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.

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EXECUTIVE SUMMARY
I did an eight weeks internship at OGDCL as a compulsion for my MBA degree from CECOS University of IMIS Peshawar. It is a necessity for every student to do internship With any organization relevant to their fields. This demand is a way of familiarizing the students with the practical world which they intend to enter after completion of their education. During the period of my internship I got an opportunity to understand the organization and apply my knowledge and theoretical concepts in a better manner. This report precisely states my experience. The following report has been written on the format provided by the University administration. It initiates with an introduction of the companys background and proceeds with its contribution to Pakistans economy. OGDCL forms the industrial base of our country and plays a dominant role in Energy generation activities to support the nation on the whole. This sector dates back to the creation of Pakistan and ever since owing to its importance it has been pampered by all sectors of production. I interned in the H.R department of OGDCL Kohat and this report elaborates my experience and understanding of the, issues and human resource requirements of the company. I have also talked about the Operation and function of the OGDCL, HR and market analysis all show positive results and bright future of the company. in the following industry of our country. Other than a few pits that I discovered which include lack of use of modern technology, bureaucratic, hierarchical structure and nepotism the overall analysis of the Company represents a very positive and influential picture which is why it has been profitable over the years.

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PURPOSE OF THE STUDY

I did an eight week internship an O.G.D.C.L in Kohat branch for the purpose of to complete the internship report. The main purpose of the internship at O.G.D.C.L in Kohat that it is partial requirement of M.B.A student work in an organization for specific period of time and write a concrete report about that organization. The internship at O.G.D.C.L had certain objectives such as ; To study the impact of O.G.D.C.L in national economy. To get knowledge about various department of O.G.D.C.L. To get knowledge about daily business activity . To know about the companies operations. To get experience about the practical life.

SCOPE OF THE STUDY

As O.G.D.C.L is huge organization, so all the aspect and working of this institution can not be covered in limited period of eight weeks. So the main focus in the report are Schemes and different operation of the O.G.D.C.L.Besides this, SWOT analysis and personnel function is also included in the report

.METHODOLOGY OF STUDY
In preparation of this report I used two methods of collecting data; PRIMARY DATA

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In primary data collection I interviewed different officers for this purpose. I paid many visits to O.G.D.C.L of Kohat branch .while conducting interview from head of H.R department in the all informed is collected systematically. For this purpose I prepared the questioner and asked all the detailed function and procedure of theire departments. All officers fully co-operated with me and provided all the necessary information .Personal observation is also included in this method .

SECONDARY DATA
Secondary data are previously collected and assembled. Secondary data can almost always be gathered faster and at a lower cost then primary data .In collection of secondary data were; Annual reports of the O.G.D.C.L. Record maintain by company. Reading News paper, Megazines. Using Internet to get help.

LIMITATION
There are some limitation which I had to face during the internship program such as ; Shortage of time to complete my work accurately. Staff members avoided to give every information they kept most of the data secrets. Branch manager, operational manager and theire staff members have theire own matters of responsibilities of work, and it was a great problem for us to spend the time with me. Lack of co-operation by some employees because they were non research oriented . Lack of accuracy of the data.

Main office address

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 HRM, the organization I have chosen for internship is Oil and Gas Development Company Limited (OGDCL)

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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. The report covers the overall operations of the company with specific emphasis on its HR function and operation . It also discusses financial growth in profitability of the company due to new discoveries of Oil & Gas reservoirs in different areas and the use of latest technology in exploration, drilling and production operations of the company.

CENTRAL BACKGROUND INFORMATION

Oil and gas sector has been the oldest industrial base for Pakistan and the World around us. It is the source of all kind of activities geared towards the Generation of energy, for the use of other industries and activities that support the economy of a nation. This reason alone has let the energy sector to be pampered by all the sectors of production and society around us. The setup of oil and gas related infrastructure and institutions started with the formation of Pakistan. The then governments (in the first decade of formation) did take some very useful decisions for the later generations of Pakistan. They made sure that our energy needs were made secure enough so that we could count on them. Many energy generation and exploration projects were started which really proved useful in that decade of intense growth of industrial development. These explorations fueled the development process further to attain one of the fastest growths in the history of Pakistan. This also proves that if these projects werent initiated may be the picture would have been much different and grotesque today. INDUSTRY OVERVIEW In the public sector many companies and firms are operating including OGDCL, PPL, PSO, SSGCL, SNGPL and PARCO. Private sector companies of Pakistan have done a formidable job in attracting much needed investment and also in fulfilling much of the strategic fuel needs of

