYGROUP | DOMICILE | TOTAL IN THE GROUP | |||||||||||||||||||
| Merit | PUNJAB | 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 |
| PAYGROUP | DOMICILE | TOTAL IN THE GROUP | |||||||||||||||||||
| Merit | PUNJAB | 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 |
| Objective | To achieve an optimum growth in my career by working in an environment that is challenging and rewarding for me to test my talent and skills | ||
| Work experience | OGDCL (Internship) RIRSP COMSATS | ||
| Summary of qualifications | (2009-2010) (continue) APCOMS Rawalpindi Pakistan MBA(Finance) 2005-2008 COMSATS UniversityIslamabad Pakistan BBA (Finance) 2003-2004Islamabad BoardRawalpindi Pakistan ICS (Computer Science) 2002Islamabad BoardRawalpindi Pakistan Matriculation (science) 2002 Diploma in Computer UCAT Rawalpindi Pakistan | ||
| Personal Skills | middot English middot French middot Strong communication skills middot Constant quest for learning and personal development through self-training and on the job work experience middot Ability to adapt quickly to a new technical environment middot Strong abilities to lead and motivate | ||
| Interests and activities | Marketing Psychology Sociology Book Reading Internet surfing | ||
| Computer Proficiency | Computer Hardware Windows Vista2000XP Internet Browsing Ms Word MS Excel Ms Power Point Adobe Photoshop | ||
| Volunteer experience | Have been participating as an organizer in different events in my University COMSATS Islamabad | ||
| Personal Information Reference | Fatherrsquos name Muhammad Akram Shah DOB September 9st 1984 Marital status Single Nationality Pakistani Religion Islam NIC 38302-5628555-7 Ghulam Abbas Khan DPA FAB HQs H 104 Islamabad Tel 051-9257560 3445203740 Mohammad Tahir Assistant PTCL EWSD OML satellitown 6th Road Rawalpindi Tel 4410060 |
| Curriculum Vitae | Phone 0302-5410934 E-mail intezar_14livecom House 588 Street 910 Allahabad w3 Rawalpindi Pakistan |
Syed Muntazer Abbas
[2]Comsats Islamabad
Curriculum Vitae
Phone 0302-5410934 E-mail intezar_14livecomHouse 588 Street 910 Allahabad w3 Rawalpindi Pakistan
Muntazer Abbas Naqvi
Objective To achieve an optimum growth in my career by working in an environment that is challenging and rewarding for me to test my talent and skills
Work experienceOGDCL (Internship)
RIRSP
COMSATS
Summary of qualifications
(2009-2010) (continue) APCOMS Rawalpindi PakistanMBA(Finance)
2005-2008 COMSATS University Islamabad PakistanBBA (Finance)
2003-2004 Islamabad Board Rawalpindi PakistanICS (Computer Science)
2002 Islamabad Board Rawalpindi PakistanMatriculation (science)2002
Diploma in Computer UCAT Rawalpindi Pakistan
Personal Skills English French
Syed Muntazer Abbas
[3]Comsats Islamabad
Strong communication skills Constant quest for learning and personal development through
self-training and on the job work experience Ability to adapt quickly to a new technical environment Strong abilities to lead and motivate
Interests and activities
Marketing Psychology SociologyBook Reading Internet surfing
Computer Proficiency
Computer HardwareWindows Vista2000XPInternet BrowsingMs Word MS Excel Ms Power Point Adobe Photoshop
Volunteer experience
Have been participating as an organizer in different events in my University COMSATS Islamabad
Personal Information
Reference
Fatherrsquos name Muhammad Akram ShahDOB September 9st 1984Marital status SingleNationality PakistaniReligion IslamNIC 38302-5628555-7
Ghulam Abbas KhanDPA FAB HQs H 104IslamabadTel 051-9257560 3445203740
Mohammad TahirAssistantPTCLEWSD OML satellitown 6th RoadRawalpindiTel 4410060
Syed Muntazer Abbas
[4]Comsats Islamabad
1 Introduction
Establishment
The Oil amp Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961 to undertake comprehensive exploratory programme and promote
Pakistanrsquos oil and gas prospects In 1997 it was converted into a Public Limited
Company and is now governed by the Companies Ordinance 1984
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 ndashoperated working interest in another 7
exploration concessions In addition OGDCL has 35 Mining and Development amp
Production Leases which are operated by it besides having working interest ownership in
28 non-operated Mining and Development amp Production Leases OGDCL has an
extensive database Services of the Companyrsquos 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
Syed Muntazer Abbas
[5]Comsats Islamabad
OGDCL now holds the largest shares of oil and gas reserves in the country ie 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 13 OGDCLrsquos updated estimates for remaining recoverable oil and gas reserves
as on 1st July 2003 stood at 9228 billion standard cubic feet (BSCF) of gas and 16425
million barrels of oil including companyrsquos share in non ndash operated Joint Ventures
During the last 42 years OGDCL has grown into a technically and commercially viable
organization
Name amp Address of Company
Oil and Gas Development Company Limited (OGDCL) House Jinnah Avenue Blue
Area Islamabad Pakistan
Telephone 051-9209701
Fax No 051-9209708
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Till-date OGDCL is owned by the Government of Pakistan and is working under the
control of Ministry of Petroleum amp Natural Resources The Government of Pakistan off
loaded a portion of its equity equivalent to 5 of the paid-up capital of the company
through Initial Public Offering (IPO) in October 2006 The Company is now listed on all
the three Stock Exchanges of the country and has the earning per share of Rs 521
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
Syed Muntazer Abbas
[6]Comsats Islamabad
use of latest technology in exploration drilling and production operations of the
company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans oil and gas
prospects
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[3]Comsats Islamabad
Strong communication skills Constant quest for learning and personal development through
self-training and on the job work experience Ability to adapt quickly to a new technical environment Strong abilities to lead and motivate
Interests and activities
Marketing Psychology SociologyBook Reading Internet surfing
Computer Proficiency
Computer HardwareWindows Vista2000XPInternet BrowsingMs Word MS Excel Ms Power Point Adobe Photoshop
Volunteer experience
Have been participating as an organizer in different events in my University COMSATS Islamabad
Personal Information
Reference
Fatherrsquos name Muhammad Akram ShahDOB September 9st 1984Marital status SingleNationality PakistaniReligion IslamNIC 38302-5628555-7
Ghulam Abbas KhanDPA FAB HQs H 104IslamabadTel 051-9257560 3445203740
Mohammad TahirAssistantPTCLEWSD OML satellitown 6th RoadRawalpindiTel 4410060
Syed Muntazer Abbas
[4]Comsats Islamabad
1 Introduction
Establishment
The Oil amp Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961 to undertake comprehensive exploratory programme and promote
Pakistanrsquos oil and gas prospects In 1997 it was converted into a Public Limited
Company and is now governed by the Companies Ordinance 1984
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 ndashoperated working interest in another 7
exploration concessions In addition OGDCL has 35 Mining and Development amp
