INTERNSHIP REPORT

2021

OIL AND GAS DEVELOPMENT COMPANY LIMITED

(OGDCL)

Submitted by:

JUNAID KHAN

MBA – 3RD (NB)

08152013007

Submitted to:

Dr Waseem abbas shaheen

Quaid-e-Azam School of Management Sciences,

Quaid-e-Azam University,islamabad
 ACKNOWLEDGEMENT

All the praises and thanks for ALLAH almighty who is entire source of

knowledge and wisdom to mankind and whose uniqueness gave me enough

courage, knowledge, and ability to accomplish this internship report.

I am thankful to our prestigious institution QASMS and my honorable

supervisor

DR WASEEM ABBAS SHAHEEN

I am also thankful to Manager HRD OGTI, G.M HR, the entire HROs, Senior

Administrators of Human Resource Department and the whole staff of

organization who gave me their precious time and behaved with me not as

intern but as a colleague. I really acknowledge all for great efforts, guidance,

and supervision and their positive attitude and behavior during the whole

period of my internship at OGDCL Headquarter, Islamabad.

I have made unremitting efforts to write this internship report. In this report, I

reflect my insights, work experience and knowledge of working as a human

resources intern in the six-week internship program of OGDCL's human

resources department.

The objective of the internship program was to enhance understanding of

academic theoretical knowledge by application in the internship setting and to

apply academic knowledge in practical setting of the organization and to gain

practical exposure and experience related to area of interest. I have divided this

report in four Chapters. In the first chapter, I have described introduction,

history/ background of company, organizational structure, and Departments

e.g., how it was formed, its present situation & prospects of the company. In

the second chapter, I have discussed about personal Learning and Experience

which I learned and observed during whole period of internship. In chapter 3rd

I have given SWOT Analysis, what I gained, the practical exposure and

observed functional activities which were being applied in OGDCL, therefore

I could be able to produce the analysis of strengths, weaknesses, opportunities,

and threats and all these factors have been discussed and analyzed by me in

this report. Finally in the chapter 4th I have given the conclusion of this report

which gives brief ending overview of the organization. I have given the

recommendations and suggestions for the improvement of the demerits and

drawbacks of the company which I observed and learned during my internship

period.
 LIST OFABBREVIATIONS

Acronym Definition Acronym Definition

OGDCL Oil and Gas COO Chief Operating

Development officer

Company Limited

OGTI Oil and Gas PLC Private Limited

Training Institute Company

MD Managing Director CSR Corporate Social

responsibility

ED Executive Director SCM Supply Chain

Management

CFO Chief Financial JV Joint Venture

Officer

E&P Exploration and HRM Human Resource

Production Management

LC Letter of Credit LPO Local Purchase

Order
Table of content

Chapter 1……………………………………………………….….........1
1.1 Introduction…………………..……….……………...………..…...…...1
1.2 Company background……………………..…………….………………1
1.3 Exploration of OGDC…………………..…………………………….…2
1.4 Transform into self-funded entity………………….…………………....2
1.5 Conversion into plc……………………………………………………...3
1.6 GDR…………………………….………...………………….………. ...3
1.7 Major products ……………………………..………… ………………..3
1.9 Major activities`……………………...………………………………....3
1.9 Objective of the company……...…………… …………...…………....3
1.9.1 Vision…...……….…….…… ……………………………………........4
1.9.2 Mission…..…….……………………………………………………......4
1.9.3 Core values…….………...……………………………………...………4
1.10 Departments.…………………………………………………………....4
1.11 Human resource department….…….........……………………………..6
1.11.1 Function of HR department……...………......……………...……......6
1.11.2 Number of employees in hr department………………………………6
Chapter 2………………………………...……….……….…………......7
2.1 Learning and experience………………...……….…………..……….....7
2.2 WEEK 1…………………...……………………………………….........8
2.3 WEEK 2………………………………………..……… ………….......12
2.4 WEEK 3………………………………..………………. ………..........15
2.5 WEEK 4……………………………………..……………………... …17
2.6 WEEK 5……… …………………….…….………………. ………….18
2.7 WEEK 6……………………..……………………………… ………...18
CHAPTER 3………..…………………… …………………………….19
3.1 SWOT ANALYSIS……………………………… …………………...19
3.1.1 STRENGTH……………………………………………………….… 19
3.1.2 WEAKNESSES…………………………………………………..…...20
3.1.3 OPPORTUNITIES……………………………………………..……..20
3.1.4 THREATS………………………………………………….………....21
3.2 PEST ANALYSIS……………………………………………….….…22
3.2.1 POLITICAL FACTOR………………………………………………..22
3.2.2 ECONOMIC FACTOR……………………………………………….22
3.2.3 SOCIAL FACTOR……………………………………………………23
3.2.4 TECHNOLOGICAL FACTOR ……………………………….…....23
CHAPTER 4………………………………………… ………………...24
4.1 CONCLUSION…………………………………………….…...……...24
4. 2 RECOMMENDATIONS………………..……………………………..25
ANEXURES………………………… …………………………………..27
ORGANIZATIONAL CHART…………………………………...….…27
ORNANOGRAM OF HUMAN RESOURCE DEPARTMENT……….28
REFERENCES……………………..…………………….…………………..29
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION OF THE OGDCL