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Pakistan. Major Private Sector companies include: British Petroleum (BP), Asia Petroleum Limited, Shell Pakistan, OMV Pakistan, Attock Petroleum Limited (APL) and Chevron (Caltex) private limited. ENERGY SUPPLIES OF PAKISTAN The primary commercial energy supplies for the year 2006-07 in Pakistan have been 60.4 million tons of oil equivalents (mtoe) from 57.9 mtoe in 2005-06. Natural Gas holds a share of 48.5% in primary energy supplies followed by oil 30.0%, hydro electricity 12.6%, coal 7.3%, nuclear electricity 0.9% and LPG 0.5% while imported electricity is only about 0.1%. PETROLEUM Fuel or petrol has many forms and is one of the most important energy constituent as the world today depends on it. Most of its transportation and many other needs would remain unfulfilled if this energy source is notavailable in a timely manner or as per requirement. The total amount of identified recoverable reserves of crude oil, according to the report of GSP (Geological Survey of Pakistan) are 341.800 million barrels. The average production of crude oil during the 2006-07 was 67,438 barrels per day. During the same period a total of 36 wells were drilled. The number of development wells drilled during 2006-07 was 41. The drilling effortsresulted in 17 discoveries mostly of gas/condensate, out of which, 10 were by OGDCL and 7 by the private sector. The consumption of Petroleum products in 2007 was 1685 million tons. The percentage share of different sectors in its consumption is as follows: Households (0.6) Industry (9.5),agriculture (0.6), Transport (47.4), Power (40) and others (1.9) percent. There is excessive increase in the demand for Petroleum since the number of vehicles has increased at an alarming rate. This demand for petroleum is expected to increase consistently over the years Major products or kinds used and produced in Pakistan are Motor Spirit, Kerosene, HOBC (High octane blending component), Diesel (HSD and LDO),Furnace oil, Aviation Fuels and Naphtha. We export various by-products of petroleum and in fact crude oil itself when it becomes more than necessary and when there is no stocking space left in the storage depots. INFRASTRUCTURE At present the publicly owned shipping vessels in the industry are only 3;held by NTC (National Tankers Corporation). Since 80% of our oil requirements are fulfilled through the import of oil, our port facilities are (6)

of absolute importance for the Petroleum sector. We have 2 major ports in the country: Karachi and Port Qasim. Bulk of the traffic is handled by the Karachi Port. Pipelines are the major transportation mode in the transfer of oil to different locations. There are a variety of pipelines operating in the country namely PARCO, Mahmood Kot-Faisalabad-Machike (MFM) Pipeline, APL FuelOil Pipeline, White Oil Pipeline Project, Machike-Taru Jabba Pipeline Project(MTJPP) and the trans-Karakoram oil pipeline. Refineries and the OMCs havekey installations and terminals to receive and store crude and petroleumproducts in Karachi (Keamari, Korangi, Zulfiqar abad, and so on), MahmoodKot (mid-country) and Morgah (Rawalpindi). In addition, the PARCO pipelinesystem has its own terminals at Korangi, Gujrat (midcountry), Faisalabad and Machike.

Safety
Upstream (Oil Exploration companies e.g. GSP) Mid Stream (Oil Refining Companies e.g. PARCO ) Down Stream (Oil Marketing Companies e.g. Shell) The Upstream sector of our Petroleum industry consists of the Oil exploration and extraction companies. The Midstream sector represents the oil refineries operating in the sector. The downstream sector comprises of the firms that directly market the petroleum and its byproducts to the final consumer. PIPELINE NETWORK Pakistan has the worlds second largest pipeline network after America in the world which is being run by two companies namely the SNGPL and SSGCL. The transmission system of SNGPL is in Punjab and NWFP. The key installations for Gas are the areas where it is discovered, since it's from there that the gas is being pumped into the pipeline system of the country. For example the main Transmission system for most of Pakistan is situated near Sui. Gas is brought out from the gas fields, processed sent to the distribution networks and from there sent to the consumers as required. There is a vertically integrated environment for Gas sector. The upstream sector consists of different companies that may or may not be involved in the petroleum sector as well . .

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Many companies are operating exploratory wells and development drilling wells in Pakistan. Midstream sector is processing gas and distributing it to networks for transporting and home delivery. Downstream sector is where the gas is supplied to the end users the main suppliers being SSGCL and SNGPL who have been marketing and setting the price for different consumers.

COMPANY BACKGROUND
ESTABLISHMENT The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in 1961, to undertake comprehensive exploratory program and promote Pakistans oil and gas prospects. In 1997, it was converted into a Public Limited Company and is now governed by the Companies Ordinance 1984. OGDCL is the largest petroleum exploration & production (E&P) company in the Pakistan oil and gas sector based on recoverable reserves, hydrocarbon production and exploration acreage holding. As at June 30, 2006, OGDCL held the largest portfolio of recoverable hydrocarbon reserves of Pakistan, at 32% of gas and 37% of oil, respectively. In addition, OGDCL contributed 22% of the countrys total natural gas production and 48% of its oil production on net basis. Prior to 23rd October 1997, OGDCL was a statutory Corporation and was known as Oil & Gas Development Company. It was incorporated as a Public Limited Company w.e.f. 23rd October1997 and became known as Oil & Gas Development Company Limited. In November 2003, Government of Pakistan (GOP) divested 5% of its shareholding in OGDCL by way of an Initial Public Offering (IPO) on the Pakistani Stock Exchanges. Subsequently, in December 2006, GOP divested another 10% of its stake in OGDCL in the form of Global Depository Shares and listing of the Company on the London

HISTORY AND INTRODUCTION

Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and oil marketing. Pakistan understands the importance of this industry for its economic uplift. Therefore the government of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of

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total consumption, saving Pakistan from imports and contributing to economy by paying different charges to the government . 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 alochistan. 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 review exploration in the energy sector the Government of Pakistan signed a long-term loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubles to finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC was created under an Ordinance dated 20th September 1961. The Corporation was charged with responsibility to undertake a well thought out and systematic exploratory programs and to plan and promote Pakistan's oil and gas prospects. As an instrument of policy in the oil and gas sector, the Corporation followed the Government instructions in matters of exploration and development. The day to day management was however, vested in a five-member Board of Directors appointed by the Government. In the initial stages the financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the risk capital.

