INTERNSHIP REPORT

Oil & Gas Development Company Limited

By

Imran Gul Memon,

FA11-BBA-149, Semester 8th, 2015

Department of
Sciences
COMSATS
Information
Oil & Gas

Management
Institute of
Technology
Development
Company Limited

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TABLE OF CONTENTS
Original/Attested Internship Letter
Executive Summary
1. Introduction
1.1.
1.2.
1.3.

Company Background (History)

Objectives
Organizational Structure

2. Learning &Experience
2.1.

Internship Duration & Rationale of Selection

2.2.

Details of Training Department wise

2.2.1

HRIS Department

2.2.2

Human Resources (HR-Sections) Department

2.2.3

Recruitment Department

2.2.4

HRD Department

2.3. SWOT Analysis of the organization

2.3.1. Strengths
2.3.2. Weaknesses
2.3.3. Opportunities
2.3.4. Threats
2.4. Recommendations (Problems and Suggestions)

Appendix
Conclusion
Bibliography

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EXECUTIVE SUMMARY
It is a compulsory internship report which was assigned to me and I am making this
report on the behalf of my personal experience gained with my internship of 8 weeks at
Oil & Gas Development Company of Pakistan.
The purpose of the study is to know as much as we can about one of the leading company in
exploration and production in the oil and gas industry of Pakistan. The study focuses on human
resource department of OGDCL. This report also presents functions, projects, product line,
mission and objectives of OGDC as well. It explains the administration and personnel
department and its practices in the organization in detail. This report basically covers the
OGDCL (Oil & Gas Development Company Limited) in Pakistan, history of OGDC and the
organizational structure comprehensively.

During my 8 weeks, I almost did work in each section of Human Resource and learned
about the whole structure and working of the Human Resource division. Major sub
departments in HR are HRIS, HRD, Recruitment and HR Sections. I worked in almost
every department and learned the working of various departments. A Number ofsoft
wares are being used in various sub departments of HR. Major Software isoracle which is
used to maintain the record of the employees. All the sub departments are interconnected
with each other in terms of functioning.
The organizational structure and its structure are discussed comprehensively. More attention is
given to the different departments working in and under OGDCL and how these departments
basically operate.
Finally 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 and is all about SWOT analysis in which strength, weaknesses, opportunities and
threats are discussed in detail.

The detail of my learning in each department, the organizational structure, products and
services of OGDC, objectives of and recommendations are included in this report. Over
all it was an exciting experience and I am looking forward to utilize this experience in my
future jobs.

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1.INTRODUCTION
OGDCL is the national Oil &Gas Company of Pakistan and the flagship of the countrys
Exploration and Production sector.The Company is the local market leader in terms of reserves,
production and acreage. The company is listed on all three stock exchanges in Pakistan and also
on the London Stock Exchange since December 2006.It is a debt free company of Pakistan.

1.1. Company Background (History)

Prior to OGDCL
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan
Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas
field at Sui in Baluchistan. 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 nonexistent. With exploration activity at its lowest ebb several foreign exploration contracting
companies terminated their operation and either reduced or relinquished land holdings in 1961.

Establishment of OGDC
To revive exploration in the energy sector the Government of Pakistan signed a long-term loan
Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubles to
finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement,
OGDC was created under an Ordinance dated 20th September 1961. The Corporation was
charged with responsibility to undertake a well thought out and systematic exploratory program
and to plan and promote Pakistan's oil and gas prospects.

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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 programs.

Initial Successes
A number of donor agencies such as the World Bank, Canadian International Development
Agency (CIDA) and the Asian Development Bank provided the impetus through assistance for
major development projects in the form of loans and grants. OGDC's concerted efforts were very
successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982.
Toot oil field was discovered in 1968 which paved the way for further exploratory work in the
North. During the period 1970-75, the Company reformed the strategy for updating its
equipment base and undertook a very aggressive work program. This resulted in discovery of a
number of oil and gas fields in the Eighties, thus giving the Company a measure of financial
independence. These include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak
oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields which are
commercial discoveries that testify to the professional capabilities of the Corporation.

