Muntazir OGDCL internship Report

Syed Muntazer Abbas

INTERNSHIP REPORT OIL & GAS DEVELOPMENT COMPANY LIMITED

Submitted by

Syed Muntazer Abbas Spo5_BBA_057

Date of Submission

January 05, 2009

[1] Comsats Islamabad

Syed Muntazer Abbas

Curriculum Vitae Phone : 0302-5410934 E-mail:

[email protected] House #588, Street #9/10, Allahabad w.3 Rawalpindi Pakistan

Muntazer Abbas Naqvi Objective

Work experience

Summary of qualifications

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. OGDCL (Internship) RIRSP COMSATS

(2009-2010) (continue) APCOMS MBA(Finance) 2005-2008 BBA (Finance)

Personal Skills

COMSATS University Islamabad, Pakistan

2003-2004 Islamabad Board I.C.S (Computer Science)

Rawalpindi, Pakistan

2002 Islamabad Board Matriculation (science) 2002 Diploma in Computer UCAT Pakistan

Rawalpindi, Pakistan

 

English French [2]

Comsats Islamabad

Rawalpindi Pakistan

Rawalpindi,

Syed Muntazer Abbas    

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, Sociology. Book Reading, Internet surfing.

Computer Proficiency

Computer Hardware Windows Vista/2000/XP 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

Father’s name: D.O.B: Marital status: Nationality: Religion; NIC#:

Reference

Muhammad Akram Shah September 9st , 1984 Single Pakistani Islam 38302-5628555-7

Ghulam Abbas Khan DPA FAB HQs H 10/4 Islamabad Tel : 051-9257560 3445203740


Mohammad Tahir Assistant PTCL EWSD OML satellitown 6th Road Rawalpindi Tel : 4410060

Syed Muntazer Abbas

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

Development With a balanced, efficient and competitive structure, OGDCL explores and exploits indigenous resources for optimum production of oil and gas, besides seeking opportunities abroad. OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration concessions and holds non –operated working interest in another 7 exploration concessions. In addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it besides having working interest ownership in 28 non-operated Mining and Development & Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified and skilled expertise in the fields of geology and geophysics are frequently availed y the local and foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic surveys and data processing on contract for these companies on extremely competitive rates.


Syed Muntazer Abbas

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

Name & 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 “Finance”, the organization I have chosen for internship is “Oil and Gas Development Company Limited (OGDCL)” a major Oil & Gas Company of Pakistan having Head Office in Islamabad. The company is engaged in Exploration, Drilling and Production of Oil & 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 & 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. 5.21. 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. 51.294 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 & Accounts Department. It also discusses financial growth in profitability of the company due to new discoveries of Oil & Gas reservoirs in Sindh & Panjab areas and the


Syed Muntazer Abbas

use of latest technology in exploration, drilling and production operations of the company.

1.1. Company History Prior to OGDCL Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign oil companies entered into concession agreements with the Government. During the 1950s, these companies carried out extensive geological and geophysical surveys and drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas discoveries, exploration activity after having reached its peak in mid-1950s, declined in the late fifties. Private Companies whose main objective was to earn profit were not interested in developing the gas discoveries especially when infrastructure and demand for gas was non-existent. With exploration activity at its lowest ebb several foreign exploration contracting companies terminated their operation and either reduced or relinquished land holdings in 1961.

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 Pakistan's oil and gas prospects.


Syed Muntazer Abbas

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. OGDC's concerted efforts were very successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982. Toot oil field was discovered in 1968 which paved the way for further exploratory work in the North. During the period 1970-75, the Company reformed the strategy for updating its equipment base and undertook a very aggressive work programme. This resulted in discovery of a number of oil and gas fields in the Eighties, thus giving the Company a measure of financial independence. These include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of the Corporation.

Transition to a self financing entity Noting the Company's success, due to major oil and gas discoveries in the eighties, the Government in July 1989, off-loaded the Company from the Federal Budget and allowed it to manage its activities with self generated funds. The financial year 1989-90, was OGDC's first year of self-financing. It was a great challenge for OGDC. The obvious initial target during the first year of self-financing was to generate sufficient resources to maintain the momentum of exploration and development at a pace envisaged in the Public Sector Development Programme (PSDP) [7] Comsats Islamabad

Syed Muntazer Abbas

as well as to meet its debt servicing obligations. OGDC not only generated enough internal funds to meet its debt obligations but also invested enough resources in exploration and development to increase the country's reserves and production.