DEVELOPMENT
OGDCL plays a leading role in developing oil and gas resources in Pakistan. Our principle objective is to first expand and accelerate onshore exploration and development activities and, contingent upon theses activities, undertake carefully selected offshore and international development activities to augment our oil and gas resources . With a balanced, efficient and competitive structure, OGDCL explores and exploits digenous 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 (9)

database. It also leases out its drilling rigs to the private sector and carries out seismic surveys and data processing on contract for these companies on extremely competitive rates. OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total oil and 37% of total gas reserves. Its percentage share of During the last 42 years OGDCL has grown into a technically and commercially viable organization.

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

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)

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.

AIMS AND OBJECTIVES OF OGTI

The aims and objectives of OGT are to identify the training needs of the industry, offer practical training programmes to professional of the petroleum industry, provide training advice and guidance to OGDC and to help established standards for training which will meet the performance needs in the field and on the job. OGTI is dedicated to: Establish courses and in-house training programmes which will meet the specific needs of OGDC and the Pakistan petroleum industry. Designing training material that recognizes the capabilities and specific needs of newly hired employees and those who change their job assignment. Providing refresher and upgrade training for industry personnel in cost effective manner. In-house basic training programmes are being designed and developed to provide a base level of training which employees require to function in their jobs. OGDC recruits men from all across Pakistan. The universities and technical do not provide the full range of subject matter necessary for a graduate entering the petroleum industry. It is OGTIS (11)

intention to ensure that the individual has an opportunity to obtain this training within his first two years with OGDC. In addition to basic training courses, OGTI will Organizes inhouse technology update seminars.

Transition to a self financing entity .

In July in 1989 the company was off loaded from the federal budget and allows it to manage its activity with its own generated funds. The government allows the company to generates its funds with its own revenue So now O,G,D.C.L generates all of its financial activities from its own revenue

Conversion into public limited company.

Prior to 23 oct 1997 O.G.D.C.L was a

Situritory corporation known as O.G.D.C(oil and gas development corporation).it his been incorporated as a pubic limited company in 23 oct 1997 and is now known as O.G.D.C.L(oil and gas development company limited.

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

MISSION STATEMENT
Its 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
In OGDCL merit are highly promoted with integrity. OGDCL also believe on innovation by using teamwork so the company dedicated different types of products with complete safety to the country.

CORE VALUES
Merit Integrity Team Work Safety Dedication Innovation.

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GOALS
OGDCL

objective is to expend their business and the company also is in struggle to double the value of the company in the next five years. Maximize profit by i investing surplus funds in profitable avenues (a broad road or path). Reduce cost and time overruns to improve performance results.

OBJECTIVES.
( a.) Developing E & P Work Flow Models for Data Integration and connectivity. (b) .Conduct geoscientific (earth science), algorithms and systems architecture research leading to the development of strong and healthy, 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.

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BOARD OF DIRECTORS
Mr. Kamran Lashari Mr. Muhammad Naeem Malik Mr. Muhammad Ejaz Chaudhry Mr.Tariq Faruque Director Syed Amir Ali Shah Mr.Wasim A. Zuberi Mr.FahdShaikh Director Mr. Kaiser Bengali Mr.Ahmed Bakhsh Lehri Syed Masieh-ul-Islam Mr. Muhammad Naed). users. .Senior Management. Mr Naeem Khalid Mr. Aftab Ahmad Mr. Masood Nab Executive Director Executive Director Mr. Khalid Jamil Khan Managing Director/Chief Executive Officer Executive Director (Strategic Business Planning & Legal Services) Executive Director (Joint Ventures) Mr. Asif Saeed Sindhu (Finance)/ Chief Financial Officer Mr. Arif Ibrahim (HR/Admin) General Manager (Supply Chain & Material Management) General Manager/Incharge(HSEQ) Mr. Basharat A. Mirza General Manger/ Incharge General Manager/ Incharge General Manager General Manager General Manager Mr Ejaz Muhammad Khan General Manager (Projects) Mr. Tariq Majeed Jaswal (Exploration) Mr. Muhammed Riaz Khan (Production) Mr.Shamim Iftikhar Zaidi (Drilling Operations) Mr. Zahid Imran Farani (Prospect Generation) Mr Muhammad Mureed Rahimoon (Systems) General Manager (Legal Services/HR) Director Director Director Senior Management Training and systems support to the end Director Director Chairman of the Board of Directors Managing Director/Chief Executive Officer Director

Mr. Muhammad Rafi General Manager (Finance) Mr. M. Zafarullah Chaudhry

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Mir Wali Muhammad Badini Director Mr Amjad Javed Mr Sarfaraz Mr Qamar Zaman Samo Mr Salman Amin Mr Tahir Shaukat General Mrs Eram Ali General Manager (CB/IR) General Manager (OGTI) General Manager-Joint Ventures and Business Development General Manager (Audit) M Manager (Administration/C&ESS) Company Secretary .