The petroleum industry is the lifeline of the economy. This is a world of oil

exploration, refining and oil marketing. Pakistan understands the importance

of this industry to its economic growth. Therefore, the Government of Pakistan

established OGDCL in 1961

OGDCL is the country's leading exploration and production company. In terms

of assets, the company is a leader in the local market. Its production has been

broadcast on three stock exchanges in Pakistan and the London Stock

Exchange since 2006

OGDCL is ready to meet the challenges of the exploration and production

industry, with a well-equipped vision and mission, business and strategic

plans, a debt-free balance sheet and strong cash reserves. (Wikipedia,2021)

1.2 COMPANY BACKGROUND

Before the OGDC was formed the production activities, exploration activities

and their related processes were carried out by the Pakistan petroleum limited

ppl and Pakistan oilfield Ltd. (PPL). PPL discovered a huge gas field in Sui in

Baluchistan in 1952.

This discovery led five major foreign oil companies to sign franchise

agreements with the government. In the 1950s, these foreign companies

conducted various geological and geophysical surveys, and drilled 47

exploratory wells, thereby discovering various small gas fields in the region in

1
various parts of Pakistan. Despite these discoveries, oil exploration activity

declined in the late 1950s.

The goal of the private company does not seem to have been achieved because

the demand for natural gas simply does not exist. Many foreign companies

terminated their contracts in 1961 due to minimal exploration activities.

(ogdcl,2021)

1.3 EXPLORATION OF OGDC

To revive the exploration in Pakistan's energy sector, the Pakistani government

signed a loan agreement with the Soviet Union in 1961. This allowed Pakistan

to obtain 27 million rupees to fund exploration equipment and services for

Soviet experts. After the signing of the agreement, OGDC was established in

accordance with the decree of September 20, 1961. The company was given

the task of conducting a systematic exploration plan in the country to promote

Pakistan's oil and gas prospects. The company has followed the government's

instructions in exploration and development. The company’s management

consists of five board members elected by the government and was funded by

the Republican Party in the early days. (ogdcl, 2021)

1.4 TRANSFORM INTO A SELF-FUNDED ENTITY

Due to major oil and gas discoveries in the 1980s, the government divested the

company from the federal budget in July 1989 and allowed it to use self-raised

funds to manage its activities.

The 1989-90 fiscal year was the first year of OGDC's self-financing. This is a

huge challenge for OGDC. In the first year of self-financing, the obvious

initial goal is to generate sufficient resources to maintain the momentum of

exploration and development and meet its debt service obligations at the speed

2
envisaged by the Public Sector Development Plan (PSDP). OGDC not only

generated sufficient internal funds to repay debts, but also invested sufficient

resources in exploration and development to increase the country's reserves

and production. (ogdcl, 2021)

1.5 CONVERSION INTO PLC

OGDCL was a statutory company until October 23, 1997. At that time, it was

called OGDC (Oil and Gas Company). After October 23, 1997, the company

was upgraded to a public limited company and changed its name to OGDCL,

which is an oil and gas limited company. (Ogdcl, 2021)

1.6 GDR

In December 2006, The Pakistani government further divested its 10% stake in

the company. The Company is now listed on the London Stock Exchange

since December 06, 2006.(ogdcl,2021)

1.7 Major Products

Crude oil, gas, liquifies petroleum gas LPG, naphtha, solvent oil, kerosene oil,

high speed diesel oil and Sulphur.(ogdcl, 2021)

1.8 Major activities

Exploratory 370

Appraisal 46

Development 419

Total                    835

Discoveries                      136

(Ogdcl, 2021)

1.9 OBJECTIVES OF THE COMPANY:

1.9.1 Vision

3
 “To be a leading multinational Exploration and Production company.”