Production Leases which are operated by it besides having working interest ownership in
28 non-operated Mining and Development amp Production Leases OGDCL has an
extensive database Services of the Companyrsquos 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
Syed Muntazer Abbas
[5]Comsats Islamabad
OGDCL now holds the largest shares of oil and gas reserves in the country ie 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 13 OGDCLrsquos updated estimates for remaining recoverable oil and gas reserves
as on 1st July 2003 stood at 9228 billion standard cubic feet (BSCF) of gas and 16425
million barrels of oil including companyrsquos share in non ndash operated Joint Ventures
During the last 42 years OGDCL has grown into a technically and commercially viable
organization
Name amp Address of Company
Oil and Gas Development Company Limited (OGDCL) House Jinnah Avenue Blue
Area Islamabad Pakistan
Telephone 051-9209701
Fax No 051-9209708
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Till-date OGDCL is owned by the Government of Pakistan and is working under the
control of Ministry of Petroleum amp Natural Resources The Government of Pakistan off
loaded a portion of its equity equivalent to 5 of the paid-up capital of the company
through Initial Public Offering (IPO) in October 2006 The Company is now listed on all
the three Stock Exchanges of the country and has the earning per share of Rs 521
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
Syed Muntazer Abbas
[6]Comsats Islamabad
use of latest technology in exploration drilling and production operations of the
company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans oil and gas
prospects
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[4]Comsats Islamabad
1 Introduction
Establishment
The Oil amp Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961 to undertake comprehensive exploratory programme and promote
Pakistanrsquos oil and gas prospects In 1997 it was converted into a Public Limited
Company and is now governed by the Companies Ordinance 1984
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 ndashoperated working interest in another 7
exploration concessions In addition OGDCL has 35 Mining and Development amp
Production Leases which are operated by it besides having working interest ownership in
28 non-operated Mining and Development amp Production Leases OGDCL has an
extensive database Services of the Companyrsquos 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
Syed Muntazer Abbas
[5]Comsats Islamabad
OGDCL now holds the largest shares of oil and gas reserves in the country ie 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 13 OGDCLrsquos updated estimates for remaining recoverable oil and gas reserves
as on 1st July 2003 stood at 9228 billion standard cubic feet (BSCF) of gas and 16425
million barrels of oil including companyrsquos share in non ndash operated Joint Ventures
During the last 42 years OGDCL has grown into a technically and commercially viable
organization
Name amp Address of Company
Oil and Gas Development Company Limited (OGDCL) House Jinnah Avenue Blue
Area Islamabad Pakistan
Telephone 051-9209701
Fax No 051-9209708
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Till-date OGDCL is owned by the Government of Pakistan and is working under the
control of Ministry of Petroleum amp Natural Resources The Government of Pakistan off
loaded a portion of its equity equivalent to 5 of the paid-up capital of the company
through Initial Public Offering (IPO) in October 2006 The Company is now listed on all
the three Stock Exchanges of the country and has the earning per share of Rs 521
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
Syed Muntazer Abbas
[6]Comsats Islamabad
use of latest technology in exploration drilling and production operations of the
company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans oil and gas
prospects
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[5]Comsats Islamabad
OGDCL now holds the largest shares of oil and gas reserves in the country ie 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 13 OGDCLrsquos updated estimates for remaining recoverable oil and gas reserves
as on 1st July 2003 stood at 9228 billion standard cubic feet (BSCF) of gas and 16425
million barrels of oil including companyrsquos share in non ndash operated Joint Ventures
During the last 42 years OGDCL has grown into a technically and commercially viable
organization
Name amp Address of Company
Oil and Gas Development Company Limited (OGDCL) House Jinnah Avenue Blue
Area Islamabad Pakistan
Telephone 051-9209701
Fax No 051-9209708
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Till-date OGDCL is owned by the Government of Pakistan and is working under the
control of Ministry of Petroleum amp Natural Resources The Government of Pakistan off
loaded a portion of its equity equivalent to 5 of the paid-up capital of the company
through Initial Public Offering (IPO) in October 2006 The Company is now listed on all
the three Stock Exchanges of the country and has the earning per share of Rs 521
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
Syed Muntazer Abbas
[6]Comsats Islamabad
use of latest technology in exploration drilling and production operations of the
company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans oil and gas
prospects
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[6]Comsats Islamabad
use of latest technology in exploration drilling and production operations of the
company
11 Company History
Prior to OGDCL
Prior to OGDCLs 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
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 programme and to plan and promote Pakistans oil and gas
prospects
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[7]Comsats Islamabad
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
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
OGDCs concerted efforts were very successful as they resulted in a number of major oil
and gas discoveries between 1968 and 1982 Toot oil field was discovered in 1968 which
paved the way for further exploratory work in the North During the period 1970-75 the
Company reformed the strategy for updating its equipment base and undertook a very
aggressive work 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 amp Dhodak oilcondensate fields and
Pirkoh Uch Loti Nandpur and Panjpir gas fields which are commercial discoveries that
testify to the professional capabilities of the Corporation
Transition to a self financing entity
Noting the Companys 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 OGDCs 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 Programme (PSDP)
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[8]Comsats Islamabad
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 countrys reserves and production
Conversion into Public Limited Company
Prior to 23 October 1997 OGDCL was a statutory Corporation and was known as
OGDC (Oil amp Gas Development Corporation) It has been incorporated as a Public
Limited Company wef 23 October 1997 and is now known as OGDCL (Oil amp Gas
Development Company Ltd)
Initial Public Offering
Government of Pakistan disinvested part of its shareholding in the company in 2003