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COMPANYS ANALYSIS
OPERATION ANALYSIS
OGDCL is a government owned organization; most of its customers are Government owned. Everything OGDCL produces is sold under the name of President of Pakistan there and then. In other words once the oil or gas comes out of the ground it is no longer the property of OGDCL. There are no Oil and Gas storage facilities of OGDCL. The fields are operated with the view of optimizing their output over a length of period of time. This is important because if the fields are over producing then they might dry out very quickly. However due to the prevalent demand conditions most fields are producing at their maximum output level. Production is done round the clock without any scheduled stops except for maintenance. There are six customers of OGDCL, 4 oil refineries and 2 gas companies.Crude oil from the fields is transported to the two oil refineries in Karachi, PARCO in Multan and Attock oil refinery. Gas for further processing is sold to SNGPL and SSGCL. Transportation of the products is the responsibility of OGDCL. Gas is only transported through gas pipelines to the gas processing plants of the respective companies where it is processed for daily consumption. No other means are used. However raw gas extracted from underground has very variable composition; it contains a lot of impurities in various quantities. Before the raw gas which can be fed into the processing plants, it needs to be of the required standard. There are several on site gas processing plants Which process it so that the required standards are met and then it is transported. Oil is transported through pipelines and also through oil tankers. The gas pipelines are set up in collaboration with the government where possible. These pipelines take the oil directly from the oil fields to the refineries. Where pipelines are not present or cannot be made due to any reason third party carriers are used to transport the oil. NLC tankers are often used by OGDCL for this purpose. OGDCL doesnt own any oil tankers or any oil carrying vehicles however it bears the cost.

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HUMAN RESOURCE ASSESSMENT COMMENTS ON THE ORGANIZATIONAL STRUCTURE

All policy related issues are dealt by the board of Directors that is headed by a nonexecutive 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: orporate C Exploration & Production (E& P ) Technical Services The whole organization has been streamlined on the functional basis and it has emerged as an efficient unit, while speed and competence are its Hall Mark. It is now divided into separate departments and each department is in a position to work independent business unit. For effective operational activities, different Executive Directors performs following activities in consultation with General Managers, who are assisted by the concerned Departmental Managers: THE EXECUTIVE DIRECTOR EXPLORATION: Supervises all the geophysical and geological and exploration activities and is assisted by different Manager. EXECUTIVE DIRECTOR DRILLING: When a potential oil or gas field has been identified through seismic surveys, it is then drilled to assess the quality and quantity of the deposits. This Process is achieved through drilling. ED (Drilling) is responsible for all the drilling activities carried out by OGDCL in the country.

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EXECUTIVE DIRECTOR ADMIN: The administration department manages all the activities from recruitment to training and development and is responsible for management of personnel EXECUTIVE DIRECTOR CORPORATE AFFAIRS: Looks after the activities of planning of different development programs and monitors 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 acts as a liaison between OGDCL different Ministries. FUNCTIONS OF PERSONNEL DEPT 1. Maintenance of service record of employees from their induction to retirement and beyond. 2. Transfers Postings and maintenance of seniority. 3. Handling of Personnel grievances. 4. Processing of Pension / EOBI and retirement cases. 5. Implementation of CBA Managements agreements after every two years duration. 6. Maintenance of Database-Computerization.

HOUSING SECTION Housing section is also one of the permanent parts of OGDCL at Kohat , therefore it performs the function for OGDCLs 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 Kohat and Islam Abad .

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 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 incharge of overall staff of both sections.

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. Its 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)

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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. it cannot surely say that on which date and year it was established in OGDCL. Initially it was started and performs duties in Kohat area , Public relation department is more concerned with press. The main objective is to provide accurate and an esteem information to the general public about OGDCLs 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.

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

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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.

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.

Organogram
After circulation to every department they analyze that how many employees perform their duties and how many are required and they take a deficiency with his scale. This procedure is called Organogram.

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After the completion of organogram they take the official approval from chairman and give advertisement through public relation department of the most required vacancies. The recruitment procedure of the OGDCL is mostly related with CSS of Pakistan .i.e. as under: Merit 10% Punjab 50% Sindh rural 11.4% Sindh urban 7.6% N.W.f.P 11.5% Baluchistan 3.5% Fata 04% A.j.k 02% After the advertisement they receive application from all Pakistan and take written examination. This examination is held in those departments, where the candidate want to join and that department send the result to recruitment section.

The selection procedure is recently shortly changed and is as under:Written Test Experience Academic Qualification 40% weitage 30% weitage 30% weitage

The time for a written test is usually one hour. Those candidates who qualified the test then they send a call for interview if they are not low merit. It should be kept in mind that the interview has no value and no marks. It is just only for to and to analyze the courage, boldness communication skill, convincing power and also his dealing with other people. RECRUITMENT TYPES Regular (22)

Contract Basis Trainees Special Trainees Hiring through Contractor SELECTION COMMITTEES FOR RECRUITMENTFOR 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

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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.

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(failure to take a proper care of something) or breach (breaking of law)of orders.

Major Penalties
Reduction to a lower post or time scale, or to a lower stage in a time scale . Compulsory retirement. Removal from service and Dismissal from service. Removal from the service does not but the dismissal from the service does disqualify for future in this rule, removal or dismissal from service does not include the Discharge of a person. (24)

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 chairmans 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.. 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 cant 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 (25)

ultimastely decrease morale, decrease credibility of management, decreases the Organizations overall effectiveness and wastes more of managements time to do what Isnt 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. 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%

Quantification of ACRs is carried out as explained in the following hypothetical example

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***Formula **Formula
A1 = Very Good 10 Marks A = Good 07 B = Average 05 C = Below Average 01 D = Poor 00 Very Good 12 Marks Good 09 Average 05 Below Average 00

* As per promotion criteria minimum of ACR components marks are added in the
Score of qualification, experience, training, technical publication, etc. explained as;

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. ACRs 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.

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Where he is performing job for last five years where his record in past is clear. So, after these observations they take action for promotion. Deputy Chief Personnel officer is the incharge of the section.

