Ogdcl Internship Report
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Transcript of Ogdcl Internship Report
OGDCL
SCHEME OF THE REPORT
1-Chapter 1
Chapter 1 covers the background of the study, purpose, scope, limitations, merits,
methodology and scheme of the study.
2-Chapter 2
Chapter 2 covers the oil industry in Pakistan, history of OGDCL and the organizational
structure comprehensively. This chapter also presents functions, projects, product line, mission and
objectives as well.
3-Chapter 3
In chapter 3, the organizational structure and its structure is discussed comprehensively. More
attention is given to the different departments working in and under OGDCL and how these
departments operate.
4-Chapter 4
This chapter focuses on human resource department of OGDCL. It explains the
administration and personnel department and its practices in the organization in detail.
5-Chapter 5
This chapter is all about SWOT analysis in which strength, weaknesses, opportunities and
threats are discussed.
6-Chapter 6
In chapter 6, problems of OGDCL are identified and then on these bases some suggestions
are given keeping in view the current situation of the organization. The effort is directed for efficient
performance
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OGDCL
CHAPTER –1
INTRODUCTION
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan
Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at
Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign
oil companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and geophysical surveys and
drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas
discoveries, exploration activity after having reached its peak in mid-1950s, declined in the late
fifties. Private Companies whose main objective was to earn profit were not interested in developing
the gas discoveries especially when infrastructure and demand for gas was non-existent. With
exploration activity at its lowest ebb several foreign exploration contracting companies terminated
their operation and either reduced or relinquished land holdings in 1961.
1.1 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. The first 10 to 15 years were devoted to development of manpower and building of
infrastructure to undertake much larger exploration programmes.
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OGDCL
1.2 Initial Successes:
A number of donor agencies such as the World Bank, Canadian International Development Agency
(CIDA) and the Asian Development Bank provided the impetus through assistance for major
development projects in the form of loans and grants. OGDC's concerted efforts were very successful
as they resulted in a number of major oil and gas discoveries between 1968 and 1982. 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.
1.3 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.
1.4 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.
1.4.1 Aims and Objectives Of OGTI
The aims and objectives of OGTI are to identify the training needs of the industry, offer
practical training programme 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.
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OGDCL
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 schools do not provide the full range of subject matter
necessary for a graduate entering the petroleum industry. It is OGTI’S 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 in-house technology update seminars .
1.5 BACKGROUND OF THE STUDY
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
total consumption, saving Pakistan from imports and contributing to economy by paying different
charges to the government.
1.6 PURPOSE OF THE STUDY
This report is based on study carried out for the fulfillment of the degree requirement of the Master
in business administration at the COMSAT Institute of information technology. The purpose of the
study is to do practical work in field and apply the knowledge of classroom lectures to the real life
situations.
1.7 SCOPE OF THE STUDY
The scope of my work is focused on the working of Personnel and Human Resource Department.
Review Section of this report not only explains department’s working but also flow of work
activities among the sections. During the internship it, the observation was focused on internal
managerial matters of OGDCL, i.e. work environment, organization structure, decision-making
process, promotion criteria and all such matters. This research facilitates in SWOT Analysis.
1.8 LIMITATION OF THE STUDY
No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was
conducted in accordance with the objectives of the study; the study may not include broad
explanations of facts and figures due to the nature of the study. Second: limitation, which affects the
study, is the availability of required data was problem all the documents and files are kept strictly
under lock and key due to their confidential nature. Third: the problem of short time period also
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OGDCL
makes the analysis restricted as one cannot properly understand and thus analyze all the operations of
an organization just in eight weeks.
1.9 MERITS OF THE STUDY
The study done will benefit the finance students in particular and all type of Management students in
general, because the analysis section of this report comprehensively encompasses all respects of
OGDCL. Furthermore, OGDCL Head office Islamabad may also benefit from the recommendations
made at the end of the report.
1.10 METHODOLOGY OF STUDY
The data collected for analysis and review includes both primary and secondary data. The methods
used for collecting primary and secondary data are as follows:
1.10.1 Primary Data
Data collected for the first time is called primary data. The methods used to collect such data include:
Personal observations and
Interview with organization’s employees.
1.10.2 Secondary Data
The data collected earlier by someone else and which has gone through mathematical and statistical
techniques after its collection, is called secondary data. Methods used to collect secondary data
include:
OGDCL annual reports
OGDCL brochures
Internship reports on OGDCL
Journal and
Newspaper
Internet
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OGDCL
CHAPTER –2
PRESENT STATUS OF THE COMPANY
2.1 VISION STATEMENT
To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and
performance.
2.2 MISSION STATEMENT
Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing
our reserves through world class workforce, best management practices and technology and
maximizing returns to all stakeholders by capturing high value business opportunities within the
country and abroad, while being a responsible corporate citizen.
2.3 CORE VALUES
Merit
Integrity
Team Work
Safety
Dedication
Innovation
2.4 OBJECTIVES
a. Developing E & P Work Flow Models for Data Integration and connectivity.
b. Conduct geoscientific, algorithms and systems architecture research leading to the
development of robust, interactive and user-friendly geosciences applications software that
are tightly integrated into the workflow environment.
c. Detailed testing of the developed applications to achieve the highest performance.
d. Detailed testing of the developed applications to achieve the highest performance.
e. Training and systems support to the end - users.
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OGDCL
2.5 HISTORICAL BACKGROUND OF THE COMPANY
2.5.1 Establishment
The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in
1961, to undertake comprehensive exploratory programme and promote Pakistan’s oil and gas
prospects. In 1997, it was converted into a Public Limited Company and is now governed by the
Companies Ordinance 1984.
2.5.2 Development
With a balanced, efficient and competitive structure, OGDCL explores and exploits
indigenous resources for optimum production of oil and gas, besides seeking opportunities abroad.
OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration
concessions and holds non –operated working interest in another 7 exploration concessions. In
addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it
besides having working interest ownership in 28 non-operated Mining and Development &
Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified
and skilled expertise in the fields of geology and geophysics are frequently availed y the local and
foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic
surveys and data processing on contract for these companies on extremely competitive rates.
OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total
oil and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan
is 34% and 28% respectively. On the basis of its activities since inception, the company has until
June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCL’s updated estimates for
remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion
standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including company’s share in non
– operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and commercially viable
organization.
2.5.3 Name & Address of Company
Oil and Gas Development Company Limited (OGDCL). House, Jinnah Avenue, Blue Area,
Islamabad, Pakistan.
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OGDCL
Telephone: 051-9209701
Fax No: 051-9209708
2.5.4 Name of Chief Executive
Mr. Najam Khan Hydar (Managing Director).
2.6 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.
2.7 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 as
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, refine and sale oil and gas
e. To perform other functions as the Federal Government may from time to time assign to the
Corporation.
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OGDCL
2.8 PROJETS
2.8.1 QADIR PUR DEVELOPMENT PROJECT
Qadirpur gas field, one of the large fields in the country was discovered in 1990. It is located
in the central Indus basin, south of kandhkot and Sui gas field.
In accordance with the consolidated revised development plan dated 30 November, 2002
phase-II “revamp project” was commissioned on 23 January 2004 to process MMscfd of gas. Under
this plan pretreatment memguard unit and new membrane elements were installed and drilling of one
well was completed.
Phase-III of this project was commissioned on 20 march 2004, by installation of two
additional membrane skids and drilling of two wells. Due to this expansion the capacity of plan has
increased to process gas up to 500 MM.
2.8.2 CHANDA DEVELOPMENT PROJECT
Chanda oil field, the over discovery in NWFP, was brought on to stream and it started giving
production from 17 July, 2004, and is currently producing 3,500 barrels of oil and 13 MMscf of gas
per day. Chanda LPG plant will also be installed by October 2004 were 25-40 M.tons of LPG will be
produced. The
third well at Chanda field is planned to be in third quarter of 2004-2005.This will increased
the production of field to 5,300 sbarells of oil and 19 MMscf of gas per day.
2.8.3 BOBI DEVELOPMENT PROJECT
First phase of the bobi development project has also been commissioned in June 2004 and is
producing 1,050 barells of stabilized condensate per day. Phase-II of the project is expected to be
streamlined in October 2004. On its completion, the field will produce about 2,800 barrels of oil per
day and 125 M.tons of LGP Satellite fields namely Mithrao and chak dim will
2.8.4 DHODAK PLANT ENHANCEMENT AND DAKHNI EXPANSION
Dhodak plant enhancement and dakhni expansion projects are also in progress and are
expected to be completed by some time completion, the projects will result in substantial
enhancement of production of oil, gas, LPG and sulpher.
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OGDCL
Mega Projects
Projects Completion Estimated Cost Prod Capacity
Chanda
Development
Project
January, 2007 $ 9 Million
LPG: 25 MTD
Gas: 8.5 MMscfd
Dakhni
Expansion
Project
February, 2009 Rs.1803 Million
Oil.: 720 BPD
Gas: 12MMscfd
LPG: 12 MTD
Sulphur: 80 MTD
Qadirpur
Compression
Project
September, 2008
December, 2007$ 160 Million
a). To maintain
plateau of gas
production 650
MMscfd
b). Additional 100
MMscfd gas
Dhodak
Expansion
Project
A Bid to be invited
afresh $ 50 Million
Oil.: 4000 BPD
Gas: 64 MMscfd
LPG: 258 MTD
Uch-II
Development
Project
March, 2009
(As conveyed by
PPIB)
$ 250 Million
Gas: 200 MMscfd
TAY
Development
Project
A Bid to be invited
afresh $ 54.1 Million
Oil.: 2500 BPD
Gas: 28 MMscfd
LPG: 85MTD
Sinjhoro A Bid to be invited $ 89 MillionOil.: 2940 BPD
Gas: 25 MMscfd
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OGDCL
afresh LPG: 224 MTD
Chapter 3
ORGANIZATIONAL STRUCTURE
3.1 MAIN OFFICES
OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional
Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in
Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational
structure / organogram is as under
A Board of Directors comprising twelve Directors, all of whom are nominated by the
Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The
autonomous Board is headed by a non-executive Chairman and there is a Managing
Director/Chief Executive Officer.
Following are the main offices located throughout Pakistan:
1. OGDCL Head Office, Jinnah Avenue Islamabad.
2. Pirkoh Gas Company Private Limited, Islamabad.
3. OGDCL Regional Office, Shafi Chamber, Karachi
4. OGDCL Regional Office, Multan
5. OGDCL Liaison Office, Quetta
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OGDCL
6. OGDCL Liaison Office, Sukkur
7. OGDCL West Wharf Office, Karachi
8. OGDCL Base Store, Islamabad
9. OGDCL Base Store, Khadiji, Karachi
10. OGDCL Base Store, Korangi
11. OGDCL Base Store, Kot Addu
12. OGDCL Base Store, Kot Sarang
13. Medical Centers, Islamabad, Rawalpindi & Karachi
14. OGDCL Workshops, Islamabad
15. Oil & Gas Training Institute, Islamabad.
3.2 MAIN DEPARTMENTS
Corporate Department
1. Administration Department
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OGDCL
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
E&P Departments
1. Exploration Department
2. Exploitation Department
3. Production Department
4. Process Department
Technical Services Department
1. Drilling Department
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OGDCL
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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OGDCL
3.3 Organizational Structure
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OGDCL
BOARD OF DIRECTORS
Jalaluddin Qureshi
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OGDCL
Overview of Board of Directors
Arshad Nasar Chairman & CEO
o Previously held various positions at Caltex / Chevron since 1968 including
Country Head since 1998
o Over 37 years of experience in Pakistan and overseas
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OGDCL
o Director on various Boards
o Chairman of the Oil Companies’ Advisory Committee, President of the American
Business Council
Al-Syed Abdul Qadir Jamaluddin Al-Gillani Director
o Elected for first term as MNA for the PML(Q) party
o Member of the Parliamentary Committee on Water and various National Assembly
Committees
Alman Aslam Director
1. Currently manages his own investment banking business
2. Previously employed at Citigroup with positions including Head of Corporate Finance
CEEMEA
Jalaluddin Qureshi Director
1. Currently serving as joint Secretary, Ministry of Finance.
2. Associate Member and Fellow Member of Institute of Cost & Management Accounts of
Pakistan.