Transition to a self financing entity

Noting the Company's success, due to major oil and gas discoveries in the eighties, the
Government in July 1989, off-loaded the Company from the Federal Budget and allowed it to
manage its activities with self generated funds.
The financial year 1989-90, was OGDC's first year of self-financing. It was a great challenge for
OGDC. The obvious initial target during the first year of self-financing was to generate sufficient
resources to maintain the momentum of exploration and development at a pace envisaged in the
Public Sector Development Program (PSDP) as well as to meet its debt servicing obligations.
OGDC not only generated enough internal funds to meet its debt obligations but also invested

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

Conversion into Public Limited Company

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

Initial Public Offering

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

GDR
In December 2006, the Government of Pakistan divested a further 10% of its holding in the
company. The Company is now listed on the London Stock Exchange since on December 06,
2006.

PGCL
A wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited (PGCL) was established
in 1982 to undertake development of Pirkoh gas field located in Dera Bugti Agency in
Baluchistan with Asian Development Bank assistance.

OIL AND GAS TRAINING INSTITUTE (OGTI)

The oil and gas development company limited (OGDCL) was set up in 1961 in the public sector
under the ministry of petroleum and natural resources.

Aims and Objectives of OGTI

The aims and objectives of OGTI are to identify the training needs of the industry, offer practical
training program to professional of the petroleum industry, provide training advice and guidance
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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 programs which will meet the specific needs of OGDC
and the Pakistan petroleum industry.
Designing training material that recognizes the capabilities and specific needs of newly hired
employees and those who change their job assignment providing refresher and upgrade training
for industry personnel in cost effective manner
In-house basic training programs 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 OGTIS 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.

DEVELOPEMENT
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 Companys 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
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June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCLs updated estimates
for remaining recoverable oil and gas reserves as on 1 st July, 2003, stood at 9.228 billion standard
cubic feet (BSCF) of gas and 164.25 million barrels of oil including companys share in non
operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and commercially viable
organization.

PRODUCT LINE
In the product line of OGDCL, the following are its products by which it is earning profits:

Crude Oil.

Gas.

LPG.

Sulphur

Gasoline/High and Low Speed Diesel.

Kerosene Oil.

Naphtha.

Solvent Oil.

FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY

The main functions of the Corporation are:

To plan, organize and implement programs of exploration of development of oil and gas
resources.

To carry out geological, geophysical and other surveys for the exploration of oil and gas.
To carry out drilling and other prospecting operations to prove and estimate the reserves of

oil and gas.

To produce, refine and sale oil and gas
To perform other functions as the Federal Government may from time to time assign to the
Corporation.

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PROJECTS
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 20th 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.

CHANDA DEVELOPMENT PROJECT

Chanda oil field, the rover 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 20042005.This will increased the production of field to 5,300 sbarells of oil and 19 MMscf of gas per
day.

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

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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 PRESENT STATUS OF THE COMPANY

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

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

CORE VALUES

Merit

Integrity

Team Work

Safety

Dedication

Innovation

1.2.

OBJECTIVES

Developing E & P Work Flow Models for Data Integration and connectivity.

Conduct Geoscientific, Algorithms and systems architecture research leading to the

development of robust, interactive and user-friendly geosciences applications software that is
tightly integrated into the workflow environment.

Detailed testing of the developed applications to achieve the highest performance.

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Detailed testing of the developed applications to achieve the highest performance.

Training and systems support to the end - users.

FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY

The main functions of the Corporation are:

To plan, organize and implement programs of exploration of development of oil and as

resources.

To carry out geological, geophysical and other surveys for the exploration of oil and gas.

To carry out drilling and other prospecting operations to prove and estimate the reserves of
oil and gas.

To produce, refine and sale oil and gas

To perform other functions as the Federal Government may from time to time assign to the
Corporation.