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PROMOTIONS OFFICERS
Promotion Criteria for officers was adopted in 1994. Its 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%
Promotion Notification

IMPORTANT FACTORS FOR PROMOTION

Experience for the Post Number of Years in the Vacancy Seniority Performance: ACRs Synopsis/Quantification Prescribed Qualification Disciplinary Profile

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 (29)

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. OGDCLs 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 no 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. OGDCLs major oil and gas fields are located at Kohat ,Kunnar, Paskhi, Bobi, Tando Alam,Thora, Lashari, Sono, Fimkassar, Kal, ,Chanda, Chak Naurang, Qadirpur, Uch, Pirkoh, Loti, and Hundi/Sari. OGDCL so far has drilled 198 exploratory wells and 246 development wells and has made 60 oil and gas discoveries.

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. VEHICLES FOR FOREIGNERS Similarly some vehicles are available for engineers and other staff which is come from abroad.

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VERIFIER FIELD DUTIES At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency. 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 any body from outside accused on OGDCL in any affair, then legal service department stands from management side of OGDCL. They have their own advocates, but mostly they consult with outside advocates on various fees. On the other side when OGDCL claims on any person or body of 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 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 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.

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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 reimbursement 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 meetany 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.

Product line . In the product line of OGDCL, the following are its products by which it is earning profits:
a. Crude Oil. b. Gas c. LPG d. .Sulphur. e. Gasoline/High and Low Speed Diesel. f. Kerosene Oil . g. Naphtha h. Solvent Oil . i. Solvent Oil

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FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY The main

functions of the Corporation are:a. To plan, organize and implement programmes of exploration of development of oil and gas resources. b. To carry out geological, geophysical and other surveys for the exploration of oil and gas. c. To carry out drilling and other prospecting operations to prove and estimate the reserves of oil and gas. d. To produce oil and gas. e. To perform other functions as the Federal Government may from time to time assign to the Corporation .

MAIN OFFICES OGDCL 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 (33)

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, Kohat .

MAIN DEPARTMENTS Corporate Department

1. Administration Department 2. Human Resource Department 3. Personnel Department 4. Security Department 5. Legal / Regulation Department 6. Communication Department 7. Procurement Department . 8. Stores Department 9. Finance & Accounts Department 10. Audit Department .

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E&P Departments
1. Exploration Department 2. Exploitation Department 3. Production Department 4. Process Department

Technical Services Department

1. Drilling Department 2. Data Logging Department 3. Mud Engineering Department 4. Well Services Department 5. Cementation Department 6. Geological Well Supervision Department 7. Engineering Department 8. Wire line Logging Department 9. Geological Department, Data Processing Department .

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Managerial Levels:
In organizations, there are typically three levels of Management: top-level, middle-level, and first-level. These three main levels of managers form a hierarchy, in which they are ranked in order of importance. In most organizations, the number of managers at each level is such that the hierarchy resembles a pyramid, with many more first-level managers, fewer middle managers, and the fewest managers at the top level. Each of these management levels is described below in terms of their possible job titles and their primary responsibilities and the paths taken to hold these positions. Additionally, there are differences across the management levels as to what types of management tasks each does and the roles that they take in their jobs. So in OGDCL there are following three types of management levels: 1 TOP MANAGEMENT 2 MIDDLE MANAGEMENT 3 LOWER MANAGEMENT 4

Top Management
Top-level managers, or top managers, are also called senior management or executives. These individuals are at the top one or two levels in an organization, and hold titles such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vice president, Corporate head. IN OGDCL the head of the Top Management is called Chaireman. OGDCL Top-level managers make decisions affecting the entirety of the firm. Top managers do not direct the day-to-day activities of the firm; rather, they set goals for the organization and direct the company to achieve them. Top managers are ultimately responsible for the performance of the organization, and often, these managers have very visible jobs. In OGDCL top managers have a great deal of managerial experience and have moved up through the ranks of management within the company or in another firm. An exception to this is a top manager who is also an entrepreneur; such an individual may start a small company and manage it until it grows enough to support several levels of management. Many top managers possess an advanced degree, such as a Masters in Business Administration, but such a degree is not required.

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Middle Management
Middle-level management, or middle managers, are those in the levels below top managers. Middle managers' job titles include General manager, Plant manager, Regional manager, and Divisional manager. Middle-level managers of OGDCL are responsible for carrying out the goals set by top management. They do so by setting goals for their departments and other business units. Middle managers can motivate and assist first-line managers to achieve business objectives. Middle managers may also communicate upward, by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they may provide valuable information to top managers to help improve the organization's bottom line. In OGDCL the Jobs of the middle management are vary widely in terms of responsibility and salary. Depending on the size of the company and the number of middle-level managers in the firm, middle managers may supervise only a small group of employees, or they may manage very large groups, such as an entire business location. Middle managers may be employees who were promoted from first-level manager positions within the organization, or they may have been hired from outside the firm. Some middle managers may have aspirations to hold positions in top management in the future. Lower Management.

Low-level
Managers are also called first-line managers or supervisors. These managers have job titles such as Office manager, Shift supervisor, Department manager, Store manager. Production manager. OGDCL First-line managers are responsible for the daily management of line workersthe employees who actually produce the product or offer the service. There are first-line managers in every work unit in the organization. Although first-level managers typically do not set goals for the organization, they have a very strong influence on the company. These are the managers that most employees interact with on a daily basis, and if the managers perform poorly, employees may also perform poorly, may lack motivation, or may leave the company. In the past, most first-line managers were employees who were promoted from line positions (such as production or clerical jobs). Rarely did these employees have formal education beyond the high school level. However, many first-line managers are now graduates of a trade school, or have a two-year associates or a four-year bachelor's degree from college.