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

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

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.

1.2. Objectives a. Developing E & P Work Flow Models for Data Integration and connectivity. b. Conduct geoscientific, algorithms and systems architecture research leading to the development of robust, interactive and user-friendly geosciences applications software that are tightly integrated into the workflow environment. c. Detailed testing of the developed applications to achieve the highest performance. d. Detailed testing of the developed applications to achieve the highest performance. e. Training and systems support to the end - users.

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

MISSION STATEMENT Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing our reserves through world class workforce, best management practices and technology and maximizing returns to all stakeholders by capturing high value business opportunities within the country and abroad, while being a responsible corporate citizen.

CORE VALUES 

Merit



Safety



Integrity



Dedication



Team Work



Innovation


Syed Muntazer Abbas

ORGANIZATIONAL STRUCTURE

Chairman Board of Directors Manag ing Director Company Secretary

E.D (Admin) GM (Admin) Manag er (Admin) Chief (Admin) Dy . Chief (Admin) Sr. Admin Off icers Admn Off icers Admn Section

E.D (Finance/ Accounts) General Manag ers

Chief Staff Off icer

E.D (Exploration)

E.D (Drilling)

General Manag ers

General Manag ers

Manag ers

Manag ers

Senior Account Off icers Account Off icers Finance/ Account Sections

Chief Engineers

Chief Engineers

Principle Engineers

Principle Engineers

Senior Engineers

Senior Engineers

Junior Engineers

Junior Engineers

Exploration Staff / Sections

Drilling Staff / Sections


General Manag ers Manag ers

Manag ers

Chief Account Off icers

E.D (Corporate Aff air)

Chiefs (Corporate) Dy . Chief s (Corporate) Senior Corporate Off icers Junior Corporate Off icers Corporate Staff / Sections

Syed Muntazer Abbas

Main Offices OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational structure / organogram is as under A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer. Following are the main offices located throughout Pakistan: 1.

OGDCL Head Office, Jinnah Avenue Islamabad.

2.

Pirkoh Gas Company Private Limited, Islamabad.

3.

OGDCL Regional Office, Shafi Chamber, Karachi

4.

OGDCL Regional Office, Multan

5.

OGDCL Liaison Office, Quetta

6.

OGDCL Liaison Office, Sukkur

7.

OGDCL West Wharf Office, Karachi

8.

OGDCL Base Store, Islamabad

9.

OGDCL Base Store, Khadiji, Karachi

10.

OGDCL Base Store, Korangi

11.

OGDCL Base Store, Kot Addu

12.

OGDCL Base Store, Kot Sarang

13.

Medical Centers, Islamabad, Rawalpindi & Karachi

14.

OGDCL Workshops, Islamabad

15.

Oil & Gas Training Institute, Islamabad.


Syed Muntazer Abbas

MAIN DEPARTMENTS A: CORPORATE DEPARTMENT Administration

Medical

Human Resource Department

Corporate Affairs

Personnel

Aviation

Security

System Support

Legal

OGTI

Communication

G & R Lab

Supply Chain Management

Secretariat

Material Management

Internal Audit

Finance & Accounts Career Planning Cell Environment Protection & Safety

B: E&P DEPARTMENTS 1.

Exploration Prospect Generation

2.

Exploration Studies & Research

3.

Exploitation

4.

Production

5.

Process

C: TECHNICAL SERVICES DEPARTMENT 1.

Drilling

8.

Stimulation

2.

Engineering/Workshops

9.

Geological

10.

Seismic

/

Geophysical 3.

Mud Engineering Processing

4.

Well Services Department

11.

Logistic

5.

Cementation

12.

Data Logging

6.

Geological Well Supervision

7.

