internship report.docx

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Chapter 1

INTRODUCTION

OGDCL is the National Oil & Gas Company of Pakistan and the Flagship of the Country’s E&P

sector !he Company is a "arket leader in Pakistan# in terms of reser$es# production and %creage t is

not only listed on the three ma'or stock e(changes of Pakistan )ut it is also listed on the London *tock

E(change since Decem)er +,,- !he Company is all set to ride the .a$eof E&P acti$ity E/uipped

.ith its 0ision & "ission# 1usiness and *trategic Plan# % de)t2free and ro)ust )alance sheet and

healthy cash reser$e OGDCL# is ready to take on the challenges of a $olatile E&P industry !he

OGDCL is Pakistan’s leading company operating in Pakistan as a leader and pioneer in the natural gas

e(ploration & production market t holds a top position in all areas of the country’s gas )usiness !he

key aspiration of OGDCL Group is to )e the leader of the li)erali3ed energy market in Pakistan and

also to achie$e a leading position in the region .hile maintaining the status of the national leader in the

natural gas market

1.1. Company Background:

Prior to OGDCL4s emergence# e(ploration acti$ities in the country .ere carried out )y Pakistan

Petroleum Ltd 5PPL6 and Pakistan Oilfields Ltd 5POL6 n 789+# PPL disco$ered a giant gas field at

*ui in 1aluchistan !his disco$ery generated immense interest in e(ploration and fi$e ma'or foreign oil

companies entered into concession agreements .ith the Go$ernment

During the 789,s# these companies carried out e(tensi$e geological and geophysical sur$eys and

drilled :; e(ploratory .ells %s a result# a fe. small gas fields .ere disco$ered Despite these gas

disco$eries# e(ploration acti$ity after ha$ing reached its peak in mid2789,s# declined in the late fifties

Pri$ate Companies .hose main o)'ecti$e .as to earn profit .ere not interested in de$eloping the gas

disco$eries especially .hen infrastructure and demand for gas .as non2e(istent <ith e(ploration

7



acti$ity at its lo.est e)) se$eral foreign e(ploration contracting companies terminated their operation

and either reduced or relin/uished land holdings in 78-7

1.1.1 Estab!shment o" O#DC:

!o re$i$e e(ploration in the energy sector the Go$ernment of Pakistan signed a long2term loan

%greement on ,: "arch 78-7 .ith the =**># .here)y Pakistan recei$ed +; million >u)les to finance

e/uipment and ser$ices of *o$iet e(perts for e(ploration Pursuant to the %greement# OGDC .as

created under an Ordinance dated +,th *eptem)er 78-7 !he Corporation .as charged .ith

responsi)ility to undertake a .ell thought out and systematic e(ploratory programs and to plan and

promote Pakistan4s oil and gas prospects

%s an instrument of policy in the oil and gas sector# the Corporation follo.ed the Go$ernment

instructions in matters of e(ploration and de$elopment !he day to day management .as ho.e$er#

$ested in a fi$e2mem)er 1oard of Directors appointed )y the Go$ernment n the initial stages the

financial resources .ere arranged )y the GOP as the OGDC lacked the .ays and means to raise the

risk capital !he first 7, to 79 years .ere de$oted to de$elopment of manpo.er and )uilding of

infrastructure to undertake much larger e(ploration programs

1.1.$ In!t!a successes :

% num)er of donor agencies such as the <orld 1ank# Canadian nternational De$elopment %gency

5CD%6 and the %sian De$elopment 1ank pro$ided the impetus through assistance for ma'or

de$elopment pro'ects in the form of loans and grants OGDC4s concerted efforts .ere $ery successful

as they resulted in a num)er of ma'or oil and gas disco$eries )et.een 78-? and 78?+ !oot oil field .as

disco$ered in 78-? .hich pa$ed the .ay for further e(ploratory .ork in the North During the period

78;,2;9# the Company reformed the strategy for updating its e/uipment )ase and undertook a $ery

+



aggressi$e .ork programme !his resulted in disco$ery of a num)er of oil and gas fields in the

Eighties# thus gi$ing the Company a measure of financial independence !hese include the !hora#

*ono# Lashari# 1o)i# !ando %lam & Dhodak oil@condensate fields and Pirkoh# =ch# Loti# Nandpur and

Pan'pir gas fields .hich are commercial disco$eries that testify to the professional capa)ilities of the

Corporation

1.1.% Trans!t!on to a se" "!nance ent!ty:

Noting the Company4s success# due to ma'or oil and gas disco$eries in the eighties# the Go$ernment in

Auly 78?8# off2loaded the Company from the Federal 1udget and allo.ed it to manage its acti$ities

.ith self2generated funds

!he financial year 78?828,# .as OGDC4s first year of self2financing t .as a great challenge for

OGDC !he o)$ious initial target during the first year of self2financing .as to generate sufficient

resources to maintain the momentum of e(ploration and de$elopment at a pace en$isaged in the Pu)lic