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Operations
OGDCL starts their operation within a sequence first of all they conduct exploratory experiments and after that the company installs the production plant. In these operations many stages are involved which are as under:

Seismic Party .
Seismic Party is based on Geologist and Geo physics. First of all they take inspection of the land. The Geologist also checked the sample of mud and other relevant material and then after that they decide that what they should to do.

Human Resource Base

Human Resource Base is an Auto Mobile Laboratory where experts do their initial experiments relating to Seismic Base.

Survey Machine
Its a special type of Computer Machine which is used in inspection & examination of land. It helps to find out the exact location of Oil & Gas under the land.

Vibrators
Vibrators are used to make plane and smooth the surface of the relevant land on which initial drillings are going to start.

Seismic Drilling Rigs

It's a small drilling rig. In initial stages these types of rigs are used for drilling to explore the Oil & Gas. Capacity of this rig is 110 Meter with mud and it's also worked for 2 weeks.

Drilling Rig
After the success of Seismic Drilling Rigs the company needs to install huge drilling rig for the purpose of exploration. These types of rigs are working for 10 to 14 months and Capacity of this rig is 5700 Meter with mud.

Major Oil and Gas Fields:The following are the major oil and gas fields of OGDCL TANDO ALAM OIL FIELD Tando Alam is located in Hyderabad Distt. of Sindh Province.First exploratory well (i.e. Tando Alam well No. 1 as an oil producer) was drilled and completed in May 1984.

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TOOT OIL FIELD

Toot Oil Field is located at a distance of about 120 Kms in the south-west of Islamabad. The field was discovered in Jan. 1967.

CHANDA OIL FIELD

Chanda field is located in Kohat district of the north west frontier province at a distance of about 70 KMs from Kohat city. Two wells have been drilled in Chanda field, i.e. Chanda # 1 and Chanda Deep # 1.

UCH GAS FIELD

The field is located at a distance of 60 km from Sui gas field; district Dera Bughti in Baluchistan Province. Uch gas field was discovered in 1955. First well was drilled and abandoned due to higher percentage of CO2 (low BTU) in gas.

CHAK NAURANG OIL FIELD

Chak Naurang Oil Field is located at a distance of about 90 Kms in the south-west of Islamabad. The field was discovered in June 1986 and came on regular production from July 1987. Chak Naurang is a joint venture with M/s. POL OGDCL & POL having shares of 85% and 15% respectively.

BOBI GAS / CONDENSATE FIELD

The field is located in Sanghar district of Sindh province. Bobi field is situated in the East of Mirpur khas - Nawab-shah railway section. Bobi well # 1 was the first exploratory well drilled and completed as gas / condensate producer in May 1988.

DHODAK GAS CONDENSATE FIELD

The Dhodak Gas Condensate field is located in the tribal area of Dera Ghazi Khan, about 230 Kms north-west of Multan. The field was discovered in May 1976 and was brought on regular production in December 1994.

DAKHNI GAS CONDENSATE FIELD

Dakhni Gas Condensate Field is located at a distance of about 135 Kms in the south-west of Islamabad. The field was discovered in Feb. 1983 and came on regular production in December 1989. Gas contains 6-8% H2S in the well stream.

KUNNAR GAS/CONDENSATE FIELD

Kunnar gas/condensate field is located in Hyderabad Distt. about 26 KM away from Hyderabad city. First exploratory well (i.e. Kunnar well No. 1) was drilled and completed in Nov. 1987. KAL OIL FIELD

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Kal Oil Field is located at a distance of about 100 Kms in the south-east of Islamabad. The field was discovered in June 1995 and came on regular production from August 1995. LASHARI CENTER /LASHARI SOUTH OIL FIELD Lashari structure lies in Hyderabad district of Sindh province. Hyderabad is the nearest city, which is about 25kms NWN from the location. Lashari center # 1 was drilled in April 1988 and was brought on production in November 1988. LOTI GAS FIELD The field is located at a distance of 55 km north west of Sui gas field, district Dera Bughti in Baluchistan Province. Loti gas field was discovered in March 1985. Regular production started in Nov. 1989. MISSAN OIL FIELD Missa Keswal Oil Field is located at a distance of about 60 Kms in the south-east of Islamabad. The field was discovered in June 1991 and came on regular production from December 1992.

NANDPUR GAS FIELD

Nandpur Gas field is situated at a distance of 64 kms near Distt. Multan. The field was discovered in 1984. The regular supply of gas in the range of 50 MMSCFD to M/s. FKPCL started in May 1999 for power generation of 144 MW. PASAKHI / PASAKHI

NORTH OIL FIELD

Pasakhi, a seismic structure is in Hyderabad Distt. of Sindh Province. Hyderabad is the nearest city, located at about 23 KM away from the location. First exploratory well (i.e. Pasakhi well No. 1 as an oil producer) was drilled and completed in Aug. 1989. The well was brought on regular production on Oct. 4, 1989.

QADIRPUR GAS FIELD

The field is located at a distance of 8 km from Ghotki in Sindh Province. Qadirpur gas field was discovered in March 1990. After installation of gas gathering facilities and plant, gas production was started in Sep. 1995.