OGDCL FIELDS
Major Oil & Gas Fields in Pakistan
SINDH

Lashari (Oil)
Missan (Oil)
Pasakhi (Oil)
Bobi (Gas/ Condensate)
Qadirpur (Gas)
Kunnar (Oil)
NoraiJagir(Gas/Condensate)
Dhodak (Oil/Gas)
Sadqal (Oil/Gas)
Hundi/Sari(Gas/Condensate)
Sono (Oil)
Thora (Oil)
Tando Alam (Oil)

BALOCHISTAN

Pirkoh (Gas)
Loti (Gas)
Uch(Gas)

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 PUNJAB

Fimkassar (Oil)
MissaKeswal (Oil)
Toot (Oil)
ChakNaurang (Oil)
Nandpur (Gas
Rajian (Oil)
Bahu (Gas)
Kal (Oil)

KPK

Chanda (Oil)
Sheikhan (Gas)
Nashpa (Oil)
Mela (Oil)

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1.3. ORGANIZATIONAL STRUCTURE

Source: A.Javed, personal communication, March 3, 2010)

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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:

OGDCL Head Office, Jinnah Avenue Islamabad.

Pirkoh Gas Company Private Limited, Islamabad.
OGDCL Regional Office, Shafi Chamber, Karachi
OGDCL Regional Office, Multan
OGDCL Liaison Office, Quetta
OGDCL Liaison Office, Sukkur
OGDCL West Wharf Office, Karachi
OGDCL Base Store, Islamabad
OGDCL Base Store, Khadiji, Karachi
OGDCL Base Store, Korangi
OGDCL Base Store, Kot Addu
OGDCL Base Store, Kot Sarang
Medical Centers, Islamabad, Rawalpindi & Karachi
OGDCL Workshops, Islamabad
Oil & Gas Training Institute, Islamabad

MAIN DEPARTMENTS
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Corporate Department

Administration Department
Human Resource Department
Personnel Department
Security Department
Legal / Regulation Department
Communication Department
Procurement Department
Stores Department
Finance & Accounts Department
Audit Department

E&P Departments

Exploration Department
Exploitation Department
Production Department
Process Department

Technical Services Department

Drilling Department
Data Logging Department
Mud Engineering Department
Well Services Department
Cementation Department
Geological Well Supervision Department
Engineering Department
Wire line Logging Department
Geological Department, Data Processing Department

2. Learning & Experience

I did my internship in the department of HR, OGDCL (Oil & Gas Development Company
Limited) Islamabad. I have worked in different subsections that come under the HR
Department.
Following are given below:

HRIS Department
HRD Department

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Recruitment Department
Human Resources (HR-Sections) Department

HR DEPARTMENT OF OGDCL
The first 10 to 15 years were devoted to development of manpower and building of infrastructure
to undertake much larger exploration programs. Due to the great efforts of HR department of
OGDCL the organization is not only the leading E&P Company of the country, but also as a
company known for its people, partnerships and performance in the region.

HR DEPARTMENT OF OGDCL CONSISTS OF:

2.1

Thirteen (13) Officers in total ninety seven (97) employees

Total employees of OGDCL are eleven thousand plus (11000+)

Internship Duration & Rationale of Selection

During my Internship at OGDCL for 4 weeks, I was transferred to the above mentioned
departments on weekly basis. I worked in HRIS (Human Resource Information System) for 1
week, for 1 week in Human Resources (HR-Sections), for 1 week in Recruitment Department,
and in the last week I worked in HRD (Human Resource Development).
I have selected OGDCL because OGDCL is one of the leading national oil & Gas Company of
Pakistan in the flagship of the countrys E&P sector. The Company is the local market leader in
terms of reserves, production and acreage. The company is listed on all three stock exchanges in
Pakistan and also on the London Stock Exchange since December 2006 and it is a debt free
company of Pakistan.

2.2.

Details of Training Department wise

Here I am going to explain the learning experience of my internship in the four sub sections in
the HR Departments according to the schedule made by my mentor at OGDCL (Oil & Gas
Development Company Limited).

2.2.1 HRIS Department:

Firstly, I have worked for one week in HRIS (Human Resource Information System) Department
of OGDCL wheredifferent record of an employee is maintained in his personal file using the
software ORACLE

WHAT IS ORACLE?

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An Oracle database software is a collection of data treated as a unit. The purpose of a database is
to store and retrieve related information regarding employees personal, job, medical, family, and
whole information. A database server is the key to solving the problems of information
management. In general, a server reliably manages a large amount of data in a multiuser
environment so that many users can concurrently access the same data. All this is accomplished
while delivering high performance. A database server also prevents unauthorized access and
provides efficient solutions for failure recovery.