Azam Faruque Director
1. Currently CEO of Cherat Cement Co Ltd, a member company of the Ghulam Faruque
Group of companies
2. Previous positions: non-executive member of the Central Board of the State Bank,
member of the National Emergency Economic Committee, etc
Asad Umar Director
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OGDCL
1. President and CEO of Engro Chemical Pakistan Ltd
2. On the Board of Directors for various companies including PSO and Pakistan Dairy
Development Co.
Khalid Rafi Director
1. Founding member of Si3, Chairman of Ferguson Associates
2. Former Senior Partner of A.F. Ferguson (PwC)
Naeem Malik Director **
o Director General of Petroleum Concessions (DGPC), Ministry of Petroleum &
Natural Resources
o Director on Boards of SNGPL, SSGCL, Pirkoh Gas Company, Mari Gas Company
Limited, etc
Aslam Khaliq Director
1. Previously held several roles at Pakistan Tobacco (BAT Pakistan), former Chairman of
Pakistan Tobacco
2. On various Boards including Jahangir Siddiqui Capital Markets
Sikander Hayat Jamali Director
1. Chairman of the Balochistan Pakistan Red Crescent Society
2. On the Board of Directors of the National Bank of Pakistan, Pakistan Reinsurance
Company, etc
3. Ex-secretary of the Minister of Education
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OGDCL
Zahid Majid Director
o Sui Southern Gas Company Limited
3.4 COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a non-executive
Chairman and a full time Managing director. The general direction, policies and affairs of the
Company vests in a Board of Directors, which consists of 01 Chairman, 10 Directors and 01
Managing Director (MD). MD is responsible for operational and other activities. The
OGDCL has been re-organized during the last few years; it now operates much purely as Oil
Company does. Emphasis is on Professional Competence and getting things done. OGDCL
can broadly be divided in to following three companies:
Corporate
Exploration & Production (E& P )
Technical Services
The whole organization has been streamlined on the functional basis and it has
emerged as an efficient unit, while speed and competence are its Hall Mark. It is now divided
into separate departments and each department is in a position to work independent business
unit.
For effective operational activities, different Executive Directors performs following
activities in consultation with General Managers, who are assisted by the concerned
Departmental Managers:
The Executive Director Exploration:
Supervises all the geophysical and geological and exploration activities and is assisted by
different Manager.
Executive Director Drilling:
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OGDCL
when a potential oil or gas field has been identified through seismic surveys, it is then drilled
to assess the quality and quantity of the deposits. This process is achieved through drilling.
ED (Drilling) is responsible for all the drilling activities carried out by OGDCL in the
country.
Executive Director Admin:
Responsible for management of personnel. The administration department manages all the
activities from recruitment to training and development.
Executive Director Corporate Affairs:
Looked after the activities of planning of different development programme and monitor the
implementation of that program. It coordinates with all the department of OGDCL and
prepares a strategic plan for the activities of OGDCL. This department also liaison between
OGDCL different Ministries.
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OGDCL
3.5 NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY
OF OVERALL OFFICIALS
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUP
MeritPUNJAB SINDH NWFP BALUC-
HISTAN
FATA AK
URBAN RURAL TOTAL
MANAGEMENT CADRE
M-1 0 0 0 0 0 1 0 0 0 1
EG IX 0 2 1 0 1 0 1 0 0 4
EG VIII 4 3 0 1 11 0 0 0 0 9
EXECUTIVE CADRE
EG VII 3 37 6 1 7 11 1 1 0 60
EG VI 12 102 18 13 31 31 10 4 5 195
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OGDCL
EG V 19 116 36 49 85 28 11 10 5 274
EG IV 28 109 29 36 65 34 6 14 6 262
EG III 28 178 57 46 103 28 9 7 3 356
EG II 22 204 17 39 56 38 7 8 3 338
EG I 15 132 28 47 75 18 7 3 2 252
TRAINEES 12 69 13 20 33 15 11 8 6 154
TOTAL 143 952 205 252 457 205 63 55 30 1905
OVERALL STAFF
PAY
GROUP
DOMICILE TOTAL
IN THE
GROUP
MeritPUNJAB SINDH NWFP BALUC-
HISTAN
FATA AK
URBAN RURAL TOTAL
NON EXECUTIVE CADRE
16 2 163 49 14 63 22 2 1 5 258
15 2 106 12 25 37 20 0 0 5 170
14 0 253 58 109 167 58 7 6 13 504
13 0 4 2 0 2 1 0 0 0 7
12 15 623 59 60 119 113 14 5 31 920
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OGDCL
11 0 1 0 0 0 0 0 0 0 1
10 4 148 24 56 80 34 6 2 12 286
9 3 425 45 67 112 79 20 2 12 653
8 5 164 35 95 130 30 11 2 9 351
7 0 93 11 16 27 5 8 0 3 136
6 3 670 94 166 260 102 50 7 17 1109
5 0 99 19 9 28 23 5 0 13 168
4 0 264 28 79 107 30 63 0 17 481
3 0 198 39 31 70 25 29 2 26 350
2 0 324 70 220 290 41 128 1 14 798
1 0 1392 103 705 808 136 566 2 45 2949
TRAINEE 6 27 1 2 3 8 8 0 1 53
TOTAL 40 4954 649 1654 2303 727 917 30 223 9194
3.6 BUSINESS VOLUME
OGDCL is using the modern seismic technology for improving its ability to discover
the unexploited oil and gas potential in the country. A number of major institutional reforms
and improvements have been implemented in all areas of operations enabling the company to
take up the challenge of making the country self-reliant in the energy sector.