Initially 25 of the equity with an additional green-shoe option upto 25 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 Pakistanrsquos
capital markets
GDR
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
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
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[9]Comsats Islamabad
OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
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
12 Objectives
a Developing E amp 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
VISION STATEMENT
To be a leading regional Pakistani E amp P Company recognized for its people
partnerships and performance
MISSION STATEMENT
Our mission is to become a competitive dynamic and growing E amp 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
CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[10]Comsats Islamabad
ORGANIZATIONAL STRUCTURE
Chairman
Board of Directors
Manag ing Director
Company Secretary Chief Staff Off icer
ED (Admin)
GM
(Admin)
Manag er(Admin)
General Manag ers
ED (FinanceAccounts)
ED (Exploration)
ED (Drilling)
ED (Corporate
Aff air)
Chief(Admin)
Dy Chief(Admin)
Sr AdminOff icers
AdmnOff icers
AdmnSection
Manag ers
ChiefAccountOff icers
SeniorAccountOff icers
AccountOff icers
FinanceAccountSections
General Manag ers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Manag ers
PrincipleEngineers
ExplorationStaff
Sections
General Manag ers
Manag ers
ChiefEngineers
Dy Chief s(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff
Sections
General Manag ers
Manag ers
Chiefs(Corporate)
SeniorCorporate
Off icers
JuniorCorporate
Off icers
CorporateStaff
Sections
PrincipleEngineers
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[11]Comsats Islamabad
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
DirectorChief 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
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 amp Karachi
14 OGDCL Workshops Islamabad
15 Oil amp Gas Training Institute Islamabad
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[12]Comsats Islamabad
MAIN DEPARTMENTS
A CORPORATE DEPARTMENT
Administration Medical
Human Resource Department Corporate Affairs
Personnel Aviation
Security System Support
Legal OGTI
Communication G amp R Lab
Supply Chain Management Secretariat
Material Management Internal Audit
Finance amp Accounts
Career Planning Cell
Environment Protection amp Safety
B EampP DEPARTMENTS
1 Exploration Prospect Generation
2 Exploration Studies amp Research
3 Exploitation
4 Production
5 Process
C TECHNICAL SERVICES DEPARTMENT
1 Drilling 8 Stimulation
2 EngineeringWorkshops 9 Geological
Geophysical
3 Mud Engineering 10 Seismic Data
Processing
4 Well Services Department 11 Logistic
5 Cementation 12 Data Logging
6 Geological Well Supervision
7 Wire line Logging
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[13]Comsats Islamabad
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
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[14]Comsats Islamabad
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a
non-executive Chairman and a full time Managing director The general direction
policies and affairs of the Company vests in a Board of Directors which consists
of 01 Chairman 10 Directors and 01 Managing Director (MD) MD is responsible
for operational and other activities The OGDCL has been re-organized during the
last few years it now operates much purely as Oil Company does Emphasis is on
Professional Competence and getting things done OGDCL can broadly be
divided in to following three companies
Corporate
Exploration amp Production (Eamp 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
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[15]Comsats Islamabad
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUPMeritPUNJAB 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
TRAINEES12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[16]Comsats Islamabad
OVERALL STAFF
PAY
GRO
UP
DOMICILE TOT
AL
IN
THE
GRO
UP
Mer
it
PUNJ
AB
SINDH NW
FP
BALU
C-
HIST
AN
FAT
A
A
KURB
AN
RUR
AL
TOT
AL
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
TRAIN
EE
6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 22
3
9194
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[17]Comsats Islamabad
STRUCTURE OF THE FINANCE DEPARTMENT
Finance amp Accounts Department plays a vital role in the organizational structure
OGDCL has acquired the services of highly qualified professionals like CAs CMAs
MBAs and M com for its Finance and Accounts Department The Executive Director
(Finance) heads the Finance amp Accounts Department GM (Finance) GM
(Accounts) and GM (Treasury) and Managers assist the Executive Director (Finance)
for effective and efficient controlling of OGDCL financial activities Different
sections of Finance department are headed by Sectional In-charges who reports to
Managers The main role and function of ED GMs and Managers are as under
Jr Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive DirectorFinance
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[18]Comsats Islamabad
EXECUTIVE DIRECTOR (Finance)
Director Finance is a member of Board of Directors and represents the Finance
and Accounts Department
G M - FinanceAccountsTreasury
General Managers reports to DF and is responsible for overall activities of
Finance amp Accounts Department The overall structure of the Finance
Department and the relevant category of professionals is given on next page
Managers - FinanceAccountsBudget amp AccountsJoint venture
Managers reports to GMs and is responsible for smooth running of their
respective sections
Sectional Incharges
Sectional Incharge reports to respective Manager and is responsible for specific
jobassignments of their section only They assisted by Deputy Chiefs Senior
Accountants Accountants and assistants
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
MANAGER (Finance)
Manager (Finance) reports to GM (Finance) Following section reports
to Manager (Finance)
Imports section
Bank Cash section
Sales Section
MANAGER (Budget amp Accounts)
Manager (Budget amp Accounts) reports to GM (Finance) The work of
Budget amp Accounts is distributed between six sections
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[19]Comsats Islamabad
Budget and AFE Section
Final Accounts
MR section
EDP Management and Training
Projects
MANAGER (Stores amp Fixed Assets)
Manager (Stores amp Fixed assets) reports to GM (Finance) He looks
After the whole inventories fixed assets and material in transit of the
Organization Following sections are the part and parcel of this
Segment
Local Stores
Foreign Stores
Material in Transit
Fixed Assets
Petrol oil amp lubricants
Reconciliation
MANAGER (JV Accounts)
Manager (JV Accounts) reports to GM (Finance) He manages the
Joint Ventures of OGDCL and Other exploration Companies which are
broadly divided into the following two divisions
Operated Joint Venture
Non Operated Joint Venture
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[20]Comsats Islamabad
MANAGER (Accounts)
Manager (Accounts) reports to GM (Accounts) Following sections are
supervised by Manager (Accounts)
Payroll
Accounts Payable
Field Imprest
Other section
1 IMPORT SECTION
2 Bank section