RAJIAN OIL FIELD

Rajian Oil Field is located at a distance of about 110 Kms in the south-east of Islamabad. The field was discovered in Aug. 1994 and came on regular production from August 1994. SADQAL GAS CONDENSATE FIELD Sadqal Gas Condensate field is located at a distance of 40 Kms in the southwest of Islamabad. The field was discovered in April 1992 and regular production started on 30th June 1993. SONO OIL FIELD Sono oil field is situated in Hyderabad Distt. Of Sindh Province, about 04 KM away from Tando Alam oil complex.First exploratory well (i.e. Sono Well No. 1 as an oil producer) was drilled and completed in Feb. 1988. A total of 05 wells were drilled upto 1990. Sono well # 1 was brought on regular production in May 1988. THORA OIL FIELD Thora oil field was discovered on July 24, 1987. The field lies in Hyderabad distt., of the Sindh Province.First exploratory well i.e. Thora # 1 was drilled and completed as an oil Producer in Aug. 1987. Well was brought on regular production on 6th Aug. 1987. A total of 06 wells were drilled up to 1993. (40)

SWOT ANALYSIS
*During in my internship period SWOT ANALYSIS SWOT
Analysis is conducted to identify the organizational strengths (S), organizational weaknesses (W), environmental opportunities (O), and environmental threats (T). Each analysis helps to know that how these elements influence organizational performance. An organizational strength is an internal capability that can be exploited to achieve goals, where as an organizational weakness is an internal characteristics that may undermine performance. An environmental opportunity is a situation that offers potential for helping the organization achieves its goals. In contrast, an environmental threat is an external element that can develop into a non-crisis or crisis problem, and potentially prevent organization from achieving its goals. OGDCLs SWOT Analysis is given below;

STRENGTHS
1 OGDCL is the Leading Exploration and Production Company in Pakistan. In Pakistan there is no company who can compete OGDCL. 2 No. 1 Exploration & Production Company all over the world. 3 30 % Exploration Licenses & Development and Mining Leases But result 70% 4 OGDCL is the one of those companies who generates their funds by their own effort 5 In Pakistan OGDCL is the single Oil Company which is Independent. All the operations and activities used in exploration and production are performed by OGDCL is done by own effort. 6 The Company listed on all the three Stock Exchanges of Pakistan as well as on London Stock Exchange

WEAKNESSES
1 All the machinery used in exploration & Production are imported. Which is very costly. 2 The machinery used in all types of operations is Very expensive and huge amount machinery used in. 3 As the machinery is import from foreign countries so their spear parts are unavailable in Pakistan. 4 As all the machinery is imported so it's very difficult to operate and control these machines for local labor. 5 Company also paid high salaries to foreigner expertise to operate these machine 25

OPPORTUNITIES
1 If the Government increase the area of license and allow conducting new exploratory experiment at different possible areas of Pakistan. 2 To start exploration of Oil in sea is another opportunity for OGDCL. Because most of the countries produced their Oil & Gas and other natural resources from their seas. 3 If OGDCL hired the foreign expertise on permanent bases then it will be a good opportunity for it to overcome from their extra expenses. 4 Its an opportunity for OGDCL to sell the LPG individually 5 If the Karachi Steel mill or any other company designed the relevant machinery for OGDCL, then it will be a very good step for economic development of Pakistan and also for OGDCL. 6 Giving employment to the local people is a very good opportunity for OGDCL to create a good image in the eyes of people. 7 If OGDCL Provide Gas to the local Areas then it will be a good step for economic development of country.

THREATS
1 Attacked from the Local people are the main threats for OGDCL. Because day to day their sights are hit from the people. 2 As Government policies are change day to day so it's another threats for OGDCL 3 Oil is direct linked with international Market. So change in international market directly put their effects on Oil Companies. 4 As our country political conditions are unstable, so it is very dangerous threat for OGDCL to maintain their operations in these 5situations. 6 Terrorism/Extremism is a very serious problem for every company in Pakistan 7 As OGDCL is directly linked with Oil & Gas so fear of fir Blowout is a naturally threat for OGDCL and like other companies related with Oil & Gas.

COMPETITORS
DIRECT COMPETITORS OGDCL has no direct competitors, because except it no one can perform their all operation by own. In direct Competitors As we know that OGDCL is the single Government Oil Company in Pakistan so thats why there is no direct and big competitors of OGDCL. But there are some companies which are related with that type of activities which are indirect competitors of OGDCL. These companies are as under: 1 Pakistan Petroleum Limited (PPL) 2 Pakistan Oil Limited (POL) 3 UNION TAXIS 4 MOL 5 MS DEWAN These all are indirect competitors of OGDCL. Because these are not perform their all operations. Some of these companies are service provider and some of these are production companies.

SOCIAL ACTIVITIES
OGDCL DONATES FOR FLOOD VICTIMS
The Oil and Gas Development Company Limited (OGDCL) will distribute 225 tons of dry ration worth Rs19.95 million among 7500 families for 15 days. The amount has been paid to managing director Utility Store Head Office, Islamabad. Earlier OGDCL had contributed Rs 200 million to Prime Ministers Flood Relief Fund, which is the highest amount donated by any public sector organization so far. The company will spent another Rs 100 million for relief and rehabilitation of flood victims. Muhammad Naeem Malik, Managing Director/CEO OGDCL constituted a Social Welfare Council under instructions of OGDCLs Board of Directors to supervise flood relief activities in transparent manners.