Wire line Logging [12]

Comsats Islamabad

Data

Syed Muntazer Abbas

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

COMMENTS ON THE ORGANIZATIONAL STRUCTURE

All policy related issues are dealt by the board of Directors that is headed by a non-executive Chairman and a full time Managing director. The general direction, policies and affairs of the Company vests in a Board of Directors, which consists of 01 Chairman, 10 Directors and 01 Managing Director (MD). MD is responsible for operational and other activities. The OGDCL has been re-organized during the last few years; it now operates much purely as Oil Company does. Emphasis is on Professional Competence and getting things done. OGDCL can broadly be divided in to following three companies:  Corporate  Exploration & Production (E& P )  Technical Services The whole organization has been streamlined on the functional basis and it has emerged as an efficient unit, while speed and competence are its Hall Mark. It is now divided into separate departments and each department is in a position to work independent business unit. For effective operational activities, different Executive Directors performs following activities in consultation with General Managers, who are assisted by the concerned Departmental Managers:


Syed Muntazer Abbas

NO OF EMPLOYEES DOMICILE AND GROUP-WISE SUMMARY OF OVERALL OFFICIALS PAY GROUP

DOMICILE

TOTAL

MeritPUNJAB SINDH URBAN RURAL TOTAL

IN THE NWFP BALUC- FATA AK GROUP HISTAN

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

69

13

20

33

15

11

8

6

154

205

252

457

205

63

55

30

1905

TRAINEES12 TOTAL

143 952


Syed Muntazer Abbas

OVERALL STAFF

PAY GRO UP

DOMICILE

TOT

Mer PUNJ SINDH it

AB

URB

RUR

TOT

AN

AL

AL

NW

BALU FAT A

FP

C-

A

K

AL IN THE

HIST

GRO

AN

UP

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

27

2

3

8

8

0

1

53

1654

2303

727

917

30

22

9194

TRAIN 6

1

EE TOTAL 40 4954 649

3


Syed Muntazer Abbas

STRUCTURE OF THE FINANCE DEPARTMENT Finance & 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 & 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:

Executive Director Finance

General Manager

Manager

Chief Accountant

Dy Chief Accountant

Sr. Accountant

Accountant

Assistant Accountant

Accounts Assistant

Jr. Accounts Assistant


Syed Muntazer Abbas

EXECUTIVE DIRECTOR (Finance)

Director Finance is a member of Board of Directors and represents the Finance and Accounts Department.

G M - Finance/Accounts/Treasury General Managers reports to DF and is responsible for overall activities of Finance & Accounts Department.

The overall structure of the Finance

Department and the relevant category of professionals is given on next page.

Managers - Finance/Accounts/Budget & Accounts/Joint 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 job/assignments 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 & Accounts) Manager (Budget & Accounts) reports to GM (Finance). The work of Budget & Accounts is distributed between six sections. [18] Comsats Islamabad

Syed Muntazer Abbas

 Budget and AFE Section  Final Accounts  MR section  EDP Management and Training  Projects

MANAGER (Stores & Fixed Assets) Manager (Stores & 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 & 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

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. Employee’s advance section 7. Field Imprest Section 8. Final account section

Number of Employees working in Finance Department Total employees working in the Finance & Accounts Department are 254, out of which there are 74 Officers and 180 staff members.


Syed Muntazer Abbas

ORGANOGRAM OF PERSONNEL DEPARTMENT Amjad Javed Manager (Personnel)

Sheikh Fareed PO(E)

Khalid Pervez D.M (B,D,Pen&EOBI)

Jiger Muhammad DCPO(C)

Mukhtar Ahmad DCPO(A)

Sabir Hussain PO(F)

Rana Shaukat SPO(B)

Muhammad Khalid PO(D)

Khursheed A. Hashmi DCPO (Coord)/ PS(G)

Muhammad Younas PO (EOBI/Pen)

Muhammad Iqbal Khan Programmer Computer Sec

Abid Aslam *D.P.O

Sections of Personnel Department A

B

C

D

F

G

EOBI / PENSION

COMPUTER

Total Officers : 13 Total Staff

: 97

Data Processing Officer


E

Sheraz Muhammad *D.P.O

Syed Muntazer Abbas

FUNCTIONS OF PERSONNEL DEPTT. 1. Maintenance of service record of employees from their induction to retirement and beyond. 2. Transfers –Postings. 3. Maintenance of seniority. 4. Handling of Personnel grievances. 5. Processing of Pension / EOBI and retirement cases. 6. Implementation of CBA Management’s agreement’s after every two year’s duration.. 7. Maintenance of Database-Computerization. 8.

