Introduction of the company:

Oil and Gas Development Company also known as OGDCL, is a Pakistani oil and gas company.
It’s main business activity is the exploration and production of hydrocarbons. These products
include LPG, crude and natural oil. It is involved in exploring, drilling, refining and selling oil
and gas in Pakistan. OGDCL’s Vision is to be a leading multinational Exploration and
Production Company. OGDCL’s Mission is to become the leading provider of oil and gas to the
country by increasing exploration and production both domestically and internationally, utilizing
all options including strategic alliances. And to continuously realign ourselves to meet the
expectations of our stakeholders through best management practices, the use of latest technology,
and innovation for sustainable growth, while being socially responsible.

My position in the Internship:

I was appointed as an internee in OGDCL in the department of finance. I am currently pursuing a
bachelor’s degree in business administration from FAST-NUCES. The internship was of a
duration of four weeks, starting from August 2, 2021 to September 1, 2021.
We were sent to four sub-departments within the finance department, each sub-department for a
week. The sub-departments were Billing and collection, Joint venture, Accounts Payable and
Imports.
1. Billing and collection:
We worked under the supervision of Mr. Sartaj Ahmed, Chief Accountant (B & C).
We were taught about the different types of invoices and were shown actual samples of
every type for better understanding. There are two types of invoices namely 100 percent
in which all operations are done by OGDC. Secondly, the JV or Joint Venture invoice
which involves two partners. Joint Venture has further two types i.e. operated and non-
operated. Operated invoices are those which are sent by OGDC to the partner in the joint
venture. Non-operated is the invoice in which invoices are sent to OGDC by the operator
which is the other partner. We were informed about the various partners and clients of
OGDCL, as well as various fields of OGDCL including dakhni, toot, chak norang, mela,
and zin.
We were also trained in office secretarial practice in which we learned how to make files
of invoices classified on the basis of invoice types and field names.

2. Joint Venture:
We worked under the supervision of Mr. Akhtar Hussain, Senior Accountant.
Joint venture is a project between two parties. There are two types of joint venture.
Operated and non-operated. Operated joint venture is when OGDC acts as an operator
and makes expenditure and sends invoices to the partner. Non-operated is when the
partner acts as the operator and invoices are sent to OGDC.
 The partners are also called Working Interest Owners or WIOs. PCA is the Petroleum
Concession Agreement. Concession is the area allotted by the government to the partners.
As per PCA, four meetings are conducted in a year. These meetings are of three types.
Firstly, four technical committee meetings are held to discuss the work program.
Secondly, four financial committee meetings are held to discuss the financial expenses.
These expenses include geological and geophysical expenses, general administration
expenses, operating expenses and indirect expenses. Lastly, four operating committee
meetings are held to gain approval of the budget.
After the budget has been approved, cash is called as per PCA. Cash is called 20 days
before the start of the month e.g. we are calling cash call of September, we call before 10
or on 10 august. The partner is responsible for paying on September 1.
A call statement is made for actual expenditure of the concerned month and sent to the
concerned partners or WIO. Call statement is sent to inform about then over/under
advance position to the partner and to inform them about the cost of project according to
their share.
An AFE or Authority For Expenditure is approved for capital expenditure above 1 lac.
AFE is made of seismic survey, wells, fixed assets, maintenance projects, and items of
expenditure in excess. AFE is approved after budget approval. Budget is presented to
OCM 75 days before and OCM has to approve 30 days before. If cash call is not paid,
default notice is sent to the partner and if still not paid, 1.5% of the unpaid amount is
charged. GDPC acts as observer between operator and non-operator. The work program
and budget is sent 15 days prior, to the WIOs.

3. Accounts Payable:
We worked under the supervision of Mr. Ali Hassan Abbasi, deputy chief accountant
(A/P).
Account Payable pays the Local purchase and foreign purchase orders submitted by the
Procurement (SCM) department to different parties/suppliers/contractors when material
receipt is confirming or advance payment against delivery to suppliers as per term &
condition of the local or foreign purchase order issued and request for payment by SCM
department is made. Submitted invoices are paid by comparing of delivery challah with
purchase order and confirmation of receipt at delivery locations and with local receipt
statement prepared by store section and inspection made and material accepted by
technical committee. Penalty is charged in case material late receipts as per delivery
period. Budget is confirmed for the items required by the concerned department, and
authorization of payment is also confirmed accordingly. All payments against Local or
Foreign purchase order are entered in Oracle System and vouchers are made by applying
matching receipt of each order of different suppliers in Oracle System and if, matching is
in line then voucher oracle generated is printed out. Voucher is then sent to other person
for checking. When checking is complete then it is validated by concerned officer who
 has authority in Oracle System. After authorization the voucher is then sent to Bank
Section for preparation of cheques. Cheques are then sent to the parties at the address as
per given in purchase order issued by SCM Department.
We were also showed how to work on the software system, oracle. We understood the
process of making invoices on oracle.

4. Imports:
We worked under the supervision of Mr.
Import Section is responsible to arrange to establish the letter of credit with regard to
import of materials, both local and foreign, as requested by the Supply Chain
Management (SCM) Department. Confirm and earmark the sources of funds for the
establishments of letters of credit i.e. Cash Foreign Exchange, Own Resources and Joint
Venture Accounts. Communicate with bank for the amendment, extension and
enhancement of LCS at the request of SCM Department. Maintain record of shipping
advices to monitor consignment arrival. Process and forward negotiable documents to
West Wharf Office, Karachi and CM-
CIDA Islamabad. Arrange the endorsement of Shipping Guarantees or Airway
Bills for timely clearance of consignment at the request of SCM Department or the
DCMMO, Karachi. Maintain source wise record of letters of credit. Reply queries
regarding demurrages. Prepare monthly statement of LCS established out of
various funds for onward submission to the Budget Section. Prepare weekly
position of utilization of funds for onward transmission to Bank Section.
Reconciliation of Cash Foreign Exchange allocated by State Bank of Pakistan and
monitors its proper utilization. Prepare vouchers for the recording expenditure and
transfer of funds for the reconciliation of bank account. Forward complete set of
retired documents to Store Accounts Department for the reconciliation of material
received with FRS on monthly basis.
Establish, enhance, amend and extend letters of credit for hiring of services, both
local and foreign, as and when required by the SCM Department. Verify, control
and process service invoices. Reply audit queries regarding service invoices.
Submit monthly statement of payment to service contractors. Calculate Tax
Deductions to be withheld from foreign contractor's invoices after consultation
with Tax Section. Booking of accruals of service invoices on monthly basis.