3 Sales Section
4 Payroll section
5 Accounts payable section
6 Employeersquos advance section
7 Field Imprest Section
8 Final account section
Number of Employees working in Finance Department
Total employees working in the Finance amp Accounts Department are 254 out of which
there are 74 Officers and 180 staff members
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[21]Comsats Islamabad
Amjad JavedManager (Personnel)
Khursheed A HashmiDCPO (Coord)
PS(G)
Khalid PervezDM
(BDPenampEOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers 13
Total Staff 97Data Processing Officer
Sections of Personnel Department
A
COMPUTEREOBI PENSIONG
B C D E
F
Muhammad Iqbal KhanProgrammer
Computer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz MuhammadDPO
Abid AslamDPO
Muhammad YounasPO
(EOBIPen)
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[22]Comsats Islamabad
FUNCTIONS
OF PERSONNEL DEPTT
1 Maintenance of service record of employees from their induction to retirement and
beyond
2 Transfers ndashPostings
3 Maintenance of seniority
4 Handling of Personnel grievances
5 Processing of Pension EOBI and retirement cases
6 Implementation of CBA Managementrsquos agreementrsquos after every two yearrsquos duration
7 Maintenance of Database-Computerization
8 Responses to Senate National Assembly Questions Other Government Agencies
PERSONNEL (HR) DEPARTMENT FUNCTIONS
Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department
So whenever any new employees recruit OGDC the concerned section maintained this
personnel record from the first day Every employee has their own personal file in
personnel department
Correspondence
The personnel department also 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
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[23]Comsats Islamabad
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 Itrsquos called correspondence
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for
employees There are three types of employees in OGDC
1 Executive Group (EGI - EGIII)
2 Staff (1 - 16)
3 Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden
whenever they want any type of data immediately call to computer They have their own
computer section
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 OGDCLrsquos 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
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[24]Comsats Islamabad
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it
performs the function for OGDCLrsquos staff member to hire houses for their
accommodation It has many functions they are-
Hiring of houses for the employees of OGDCL
Hiring of building for offices and lodges at Islamabad
Hiring of lodges rest houses for staff and officer at big cities like Lahore Karachi
Peshawar etc
Functions
Actually PAO is the head of two major sections that in general admin section and
housing section All type of documentscases are tabled to the PAO for verification and
signed He may approve the legal
cases and also has the power to reject illegal cases Particularly in housing cases the
approval of PAO is must
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to
the required partyperson He is the in charge of overall staff of both sections
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad Various types of vehicle they provide to the officers
staff in various shapes
Vehicle for Entitled Officer
Manager they provide official vehicles for duty
Vehicle for General Duty
For each department they provide special vehicle for emergency cases
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[25]Comsats Islamabad
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which
perform the duty of to pick early in the morning and drop at the end of office time the
staff to perform their duties
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of
emergency
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
Legal Service Department
Legal service department is one of the most simple and little department but its functions
are always maintained on climax position in OGDCL To deal with court and legal cases
whenever occur in OGDCL If anybody from outside accused on OGDCL in any affair
then legal service department stands from management side of OGDCL They have their
own advocates but mostly they consult with outside advocates on various fees On the
other side when OGDCL claims on any person or body of
person so at this also they deals the cases same as above But when inside OGDCL any
employee appeal against any officer under the section rule 25 so if the case is lower level
then legal service department delete that claim by negotiation with employee After that if
the employee is frustrated then he can go to the court for appeal It is not essential for
employee as well as for legal service department that they hire advocate for case
Employee can witness in court personally but legal service department are always
advocates from the management side It is the information from the department that
mostly cases are go in favors of OGDCL
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[26]Comsats Islamabad
Medical Center Department Organogram
Manager Medical Services
It is the head of the medical services and is responsible for
To manage the medical centers of the corporation
To provide medical facilities to the corporation employees
OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills
Every year medical centre make an arrangement with any drug store on 6 discount It is
a permanent discount so after check up the patient may receive the drugs from that
particular drug store For verification the owner of the drug store send bills to the DCMO
at the each month DCMO checks and make verification and signed on those bills After
that they refer the bills to the account department for payment Vaccination programmed
is also processed in MC They keep money for vaccination
Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at MC Islamabad
Hospitalization
Patients are referred for hospitalization as and when required to hospitalnursing homes specialist on the
panel of the corporation and re-imbursement is allowed when such facilities are not availed
Medicines
Medicines are provided to patients from entitle panelist chemist through prescription
Emergency drug are also kept at both medical centre to meet any emergency
Vaccination
Vaccination facilities for children are available at both medical centers and every
Monday is specially fixed for this purpose
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[27]Comsats Islamabad
Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24
hours duty
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management It is also a proper channel
between the two bodies
Functions of Welfare Section
Various types of functions performed by the welfare section are as under-
To deal with union matters
To provide facilities to the staff members of their families
Grant of house building advance
Conveyance advance to give amount to the staff members after five years in OGDCL
for conveyance
Distress grant at the time when any staff member die the amount will be given to his
wife
Benevolent fund in extra fund by pension ie deducted every monthRs15- 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