(ogdcl,2021)

1.9.2 Mission

“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.”(ogdcl, 2021)

1.9.3 Core Values

 Merits

 Teamwork

 Dedication

 Integrity

 Safety

 Innovative

(ogdcl. 2021)

1.10 DEPARTMENTS:

 E&P DEPARTMENTS:

 Exploration Prospect Generation

 Production

 Exploration Studies and Research

 Process Department

 Corporate Departments:

 Administration

 Medical

 Human Resource Department

4
 Corporate affairs

 Personal

 Aviation

 Security

 Finance and Accounts

 Legal

 OGTI

 Communication

 G&R Lab

 Supply Chain Management

 Secretariat

 Material Management

 Internal Audit

 System Support

 Technical Services Department:

 Drilling

 Stimulation

 Engineering / Workshops

 Geological / Geophysics

 Mud Engineering

 Seismic Data Processing

 Well Services Department

 Logistics

 Cementation

5
 Human Resource Department

(ogdcl, 2021)

1.11 Human Resource Department

Human resource department has been playing a great role in the development

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

departments of the OGDCL. Human Resource Deportment at OGDCL is being

reorganized to manage people and develop their skills for meeting Company’s

requirements. OGDCL has acquired the services of highly qualified

professional like MBA, MPA ,MSc ,MALLB ,and MCOM for its human

resource department. This department is directly under the control of executive

director of the human resources. executive director human resources head the

human resource department. Human Resource Department seems to ensure

development of world class workforce, as per OGDCL’s mission statement,

target-based working and performance-based reward system has been evolved.

1.11.1 Functions of HR Department:

The Company is focusing on the Human Resource Department, as it aims to

motivate its employees through proper placement, employee recognition,

effective appraisals, empowerment, and communication and promoting

employee’s skill development program. everything related to employees are

deals in human resources department.

1.11.2 Number of Employees in HR Department:

In OGDCL, there are number of employees under different job titles in HR

Department There are round about 13 officers and 97 total staff, as well as

there are also data processing officers. (ogdcl, 2021)

6
 CHAPTER 2

LEARNING AND EXPERIENCE

I applied to OGDCL to complete my summer internship because OGDCL is

one of the leading oil and gas companies in the country with an extensive

Human Resources Department. Additionally, all the departments in OGDCL

are further divided into different sections specific for completing tasks and

assignments. This segmentation makes it easy for me to properly understand

the system in a better way by being aware of the company's ongoing activities.

During my internship I was attached with five different sections of the Human

Resource Department.

The main objectives of my internship at OGDCL are as follows:

Meet the course requirements of my QAU MBA degree.

Understanding the organizational behavior and culture of the Company.

Apply theoretical concepts to get practical know-how.

Acquire knowledge of human resource operations, projects and manpower

maintenance.

My internship at OGDCL, Head Office Islamabad started on 2nd August 2021

for a period of 6 weeks i.e., from 2nd August till 12th September 2021.

Sections:

I was attached with the following sections during my internship:

 Human Resources Development Section

7
 HR Section (A)

 Human Resource Information System

 Recruitment And Selection Section

 HR Section (D)

2.1 WEEK 1

Human resource development section:

In first week of my internship, I was placed in the human resource

development section that is being managed by the Mr. Saeed malik he signed

by schedule and introduced me to Mr Zubair who was HR officer and deals

with the annual confidential report of the staff. He briefed me about the

confidential report and explained me the procedure of annual confidential

report

Annual Confidential Report

As the year ends, the officer must evaluate the performance of each employee

who has been directly employed under him during the year and he must initiate

a report in duplicate with the prescribed form and then transmit in the

prescribed form to a senior official / head of department or, as applicable, a

managing director for a joint signature. Once countersigned, the report will be

submitted to the Appointing Authority and a copy of the report must be

retained by the Head of Department and forwarded to the Personnel

Department.

The authority responsible for maintaining the service record shall also be

responsible for maintaining confidential report of the employee in the forms.