2.2.2

Human Resources (HR-Sections) Department

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FUNCTIONS OF PERSONNEL DEPTT

Maintenance of service record of employees from their induction to retirement and beyond.

Transfers Postings.

Maintenance of seniority.

Handling of Personnel grievances.

Processing of Pension / EOBI and retirement cases.

Implementation of CBA Managements agreements after every two years duration..

Maintenance of Database-Computerization.

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

PERSONNEL (HR) DEPARTMENT FUNCTIONS

Maintenance of personnel files
As we have mentioned above that every section is related to the concerned department. So
whenever any new employees recruit OGDC, the concerned section maintained this personnel
record from the first day. Every employee have their own personal file in personnel department.
Correspondence
The personnel department also maintained the record of each employee for promotion, the
minimum time for promotion is five years. So at the end of every year they check the record of
each employee, his ACR (Annual Confidential Report) , experience qualification etc . Similarly
if any employee want to leave more than 48 days which are Official than concerned department
will approval them and send to t6he personnel section. In short any type of personal problem or
work will maintain in his personal files with personnel department. Its called correspondence.
Pay Scale and Fixation
It is also the function of personnel department that they fixed the pay scale for employees. There
are three types of employees in OGDC.

Executive Group
Staff
Contractual Staff

(EGI - EGIII)
(1 - 16)

Recently personnel department has computerized the whole process to reduce the burden,
whenever they want any type of data immediately, call to computer. They have their own
computer section.

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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 OGDCLs functions
that what OGDCL is doing. For the development of oil and gas sometime press conference also
arranged for this purpose.Public relation department deliberate plan and sustained efforts to
established and maintain natural understanding between an organization and its public.It also
performs the function to maintain the relation between the management and staff.Public relation
department operates various methods and procedures to inform the public. Various types of
newspapers are mostly used to inform the public. Through newspapers they give advertisement
about OGDCL.
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it performs
the function for OGDCLs staff member to hire houses for their accommodation. It has many
functions they are:

Hiring of houses for the employees of OGDCL.

Hiring of building for offices and lodges at Islamabad.

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

Functions
Actually PAO is the head of two major sections, that in general admin section and housing
section. All type of documents/cases are tabled to the PAO for verification and signed. He may
approve the legal cases and also has the power to reject illegal cases. Particularly in housing
cases the approval of PAO is must. The posting (DAK) of all Islamabad come to the PAO and
also he distributes the post to the required party/person. He is the in charge of overall staff of
both sections.
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff
member of OGDCL Islamabad. Various types of vehicle they provide to the officers / staff in
various shapes.
Vehicle for Entitled Officer
Manager they provide official vehicles for duty.
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Vehicle for General Duty

For each department they provide special vehicle for emergency cases.
Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which perform
the duty of to pick early in the morning and drop at the end of office time the staff to perform
their duties.
Verifier Field Duties
At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency.
Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff.
PENSION AND WELFARE SECTION
Welfare Section
It is just like a bridge between the union and management. It is also a proper channel between the
two bodies.
Functions of Welfare Section
Various types of functions performed by the welfare section are as under:

To deal with union matters.

To provide facilities to the staff members of their families.

Grant of house building advance.

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

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

Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their income
Similarly large number of facilities they provide to the staff member, due to the arrangement
with management. The union and management make on agreement after every two years.
Welfare section negotiates with union from the management side.
PENSION SECTION
Pension was introduced in OGDCL after 1984. After 10 years in OGDCL the staff member
qualified for pension and after 25. Years he can demand for pension. The super innovation of the
pension is maximum 60 Years. After 60 years he cannot stay more. Accommodation allowance is
50% of the growth monthly pension supposes that on the age of 25 years of service his pension
will be counted of the 14th scale employee.