PENSION SECTION
Pension was introduced in OGDCL after 1984 After 10 years in OGDCL the staff
member qualified for pension and after 25 Years he can demand for pension The super
innovation of the pension is maximum 60 Years After 60 years he can not stay more
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[28]Comsats Islamabad
Accommodation allowance is 50 of the growth monthly pension supposes that on the
age of 25 years of service his pension will be counted of the 14th scale employee
As a whole it means that OGDCL will provide pension till 15 years and something After
that the pension allowance will be counted again
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new
and old employees
Functions of Recruitment Section
Recruitment section basically performs the following functions
Analyze the recruitment of employees in each department
To recruit new candidates as a trainee
To recruit the experimental employees for higher jobs
To take examination and interview of new and experimental candidates
Recruitment types
Regular
Contract Basis
Trainees ndash Special Trainees
Hiring through Contractor
Classified appointment
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[29]Comsats Islamabad
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) GM (Admin) Member
Executive Director (Concerned) Member
Professional Expert in the relevant fielddiscipline Member
Preferably having PhD or Master degree in the
Relevant subject
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned ProfessionalExpert Member
Head of Department Concerned Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior mis-
conduct or any offence which occur in fields and offices by the employees In OGDCL
there is delegation of powers Every higher authority can take action against that evil
After taking action he send a report to discipline section then discipline section help him
in penalties with the approval of executive directors and chairman under the rule of 1973
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[30]Comsats Islamabad
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 NoSRO-1213(1)73 published in the gazette
of Pakistan enter ordinary dated 18-08-1973These 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
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
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[31]Comsats Islamabad
Removal from the service does not but the dismissal from the service does disqualify
for future in this rule removal or dismissal from service does not include the
discharge of a person
Appeal
There will be no appeal against minor penalties However a person on whom major
penalties is imposed shall have a right to appeal to the next higher authorities
Provided that whether the penalties are imposed by order of the board of directors there
shall be no appeal but the person concerned may apply for review of the order
Note
The chairmanrsquos approval is necessary at all the stages for issuing the show cause notices
and enquiry letter for awarding the final punishment
CAREER PLANNING CELL
Career Planning Cell attained independent status in 1992 Before it was the
Personnel department dealing in
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 MNAA
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
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[32]Comsats Islamabad
The revised promotion criteria are notified herewith which shall be effective from first
July 1991
Performance appraisal
Yearly performance reviews are critical Organizations are hard pressed to find good
reasons why they canrsquot 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 relationship 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 managementrsquos time to do what
isnrsquot being done properly
The scoring system is also having a major impact on effective performance appraisals
The accuracy and reliability of any scoring system increases with full
descriptionsdefinitions and better still with examples for each score band This gives
everyone the same objective scientific reference points and reduces subjectivity
Performance appraisal process
The performance appraisal process typically consists of four related steps as follows
Establish a common understanding between the manager (evaluator) and
employee (evaluate) regarding work expectations mainly the work to be
accomplished and how the work is to be evaluated
Ongoing assessment of performance and the progress against work expectation
Provisions should be made for the regular feedback of information to clarify and
modify the goals and expectations to correct un acceptable performance before it
was too late and to reward superior performance with proper praise and
reorganization
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[33]Comsats Islamabad
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
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[34]Comsats Islamabad
ExistingQuantification of ACRs is carried out as explained in the following hypothetical exampleFormula Formula
A1 = Very Good 10 MarksA = Good 07 ldquoB = Average 05 ldquoC = Below Average 01 ldquoD = Poor 00 ldquo
Very Good 12 MarksGood 09 ldquoAverage 05 ldquoBelow Average 00 ldquo
WorkYear Integ-rity
Output QualityOverall (Out of 60)
1998 Good Good Good 1998 Good Integrity 461999 Good Average Good 1999 Good Work 442000 Good Average Average 2000 Average 472001 V Good VGood Good 2001 VGood
Overall Grading
2002 Good VGood VGood 2002 VGoodScore 38 37 (365) 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 44Requisite Qualification 05Training course (4 months duration) 02Technical Publication -Relevant experience 18Marks Obtained 69
Quantification of ACRs (Example)
(EG-II to EG-IX)
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[35]Comsats Islamabad
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 amp integrity very important
Convey Adverse entries to officersstaff employees
Deal with the representationsgrievances 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
Officers 1600
Staff Employees 4438
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[36]Comsats Islamabad
Difficulties (ACR)
ACRs are not filledreturned 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
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 ACRrsquos 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
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[37]Comsats Islamabad
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994 Itrsquos 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
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[38]Comsats Islamabad
Promotions ndash Flow Chart
Recommendations of the Head of the Department
IncompletePre-mature cases returned Cases in order retained for processing
Approval of the Managing DirectorBoard 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 SynopsisQuantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[39]Comsats Islamabad
Promotions Average ndash Year-wise
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
Promotions Average ndash Year-wise
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
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[40]Comsats Islamabad
Promotions Average ndash Year-wise