Annual confidential report (ACR) shall, inter-alia, reflect on the basic qualities

of an employee. While reporting on subordinate, the reporting officer shall: -

8
Be clear and direct and shall not be ambiguous or evasive in his remarks

Be as honest as would like to be for his own ACR

Be as objective as possible

Avoid exaggeration and gross under statement

Procedure For Filling an Annual Confidential Report:

The following procedure shall be followed by reporting officer, intermediate

and technical officer, and by countersigning officer while filling in the annual

confidential report of an employee will be recorded for the period ending 31st

December each year:

The immediate officer shall initiate the report and it should be submitted to the

higher officer next to him and finally to the appointing authority, in case the

appointing authority happens to be other than next higher officer.

The next higher officer will countersign the report and submit it to the head of

the department concerned with his own remarks, if any. While forwarding the

report, the head of department will clearly state that the adverse remarks, if

any, must be communicate to the employee concerned.

(Zubair, personal communication, august 2, 2021)

On the second day, MR SAEED MALIK who is manager of human resource

development section personally tell us to come to his room where he also gives

a general introduction of his section

He also told us about the promotion criteria of the staff and officer

For staff basic components of the promotion criteria are

Qualification 15 marks

Seniority 5 marks

ACR 25 marks

9
Relevant experience including outside OGDCL 15 marks

Assessment by the promotion committee 40 marks

Qualifying marks for the staff are 60 marks.

For officer’s basic component for the promotion criteria are

Qualification 15 marks

Publication 5 marks

Experience 20 marks

Performance evaluation report 60 marks

Qualification marks for the officer is 65 marks

Held positions: these are the positions that people already holding on that post.

Sanctioned positions: the number of positions for a post in an approved

organogram.

Vacancy: the difference between sanctioned and held positions become the

vacant positions.

If everything is same for competing candidates, then seniority is considered for

promotions.

Bell curve: the situation of normal distribution for evaluation is bell curve. It is

the evaluation of the total strength into different categories either in shape of

ACR or examination.

(Saeed Malik, personal communication, august 3, 2021)

On 3rd day of my 1st week i was attached to Mr Tanveer and Mr Zubair where

he briefed me about the Performance Evaluation Report (PER) for Officers:

Each Departmental Head (ED/ GM/ Manager) shall conduct annual goal

setting exercise where corporate, department, functional and individual goals

10
are discussed, assigned, and agreed upon based on which their performance is

reviewed during the fiscal year.

Clearly defined goals, objectives, responsibilities, and expectations are agreed

upon / signed off between officer and his supervisor at the beginning of year

using PER Form for grades EG I to IX(A), by filling the Key Objectives for

the Year, indicating five (5) dimensions of goal setting by assigning relative

scores which should all sum up to 100 i.e.

Operational

Financial

People Management

Process Improvement

HSEQ - Health, Safety, Environment and Quality

Performance rating from highest to lowest (i.e., 5 to 1, or Very Good to Below

Average (may be assigned against each objective. All objectives should be

assigned relative weight or percentage so that total sum is 100.

Objective Rating Formula = Weight or Percentage Given to Individual

Objective (multiply by) Individual Rating Assigned (5 to 1)

Grand Total (Employee Rating) = Weight x Rating

Grand Total (Maximum Score) is equal to 500

Statement of objectives Grand Total comes up to 500, which means the five

(5) key dimensions of the year may have 100 points each (5 * 100 =

500Marks) for senior positions as applicable.

Performance appraisal score shall fairly, objectively and without prejudice

evaluate the gap between desired versus expected performance and assigns

appraisal rating accordingly.

11
(Tanveer, Zubair, personal communication, august 4, 2021)

On the 4TH DAY of 1ST WEEK, I was attached with Mr. Tanveer who shows

me the ACR of some of his staff to clearly get an idea what you have been

briefed in the 1st three days

On the last day of my 1st week i am again attached with the MR Ahmar. he

told us to calculate the marks of staff personally where they are getting

qualifying marks or not. practically working gives us more clear idea about

how it works.

(Ahmar, personal communication, august 6, 2021)

2.2 WEEK 2

Hr section (a):

In the second week of my internship, I was placed in HR Section (A) under the

supervision of Mr. Kamal. The Deputy Chief Officer of HR Section A. There

was a total of 10 employees working in Section A and 2 of them are internee

for 1 year to whom I was introduced and was briefed about the tasks each of

them performs in the Section A. The HR Section A deals with all the human

resource management activities of employees who are working in the

Administration. There are several actions which were being performed in this

section.