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As a whole it means that OGDCL will provide pension till 15 years and something. After that the
pension allowance will be counted again.
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
Punjab

10%
50%

Sindh rural

11.4%

Sindh urban

7.6%

N.W.F.P

11.5%

Baluchistan

3.5%

Fata

04%

A.J.K

02%

After the advertisement they receive application from all Pakistan and take written examination.
This examination is held in those departments, where the candidate want to join and that
department send the result to recruitment section.
The selection procedure is recently shortly changed and is as under:Written Test

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 two and to analyze the courage, boldness
communication skill, convincing power and also his dealing with other people.
All the departments at OGDC are enforce to follow following performance rating
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Outstanding

05%

Very Good

20%

Normal

50%

Marginal

20%

Poor

05%

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Performance
No. of ACRs

Evaluation

(ACRs)

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

Receipt of ACR forms. (1st 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

Difficulties (ACR)

ACRs are not 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

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BASIC COMPONENTS OF THE PROMOTION CRITERIA

Basic component of the promotion criteria with their relatives weight age would be as under;1. Qualification
2. ACRs

15%
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 in charge of the section.
PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994. Its main components are:
ACRs

60%

Qualification
Technical Publications
Relevant Experience

:
05%
:

15%

20%

Seniority cum fitness is the guiding principal in promotions

PROMOTIONS

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STAFF
EMPLOYEES
The promotion cases of Staff are evaluated as per Promotion Criteria of 1991
Its
highlights
are:
ACRs
Qualification
Seniority
Experience
Evaluations

:
:
:
:
:

25%
15%
05%
15%
40%

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

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2.2.3

Recruitment Department

Secondly, I have worked in the recruitment department for 1 week in OGDCL and I have
learned the following
Recruitment is the process of filling vacancies with people.
It has of two kinds
INTERNAL

PROMOTION WITH IN EMPLOYEES

EXTERNAL

ADVERTISEMENTS

EMPLOYMENT AGENCIES

INDEPENDENT CONTRACTORS

INTERNAL
OGDCL promote their own employees to the higher post according to these criteria.

OGDCL Recruitment
There are four types of recruitment in OGDCL

Regular employees(specimen:fig1)
Contract Basis employees(specimen: fig 2)
Trainees Special Trainees(specimen: fig 3)
Hiring through Contractor
Classified appointment

Recruitment procedure of OGDCL

Following are the different steps of recruitment at OGDCL.
1. Advertisement
It is online on OGDCL website (www.ogdcl.com) or in the leading news papers of Pakistan
2. Pool of applicants
A Number of CVS are gathered from all over the Pakistan.
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3. Conducting test
A test is conduct according to the post offered
4. Interviews
After conduction of the test, interviews of the short listed candidates are taken by 7-8 panels
from concerned departments
5. Selection
Finally, condition offer letter issued to successful employees and after selection medical test of
all successful candidates is taken and after medical test the successful candidates receive two
letters from OGDCL

Offer letter

Joining letter

Successful candidates join their respective departments on the joining date

2.2.4

HRD Department

Finally, it was my last week in the OGDCL where I have worked in the HRD Department.
Basically, HRD (Human Resource Development) is the integrated use of training, organization,
and career development efforts to improve individual, group and organizational effectiveness.
HRD develops the key competencies that enable individuals in organizations to perform current
and future jobs through planned learning activities. Groups within organizations use HRD to
initiate and manage change. Also, HRD ensures a match between individual and organizational
needs.

Main Functions of HRD:

To facilitate the promotions of the employees for both staff and officers
To deal with the grievances of the employees and the staff members
To maintain the ACR (Annual Confidential Report) of the employees and staff members

There is different HROS (Human Resource Officers) working under the umbrella of HRD
Department of OGDCL
Managers are considered in the EG Group (Executive Group)
There are different levels of HROS
HRO 1

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 HRO 2
HRO 3
HRO 4

Functions of HROS
HRO 1
Deals with the problems of employees belonging to their promotions, increments and etc
He tries to solve that by means of graving committee that is deputy chief HRO and manager
HRD
Deals with the law affairs of the employees and the staff members
HRO 2
Deals with the officers promotions, system belonging to their seniority, and their comfort
Seniority means five years of continues service on the particular job/post for EG-1 to EG-5.
Secondly three year service for the EG-6 to EG-8
HRO 3
Deals with the promotion policies of the staff members
HRO 4
Deals with the annual confidential reports of the employees and staff members initiated by their
respective departments by means of reporting officers and supervisors
ACR quantification is also provided from the ACR sections. It is also particularly marks in the
promotion criteria/system. Finally officers are recommended for a course of course oblique test
from OGTI. This test has also particular % of marks to be added in promotion file. A complete
file of all the above aspects is presented before the departmental promotion committee (DPC) for
the recommendation and non-recommendation

2.3.