Grand Total Officers amp Staff Promoted
Year Average
2003 07 Officers amp Staff promoted in two days
2004 08 Officers amp Staff promoted in three days
2005 04 Officers amp Staff promoted in three days
2006 01 Officer amp Staff promoted daily
Promotions ndash Year-Wise (2002-2007
Year wise performance in connection with promotions for last five years is as
follows-
YearsOfficers
(EG-VI amp 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
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[41]Comsats Islamabad
Difficulties (Promotions)
CPC invites recommendations to reach end February and end August each year
They are seldom received according to schedule Consequently CPC has great
difficulty in meeting the promotion dates of 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 HOD 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
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[42]Comsats Islamabad
Statement of Promotion ndash Officers
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
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[43]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2006
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
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[44]Comsats Islamabad
Statement of Promotion ndash Staff
Pay Scales 2003 2004 2005 2006 Total
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
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[45]Comsats Islamabad
14 Products and Services Offered
Business Volume
Exploration Development Reserves and Production
Being largest E amp P Company in Pakistan
OGDCL holds 115 million barrels of oil and 105 trillion cubic feet (TCF) of gas as
remaining recoverable reserves These constitute 46 of total oil and 30 of total gas
reserves of the Country
OGDCL is the highest oil and gas producing Company in Pakistan and it produced 47
of crude oil and 23 of Gas in 2004-05
Average daily production of the Company including share in operated and non-operated
joint ventures is 39130 barrels of oil 919 MMcf of Gas and 334 Tons of LPG
OGDCLrsquos current concession portfolio comprises of 25 concessions and a reconnaissance
permit covering an area of 599686 sq kms which constitute 30 of total exploration
area granted to various EampP companies in Pakistan The Company also holds non-
operated working interest in another three exploration concessions which are operated by
other JV partners
OGDCL has 39 Development and Production Mining Leases which are operated by it
besides working interest ownership in 29 non-operated leases
OGDCLrsquos major oil and gas fields are located at Kunnar Paskhi Bobi Tando Alam
Thora Lashari Sono Fimkassar Kal Sadqal Rajian Missakesswal Dhodak Dakhni
Chanda Chak Naurang Qadirpur Uch Pirkoh Loti Nandpur Punjpir and HundiSari
OGDCL so far has drilled 198 exploratory wells and 246 development wells and has
made 60 oil and gas discoveries
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[46]Comsats Islamabad
Product Lines
The main product lines of the company are as under
141 Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as sulphur) that is
pumped out of the ground by oil wells Main production Oilfields of the company are Dakhni Dhodak
Bobi Tandoalam Chanda Toot amp Rajian
142 GAS
A mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the
gaseous phase or in solution with crude oil in natural underground reservoirs The major gas fields of the
company are Dakhni Dhodak Qadirpur Nandpur Panjpir Pirkoh and Uch
143 Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil used principally as a
feedstock for the chemical industry home heating fuel and motor vehicle fuel The major fields of the
company having LPG production facilities are Dakhni Dhodak Sadkal Kunner and Bobi
144 Naphtha
Naphtha is a group of various volatile flammable liquid hydrocarbon mixtures used primarily as feedstocks
in refineries and petrochemical industry It is also used in solvent applications Naphtha is the residual
product of the company and is extracted from various oil gas fields
145 Solvent Oil
A simple or complex liquid mixture of hydrocarbons that can be refined to yield gasoline kerosene diesel
fuel and various other products This product is extracted from various oil fields of the company
146 Kerosene Oil
Kerosene oil has been distilled from petroleum and generally used as a fuel for lighting etc This residual
product is extracted from various oil fields of the company
147 High Speed Diesel Oil
It is the hydrocarbon Oil suitable for use as fuel in Compression Ignition Engines extracted from various
oil fields of the company
148 Sulphur
A yellow mineral extracted from petroleum for making fertilizers pharmaceuticals and other products The
sulphur is produced at the Dakhni oil amp Gas field near Jand Attock
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[47]Comsats Islamabad
Product Units 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Crude Oil Thousands
Barrels
8535 8705 9413 9941 13045 12956
Gas MMcf 217927 245537 274006 277408 329385 336059
LPG MTons 77402 93136 90304 101322 120063 128654
Sulphur MTons 16670 23234 15889 18917 25884 22006
White
Petroleum
Products
Thousands
Barrels
998 989 859 890 885 959
PRODUCTION OF CRUDE OIL
2007-08
SNo Name of Company Barrels per day
1 OGDCL 31370
2 BP-Pakistan 16559
3 POL 10324
4 PPL 3645
5 OPI 1880
6 BHP 1714
7 Eni 330
8 MOL 153
9 OMV 98
10 Petronas 22
TOTAL 66095
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[48]Comsats Islamabad
PRODUCTION OF NATURAL GAS
2007-08
SNo Name of Company MMCFD
1 OGDCL 856
2 PPL 799
3 OMV 554
4 MGCL 445
5 Eni 389
6 BHP 258
7 BP-Pakistan 230
8 OPI 66
9 POL 42
10 Others 46
TOTAL 3685
PRODUCTION OF CRUDE OIL (Barrels per Day)
47
25
16
63 3
0
OGDCL BP-Pakistan POL PPL
OPI BHP Eni MOL
OMV Petronas
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[49]Comsats Islamabad
LPG(MTons)
PRODUCTION OF GAS (MMCFD)
12
11
23762 1 1
15
22
OGDCL PPL OMV MGCL
Eni BHP BP-Pakistan OPI
POL Others
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[50]Comsats Islamabad
Sulphur (MTons)
White pertoulem products (Barrels)
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[51]Comsats Islamabad
2 Learning amp Experience
21 Internship Duration amp Rationale for Selection
Since my area of specialization is ldquoFinancerdquo the organization I have chosen for
internship is ldquoOil and Gas Development Company Limited (OGDCL)rdquo a major Oil amp
Gas Company of Pakistan having Head Office in Islamabad I have done internship in
this organization for 6 weeks 30062008 to 20082008 The company is engaged in
Exploration Drilling and Production of Oil amp Gas resources through-out Pakistan
Consisting of 13 Technical Departments and 17 Serving Departments it is the major Oil
and Gas Company in Pakistan The company has achieved all time high net sales revenue
of Rs 51294 billion during 2005-2006 representing 14 growth over last year
The report covers the overall operations of the company with specific emphasis on its
Finance amp Accounts Department It also discusses financial growth in profitability of the
company due to new discoveries of Oil amp Gas reservoirs in Sindh amp Panjab areas and the
use of latest technology in exploration drilling and production operations of the