*ector De$elopment Program 5P*DP6 as .ell as to meet its de)t ser$icing o)ligations OGDC not only

generated enough internal funds to meet its de)t o)ligations )ut also in$ested enough resources in

e(ploration and de$elopment to increase the country4s reser$es and production

1.1.& Con'ers!on !nto pub!c !m!ted company:

Prior to +B Octo)er 788;# OGDCL .as a statutory Corporation# and .as kno.n as OGDC 5Oil & Gas

De$elopment Corporation6 t has )een incorporated as a Pu)lic Limited Company .ef +B Octo)er

788; and is no. kno.n as OGDCL 5Oil & Gas De$elopment Company Ltd6

1.1.( In!t!a pub!c o""er!ng:

B



Go$ernment of Pakistan disin$ested part of its shareholding in the company in +,,B nitially +9 of

the e/uity .ith an additional green2shoe option upto +9 of e/uity .as offered to the general pu)lic

!he said Offer recei$ed an o$er.helming response from the general pu)lic and .as recorded as a

landmark transaction in the history of Pakistan’s capital markets

1.1.) #DR* #ross domest!c rate+:

n Decem)er +,,-# the Go$ernment of Pakistan di$ested a further 7, of its holding in the company

!he Company is no. listed on the London *tock E(change since on Decem)er ,-# +,,-

1.1., O! - #as Tra!n!ng Inst!tute *O#TI+:

eeping in $ie. the gro.ing needs of Pakistan4s petroleum industry# OGDC esta)lished its o.n

!raining nstitute nstitute offers t.o2year training programs for fresh graduate engineers and short

duration refresher courses in the fields of E(ploration# Drilling# <ell *er$ices# Gas Processing#

Production and Computing etc Lately# professionals from foreign oil companies )ased in Pakistan and

the Central %sian >epu)lics ha$e also started attending short courses and seminars on specific technical

and management su)'ects nstitute has numerous facilities that include modern class rooms#

auditorium# audio2$isual aids# and a huge collection of professional $ideos# li)rary# drilling simulator

and a complete electrical and mechanical .orkshop for training purposes Fully e/uipped la)oratories

are a$aila)le for production# e(ploration and .ell ser$ice courses >ecently the function of research has

also )een included in the domain of institute and name has )een changed to Petroleum >esearch and

!raining nstitute

1.$ Eu!pment Base:

:



n order to e(ecute the e(ploratory and de$elopment programs .ith the ultimate o)'ecti$e of attaining

self2sufficiency in oil and gas )y de$eloping the hydrocar)on resources of the country# OGDCL has

also de$eloped a sound e/uipment and operational )ase .hich includes ; drilling rigs# 7 <ork o$er

rigs# a Geological Field Party# 9 *eismic parties# : Engineering Field Parties# a Gas Gathering and

Pipeline Construction Party# *eismic Data Processing Centre# Geological %nalysis La)oratory# <ire

line Logging =nit# Cementing =nits and Data Logging =nit

1.% E/porat!on - 0roduct!on:

OGDCL has conducted e(tensi$e sur$eys to identify potential hydrocar)on )earing structures and has

carried out drilling in order to e(ploit a$aila)le oil and gas resources %s of 7st Auly +,,- OGDCL has

drilled ++: e(ploratory .ells and +97 de$elopment .ells

1.4 !nanc!a 2eath:

OGDCL4s financial performance has )een consistently impro$ing since )ecoming a self2financing

entity !he net sales of OGDCL ha$e increased to >s8-;99 )illion 5e/ui$alent to =* 7-7B )illion6 in

+,,92,- from >s;B;7, )illion 5e/ui$alent to =* 7++8 )illion6 in +,,:2,9 .hile its profit after ta(

has increased to >s:98-? )illion 5e/ui$alent to =* ,;-- )illion6 in +,,92,- from >sB+8-? )illion

5e/ui$alent to =* ,9:8 )illion6 in +,,:2,9

1.1 D!sco'er!es:

From inception to date the company has made -- oil and gas disco$eries in all four pro$inces of the

country During the current financial year alone OGDCL has successfully made fi$e disco$eries

Chanda 2+# unnar Deep 27# Nim27# Dars Deep27 and 1ahu27 Production from these fields .ill help

the economy to minimi3e dependence on imported oil

1.) Corporate 3oc!a Respons!b!!ty:

9



!he Company endea$ors to )e a responsi)le corporate citi3en of the E&P community 1eing fully

a.are of its social o)ligations# it continues to proacti$ely promote# de$elop and maintain medical#

social and .elfare facilities and schemes for the )enefit of the local communities affected )y its .ork

and presence !hese include employment opportunities for locals# construction of roads# setting up

dispensaries and pro$iding free first2aid and health care# esta)lishing schools# granting fello.ships and

scholarships# supply of drinking .ater# donation for charita)le causes and financial assistance for

numerous pro'ects to impro$e the /uality of life of peoples and communities .ith .hich it interacts