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

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

Official than concerned department will approval them and send to t6he personnel section. In short any type of personal problem or work will maintain in his personal files with personnel department. It’s called correspondence.

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

2.

Staff

3.

Contractual Staff

(EGI - EGIII) (1 - 16)

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 OGDCL’s functions that what OGDCL is doing. For the development of oil and gas sometime press conference also arranged for this purpose. Public relation department deliberate plan and sustained efforts to established and maintain natural understanding between an organization and its public. It also performs the function to maintain the relation between the management and staff. Public relation department operates various methods and procedures to inform the public. Various types of newspapers are mostly used to inform the public. Through newspapers they give advertisement about OGDCL.


Syed Muntazer Abbas

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

Hiring of houses for the employees of OGDCL.



Hiring of building for offices and lodges at Islamabad.



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

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

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

Vehicle for Entitled Officer Manager they provide official vehicles for duty.

Vehicle for General Duty For each department they provide special vehicle for emergency cases.


Syed Muntazer Abbas

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

Medical Center Department Organogram Manager Medical Services It is the head of the medical services and is responsible for, 

To manage the medical centers of the corporation.



To provide medical facilities to the corporation employees.

OGDCL Medical Centre Islamabad Function [ 

To check the OPD patients



To check the OPD bills.

Every year medical centre make an arrangement with any drug store on 6% discount. It is a permanent discount so after check up, the patient may receive the drugs from that particular drug store. For verification the owner of the drug store send bills to the DCMO at the each month. DCMO checks and make verification and signed on those bills. After that they refer the bills to the account department for payment. Vaccination programmed is also processed in MC. They keep money for vaccination. Diagnostic Facilities X-ray and laboratory diagnostic facilities are available at M.C Islamabad. Hospitalization Patients are referred for hospitalization as and when required to hospital/nursing, homes /specialist on the panel of the corporation and re-imbursement is allowed when such facilities are not availed.

Medicines Medicines are provided to patients from entitle panelist chemist through prescription. Emergency drug are also kept at both medical centre to meet any emergency. Vaccination Vaccination facilities for children are available at both medical centers and every Monday is specially fixed for this purpose.


Syed Muntazer Abbas

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

PENSION AND WELFARE SECTION Welfare Section It is just like a bridge between the union and management. It is also a proper channel between the two bodies.

Functions of Welfare Section Various types of functions performed by the welfare section are as under:

To deal with union matters.



To provide facilities to the staff members of their families.



Grant of house building advance.



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



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



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

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

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. [27] Comsats Islamabad

Syed Muntazer Abbas

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 – Special Trainees Hiring through Contractor Classified appointment


Syed Muntazer Abbas

SELECTION COMMITTEES FOR RECRUITMENT FOR EG-VIII AND ABOVE Managing Director and Members of Human Resource Committee. FOR EG-VII AND EG-VI Managing Director

Chairman

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

Member

Executive Director (Concerned)

Member

Professional / Expert in the relevant field/discipline

Member

Preferably having PhD or Master degree in the Relevant subject. Head of Department Concerned

Member

FOR EG-V TO PS-15 Executive Director (Admin)

Chairman

Executive Director (Concerned)

Member

Head of Department Concerned

Member

Head of Department Concerned Professional/Expert

Member

Head of Department Concerned

Member

DISCIPLINE SECTION Functions Discipline section deals with those matters which depend upon any misbehavior, misconduct 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. [29] Comsats Islamabad

Syed Muntazer Abbas

ODGCL Servants (Efficiency and Discipline) Rules-1973. Government servant (efficiency and discipline) rules 1960 which were adopted in the draft service rules vide part-II statutory notification (SRO) govt of Pakistan cabinet secretariat(established division) notification No.SRO-1213(1)/73 published in the gazette of Pakistan enter ordinary dated 18-08-1973.These new rules have been adopted by the oil and gas developing company limited and matters relating to efficiency and discipline of the employees shall henceforth be governed by the OGDCL servants rules 1973 being issued as annex.