company
Significance of study
Basic purpose of working in this company was to fulfill the requirement of my BBA
Degree because itrsquos a compulsory part of it Secondly it attracts me and I was keen to
gain some knowledge about this sector Moreover I studied about the functioning of
these particular sections so I got some idea about the corporate level I worked with the
intentions to point out the strengths and weaknesses of the oil companies in Pakistan in
accordance with foreign companies
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[52]Comsats Islamabad
Scope of study
OGDCL is a big organization which is working all over the Pakistan and it is really a
much difficult to study this organization in 06 weeks that is very short period of time But
I tried my best to learn as much as I can With shortage of time there was so much
security constraints that it was very difficult for an internee to move from the allocated
department for working in other departments This report can be help full for other MBA
(finance) students of Comsats institute of information technology Attock campus
Limitations of study
06 weeks internship duration was very limited time for organization like OGDCL of
Pakistan having almost 16 departments and at least 06 weeks training can cover the main
functions and operations of the OGDCL To prepare a report I have a very limited time
Methodology of Study
The research methodology is a prerequisite for carrying out research It defines the
procedure to be followed during the course of internship report research methodology
provides a guidelines for collecting information The study is both on primary data and
secondary data
Primary data
Data collected in the raw form and have not undergone any sort of statistical treatment
are called primary data
Personal observation
interviews
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[53]Comsats Islamabad
Secondary Data
Data that have undergone any sort of the treatment by statistical method at least once that
is data have been collected classified tabulated or presented in some form for a certain
purpose are called secondary data
Departments manuals
Annual reports
Text books
Internet research
22 Details of Training Department Wise task performed
I have done work in 6 departments in OGDCL these are
221 Correspondence (A section)
I have work in this section for 1 week In personnel I learned how to maintain the record
of each employee for promotion the minimum time for promotion is five years So at the
end of every year we 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 the
personnel section In short any type of personal problem or work will maintain in his
personal files with personnel department Itrsquos called correspondence
222 PENSION SECTION (F section)
I have work in this section for 1 weekIn this section I learned about the pension method
and the facilities provided by company and how a employee is able for pension After 10
years in OGDCL the staff member qualified for pension and after 25 Years he can
demand for pension The super innovation of the pension is maximum 60 Years After 60
years he cannot 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
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[54]Comsats Islamabad
223 IMPORT SECTION
I have work in this section for 1 week In this section I learned to how to make a letter of
credit according to the policy of OGDC and the payment for the goods imported
This section also involves the shipment of consignment which gives authority and makes
a letter for customs and taxation for its imported goods
It also have the member for the physical verification of Goods receive and I also made
some letter of clearance of goods after the physical verification of goods received
224 Payroll section
In this section I have done work for 2 weeks and I leaned about the
preparation of Transactions record and final report of the company and
make a payment for the suppliers contractors and other stakeholders This
section also tell how to make a slip and checks for payments and how to
save in company record
In second week I week how to financing for a new project in which first we
make a budget than send for suggestions and recommendation after
verification we clear it and send it for cash
225 Joint venture
In last week of my internship I worked in joint venture section in this section I learned
about the dealing of company on different project and how OGDCL make a joint venture
with other company In joint venture I made a caution and budget for a project and
provide and information about the investment on project and then this file send to other
company and its give his investment and duration after the verification and work out it
goes to MD and after passing it go for cash and then it consider in Budget section and
make a record of this file and when it clear by OGDCL it again send to the MD of other
company who is making joint venture on project or products
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[55]Comsats Islamabad
23 SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment It is the first
stage of Strategic planning and helps managers to focus on key issues SWOT stands for
strengths weaknesses opportunities and threats Strengths and weaknesses are internal
factors Opportunities and threats are external factors
Strengths and weaknesses are internal factors
STRENGTHS
Largest Oil and gas company in the Pakistan
Monopoly of the company and having confidence due to govt support
Dynamic amp Strong Financial Position due to the 45 years experience
A new Exploration and innovative of Wells
Best location of business which is choosing after long process
Quality processes and procedures
Large number of field of oil and gas
Experienced and Technical Staff involving no of expert Geologist
Confidence of the Customers
All other aspect of the company that adds value to the product or service
WEAKNESSESS
Lack of marketing expertise
Undifferentiated products or services (ie in relation to the competitors)
Lack of coordination of operations
Government Influence
Untrained Staff
Slow promotion process which reduces the performance
Lack of Check and balance
Weak quality goods or services (can be only one of more than one)
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[56]Comsats Islamabad
Opportunities and threats are external factors For example
OPPORTUNITIES
A developing market such as the Internet
Mergers joint ventures or strategic alliances
Moving into new market segments that offer improved profits
A new international market
A market vacated by an ineffective competitor
Large workshops for training and development
Support of the Ministry of PampNR (Petroleum and Natural Resources)
Better Competitive Position
THREATS
A new competitor in the home market
Price wars with competitors
Fear of Privatization
Tuff Competition
Globalization is the factor which brings the strong companies in Pakistan
A competitor has a new innovative product or service
Competitors have superior access to channels of distribution
Future prospects of the organization
Currently OGDCL is operator in Nineteen Exploratory Blocks and working interest in
nine non-operated blocks In addition company has got 34 mining and D amp PL leases