As of August 2006, OGDCL has drilled 187 exploratory wells and 239 development
wells since inception. The company has made 60 discoveries with an excellent success ratio
of 1:3. In a short span of only three years OGDCL was successful in making 10 discoveries,
02 Oil discoveries and 08 gas/condensate discoveries. Out of which 09 are in Sindh and 01 in
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OGDCL
NWFP. The discovery of well at “CHANDA” kohat is the first discovery in NWFP and it
will open a new era for hydrocarbon exploration in NWFP.
OGDCL financial performance has been consistently improving with sustainable
growth since the time it became a self-financing Company. The Company is the single largest
contributor of more than Rs. 37 billion to the national exchequer in the shape of royalty,
duties, taxes and other payments. Its share in the total Oil & Gas production has been 34%
and 21% respectively in the year 2005-06. Its business volume for the last five years has
shown a steady growth as indicated in the schedules given on next page:
Business Volume for last Five Years
Product Measurement
Scale
2001-02 2002-03 2003-04 2004-
05
2005-
06
Crude Oil Thousands
Barrels
8,907 8,535 8,705 9,413 9,941
Gas MMcf 161,534 217,927 245,537 274,006 277,408
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OGDCL
LPG M.Tons 93,004 77,402 93,136 90,304 101,322
Sulphur M.Tons 13,445 16,670 23,234 15,889 18,917
White
Petroleum
Products
Thousands
Barrels
1,038 998 989 859 890
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Oil Production
7500
8000
8500
9000
9500
10000
10500
2001-02 2002-03 2003-04 2004-05 2005-06
Years
Qua
ntiti
es T
hous
ands
Bar
rels
OGDCL
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Gas Production
0
50,000
100,000
150,000
200,000
250,000
300,000
2001-02 2002-03 2003-04 2004-05 2005-06
Years
Qu
ant
itie
s Th
ou
sa nd
s Ba
rre
ls
LPG Production
0
20,000
40,000
60,000
80,000
100,000
120,000
2001-02 2002-03 2003-04 2004-05 2005-06
Years
Qua
n
titie
s
M.
Tons
Sulphur Production
0
5,000
10,000
15,000
20,000
25,000
2001-02 2002-03 2003-04 2004-05 2005-06
Years
Qu
a
ntit
ie
s M
.
Tons
OGDCL
The Net sales & other revenues for the last five years are as under:
(Rupees in Million)
YEARS 2001-02 2002-03 2003-04 2004-05 2005-06
Net Sales
Revenue 26,209 39,892 41,845 47,058 52,641
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0
10000
20000
30000
40000
50000
60000
Sales Revenues
(Rs in Millions)
2001-02 2002-03 2003-04 2004-05 2005-06
Years
Net Sales Revenues
OGDCL
The business volume and the sales revenues are the reflection of an operator’s
management judgment, execution and skills. OGDCL‘s financial performance has
been consistently improving since becoming a self-financing entity.
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OGDCL
CHAPTER – 4
ADMINISTRATION AND PERSONNEL (HR) DEPARTMENT
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OGDCL
DESIGNATION WISE BREAKUP
O FFICERS
Manager : 01 Dy. Manager/Chief : 01 Dy Chief Personnel Off : 03 Sr. Personnel Officer : 01 Personnel Officer : 04 Programmer (Computer) : 01 Data Processing Officer : 02
Sub-total : 13STAFF
Superintendent : 10 Stenographer/Steno typist : 03 Admin Assistant : 24 Jr. Admin Assistant : 20 LDC/Typist : 18 Record Sorter/Daftaries : 06 Naib Qasid / Helper : 16
Sub-total : 97OVERALL TO TAL : 110
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OGDCL
FUNCTIONS
OF PERSONNEL DEPTT.
1. Maintenance of service record of employees from their induction to retirement and beyond.
2. Transfers –Postings.
3. Maintenance of seniority.
4. Handling of Personnel grievances.
5. Processing of Pension / EOBI and retirement cases.
6. Implementation of CBA Management’s agreement’s after every two year’s duration..
7. Maintenance of Database-Computerization.
8. Responses to Senate, National Assembly Questions / Other Government Agencies.
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OGDCL
4.1 PERSONNEL (HR) DEPARTMENT FUNCTIONS
4.1.1 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 have their own personal file in personnel department.
4.1.2 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. It’s called correspondence.
4.1.3 Pay Scale and Fixation.
It is also the function of personnel department that they fixed the pay scale for employees. There are
three types of employees in OGDC.
1. Executive Group (EGI - EGIII)
2. Staff (1 - 16)
3. Contractual Staff
Recently personnel department has computerized the whole process to reduce the burden, whenever
they want any type of data immediately, call to computer. They have their own computer section.
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OGDCL
Future Targets/Goals with Time Frame
To efficiently facilitate the core functionalities as displayed and required by the core technical departments of oil and gas business.
1.Succession Plan.
01-09Superintendents7.
--Asstt . Personnel Officer
6.
01-04Personnel Officer5.
--01Sr.Personnel Officer4.
01-03Dy.Chief Personnel Officers
3.
0101C.P.O/Dy. Managers2.
-01Manager Personnel1.
Plans to Fill the
Gap up to 2010
Officers Retiring by 2005-
06
Held Position
Existing Manpower
Sr.
No.