ANNUAL ENVIRONMENTAL EXCELLENCE AWARD

OGDCL was acknowledge as a socially responsible and environment friendly organization, that has adopted policies which strike a balance between profitability and social responsibility. The award was conferred upon OGDCL by the National Forum for Environment and Health after careful scrutiny of its track record, services and performance.

CORPORATE SOCIAL RESPONSIBILITY

OGDCL's social responsibility is a continuing commitment to act ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local communities and society at large.

HEALTH CARE
OGDCL firmly believes that healthcare especially vision is perquisite for a healthy society and a base for economic development. At present OGDCL have 17 welfare dispensaries and two mobile dispensaries providing free health care to the people of those areas.

WORK DONE DURING INTERNSHIP PERIOD

1. Attachment with . with Mr.Khursheed (Sr. I.A) I was assigned Account Head 402810 Manpower Contract services at Head Office. I therefore accompanied with Mr.Khursheed Ahmad started Audit of the above mentioned Account Head which includes many vendors (contractors) we selected four numbers of vendors for Analysis Report on word submission to G.M (Audit).Selected Vendors are identified below, 1(i) Allulinks 2(ii) M/S Fuji Security Services 3(iii) M/S A-sir Guard security Services 4(iv) National Fire Protective Services We obtained the relevant accounting data from the concerned Department and from Oracle comprising of vouchers along with invoices and checked in accordance with the terms and conditions of the contract specifically with payment clause and prepared Analysis report duly approved/signed by G.M (I.A) and sent to the concerned Departments for compliance. 2. Attachment with Mr.Ijaz Hussain Janjua (Sr.I.A) I helped him in completing his Report on I.9 workshop Islamabad. We verified/reviewed the following Account Heads on sample basis during the course of Audit and observed some deficiencies which were bring into consideration to the relevant Departments and persons for remedial actions to improve the effective internal control system. 1(i) Contract Services 2(ii) Fixed Assets 3(iii) Utilities 4(iv) Office Entertainment 5(v) Salary and other Benefits 6(vi) Medical Expenses 7(vii) Traveling and transport 8(viii) Repair and Maintenance 9(ix) Stores and Supplies consumed 10(x) Communication

(3)attachment with Mr Ali he helped me in me in understanding pension procedure. Formula to calculate Pension 11. Last pay drawn Qualifying Service 7 300 = Gross Pension 22. Gross Pension 40% 12.3719* 12 = Commutation 33. Gross Pension 60% = Net Pension

PROBLEMS AND SUGGESTIONS

During my stay in OGDC I carefully observed the major flaws and setbacks face by the company. I put forward my Suggestions the following practicable remedies to improve the existing practices.

6.1 PROBLEMS
1. Unawareness of Employees from Latest Technological Changes. Employees working in the Audit Department do not have any access to the latest modern and technological changes, literature etc. Even some Auditors dont have computers.

2. Lack of Career Planning Of Employees.

OGDC is only organization in the field of exploration and development of oil and gas resources of the country, but unfortunately does not use scientific techniques in career planning of employees.

3. Unfair Utilization of Transport.

OGDC have a large number of vehicles, mostly at sites but they are misused by their location in charge

4. Unnecessary Purchases at Sites Due to less accountability and more delegate powers,
location in charge uses their powers towards petty cash purchases from local market. OGDC have a centralized procurement department but stocks are accumulated in the absence of the strict rules and policies regarding purchases and stock position.

5. Poor Method of Recruitment

To recruit the employees both internal and external methods are used but the corporation gives preference to the internal method. The main drawback of this method is that it blocks the way for new generation which carry new ideas and knowledge. Furthermore the recruitment system is also influenced by the nepotism of politicians.

6.2 SUGGESTIONS and RECOMMENDATIONS

During my stay in OGDC I carefully observed the major weakness. For this weakness, I suggested the following practicable remedies to improve the existing practices.

1. With the passage of time many modern technologies changes take place in oil and gas industry,
OGDC must take necessary action to acquire modern technologies so that they can compete at international level and in this way they can play more effective role in Pakistans economy 2. They should to pay full attention to the intensive professional training of staff in related fields. The department concerned can organize professional training at OGDC or with outside agencies etc and latest literature newspapers and magazines etc of professional interest should be provided at sites free of cost. 3. Al though the management in recent past takes some initiative in this area, a new department career planning department is created and few posting were made in this department . But to achieve excellent and positive results rapid operations are too much essential.

4. Management should try to develop maximum and minimum store inventory levels and also 100% physical verification to be done at least once a year.
The powers of location in charges should be reviewed and minimized.

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

7. To offset recruitment bias favoritism should be completely discouraged. And try to eliminate political interference in recruitment, because it will
affect the efficiency and ultimately the corporation will be unable to achieve its objective.

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.

9 All accountants should be given training on different

accounting modules and chart of accounts. So that monopoly and dependence on few is eliminated.

10. Rotation of duties should be made at regular interval to

improve the overall work output and to keep the interest of the employee intact.

11. For effective cost control, standardization of different

stationery items and consumable is approved for purchasing in bulk from the manufacturer directly.

12. 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 countrys import bill. 0Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy. OGDCLs Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which are 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. OGDCLs 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 . .

REFERENCES 1. Ministry of Petroleum and Natural Resources site.

2. www.ogdcl.com 3. www.google.com.pk 4. Pakistan industrial Reviews 5. Annual Reports of OGDCL 6. Business Recorder News Paper .7. Interview of OGDCL MD.