Targets have been based on risks and opportunities Physical targets for the year 200-02
was envisage drilling of fourteen wells (nine exploratory and five development) 2950
Km of seismic survey production of 28111 barrels per day 730 MMcf per day gas 313
metric tons per day pf LPG and 60 tons per days pf sulphur To accelerate exploration
activities by covering 3200 km of seismic Survey and drilling of 12 exploratory wells
with the clear objective of a net increase in oil and gas reserves It is expected that
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[57]Comsats Islamabad
exploratory program will result in increase in OGDCL reservoir in oil and Gas and also
to the countrylsquos reservoir
To develop the already discovered oil and gas fields with a view to enhance production
and improve revenues of US$ 35 million per annum and 24500 barrels of oil per day
and 565605 Mmcfd of gas is expected to be produced during 1999-2000 Exploratory
wells are being drilled on various points ie
Sanjharo Norijagir Ghari amp Chanda etc from these points oil and gas are discoved to
achieve the future targets
To modernize replace and effectively maintain the drilling seismic and processing
equipment in order to keep the equipment in sound operating condition at all times
To develop OGDCLlsquos human resources through transfer of technology and training
To rationalize stores and spares inventory to the optimum level
OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from
Nandpur Panjpir to Fauji Kabirwala Power Limited All these projects are contributing
a lot of income to the OGDCLrsquos current revenues Despite number of Joint ventures and
competitors in the oil and gas sector OGDCL has drilled different concessions
independently as well as it has ventures with other companyrsquos successfully OGDCL
Seismic Crews are busy in GampG survey on different concession like Kharar Basal
Ranpathani Sanghar and Zin etc
FUTURE GOALS amp STRATEGY
OGDCL plans to drill 45 wells during current financial year (2005-06) to explore new
drillable prospects The Company has also started three new development projects ndash
Tando Allah Yar Sinjhoro and Uch-II The Company has placed great emphasis on fast
track completion of these projects and on progressive project management concepts
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[58]Comsats Islamabad
24 Recommendationsrsquo
Quarterly comparison of actual verses budgeted expenditure is carried out
to ascertain weakness and cost over-runs
Timely payment to the vendor supplier and contractors is effective tool for
image building of OGDCL To achieve this internal procedure should be
well defined which will reduce time in these payments
To save time of the employees chasing their payments employee related
payments should be excluded from the ambit of pre-audit
All accountants should be given training on different accounting modules
and chart of accounts So that monopoly and dependence on few is
eliminated
Rotation of duties should be made at regular interval to improve the overall
work output and to keep the interest of the employee intact
Responsibility of clearingcorrecting the entries should be fixed with the
section generating the activities
A professional Accountant should be assigned the job to the review of
AFEs with the collaboration of technical professionals for proper and
effective control to avoid cost over runs
For effective cost control standardization of different stationery items and
consumable is approved for purchasing in bulk from the manufacturer
directly
A good internal Control is a key to success for an organization but in
OGDCL there is a lack of internal control which should be improved and
implemented effectively
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[59]Comsats Islamabad
Conclusion
The production of oil and gas is contributing a lot in reducing the countryrsquos import bill
Power generation by IPPs (Industrial Power Projects) in the country is a major source
of energy OGDCLrsquos 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
OGDCLrsquos 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 amp 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 that are
working day amp nights for the search of Oil amp gas Besides this the corporate sector is
equipped with professionals having qualification of CAs MBAs MComs which support
the technical wings The time bound necessity is that all these professionals be given a
targets and their performance indicators be clearly 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
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[60]Comsats Islamabad
References
1 Ministry of Petroleum and Natural Resourcersquos site
2 wwwogdclcom
3 wwwgooglecompk
4 wwwksecompk
5 Pakistan industrial Reviews
6 Annual Reports of OGDCL
7 Business Recorder ldquo News Paperrdquo
8 Observer Journals
9 Interview of OGDCL MD
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-
Syed Muntazer Abbas
[61]Comsats Islamabad
Acknowledgment
All the praise is for Allah the most merciful and beneficent who blessed us with
the knowledge gave us the courage and allowed us to accomplish this task We are
especially indebted to our supervisors and teachers
Their inspiring guidance remarkable suggestions constant encouragement keen
interest constructive criticism and friendly discussion enabled us to complete this report
efficiently Without their support and proper guidance it would be almost impossible to
accomplish this task successfully
We offer our heartiest tribute and cordial gratitude to present our thanks to
General Manager OGDCL whose cooperation helped us to achieve our target We have
fortunate of having a very nice company of friends and seniors especially who cooperated
with us in all matters relating to the report
- OIL AND GAS TRAINING INSTITUTE (OGTI) (PRTI)
-
- VISION STATEMENT
- To be a leading regional Pakistani E amp P Company recognized for its people partnerships and performance
- MISSION STATEMENT
- CORE VALUES
-
- ORGANIZATIONAL STRUCTURE
- COMMENTS ON THE ORGANIZATIONAL STRUCTURE
- FUNCTIONS
- OF PERSONNEL DEPTT
- PERSONNEL (HR) DEPARTMENT FUNCTIONS
-
- Maintenance of personnel files
- Correspondence
- Pay Scale and Fixation
-
- PUBLIC RELATION DEPARTMENT
- HOUSING SECTION
-
- Functions
-
- TRANSPORT SECTION
-
- Vehicle for Entitled Officer
- Vehicle for General Duty
- Vehicle for Pick and Drops
- Verifier Field Duties
- Vehicles for Foreigners
-
- ORGANIZATION OF LEGAL SERVICE DEPARTMENT
-
- Legal Service Department
- Medical Center Department Organogram
- Manager Medical Services
- OGDCL Medical Centre Islamabad Function [
- Diagnostic Facilities
- Hospitalization
- Medicines
- Vaccination
- Ambulance
-
- PENSION AND WELFARE SECTION
-
- Welfare Section
- Functions of Welfare Section
- PENSION SECTION
-
- RECRUITMENT SECTION
-
- Functions of Recruitment Section
-
- DISCIPLINE SECTION
-
- Functions
- ODGCL Servants (Efficiency and Discipline) Rules-1973
- Penalties
- Minor Penalties
- Major Penalties
- Appeal
- Note
-
- CAREER PLANNING CELL
-
- Career Planning
-
- BASIC COMPONENTS OF THE PROMOTION CRITERIA
-
- 221 Correspondence (A section)
- 222 PENSION SECTION (F section)
- STRENGTHS
- WEAKNESSESS
- OPPORTUNITIES
- THREATS
-