Through a) Open advertisement on Merit.b) Promotions
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OGDCL
1. Maintenance of service record of employees from their induction to retirement and beyond.
2. Transfers –Postings.3. Maintenance of seniority.4. Redressed of Personnel grievances.5. Processing of Pension/EOBI & retirement cases.6. Implementation of CBA Management’s agreement’s after every two year’s
duration.7. Maintenance of Database-Computerization.8. Responses to Senate, National Assembly Questions/Other Government Agency.
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OGDCL
4.2 PUBLIC RELATION DEPARTMENT
Public relation department is one of the permanent departments of OGDC. Unfortunately it cannot
surely say that on which date and year it was established in OGDCL.
Initially it was started and performs duties in Karachi, but in 1985 shifted to Islamabad along with
whole records.
Public relation department is more concerned with press. The main objective is to provide accurate
and an esteem information to the general public about OGDCL’s functions that what OGDCL is
doing. For the development of oil and gas sometime press conference also arranged for this purpose.
Public relation department deliberate plan and sustained efforts to established and maintain natural
understanding between an organization and its public.
It also performs the function to maintain the relation between the management and staff.
Public relation department operates various methods and procedures to inform the public. Various
types of newspapers are mostly used to inform the public. Through newspapers they give
advertisement about OGDCL.
4.3 HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it performs the
function for OGDCL’s staff member to hire houses for their accommodation. It has many functions
they are:-
Hiring of houses for the employees of OGDCL.
Hiring of building for offices and lodges at Islamabad.
Hiring of lodges, rest houses for staff and officer at big cities like Lahore, Karachi Peshawar etc.
4.3.1 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.
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OGDCL
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to the required
party/person. He is the in charge of overall staff of both sections.
4.4 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.
4.4.1 Vehicle for Entitled Officer
Manager they provide official vehicles for duty.
4.4.2 Vehicle for General Duty
For each department they provide special vehicle for emergency cases.
4.4.3 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.
4.4.4 Verifier Field Duties.
At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency.
4.4.5 Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff.
4.5 ORGANIZATION OF LEGAL SERVICE DEPARTMENT
4.5.1 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
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OGDCL
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.
4.5.2 Medical Center Department Organogram
4.5.3 Manager Medical Services
It is the head of the medical services and is responsible for,
To manage the medical centers of the corporation.
To provide medical facilities to the corporation employees.
4.5.4 OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills.
Every year medical centre make an arrangement with any drug store on 6% discount. It is a
permanent discount so after check up, the patient may receive the drugs from that particular drug
store. For verification the owner of the drug store send bills to the DCMO at the each month. DCMO
checks and make verification and signed on those bills. After that they refer the bills to the account
department for payment. Vaccination programmed is also processed in MC. They keep money for
vaccination.
4.5.5 Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at M.C Islamabad.
4.5.6 Hospitalization
Patients are referred for hospitalization as and when required to hospital/nursing, homes
/specialist on the panel of the corporation and re-imbursement is allowed when such facilities
are not availed.
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OGDCL
4.5.7 Medicines
Medicines are provided to patients from entitle panelist chemist through prescription. Emergency
drug are also kept at both medical centre to meet any emergency.
4.5.8 Vaccination
Vaccination facilities for children are available at both medical centers and every Monday is
specially fixed for this purpose.
4.5.9 Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty.
4.6 PENSION AND WELFARE SECTION
4.6.1 Welfare Section
It is just like a bridge between the union and management. It is also a proper channel between the
two bodies.
4.6.2 Functions of Welfare Section
Various types of functions performed by the welfare section are as under:-
To deal with union matters.
To provide facilities to the staff members of their families.
Grant of house building advance.
Conveyance advance, to give amount to the staff members after five years in OGDCL for
conveyance.
Distress grant, at the time when any staff member die, the amount will be given to his wife.
Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their income
Similarly large number of facilities they provide to the staff member, due to the arrangement with
management. The union and management make on agreement after every two years. Welfare section
negotiates with union from the management side.
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OGDCL
4.6.3 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.
4.7 RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new and old
employees.
4.7.1 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.
4.7.2 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.
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%
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OGDCL
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 40%weitage
Experience 30%weitage
Academic Qualification 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
Contract Basis
Trainees – Special Trainees
Hiring through Contractor
Classified appointment
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OGDCL
SELECTION COMMITTEES FOR RECRUITMENT
FOR EG-VIII AND ABOVE
Managing Director and Members of Human Resource Committee.
FOR EG-VII AND EG-VI
Managing Director Chairman
Executive Director (Admin) / G.M. (Admin) Member
Executive Director (Concerned) Member
Professional / Expert in the relevant field/discipline Member
Preferably having PhD or Master degree in the
Relevant subject.
Head of Department Concerned Member
FOR EG-V TO PS-15
Executive Director (Admin) Chairman
Executive Director (Concerned) Member
Head of Department Concerned Member
Head of Department Concerned Professional/Expert Member
Head of Department Concerned Member
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OGDCL
4.8 DISCIPLINE SECTION
4.8.1 Functions
Discipline section deals with those matters which depend upon any misbehavior, mis-conduct or any
offence which occur in fields and offices by the employees. In OGDCL there is delegation of powers
.Every higher authority can take action against that evil. After taking action he send a report to
discipline section then discipline section help him in penalties with the approval of executive
directors and chairman under the rule of 1973.
4.8.2 ODGCL Servants (Efficiency and Discipline) Rules-1973.
Government servant (efficiency and discipline) rules 1960 which were adopted in the draft service
rules vide part-II statutory notification (SRO) govt of Pakistan cabinet secretariat(established
division) notification No.SRO-1213(1)/73 published in the gazette of Pakistan enter ordinary dated
18-08-1973.These new rules have been adopted by the oil and gas developing company limited and
matters relating to efficiency and discipline of the employees shall henceforth be governed by the
OGDCL servants rules 1973 being issued as annex.
4.8.3 Penalties
The following are the minor and major penalties namely:
Minor Penalties
Censure;
With holding for a specific period, promotion are increment, otherwise then for unfitness for
promotion financial advancement, in accordance with the rules or orders pertaining to the service
or post.