On first and second day I was introduced by all the employees about their

working and the respective tasks they perform. Mr. Mudassir who is Admin

Assistant of Section A briefed us about all the actions of section A which are

given below:

12
Appointment Notification

Police Verification

Provision/Stoppage of Medical Facility Grant of Education Allowance/Re-

imbursement of scholarship

Grant of Service Increments 08/15/20/25/30 & 15 years and qualification

increments

Pay Fixations of M.O.S.

Seniority Lists

Promotional Fixations

Transfer/Posting

Death Notification/ Distress Grant

Encashment /LFA/E.O.L./LAP

Disability Leave

Ex-Pakistan Leave (Hajj, Umrah and Visit)

Regularization of Leave (Sick, Disability Leave, Special Medical Leave,

Medical Leave, iddat leave

Regularization of Un-Authorized Absence Period

Verification of educational credentials for Conveyance Loan/ House Building

Loan/ House Fund, Hare Rent Welfare Fund Permission for Higher Studies

Impositions of Penalties (Dismissal/Removal from Service/ Reduction to

Lower Post/Stag

Settlement of Insurance Claims

Issuance of Service Certificates

Movement Order (Foreign Visits)

Contract Extensions Change of Rota Station (one time in a whole service)

13
Re-Designation

Pakistan Citizen Portal Replies /Communication to Ministry via Corporate

Affair

Para-wise Comments of Legal Cases

Retirement Intimation/ Retirement Notification / Retirement Relieving

Re-instatement in Service

Field Manager/Reliever Allowance

Computer Allowance

Correspondence via Fax Message to Fields

Indents for Stationery

Audit Para’s Replies

Change of Name/ Next of Kin

Correction of date of birth

Shifting of family/grant of transfer benefits.

(Mudassir, personal communication, august 9,10, 2021)

On the THIRD day, Sir Mudassir briefed me about some increments of

officers and staff which are given below. He also told me how queries related

to these increments are being performed in this section.

Officers:

Basic pay (at the time of appointment)

Annual Increment 7-7-2021

(CPI + ACR Grading)

8.9% (Consumer price index)

CPI+ACR = 15%

Package: announced by MD
14
Service Increment

15-year/25 years @ 10%

Study leave Officers without pay & Allowance

Promotion after 5 years of service in same cadre/scale @10%

On Retirement One Increment @ 10%

Staff:

Basic pay (at the time of appointment)

Annual Increment

@8% with effect of 1-7-2021

Agreement

(After every 2 years with effect of 1-2-2021)

8/15/20/25/30/35 @ 8%

Qualification increment; one increment after permission and requisite

qualification @8%

retirement 2 increments @8%

(Mudassir, personal communication, august 11, 2021)

I was asked to observe all these actions, how they are being taken. The fourth

and fifth day they give us the assignment of verification of all the data of

employees in which we must check the employees date of appointment date,

promotion dates, date of appointment and the date of birth.

2.3 WEEK 3

Human Resource Information System Section:

In the 3rd week of my internship, I was placed in the human resource

information system section where I met the Chief Director of HRIS and I

along with all the other interns gave a brief introduction to him. He them

15
attached us with Dr. Faisal, Manager HRIS who gave us a sequence-wise

introduction of OGDCL. Mr. Faisal explained to us, the tasks performed in the

HRIS section.

The HRIS section stores information related to the employees digitally and

maintains the digital record. The software system used at OGDCL is Oracle

which is composed of different modules. The data stored in Oracle is used to

validate the employee affairs. During these months, OGDCL is shifting to SAP

ERP from Oracle because:

Oracle ERP demands to purchase some software’s while SAP have them built-

in Oracle is good and strong for finance while SAP is goof for storing

employee data.

(Faisal, personal communication, august 16, 2021)

On the 2nd day MR Haider who are working assistant programmer in HRIS

told us about the oracle how can we perform. store and edit information of the

employees. Then he gives us an assignment where we must check the medical

facilities of the employees and their family members in oracle software.