OGDCL is pro$iding free health Care facilities .orth >s 7, million each year to the inha)itants li$ing

in and around OGDCL fields !he Company has constructed a !raumaCenter at District Ghotki *indh#

under President *pecial =plift *cheme at a cost of >s 7-9, million !he Company has also pro$ided

>s ;, million for earth/uake relief 5>s 9, million to the President’s relief fund# and >s +, million for

medicines and other facilities6

1.).1 4!s!on

!o )e a leading multinational E(ploration and Production CompanyH 5OGDCL# +,7B6

1.).$ 5!ss!on

!o )ecome the leading pro$ider of oil and gas to the country )y increasing e(ploration and production

)oth domestically and internationally# utili3ing all options including strategic alliances %nd to

continuously realign oursel$es to meet the e(pectations of our stakeholders through )est management

practices# the use of latest technology# and inno$ation for sustaina)le gro.th# .hile )eing socially

responsi)leH 5OGDCL# +,7B6

1., Core 4aues

!he core $alues of OGDCL areI

-



• "erit

• ntegrity

• !eam .ork

• *afety

• Dedication

• nno$ation 5OGDCL#+,7B6

1.6 0roduct !ne:

Follo.ing are its products )y .hich it is earning profitsI

• Crude Oil

• Gas

• LPG

• *ulphur

• Gasoline@Jigh and Lo. *peed Diesel

• erosene Oil

• *ol$ent Oil

1.7 Departments:

"any departments are .orking in correspondence .ith e$ery other department .ill discuss only

marketing department here as its my field of interest

1.7.1 Commerc!a:

"arketing department of OGDCL is not .orking as a typical marketing department as of other

common organi3ations# )ecause most of the products of OGDCL don’t need to )e marketed *o its

.orking is totally different

;



1.7.$ unct!ons:

• Effecti$e deli$ery of oil# gas# *ulphur and LPG from OGDCL fields in cost effecti$e manners

• %ppropriate transportation arrangements and /uantity compliance

• Negotiations# e(ecution and administration of Petroleum products and sales@purchase

agreements

• *ulphur auctions for )etter price

• Crude condensate allocation to >efineries through "inistry

• "aintain minimum stock le$el of products at site to accommodate daily production

• Liaison and Co2ordination .ith fields# refineries# transporters# )uyer companies and other

stakeholders

• Compilation# reconciliation and su)mission of petroleum products sale reports to "anagement

and "inistry on Daily# <eekly# "onthly# Kuarterly and %nnually )asis

• 0erification of dispatch /uantity and their )illing for in$oicing purpose raised through sales

section of Finance Department

• Look after the transportation and )ills of Crude oil through National Logistic Cell 5NLC6

• Post in$oicing disputes resolution

• %rrangement for disposal@sale of petroleum from ne. sources@fields

1.7.% Other Departments:

• Production

• Finance

• Juman >esource

?



• Corporate %ffairs & Aoint 0enture

• E(ploration

• "ud Logging

• Data %c/uisition *ystem

• Process & Plants

• Drilling & >eser$oir "anagement

• "edical *er$ices

1.7.& Organ!8at!ona 3tructure

%ll policy related issues are dealt )y the )oard of Directors that is headed )y a non2e(ecuti$e Chairman

and a full time "anaging director !he general direction# policies and affairs of the Company $ests in a

1oard of Directors# .hich consists of ,7 Chairman# 7, Directors and ,7 "anaging Director 5"D6 "D

is responsi)le for operational and other acti$ities !he OGDCL has )een re2organi3ed during the last

fe. years it no. operates much purely as Oil Company does Emphasis is on Professional

Competence and getting things done OGDCL can )roadly )e di$ided in to follo.ing three companiesI

• Corporate

• E(ploration & Production 5E& P 6

• !echnical *er$ices

!he .hole organi3ation has )een streamlined on the functional )asis and it has emerged as an efficient

unit# .hile speed and competence are its Jall "ark t is no. di$ided into separate departments and

each department is in a position to .ork independent )usiness unit

1.7.( 5a!n O""!ces:

8



OGDCL Jead Office is situated at Ainnah %$enue# 1lue %rea slama)ad and >egional Offices are

located in arachi and "ultan 1esides this OGDCL has its Liaison Offices in Jydera)ad# *ukkhur#

and Kuetta for operational acti$ities !he o$erall organi3ational structure is as under

% 1oard of Directors comprising t.el$e Directors# all of .hom are nominated )y the "inistry of

Petroleum and Natural >esources# is responsi)le for policy related issues !he autonomous 1oard is

headed )y a non2e(ecuti$e Chairman and there is a "anaging Director@Chief E(ecuti$e Officer