Stoppage for a specific period, at an efficiency bar in the time scale, other wise then for unfitness
to cross such bars.
Recovery from the pay of the whole or any part of any pecuniary (minority) loss caused to
corporation by negligence or breach of orders.
Major Penalties
Reduction to a lower post or time scale, or to a lower stage in a time scale .
Compulsory retirement.
Removal from service and
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OGDCL
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.
4.84 Appeal
There will be no appeal against minor penalties. However, a person on whom major penalties is
imposed shall have a right to appeal to the next higher authorities.
Provided that whether the penalties are imposed by order of the board of directors, there shall be no
appeal but the person concerned may apply for review of the order .
Note
The chairman’s approval is necessary at all the stages for issuing the show cause notices and enquiry
letter for awarding the final punishment.
4.9. CAREER PLANNING CELL:
Career Planning Cell attained independent status in 1992. Before, it was the Personnel
department dealing in;
4.9.1 Career Planning
Career planning is basically career orientation and career development. Career planning section is
under the control of personnel manager. It informs the employees of OGDCL about their future
planning. That what he performs his duty and also they prescribed to the employees their operational
set up. It informs the employees that what they will do after 5 years And 10 years.
Promotion is main figure of career planning section. The elaboration is as under:-
The promotion and recruitment criteria of the corporation was notified vide O. M.N.AA, 0103-15
dated 12 November, 1984, where after a few clarifications were also issued from time to time.
However, there have been some problems in application of the promotion criteria in some cases.
Therefore to remove these difficulties, the promotion criteria has been reviewed and revised under
the guidance of the executive directors.
The revised promotion criteria are notified herewith which shall be effective from first July, 1991.
4.9.2 Performance appraisal
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OGDCL
Yearly performance reviews are critical. Organizations are hard pressed to find good reasons why
they can’t dedicate an hour long meeting once a year to ensure the mutual needs of the employee and
organization are being met. Performance review help supervisors feel more honest in their relation
ship with their subordinates and feel better about themselves in their supervisor roles. Subordinates
are assured clear understanding of what expected from them, their own personal strengths and areas
for development and a solid sense of their relationship with their supervisor. Avoiding performance
issues ultimately decrease morale, decrease credibility of management, decreases the organizations
overall effectiveness and wastes more of management’s time to do what isn’t being done properly.
The scoring system is also having a major impact on effective performance appraisals. The accuracy
and reliability of any scoring system increases with full descriptions/definitions, and better still with
examples for each score band. This gives everyone the same objective scientific reference points, and
reduces subjectivity.
4.9.3 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%
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OGDCL
Very Good 20%
Normal 50%
Marginal 20%
Poor 05%
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OGDCL
Existing Quantification of ACRs is carried out as explained in the following hypothetical example ***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 “
***Work Year ***Integ-rity
Output Quality **Overall (Out of 60)
1998 Good Good Good 1998 Good Integrity 46 1999 Good Average Good 1999 Good Work 44 2000 Good Average Average 2000 Average 47 2001 V. Good V.Good Good 2001 V.Good
Overall Grading
2002 Good V.Good V.Good 2002 V.Good Score 38 37 (36.5) 36 47 Minimum *44
***Govt Memo Ref # 10(10)-85-C dated 11-08-1985 ** OGDC Policy # AAO103-15 dated 13-04-1994 * As per promotion criteria minimum of ACR components marks are added in the
score of qualification, experience, training, technical publication, etc. explained as;
ACRs 44 Requisite Qualification 05 Training course (4 months duration) 02 Technical Publication - Relevant experience 18 Marks Obtained 69%
Quantification of ACRs (Example)
(EG-II to EG-IX)
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OGDCL
Performance Evaluation (ACRs)
No. of ACRs
Issuance of ACR forms to all departments according to time schedule. (15th December of
each year)
Receipt of ACR forms. (Ist March of each year)
Maintenance of proper record, its secrecy & integrity very important
Convey Adverse entries to officers/staff employees
Deal with the representations/grievances related to Adverse entries in ACRs
Activities (ACR)
Career Planning Cell issues comprehensive instructions from time to time to educate and
clear ambiguities
On education of ACR writing lectures are arranged by CPC in Head Office and Field
Locations
ACR forms have been serialized for officers to minimize duplication/ misuse
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Officers 1600
Staff Employees 4438
OGDCL
Difficulties (ACR)
ACRs are not filled/returned according to the notified schedule. Lot of time and efforts are
involved in correspondence
Clearly written out instructions notwithstanding, over-writing, use of fluid, mere marking
instead of initials are the most commonly observed problems
Lack of consistency in various parts of ACR is frequently noticed
4.10 BASIC COMPONENTS OF THE PROMOTION CRITERIA
Basic component of the promotion criteria with their relatives weight age would be as under;-
1. Qualification 15%
2. ACR’s 25%
3. Seniority 05%
4. Relevant experience including
experience outside OGDCL 15%
5. Assessment by the promotion
Committee 40%
-------------------------
Total 100%
-------------------------
These five basic components are analyzed before promotion criteria. When any employee qualifies
these components then he will be promoted with the approval of the chairman. For every employee it
is necessary to get minimum 60% marks in above components.
Besides this, the promotion also observes that where any position is vacant or not whether the
employee who is promoted, meet the requisition of qualification for that particular job. Where he is
performing job for last five years where his record in past is clear. So, after these observations they
take action for promotion. Deputy Chief Personnel officer is the incharge of the section.