Medical facility will be given to employee’s wife/husband and their children

after 2004. before 2004 it was given to employee’s parents also. And after 23

year of their children and no f-medical facility will be given so we check the

employees where some others member using medically facility illegally or not

and, we checked the next of kin of the employees.

(Haider, personal communication, august 17, 2021)

The third and fourth day of this week were Ashura holidays and on the fifth

day, we did the assignment again and at last they appraise for my assignment

which I did great.

16
2.4 WEEK 4

Recruitment And Selection Section:

In my fourth week of internship, I was in the human resource recruitment

section under the supervision of Senior HR Manager Mr. Javed Iqbal in the

Recruitment Department. On first day, I introduced myself along with other

internees after that we were introduced to the employees of Recruitment

Department who were.

Ms. Nabeela (HR officer), Ms. Madiha (HR officer) and Mr. Fawad Javed

(Admin Assistant) then Mr. Javed Iqbal briefed me about the working of

recruitment department. He also talked about the purpose of recruitment policy

and recruitment process.

(Javed Iqbal, personal communication, august 23, 2021)

On the second day, Ms. Nabeela gave me recruitment policy and asked me to

read it thoroughly. Then we discussed the entire recruitment policy and

process of OGDCL.

(Nabeela, personal communication, august 24, 2021)

On third day Ms. Madiha guided me about noting. She gave me some samples

for noting. Noting is known to be a formal way of communicating any case

with the management in the organization. There are certain rules of noting for

cases. And I did noting for some recruitment cases.

(Madiha, personal communication, august 25, 2021)

On fourth day, Mr. Javed Iqbal discussed some legal proceedings with me. He

gave me some cases and asked to perform the noting for them through my own

analysis. In case of any legal proceedings, the HR recruitment department may

17
act as a respondent. The one who puts the petition is called the petitioner while

the other is called respondent.

(Javed Iqbal, personal communication, august 26, 2021)

On fifth day Ms. Nabeela told me about the advertisement process. I learnt

how an ad is created for a job/ internship and what are the requirements for

generating it.

(Nabeela, personal communication, august 27, 2021)

2.5 Week 5 and 6

I was placed in human resource section(d) in my last 2 weeks. HR officer

briefed me about his department that this department maintain the record of

employees who are working in the plant and process department. all the

working of this department is same as in section (a) the difference is that

section a deal with the employees related to admin and section d deals with the

plant and process department. he gives also an assignment to verify the

employee’s data who are working in the plant and process department.

(Ahmed shah, personal communication, September 1 to 11 ,2021)

18
 CHAPTER 03

3.1 SWOT ANALYSIS

Now I’ve done a complete SWOT Analysis of the company OGDCL to get an

insight and an unbiased image of its key strengths and weaknesses and the

potential opportunities in the E&P sector and the threats it has from the

competitors.

3.1.1 Strengths of OGDCL

Largest oil and gas company in Pakistan

Oil & Gas Development Company Limited (or OGDCL) is Pakistan's largest

oil and gas exploration and production company. OGDCL's products include

gas, crude oil, and LPG. Government of Pakistan share 74% share of the

company.(DNB, 2021)

Large no. of field of oil and gas in Pakistan

It has 50 operating oil and gas fields distributed throughout the country;

OGDCL has 18 oil and gas processing plants. These include dehydration,

liquefied petroleum gas, sulfur recovery, H2S removal, gas desulfurization,

condensate stabilization, refining and compression plants.(OGDCL, 2021)

Merit Based Hiring:

The hiring of employees is truly based on the merit system, so only highly

competitive candidates can qualify for the organization.

One of the best Pay Packages:

Their pay packages are one of the tops in the country and annual bonuses are

announced periodically to motivate the employees.

OGTI:

19
 OGDCL has a separate well enough training institute to train its employees up

to the required mark in the form of OGTI.

Highly Profitable Entity:

OGDCL enjoys a status of a profitable corporation since its birth.

Huge Financial Reserves:

It has huge financial reserves available

3.1.2 Weakness of the organization:

Political Influences:

Politics plays its role sometimes and these political influences sometimes halt

the decisions that might be beneficial for the company.

Free Rider Problem:

Annual bonuses are declared for the entire organization irrespective of their

Dependence on Domestic market for growth

Hierarchical Formalities:

Too many hierarchical formalities and spaces in chain of command.. There is

very strong union of workers, and the top management has to agree on their

demands after every two years.