Follo.ing are the main offices located throughout PakistanI

• OGDCL Jead Office# Ainnah %$enue slama)ad

• Pirkoh Gas Company Pri$ate Limited# slama)ad• OGDCL >egional Office# *hafi Cham)er# arachi

• OGDCL >egional Office# "ultan

• OGDCL Liaison Office# Kuetta

• OGDCL Liaison Office# *ukkur

• OGDCL <est <harf Office# arachi

• OGDCL 1ase *tore# slama)ad

• OGDCL 1ase *tore# hadi'i# arachi

• OGDCL 1ase *tore# orangi

• OGDCL 1ase *tore# ot %ddu

• "edical Centers# slama)ad# >a.alpindi & arachi• OGDCL <orkshops# slama)ad

Oil & Gas !raining nstitute# slama)ad

C290TER $

T933 0EROR5ED 9T ;OR

$.1 E<0ERIENCE 9ND =E9RNIN#:

nternship e(perience in a reputed organi3ation has surely a huge ad$antage# it makes one more

professional and professionalism is the key to success

<orking .ith OGDCL# added a great $alue to my skills# kno.ledge and a)ilities and hence ga$e me a

chance to relate my studies in the practical .orking en$ironments "y communication skills impro$ed

7,



a lot and feel more confident then .as )efore 'oining ogdcl as an internee# and this internship

e(perience has helped me )roaden my outlook and $ision

<orking in an organi3ation does not limit your e(perience to 'ust one department that you are

assigned .ith# )ut actually the organi3ation is running .ith a systematic colla)oration of the

departments# and hence re/uires communication skills and interaction Mou’re not )y passing your

)oss# )ecause you understand that organi3ational hierarchy is defined and proper communication

channels are a$aila)le .hich should )e used Mou .on’t sho. resistance to change )ecause you had

studied that change is the only constantH and hence necessary for organi3ational de$elopment and

employee sur$i$al

di$ided my time period of internship into different phases# .orking .ith different sections of

the department O$erall# my time spent .as full of learning and e(perience

$.$ Commerc!a Department:

Commercial department of OGDCL is not .orking as a typical marketing department as of other

common organi3ations# )ecause most of the products of OGDCL don’t need to )e marketed *o its

.orking is totally different

$.$.1 unct!ons:

• Effecti$e deli$ery of oil# gas# *ulphur and LPG from OGDCL fields in cost effecti$e manners

• %ppropriate transportation arrangements and /uantity compliance

• Negotiations# e(ecution and administration of Petroleum products and sales@purchase

agreements

• *ulphur auctions for )etter price

• Crude condensate allocation to >efineries through "inistry

77



• "aintain minimum stock le$el of products at site to accommodate daily production

• Liaison and Co2ordination .ith fields# refineries# transporters# )uyer companies and other

stakeholders

• Compilation# reconciliation and su)mission of petroleum products sale reports to "anagement

and "inistry on Daily# <eekly# "onthly# Kuarterly and %nnually )asis

• 0erification of dispatch /uantity and their )illing for in$oicing purpose raised through sales

section of Finance Department

• Look after the transportation and )ills of Crude oil through National Logistic Cell 5NLC6

• Post in$oicing disputes resolution

• %rrangement for disposal@sale of petroleum from ne. sources@fields

%s the marketing department of OGDCL deals in LPG 5Lo. Pressure Gas# for )urning and

cylinder filling6# Gas 5Con$entional Gas used for cooking purpose6# Crude 5crude the oil .hich is

the mi(ture of Petrol# Diesel# Naphtha# erosene# 1ichomen6 and *ulphur !hese are the products

.hich are not in e(cess in Pakistan so to sale these they need no "arketing tactics !he marketing

department here at OGDCL is much more related to *ales *ection# no. follo.ing are the tasks

.hich ha$e performed in - .eeks )y rotating into different su)sections

$.% Rotat!on 0attern o" ) >eeks:

"y concerned super$isor "r"a'id firstly# took me to the G"’s office for a )rief introduction and then

.as sent to the office .here .as supposed to .ork for the rest of my internship period Our

*uper$isor introduced me .ith the organi3ation then .as gi$en a schedule for the rotation in different

sections of the department .hich is as follo.sI

7+



• 7st .eek Orientation .eek

• +nd .eek LPG

• Brd .eek Oil & Gas

• :th .eek Crude

• 9th .eek *ulphur

• -th .eek 1illing

$.& ;eek1? Or!entat!on:

!he first at commercial department .as full of ne. e(periences# getting to kno. different people#

different practices n this .eek .ith other internees .as introduced to the company and company .as

introduced to us <e spent each day in a different section and got a )rief idea a)out ho. they .ork

$.( ;eek$? =0# *=!ue"!ed 0etroeum #as+ 3ect!on:

5a@or !eds o" =0# product!on: Dhodak# Dakhni >a'ian# unnar# 1o)i# Chanda

5a@or customers o" =0#: "uhammadi Gas Company# Petrosin# *ynergy resources

$.(.1 Da!y 0roduct!on Report:

%t ?IB, e$ery morning .e relie$ed a daily production report $ia fa( from the field in that production

report the total production .as mentioned .ith the name of that filed !his report contains the heads

like name of field# production at am)ient# the temp at that time# total sale# .hat .e ha$e forecast# and

.hat is the difference 5$ariance6 !his .as my responsi)ility to first present that report to the ta)le of

manager marketing then to production department# then to sales section# and at last arrange that report

date .ise in a production report folder and then to record those figures in a computer data)ase

$.(.$ 9ocat!ng and Respond!ng:

7B



%t the time .hen a letter or /uery has recei$ed from other departments or from its customers my duty

.as to read that letter carefully then to respond that letter under super $ision of my )oss .ho .as

"rulfi/ar !hen find the file of same head and arrange letter in that file for e(ample if recei$ed a

letter from *ynergy >esources and the letter .as a)out re)ate on LPG price see the synergy status#

facts and figures if re)ate is mentioned then allo. them that this percent of re)ate is allo.ed to this

company other.ise not !hen to allocate that letter in folder ha$ing title >e)ate on LPG *ynergy

$.(.% 4er!"!cat!on o" ad'ance payments "rom saes sect!on:

f a company .ants LPG that company has to pay the asking amount in ad$ance "y 'o) .as to copy

that demand draft or pay order then for.ard to sales section !he purpose of keeping the DD or pay

order in marketing section is that .e took it under consideration .hile issuing the DO 5deli$ery order6

1elo. ha$e discussed .hat a DO is <hen sales section completes the process on that draft or pay

order then it comes )ack to marketing department again my duty .as to allocate that DD in file

accordingly For e(ample if it is demand draft of "uhammadi Gas Company 5"GC6 of amount +

million rupees this paper .ill go in file naming "GC Payments

$.(.& 0repare the payment rat!ng:

%fter filing that demand drafts and pay orders in files had to 'ot do.n all the payments .ith the name

of company and .ith the date in an Electronic2File# take a print of that paper and analy3e .hich

customer is most effecti$e an efficient in paying the dues and then present that report to manager

marketing and then he used to suggest that .hich company deser$es this amount or percentage of

re)ate "y responsi)ility then# .as to issue a letter to that company $ia fa( heading letter as >e)ate on

LPG Price %nd this process continued e$ery +nd .eek

7:



$.(.( Respond!ng >!th customers and re"!ner!es:

Jere the correspondence .ith customers and refineries .as to compare the total production and the

total sales E$ery Friday# .as responsi)le to issue a fa( to ma'or fields that sent me the .eekly reports

telling ho. much /uantity of LPG has )een produced and ho. much /uantity of LPG .e ha$e sold to

different companies %t the same time had to ask different customers to tell me ho. much LPG you

ha$e recei$ed and from .hich filed you filled your )ro.sers 5special trucks made for LPG

transportation pro$ided )y NLC or other contract carriages6 !hen to compare )oth lists in order to stop

theft or corruption at fields# and ensure that e$ery operation is going on smoothly and efficiently

$.(.) 9ns>er!ng uer!es under super'!s!on o" 35O:

f the third party is asking a)out some document .as responsi)le to find that document Jere the third

party means any other department .ith in the )uilding it can )e a production field or can )e a customer

$.(., Issuance o" De!'ery Order *DO+:

!he DO is a document .hich issued after $erification of demand draft or pay order in fa$or of a

specific customer Or it is a .illingness proof )et.een OGDCL and its customer t contains the LPG in

"etric !ons# the amount .hich customer has paid# date of deli$ery# company name# and place of

deli$ery 5field6 For e(ample %gha Gas Company has issued a pay order of - million rupees in fa$or of

OGDCL for purchase of -, " !ons of LPG "arketing department first $erifies it from sales section

then marketing department issue a DO .hich mentioned that Fill -, " !ons of LPG in )o.ser num)er

this at unnar gas fields

$.(.6 Compare 'ouchers and Bank Chaan numbers:

t .as mine optional duty )asically it .as the .ork of P%’s to check that the lists .hich ha$e recei$ed

from different fields are error free or not For e(ample a num)er +B-9?8; 1o)i 5)ank Challan num)er6

No. to check it on 1o)i list 5.hich issued from field6 this num)er e(ists or not79



$.(.7 5ak!ng 3aeA0urchase 9greements:

f a company .ants to )uy LPG# firstly OGDCL and that company ha$e to agree upon a sale purchase

agreement .hich contains different clauses# terms and conditions and other duties and o)ligations# my

duty .as to prepare that agreement under super$ision of "r "a'id aleem# Personal Communication#

then .as responsi)le to register that sale purchase agreement in legal section of OGDCL for further

processing

$.(.1 9ss!st!ng to 35O >h!e 5eet!ngs:

!here .ere total t.o meetings during my stay of - .eeks "y duty .as to assist my )oss .hile

meeting regarding interdepartmental issues as .ell as the re)ating price matters to customers

$.) ;eek%? O! - #as 3ect!on:

5a@or !eds o" #as product!on: *ui# =ch# Jundi# Kadirpur# "ela

5a@or customers o" #as: *ui Northern# *ui *outhern Gas Company 5**GCL# *NGCL6

$.).1 Record read!ngs:

%s the gas pipelines are spread all o$er the Pakistan from ** and *NGCL )ut they )uy it from OGDCL

not like LPG# Gas is a continuous process .hich e(plores then filter from impurities the it is in'ected in

** and *NGPL pipe lines at the point of in'ection there is a meter .hich notes the reading that this

/uantity of gas has )een in'ected that reading is daily recorded here at head office slama)ad $ia fa(

"y duty .as to recei$e that fa( then record the reading in hard and soft copy then for.ard to Chief

"arketing 5C"6 "r "oin2ud2din .ho .as my )oss in Gas *ection

$.).$ !!ng o" that reports:

7-



%fter entering those amounts .as responsi)le to allocate that fa( in the concerned file for record

keeping purpose and for monthly )illing purpose .hich .as later on for.arded to sales section for

generation of in$oices

$.).% 9ocat!on o" read!ngs !n saes sect!on:

%fter recording those amounts in files and folders then the most important .ork for .hich .as

responsi)le .as to collect all that figures daily then .eekly and present them to sales section for

monthly )illing purpose and helping the concerned accountant for generating in$oices against Gas

customers

$.).& Represent Commerc!a department !n saes sect!on:

E$ery time .hen .ent to sales section# .as representati$e of commercial department and it .as my

duty to sol$e their /ueries under the super$ision of my )oss 5C"6 For pro)lem sol$ing first asked to

my )oss he guides that do this .ork in this manner

$., ;eek&? 3uphur 3ect!on:

5a@or !eds o" 3uphur product!on: Dakhni

5a@or Customers o" 3uphur: NFC# Century Paper "ill# %rsam Paper# Prime Chemicals

*ulphur is a chemical .hich reco$ers from crude at $ery last stage# so the /uantity of sulphur is slightly

greater then other fields here at Dakhni OGDCL sale *ulphur .hen it reaches at the /uantity if 7,, or

greater "!ons *ale process of sulphur is totally different the procedure is to gi$e tender and ask )uyer

to offer their )ids marketing department sale *ulphur to the successful )idder 5.ho ha$e the highest

7;



)id6 "y duties and responsi)ilities in this section .as not so much )ecause this process repeats after

+, to +9 days .hen it reaches at /uantity of 7,, " !ons

$.,.1 0roceed the "!e to saes sect!on:

%fter successful auction the file then for.ard to sales section File contained the price of sulphur the

)uyer information the mode of payment and other necessary details my duty .as to go .ith that file in

sales and tell them status of auction for further processing

$.6 ;eek(? Crude 3ect!on:

5a@or !eds o" Crude product!on: >a'ian# !ndo %lam# Chanda# unnar

5a@or Customers o" Crude: %ttock Oil >efinery# National Oil >efinery# Pakistan *tate

Oil and other oil companies

$.6.1 Contract Check!ng:

1efore issuing the DO@purchase order of crude oil my 'o) .as check the /uantity mention in the

agreement For e(ample National Oil >efinery .ants to purchase +,, " !ons of crude oil .as there

to check that .hat is the ma(imum /uantity of crude has )een mentioned in the crude sale purchase

agreement )et.een OGDCL and National >efinery

$.6.$ Respond!ng !n 3ated and Desated Crude:

*ome fields are producing salted crude and some are producing desalted crude the salted crude later on

ha$e to )e desalted )y adding some chemicals and )y heating at specific temperature so the use full

crude is desalted crude OGDCL refineries ha$e the capacity to desalt the crude )efore making the

purchase order my duty .as to mention and keenly check that there should )e /uantity# name of filed

7?



and type of crude mentioned if anything missing my duty .as to confirm from the )uyer that you ha$e

missed this thing and kindly issue us a ne. purchase order .ith these things

$.6.% Report Rece!'!ng:

!hese are the international reports these reports are here to set the price of crude oil .as there to

recei$e the Oil gram reports# and Oman 1lend reports %fter recei$ing that my 'o) .as photo state that

report and for.ard the original one in sales section for setting the price of crude )y higher management

5G" Finance6

$.6.& !e >ork:

!here .as large amount of files in crude section %fter all the .ork .as responsi)le to arrange these

files at proper places and my 'o) .as to arrange them in a .ay that they are $isi)le from e$ery angle so

that e$ery one there got ease .hile searching a file

$.6.( 3tatus at "!eds:

!he a)o$e mention places are ma'or fields that are producing crude the persons at filed .ere

responsi)le to fa( the daily production reports my 'o) .as to recei$e that report from fa( and to send

that report on the ta)le of manager marketing this .ork should )e done )efore ?IB, morning then

allocate a copy of that report for record keeping purpose in crude section

$.6.) Check!ng 'ouchers:

Like in the LPG section these Challan and $ouchers are made in different fields then they send in

OGDCL head office for cross check .ith the list present in slama)ad *imultaneously .as there to

check the Challan num)ers

$.7 ;eek)? 3aes 3ect!on:

Tasks 0er"ormed !n ;eek) *B!!ng 3ect!on+:

78



$.7.1 ;ork!ng on Orace:

n this section learnt .orking on oracle .hich they used for the )illing purpose# the )ills .ere sent

from different oil fields to this section !he )ills recorded here .ere related to the transportation

charges incurred .hile sending )o.3ers from oil fields to the refineries <e .ere supposed to keep

their record on oracle and then the in$oices .ere sent to G" to )e signed

C290TER %

3;OT 9N9=3I3

%. Br!e" 3ummary O 3;OT 9nays!s

3trengths:

• Preference

• !raining facility

• Jigh market re$enue

• Jighly *killed Professionals

• Assets

• 0ast E(perience

•

Aoint 0entures .ith Foreign OilCompanies <orking in Pakistan

• "a'or oil & Gas Company of Pakistan

;eakness:

• =na.areness of Latest !echnological Changes

• Lack of Career Planning Of Employees

• =nfair =tili3ation of !ransport

• =nnecessary Purchases at *ites

• Poor "ethod of >ecruitment

• =n'ust <ay of %.arding !raining

• Promotion Policy

• Delay of .ork

• Political nfluence

+,



Opportun!t!es:

Low cost of exploration

"assi$e consumer market

rising demand

• E(pansion to.ards a multinational

Company

• "arketing Opportunity for LPG

&*ulphur

Threats:

Go$ernment interference

ncreasing competition

Changing trends

• Latest !echnologyI

• =nproducti$e .ellsI

"o$ing to.ards the most important part of the internship report the *<O! analysis after spending

almost + months in the company am no. a)le to carefully analy3e these true issues of an

organi3ation

%.1. 3TREN#T23

0re"erence

1eing Go$ernment o.ned organi3ation OGDCL is gi$en preference .hen Go$ernment allo.s any

ne. concession

Tra!n!ng "ac!!ty

OGDCL has enough training facility structure in the form of OG!

2!ghy 3k!ed 0ro"ess!onas

OGDCL has a num)er of packages in order to hire )est profile of professionals and as .ell as to

moti$ate them in order to e(tract )est from them

9ssets

Current assets are four times high than current lia)ilities

2!gh market re'enue

4ast E/per!ence

+7



t’s their strength that they ha$e a )ig e(perience than any other oil producing company )ecause

1eing Go$ernment o.ned organi3ation OGDCL is al.ays gi$en preference .hen Go$ernment

allo.s any ne. concession

o!nt 4entures

OGDCL entered into ne. A0 agreements in $arious e(ploration 1locks .ith the foreign oil

companies to )oost up the efforts for increasing the Oil & gas demand of this country.

5a@or o! - #as Company o" 0ak!stan

OGDCL is Pakistan’s ma'or oil and gas company and it is )iggest as .ell so it’s the strength of the

company that it has got no tough competitor and its en'oying monopoly

%.$. ;eakness:

Una>areness o" Empoyees "rom =atest Technoog!ca Changes.

!echnical and non technical employees .orking at field @ .ells sites in far a.ay areas of the

country do not ha$e any access to the latest modern and technological changes# literature etc

• =ack o" Career 0ann!ng O" Empoyees.

OGDCL is only organi3ation in the field of e(ploration and de$elopment of oil and gas resources of

the country# )ut unfortunately does not use scientific techni/ues in career planning of employees

•Un"a!r Ut!!8at!on o" Transport.

OGDC ha$e a large num)er of $ehicles# mostly at sites )ut they are misused )y their location in

charge <hile officers of E/u Grades 78 are not entitled to ha$e official transport OGDC also

++



pro$ides pick and drop facilities to stop and officers to some e(tent .ith fe. 1uses )ut it is not

sufficiently only fe. percent get )enefit from this

• Unnecessary 0urchases at 3!tes

Due to less accounta)ility and more delegate po.ers# location in charge uses their po.ers to.ards

petty cash purchases from local market OGDC ha$e a centrali3ed procurement department )ut

stocks are accumulated in the a)sence of the strict rules and policies regarding purchases and stock

position

0oor 5ethod o" Recru!tment

!o recruit the employees )oth internal and e(ternal methods are used )ut the corporation gi$es

preference to the internal method !he main dra. )ack of this method is that it )locks the .ay for

ne. generation .hich carry ne. ideas and kno.ledge Further more the recruitment system is also

influenced )y the nepotism of politicians

• Un@ust ;ay o" 9>ard!ng Tra!n!ng.