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



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

CAREER PLANNING 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. M.N.AA, 0103-15 dated 12 November, 1984, where after a few clarifications were also issued from time to time. However, there have been some problems in application of the promotion criteria in some cases. Therefore to remove these difficulties, the promotion criteria has been reviewed and revised under the guidance of the executive directors.


Syed Muntazer Abbas

The revised promotion criteria are notified herewith which shall be effective from first July, 1991.

Performance appraisal Yearly performance reviews are critical. Organizations are hard pressed to find good reasons why they can’t dedicate an hour long meeting once a year to ensure the mutual needs of the employee and organization are being met. Performance review help supervisors feel more honest in their 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 management’s time to do what isn’t being done properly. The scoring system is also having a major impact on effective performance appraisals. The

accuracy

and

reliability

of

any

scoring

system

increases

with

full

descriptions/definitions, and 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



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

Quantification of ACRs (Example) (EG-II to EG-IX) Existing Quantification of ACRs is carried out as explained in the following hypothetical example ***Formula

**Formula

A1 = A = B = C = D =

Very Good Good Average Below Average

Very Good 10 Marks Good 07 “ Average 05 “ Below Average 01 “ Poor 00 “

Year

***Integ-rity

1998 1999 2000 2001 2002 Score

Good Good Good V. Good Good 38

***Work Output Quality Good Good Average Good Average Average V.Good Good V.Good V.Good 37 (36.5) 36

12 Marks 09 “ 05 “ 00 “

**Overall 1998 1999 2000 2001 2002

Good Good Average V.Good V.Good 47

(Out of 60) Integrity Work Overall Grading

46 44 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 Requisite Qualification Training course (4 months duration) Technical Publication Relevant experience

44 05 02 18

Marks Obtained

69%


Syed Muntazer Abbas

Performance

Evaluation

(ACRs)

No. of ACRs



Officers

1600

Staff Employees

4438

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



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



Maintenance of proper record, its secrecy & integrity very important



Convey Adverse entries to officers/staff employees



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

Activities (ACR) 

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



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



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


Syed Muntazer Abbas

Difficulties (ACR)



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



Clearly written out instructions notwithstanding, over-writing, use of fluid, mere marking instead of initials are the most commonly observed problems



Lack of consistency in various parts of ACR is frequently noticed

BASIC COMPONENTS OF THE PROMOTION CRITERIA Basic component of the promotion criteria with their relatives weight age would be as under;1. Qualification

15%

2. ACR’s

25%

3. Seniority

05%

4. Relevant experience including experience outside OGDCL

15%

5. Assessment by the promotion Committee

40% -------------------------

Total

100% -------------------------

These five basic components are analyzed before promotion criteria. When any employee qualifies these components then he will be promoted with the approval of the chairman. For every employee it is necessary to get minimum 60% marks in above components. Besides this, the promotion also observes that where any position is vacant or not whether the employee who is promoted, meet the requisition of qualification for that particular job. Where he is performing job for last five years where his record in past is clear. So, after these observations they take action for promotion. Deputy Chief Personnel officer is the incharge of the section.


Syed Muntazer Abbas

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

:

60%

Qualification

:

15%

Technical Publications

:

05%

Relevant Experience

:

20%

Seniority cum fitness is the guiding principal in promotions

PROMOTIONS STAFF

EMPLOYEES

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

highlights

are:

ACRs

:

25%

Qualification

:

15%

Seniority

:

05%

Experience

:

15%

Evaluations

:

40%


Syed Muntazer Abbas

Promotions – Flow Chart Recommendations of the Head of the Department

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

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

Completed case submitted before Departmental Promotion Committee

Approval of the Managing Director/Board of the Directors

Promotion Notification

IMPORTANT FACTORS FOR PROMOTION 

Experience for the Post



Number of Years in the Vacancy



Seniority



Performance: ACRs Synopsis/Quantification



Prescribed Qualification



Requisite Present Executive Group



Disciplinary Profile


Syed Muntazer Abbas

Promotions Average – Year-wise Officers

Year

Average

01 Officer promoted daily

2003 2004

03 Officers promoted in five days

2005

01 Officer promoted in three days

2006

03 Officers promoted in four days

Promotions Average – 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

Promotions Average – Year-wise Grand Total Officers & Staff Promoted

Year

Average

2003

07 Officers & Staff promoted in two days

2004

08 Officers & Staff promoted in three days

2005

04 Officers & Staff promoted in three days 01 Officer & Staff promoted daily

2006

Promotions – Year-Wise (2002-2007 Year wise performance in connection with promotions for last five years is as follows:Officers

Officers

(EG-VI & above)

(Upto EG-V)

2002

58

247

737

2003

0

191

624

2004

48

44

300

2005

35

187

96

2006

0

22

365

Years


Staff

Syed Muntazer Abbas

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 unnecessary correspondence



There is lack of effective communication among departments which causes unnecessary wastage in time and efforts



Absence or lack of clarity of promotion channels



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


Syed Muntazer Abbas

Statement of Promotion – 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

Statement of Promotion – 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

Statement of Promotion – 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

1.4. Products and Services Offered Business Volume Exploration, Development, Reserves and Production Being largest E & P Company in Pakistan: OGDCL holds 115 million barrels of oil and 10.5 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 39,130 barrels of oil, 919 MMcf of Gas and 334 Tons of LPG. OGDCL’s current concession portfolio comprises of 25 concessions and a reconnaissance permit covering an area of 59,968.6 sq. kms which constitute 30% of total exploration area granted to various E&P companies in Pakistan. The Company also holds nonoperated 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. OGDCL’s 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 Hundi/Sari. OGDCL so far has drilled 198 exploratory wells and 246 development wells and has made 60 oil and gas discoveries.


Syed Muntazer Abbas

Product Lines The main product lines of the company are as under:

1.4.1. 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 & Rajian.

1.4.2. 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.

1.4.3. 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.

1.4.4. 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.

1.4.5. 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.

1.4.6. 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.

1.4.7. 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.

1.4.8. Sulphur A yellow mineral extracted from petroleum for making fertilizers, pharmaceuticals and other products. The sulphur is produced at the Dakhni oil & Gas field near Jand, Attock


Syed Muntazer Abbas

Product

Units

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Crude Oil

Thousands

8,535

8,705

9,413

9,941

13,045

12,956

Barrels Gas

MMcf

217,927

245,537

274,006

277,408

329,385

336,059

LPG

M.Tons

77,402

93,136

90,304

101,322

120,063

128,654

Sulphur

M.Tons

16,670

23,234

15,889

18,917

25,884

22,006

White

Thousands

998

989

859

890

885

959

Petroleum

Barrels

Products

PRODUCTION OF CRUDE OIL

2007-08 S.No.

Name of Company

Barrels per day

1

OGDCL

31,370

2

BP-Pakistan

16,559

3

POL

10,324

4

PPL

3,645

5

OPI

1,880

6

BHP

1,714

7

Eni

330

8

MOL

153

9

OMV

98

10

Petronas

22

TOTAL

66,095


Syed Muntazer Abbas

PRODUCTION OF CRUDE OIL (Barrels per Day) 6%

3% 3%

0%

16%

47%

25%

OGDCL OPI OMV

BP-Pakistan BHP Petronas

POL Eni

PPL MOL

PRODUCTION OF NATURAL GAS

2007-08

S.No.

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

3,685


Syed Muntazer Abbas

PRODUCTION OF GAS (MMCFD) 6% 2%

1%

1%

7%

23%

11% 22%

12% 15% OGDCL Eni POL

PPL BHP Others

OMV BP-Pakistan

LPG(M.Tons)


MGCL OPI

Syed Muntazer Abbas

Sulphur (M.Tons)

White pertoulem products (Barrels)


Syed Muntazer Abbas

2. Learning & Experience 2.1. Internship Duration & Rationale for Selection Since my area of specialization is “Finance”, the organization I have chosen for internship is “Oil and Gas Development Company Limited (OGDCL)” a major Oil & Gas Company of Pakistan having Head Office in Islamabad. I have done internship in this organization for 6 weeks 30.06.2008 to 20.08.2008. The company is engaged in Exploration, Drilling and Production of Oil & 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. 51.294 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 & Accounts Department. It also discusses financial growth in profitability of the company due to new discoveries of Oil & Gas reservoirs in Sindh & 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 it’s 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

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

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

2.2. Details of Training Department Wise / task performed I have done work in 6 departments in OGDCL these are:

2.2.1 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. It’s called correspondence.