3.1.3 Opportunities

 No tough competition faced by OGDCL in this sector, so exploration contracts

are most likely to be given to the OGDCL for the future mega projects.

 Increase in Demand

 Gas demand is highly increasing due to changing attitude of the people.

 Incentives by the Govt.:

20
 Government is promoting the energy sector by giving incentives for doing

better projects.

 Inflation causes increases in oil prices

 Inflation and increase in oil prices internationally have been noticed recent

years.

 There are many oil and gas reserves in Pakistan that has yet to be discovered in

Pakistan.

3.1.4 Threats

Decrease in oil prices

Decrease in oil prices would be threatening for the OGDCL.

Threat of Unproductive Oil Fields:

Threat of unproductive oil well is a great a big loss for the company.

Government Decisions:

Being a Govt. owned organization, the Govt. has a lot of say in deciding its

investment decisions.

21
3.2 PEST ANALYSIS

The oil and petroleum business contributes significantly to a country's

economy by facilitating transportation on the roadways and the operation of

factories and mills. This industry provides investment opportunities, and

investors can earn a good living from it. If a proper PEST analysis is

performed for this industry in any country or specific area, the executives of a

firm will be able to comprehend the nature of the work, the business

conditions, and the essential regulations that they must follow during their

working process. They needed to realize that energy resources are vital for

both human and industrial consumers, and that they require different

approaches.

3.2.1 Political factor

The oil and petroleum business need labor to function, and those who work in

it must pay taxes and other fees. The industry is required to adhere to the

taxation policy.

Incorporate labor laws into the workplace. Restriction of trade Environmental

regulations and tariffs, the government should support this industry by

providing goods and services and assisting it in growing so that it can

contribute to the country's robust economy. It is necessary to implement

adequate labor laws, including appropriate working hours and wage policies,

in order to improve the happiness and well-being of the workforce. It also

requires the industry to provide health, education, and other services.

3.2.2 Economic factor

Petroleum exploration has had a significant impact on the economies of the

countries where it is discovered and refined. The OPEC countries have made a

22
lot of money by selling oil and petroleum to other countries, which is required

for various domestic and commercial purposes. The supply and demand of oil

prices, as well as additional goods, replacement resources, and the market

exchange rate of the American dollar, are all economic considerations.

3.2.3 Social factor

Demography, income mobility, religion, culture, and ideological perspectives

on topics are all reflected in the social aspect in the oil and petroleum business.

This sector employs skilled and professional professionals who are

compensated well and have flexible working hours. The countries seek to

develop their oil and gas industries so that they can fulfil future needs and

improve their living standards.

People's lives were changed because of the petroleum industry. There is no

culture that is opposed to petroleum exploration, and it is vital for people's

progress and prosperity. Some individuals believe it is a major source of

pollution that harms the environment, but they cannot deny the industry's

importance.

3.2.4 Technological Factors

When we discuss about the technological factor, it means these are about

different technologies, techniques and the ways than can affect the activities,

which are being undertaken in an organization. It can also influence the

organization with the need to get modern technology learn new techniques and

use different methods, such latest technologies are used for the exploration of

oil and gas and use roads. pipelines. transport and oil tanks. due to these

technologies the industry will grow very quickly.

23
 Chapter 4

4.1 CONCLUSION

OGDCL's status as a public sector oil and gas company in the country has

been repeatedly promoted, and it is a well-known leading E&P company with

operations in every province of Pakistan. Its shares are now listed on

Pakistan’s Islamabad, Lahore and Karachi Stock Exchanges and the London

Stock Exchange • OGDCL’s status as a public sector oil and gas company in

the country has been promoted several times and is known as a leading

exploration and production company The company has operations in every

province of Pakistan. Its shares are now listed on the Islamabad, Lahore and

Karachi stock exchanges in Pakistan and the London Stock Exchange

. Analyzing the company's balance sheet, the company is independent and has

a high debt repayment tendency. The company’s sales are huge, so its goal is

to make huge profits in the long run. The company's solvency ratio reflects the

company's long-term viability. Under the leadership of management, the hard

work and continuous commitment of all employees make these financial

results possible. Considering the company's achievements and profitability

over the years, the company can look forward to many other success stories

The training facilities provided by the Oil and Gas Training Institute (OGTI)

are commendable, meeting high-quality, and improved human resource

requirements. The OGTI program aims to develop and expand professional

technical and management skills to meet rapidly changing business challenges

24
4.2 RECOMMENDATIONS:

During OGDCL, I have a deep understanding of the company's system. I have

observed various shortcomings and frustrations faced by companies that I

discussed in the SWOT analysis section. To eliminate these weaknesses, I

would like to recommend some practical steps that may help improve the

efficiency of the company.