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OGDCL
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994. It’s main components are:
ACRs : 60%
Qualification : 15%
Technical Publications : 05%
Relevant Experience : 20%
Seniority cum fitness is the guiding principal in promotions
PROMOTIONS
STAFF EMPLOYEES
The promotion cases of Staff are evaluated as per Promotion Criteria of 1991
Its highlights are:
ACRs : 25%
Qualification : 15%
Seniority : 05%
Experience : 15%
Evaluations : 40%
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OGDCL
Promotions – Flow Chart
Recommendations of the Head of the Department
Incomplete/Pre-mature cases returned. Cases in order retained for processing
Approval of the Managing Director/Board of the Directors
Completed case submitted before Departmental Promotion Committee
Evaluation Sheet, Seniority, ACR Synopsis, Disciplinary Profile and other formalities completed
Promotion Notification
IMPORTANT FACTORS FOR PROMOTION
Experience for the Post
Number of Years in the Vacancy
Seniority
Performance: ACRs Synopsis/Quantification
Prescribed Qualification
Requisite Present Executive Group
Disciplinary Profile
Promotions Average – Year-wise
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OGDCL
Officers
Year Average
2003 01 Officer promoted daily
2004 03 Officers promoted in five days
2005 01 Officer promoted in three days
2006 03 Officers promoted in four days
Promotions Average – Year-wise
Staff Employees
Year Average
2003 05 Employees promoted in two days
2004 02 Employees promoted daily
2005 01 Employee promoted daily
2006 01 Employee promoted in three days
Promotions Average – Year-wise
Grand Total Officers & Staff Promoted
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OGDCL
Year Average
2003 07 Officers & Staff promoted in two days
2004 08 Officers & Staff promoted in three days
2005 04 Officers & Staff promoted in three days
2006 01 Officer & Staff promoted daily
Promotions – Year-Wise (2002-2006
Year wise performance in connection with promotions for last five years is as follows:-
YearsOfficers
(EG-VI & above)
Officers
(Upto EG-V)Staff
2002 58 247 737
2003 0 191 624
2004 48 44 300
2005 35 187 96
2006 0 22 365
Difficulties (Promotions)
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OGDCL
CPC invites recommendations to reach end February and end August each year. They are
seldom received according to schedule. Consequently, CPC has great difficulty in meeting
the promotion dates of Ist July and Ist December each year
Cases are received with inadequate information causing wastage of time and un-necessary
correspondence
There is lack of effective communication among departments which causes un-necessary
wastage in time and efforts
Absence or lack of clarity of promotion channels
Career Planning begins from the Department of the individual. H.O.D has obligation to pay
special attention to the Career development of those in his Department. Recommendations
received in CPC very rarely have that aspect properly dealt
Suggestions
Computerization of record is of great essence for speedy disposal and accuracy of record
CPC is keen for digitalizing ACRs and related record. Consultancy services of a reputed
company will greatly help in this direction
Training of staff and officers of CPC in the field of computerization is essential and primary
step
On line information system may be developed among Personnel, CPC, Administration and
other related departments. This will speed up information and provide updated and accurate
data
Promotion criteria should incorporate changes reflecting ongoing trends. CPC may be
involved in appraising the management on the current issues and difficulties in practical
application. (Proposals for improvement in Promotion Criteria have been recently submitted)
Statement of Promotion – Officers
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OGDCL
Executive Group 2006
EG-VIII to EG-IX 0
EG-VII to EG-VIII 0
EG-VI to EG-VII 0
EG-V to EG-VI 0
EG-IV to EG-V 5
EG-III to EG-IV 6
EG-II to EG-III 11
EG-I to EG-II 0
Total 22
Statement of Promotion – Staff
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OGDCL
Pay Scales 2006
Staff to EG-II 18
Staff to EG-I 23
PS-16 0
PS-15 0
PS-14 27
PS-13 0
PS-12 250
PS-11 0
PS-10 0
PS-09 41
PS-08 0
PS-07 0
PS-06 6
PS-05 0
PS-04 0
PS-03 0
PS-02 0
Total 365
Statement of Promotion – Staff
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OGDCL
Pay Scales 2003 2004 2005 2006 Total
Staff to EG-II 4 0 35 1 40
Staff to EG-I 36 61 12 24 143
PS-16 16 10 43 19 88
PS-15 19 16 9 0 44
PS-14 44 55 3 28 130
PS-13 1 0 1 0 2
PS-12 26 83 25 265 399
PS-11 0 0 0 0 0
PS-10 19 5 3 7 34
PS-09 108 54 6 43 211
PS-08 21 62 4 2 89
PS-07 45 0 10 0 55
PS-06 220 66 52 18 356
PS-05 9 5 67 36 117
PS-04 17 191 1 0 209
PS-03 142 16 25 0 183
PS-02 0 0 4 0 4
Total 737 624 318 96 1775
CHAPTER –5
SWOT Analysis table for OGDCL
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OGDCL
STRENGTHS WEAKNESSES
Highly Skilled Professionals Political Influences
Vast Experience Limited Customer
Joint Ventures with Foreign
Oil Companies Working in
Pakistan
Limited Marketing
Opportunity
Major oil & Gas Company of
Pakistan
Political Appointments
High market cap and revenue Inadequate Financing for
off-shore drilling
OPPRTUNITIES THREATS
Expansion towards a
multinational Company
Latest Technology
Expansion towards
Exploration & drilling
Activities
unproductive wells
Marketing Opportunity for
LPG & Sulphur
World Market
Off-shore drilling Safety Issues / Tribal Issues
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.
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OGDCL
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.
OGDCL‘s SWOT Analysis is given below;
5.1 STRENGTHS
OGDCL has highly professional manpower.
Established gas transmission and distribution network.
Being Government owned organization; OGDCL is given preference when Government allows
any new concession.
OGDCL has enough training facility structure in the form of OGTI.
Computerized networking system is prevailing in the OGDCL.
Highly advanced and modern technology and equipment is possessed by OGDCL.
OGDCL has a number of packages in order to hire best profile of professionals and as well as to
motivate them in order to extract best from them.
Annual bonuses are announced to motivate employees.
Enough physical facilities are provided to its employees in the H.O in order to facilitate the
performance of its employees.