2.2.2 PENSION SECTION (F section) I have work in this section for 1 week.In 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

2.2.3 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

2.2.4 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. 2.2.5 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

2.3 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 & 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 (i.e. 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

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 P&NR (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 & PL leases. Targets have been based on risks and opportunities. Physical targets for the year 200-02 was envisage drilling of fourteen wells (nine exploratory and five development), 2950 Km of seismic survey, production of 28,111 barrels per day, 730 MMcf per day gas, 313 metric tons per day pf LPG and 60 tons per days pf sulphur. To accelerate exploration activities by covering 3,200 km of seismic Survey and drilling of 12 exploratory wells with the clear objective of a net increase in oil and gas reserves. It is expected that [56] Comsats Islamabad

Syed Muntazer Abbas

exploratory program will result in increase in OGDCL reservoir in oil and Gas and also to the country‘s reservoir. To develop the already discovered oil and gas fields with a view to enhance production and improve revenues of US$ 35 million per annum and 24,500

barrels of oil per day

and 565,605 Mmcfd of gas is expected to be produced during 1999-2000. Exploratory wells are being drilled on various points i.e. Sanjharo , Norijagir, Ghari, &, Chanda etc; from these points oil and gas are discoved to achieve the future targets. To modernize, replace and effectively maintain the drilling, seismic and processing equipment in order to keep the equipment in sound operating condition at all times. To develop OGDCL‘s human resources through transfer of technology and training. To rationalize stores and spares inventory to the optimum level. OGDCL is providing gas to IPPs like Uch power from Uch Gas Filed Project and from Nandpur / Panjpir to Fauji Kabirwala Power Limited. All these projects are contributing a lot of income to the OGDCL’s current revenues. Despite number of Joint ventures and competitors in the oil and gas sector, OGDCL has drilled different concessions independently as well as it has ventures with other company’s successfully. OGDCL Seismic Crews are busy in G&G

survey on different concession like Kharar, Basal,

Ranpathani, Sanghar and Zin etc.

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


Syed Muntazer Abbas

2.4. Recommendations’ 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 clearing/correcting 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. [58] Comsats Islamabad

Syed Muntazer Abbas

Conclusion The production of oil and gas is contributing a lot in reducing the country’s import bill. Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy. OGDCL’s Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have now started supplying Gas to power companies. This not only meeting the requirement of the IPPS but also contributing a lot towards meeting the demand of electricity in the country. OGDCL’s contribution to the national exchequer in the form of royalty; excise duty, debt servicing, and taxes are a huge support as compared to the other state owned organizations. OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil companies to boost up the efforts for increasing the Oil & gas demand of this country... Oil and gas Training Institute (OGTI) is providing training facilities and meeting the requirements of highly trained, motivated, and improved human resources. OGTI designs and implements programme to develop and expand the technical and managerial skills of professional to meet the fast changing challenges to the company. A total of about 150 courses in service disciplines are conducted during every year. The quality of an organization is dependent on the quality of its work force. OGDCL has engaged top professionals in Geology, Drilling, Engineering, and production that are working day & nights for the search of Oil & gas. Besides this, the corporate sector is equipped with professionals having qualification of CAs, MBAs, M.Coms, which support the technical wings. The time bound necessity is that all these professionals be given a targets and their performance indicators be 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

References 1. Ministry of Petroleum and Natural Resource’s site. 2. www.ogdcl.com 3. www.google.com.pk 4. www.kse.com.pk 5. Pakistan industrial Reviews 6. Annual Reports of OGDCL 7. Business Recorder “ News Paper” 8. Observer Journals. 9. Interview of OGDCL MD.


Syed Muntazer Abbas

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.


Muntazir OGDCL internship Report

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