OGDCL adopted the latest technology to improve its work efficiency, but

some early employees did not know how to effectively apply this latest

technology to work. They are just destroying available resources. Therefore,

OGDCL must take the necessary actions to educate these people how to use

the available facilities so that they can more effectively promote the success of

the organization. Bonuses must be awarded based on performances of the

employees. The job description must be clearly mentioned and forwarded to

the employees, and appropriate inspections by the superior management

personnel to ensure honesty and fairness.

Training should be provided to technical staff according to their job

requirements.

Hierarchy level should be minimized to improve upward and downward

communication.

Production cost should be reduced by introducing new technology and by

hiring skillful human resource.

Political interferences should be eliminated to ensure a smooth system.

Management should maintain physical records of the inventory to avoid any

mis-handling or missing cases.

25
Comparisons of actual versus budgeted expenditures should be done to

discover cost over-runs.

26
ANNEXURE

Annexure 1

Organizational chart

Board of Directors

Company
Secretary / General Audit Committee of
Manager Legal the Board
Services

General Manager /
Chief internal
Auditor

Managing Director / Chief

Chief Operating Chief Financial GM (Corporate

ED (Production) ED (Exploration) ED (Petroserv) ED (BD/JV) ED (Finance) ED (Services) GM (HR) GM (CSR)

GM ( Prospect GM (Information
GM (P&P) GM (DO) GM (JV) GM (Finance) GM (HSEQ) GM (Admin)
Generation) System)

GM ( Geophysical GM (Health
GM (PE & FD) GM (DS) GM (BD) GM (Accounts) GM (Security)
Services) Services)

GM (Geological
GM (Projects) GM (C&ESS) GM (Treasury) GM ( SCM) GM (OGTI)
Services)

GM (Commercial) GM (Material)

GM (Production) GM ( RM)

(Source: annual report 2021)

27
ANNEXURE 2

ORGANOGRAM OF HUMAN RESOURCE DEPARTMENT

(Saeed Malik, Personal Communication, Aug 6, 2021)

28
REFERENCES

[1] OGDCL Introduction, data retrieved on 15 September ,2021 from

https://en.wikipedia.org/wiki/Oil_%26_Gas_Development_Company

[2] OGDCL Exploration of OGDC, data retrieved on 15 September ,2021

from https://ogdcl.com/vision-mission

[3] OGDCL transform into self-funded entity retrieved on 15

September ,2021 from

https://www.ogdcl.com/vision-mission

[4] OGDCL Conversion into plc, data retrieved on 15 September ,2021 from

https://ogdcl.com/vision-mission

[5] OGDCL GDR, data retrieved on September 15 ,2021 from

https://www.ogdcl.com/vision-mission

[6] OGDCL Major activities, data retrieved on September 17,2021 from

https://ogdcl.com/facts-and-figures

[7] OGDCL Major activities, data retrieved on September 17,2021 from

https://ogdcl.com/facts-and-figures

[8] OGDCL Vision, data retrieved on September 17, 2021 from

https://ogdcl.com/vision-mission

[9] OGDCL Mission, data retrieved on September 17, 2021 from

https://ogdcl.com/vision-mission

[10] OGDCL Core values, data retrieved on September 17, 2021 from

https://ogdcl.com/vision-mission

[11] OGDCL departments, data retrieved on September 17, 2021 from

https://www.ogdcl.com/

29
[12] OGDCL Number of employees, data retrieved on September 18, 2021

from

https://ogdcl.com/all-members/management-team

[13] OGDCL No of field of oil and gas, data retrieved on September 22, 2021

from

https://ogdcl.com/operations/production#:~:text=Having%2050%20Operated

%20Oil%20%26%20Gas,Stabilization%2C%20Refining%20and

%20Compression%20plants.

[14] OGDCL organizational chart, data retrieved on October 5, 2021 from

https://ogdcl.com/sites/default/files/OGDCL%20ANNUAL%20REPORT-

%202019_0.pdf

30