Current assets are four times high than current liabilities.
5.2 WEAKNESSES
Outdated procurement procedures and stores inventory management system of OGDCL
undermines OGDCL‘s performance.
There is no formulized criterion for reserve to production ratio, which can compare their
performance with the past.
No job description concept is prevailing in OGDCL.
There is injustice distribution of work among the employees.
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There is no check and balance to monitor.
No experts for ORACLE software in spite of its implementation in OGDCL.
No planning is being done before initiating any project e.g. Implementation of ORACLE
financial.
Environment is initiative killer, as there is no say of its employees.
Bureaucratic form of administrative setup.
Greater distances in hierarchy.
Delayed decisions due to prolonged procedures.
Adhoc approach to resolve major issues.
Political influence is being exercised for recruitment.
Members of Board of Directors are all outsiders, and selected by Government.
No concept of Diversification like other oil companies like BP.
Company is unaware of the importance of Marketing in the success of one company.
There is no huge HR Department, and Personnel Department only deals with recruitment and
termination cases and a little bit other.
Attitude of the employees towards work is not prudent because of job security factor. They have
fair idea that no one can expel them from this organization.
There is no check to measure performance of the employees.
5.3 OPPORTUNITIES
Substantial unproven gas and oil reserves exist in Pakistan.
Low cost incur in the exploration of wells.
Inflationary trend in the prices of oil in the international markets.
Massive consumer market.
Ever rising demand of gas due to changing attitude of people.
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Government incentives to Energy Sector for doing better projects.
There is no tough competition faced by OGDCL from any company having the same large setup
with such huge finances.
5.4 THREATS
Being a Government owned organization; Government has maximum interference while deciding
its investment policies.
Government directs the Company while declaring its dividend.
Competition is increasing as Government is attracting foreign investors in this Sector.
Global trends are rapidly changing which might affect its performance.
Iraq and America situation can also have negative impact on Oil and Gas Industry.
Any decrease in future oil prices may prove to be a great threat for OGDCL.
Fear of unproductive well is a source of threat for OGDCL.
CHAPTER – 6
PROBLEMS AND SUGGESTIONS
During my stay in OGDC head office, I have observed some weakness in the organizational setup
functioning of various departments.
6.1 PROBLEMS
1. Unawareness of Employees from Latest Technological Changes.
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Technical and non technical employees working at field / wells sites in far away areas of the country
do not have any access to the latest modern and technological changes, literature etc.
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. While officers of Equ. Grades 19 are not entitled to have official transport. OGDC also
provides pick and drop facilities to stop and officers to some extent with few Buses / Cosdters but it
is not sufficiently only few percent get benefit from this.
4. Unnecessary Purchases at Sites
Due to less accountability and more delegate powers, location incharge use 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 draw back of this method is that it blocks the way for
new generation which carry new ideas and knowledge. Further more the recruitment system is also
influenced by the nepotism of politicians.
6. Injustice Way of Awarding Training.
Training is used to develop the skills of the employees in this regard lot expenditure is made on
training but unfortunately training facilities is also awarded to the employees based on nepotism.
7. Promotion Policy.
Promotion policy is the mixture of both merit and seniority, but in practice emphasis is given to ACR
and can say that where there is ACR there an id a favoritisms.
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6.2 SUGGESTIONS
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 Pakistan’s economy
2. OGDC have a plot at blue area Islamabad for office building, the construction work may be
started as soon as possible as OGDC have no shortage of funds, and the only mile stone in this
way is administrative approval.
3. 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.
4. 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.
5. 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.
Training facilities should be awarded according to the requirement of the job.
If appraiser make appraising based on actual performance it will decrease heart burning
problem and employees’ efficiency will be increased.
As the promotion policy of the corporation clearly shows merit + seniority, so it should be
fully implemented.
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Beside this it is also desirable to suggest that in this modern area computerization of record
is very much essential .So to facilitate the management computer system in all the section
must be introduced.
6.3 Conclusion
The production of oil and gas is contributing a lot in reducing the country’s import bill. Power
generation by IPPs (Industrial Power Projects) in the country is a major source of energy.
OGDCL’s Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have
now started supplying Gas to power companies. This not only meeting the requirement of the IPPS
but also contributing a lot towards meeting the demand of electricity in the country.
OGDCL’s contribution to the national exchequer in the form of royalty; excise duty, debt
servicing, and taxes are a huge support as compared to the other state owned organizations.
OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil
companies to boost up the efforts for increasing the Oil & gas demand of this country..
Oil and gas Training Institute (OGTI) is providing training facilities and meeting the
requirements of highly trained, motivated, and improved human resources. OGTI designs and
implements programme to develop and expand the technical and managerial skills of professional
to meet the fast changing challenges to the company. A total of about 150 courses in service
disciplines are conducted during every year.
The quality of an organization is dependent on the quality of its work force. OGDCL has engaged
top professionals in Geology, Drilling, Engineering, and production who are working day & nights
for the search of Oil & gas. Besides this, the corporate sector is equipped with professionals having
qualification of CAs, MBAs, M.Coms, which support the technical wings. The time bound
necessity is that all these professionals be given a targets and their performance indicators be clealrly
defined. A good leadership and the motivation will surely boost-up the efforts and the collective
efforts will result in a huge reservoir of Oil or Gas INSHALLAH.
BIBILLOGRAPHY
1. Human Resource management ( 7th edition) by Descenso.
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2. Management theory and practice, (4th edition),by Ernest Dale
3. Principle of personnel management, (4th Edition), by Edwin B.Flippo
4. Behavior in organizations, By H.Joseph Reitr.
5. Personnel: The management of people at work (5th Edition) By Dale S.Beach
6. Operations management/Theory and Practice (2nd Edition), By Joseph G.Monks.
7. Business research for decision making, By Davis-Cosenza
8. www.ogdcl.com.pk
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