SWOT Analysis of the Organization

In todays world of great competition, a scan of internal and external environment of any
organization is of great importance. The Strengths, Weaknesses, Opportunities and Threats faced
by OGDCL (Oil & Gas Development Company Limited) are shown by SWOT analysis.

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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 offshore drilling

OPPRTUNITIES
Expansion
towards
multinational Company

THREATS
a

Latest Technology

Expansion towards Exploration &

drilling Activities

unproductive wells

Marketing Opportunity for LPG &

Sulphur

World Market

Off-shore drilling

Safety Issues / Tribal Issues

2.3.1 Strengths:
The resources and capabilities that can be used as a basis for developing a competitive advantage
are the real strengths of an organization.
The following are the major strengths of OGDCL (Oil & Gas Development Company Limited)

OGDCL has highly professional manpower.

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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.

2.3.2. Weaknesses

Outdated procurement procedures and stores inventory management system of OGDCL

undermines OGDCLs 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.

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.

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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.

2.3.3. 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.

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.

2.3.4. 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

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2.4.

RECOMMENDATIONS

(PROBLEMS AND SUGGESTIONS)

During my internship at OGDC head office, I have noticed and observed some of the
weaknesses in the organizational setup functioning of various departments.
PROBLEMS

Unawareness of Employees from Latest Technological Changes

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.

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.

Unfair Utilization of Transport

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

Poor Method of Recruitment

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

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.

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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 SUGGESTIONS

During my stay in OGDC I carefully observed and noticed different weaknesses. For these
weaknesses, I suggested the following practicable remedies to improve the existing practices.
With the passage of time many modern technologies changes take place in oil and gas
industry, OGDC must take necessary action to acquire modern technologies so that they can
compete at international level and in this way they can play more effective role in Pakistans
economy
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.
Management must take necessary action to control costs i.e. administrative and selling
expenses
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.

As the promotion policy of the corporation clearly shows merit + seniority, so it should be
fully implemented.

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.

CONCLUSION

The production of oil and gas is contributing a lot in reducing the countrys import bill.
Power generation by IPPs (Industrial Power Projects) in the country is a major source of
energy. OGDCLs Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields,
which have now started supplying Gas to power companies. This not only meeting the
requirementof the IPPS but also contributing a lot towards meeting the demand of electricity
in the country

OGDCLs contribution to the national exchequer in the form of royalty; excise duty, debt
servicing, and taxes are a huge support as compared to the other state owned organizations.

OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil
companies to boost up the efforts for increasing the Oil & gas demand of this country..
Oil and gas Training Institute (OGTI) is providing training facilities and meeting the
requirements of highly trained, motivated, and improved human resources. OGTI designs
and implements program to develop and expand the technical and managerial skills of
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professional to meet the fast changing challenges to the company. A total of about 150
courses in service disciplines are conducted during every year.
The quality of an organization is dependent on the quality of its work force. OGDCL has
engaged top professionals in Geology, Drilling, Engineering, and production that are working
day & nights for the search of Oil & gas. Besides this, the corporate sector is equipped with
professionals having qualification of CAs, MBAs, M.Coms, which support the technical
wings. The time bound necessity is that all these professionals are given a targets and their
performance indicators be clearly defined. A good leadership and the motivation will surely
boost-up the efforts and the collective efforts will result in a huge reservoir of Oil or Gas
INSHALLAH

Appendix

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BIBLIOGRAPHY

Human Resource Rules and Policies, Volume one, by Raziq Khattaq

www.ogdcl.com.pk
http://en.wikipedia.org/wiki/Human_resources
Human Resource management (7th edition) by Descenso.
Management theory and practice, (4th edition), by Ernest Dale
Principle of personnel management, (4th Edition), by Edwin B.Flippo
Behavior in organizations, By H.Joseph Reitr.
Personnel: The management of people at work (5th Edition) By Dale S.Beach
Operations management/Theory and Practice (2nd Edition), By Joseph G.Monks.
Business research for decision making, By Davis-Cosenza

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