!raining is used to de$elop the skills of the employees in this regard lot e(penditure is made on

training )ut unfortunately training facilities is also a.arded to the employees )ased on nepotism

0romot!on 0o!cy.

Promotion policy is the mi(ture of )oth merit and seniority# )ut in practice emphasis is gi$en to

%C> and can say that .here there is %C> there an id a fa$oritisms

Deay o" >ork:

<ork that can )e done in a day is delayed to a .eek# due to lack of proper check and )alance

0o!t!ca !n"uence

+B



Political influence affects the daily sales largely

%.%. Opportun!t!es:

=o> cost o" e/porat!on

Lo. cost incur in the e(ploration of .ells due to a$aila)ility of cheap la)or

5ass!'e consumer market.

1eing a go$ernment entity OGDCL en'oys "assi$e consumer market

r!s!ng demand

E$er rising demand of gas due to changing attitude of people

E/pans!on to>ards a mut!nat!ona Company:

!he .orld is mo$ing to.ards multinational firm# as OGDCL is e(panding to )e a multinational

firms so its an opportunity for the company that’s its mo$ing .ith the pace of the .orld

5arket!ng Opportun!ty "or =0# - 3uphur:

%s there is no tough competitor of OGDCL in case of LPG and *ulphur so they are en'oying kind

of monopoly !hey can market their LPG and *ulphur in the market to generate more and more

re$enues

%.&. Threats:

#o'ernment !nter"erence

Go$ernment directs the Company .hile declaring its di$idend and deciding its in$estment policies

Increas!ng compet!t!on

+:



Competition is increasing as Go$ernment is attracting foreign in$estors in this *ector

Chang!ng trends

Glo)al trends are rapidly changing .hich might affect its performance

=atest Technoogy:

Glo)al trends are rapidly changing .hich might affect its performance Ne. ad ne. technologies

are coming each day in the .orld .hich is $ery important for any company to adopt OGDCL’s

some employees are still on manual .ork # they should shift on systems no.

Unproduct!'e >es:

<hene$er drilling take place #the company has to )ear a huge amount of cost for that )ecause

drilling is not an easy task to do Company has to spend cost on machinery and la)or 1ut the

company is not sure 7,, e$ery time that .e .ould get oil from here or not or .hich amount .e

.ould get from the particular .ell so the .ells .ho are unproducti$e .ould )ecome a threat for the

company

C290TER &

CONC=U3ION

OGDCL is a )ig organi3ation .hich is .orking all o$er the Pakistan and it is really a much difficult to

study the .hole organi3ation in - .eeks that is $ery short period of time 1ut tried my )est to lean as

much can <ith shortage of time there .ere so much security constraints that it .as $ery difficult for

an internee to mo$e from the allocated department for .orking in other departments OGDCL gro.ing

at $ery great pace and has a )ig pool of /ualified professionals )ut if department heads concentrate

+9



more on their employees and at the same employee do concentrate on .ork then the speed of gro.ing

might )e much greater than no.

learned a lot during my internship period !his .as my $ery first e(perience of .orking in any

professional organi3ation Like ho. to prepare reports# ho. to send letters to other departments or

other organi3ation and .hat is the procedure for auction of anything *o can say that it .as a really

good e(perience of .orking

nternship at OGDCL .as a great e(perience for me tried to implement all those theories .hich

read at my institute

C290TER (

RECO55END9TION3

During my stay in OGDC carefully o)ser$ed the ma'or .eakness For this .eakness# suggested the

follo.ing practica)le remedies to impro$e the e(isting practices

• Computeri3ation of record is of great essence for speedy disposal and accuracy of record

• <ith the passage of time many modern technologies changes take place in oil and gas industry# OGDC

must take necessary action to ac/uire modern technologies so that they can compete at international

le$el and in this .ay they can play more effecti$e role in Pakistan’s economy

• !here are no specific criteria for training internees E$ery department should )e gi$en special tasks to

students

• !here should )e proper sur$eillance system to measure the employee’s performance and then decision

should )e taken for promotion and )onuses

• !hey should pay full attention to the intensi$e professional training of staff in related fields !he

department concerned can organi3e professional training at OGDCL or .ith outside agencies etc and

+-



latest literature ne.spapers and maga3ines etc of professional interest should )e pro$ided at sites free

of cost

• %l though the management in recent past has taken some initiati$es in this area# a ne. department

career planning department is created and fe. postings .ere made in this department 1ut to

achie$e e(cellent and positi$e results rapid operations are too much essential

• "anagement must take necessary actions to control costs ie administrati$e and selling e(penses

• !o offset recruitment )ias fa$oritism should )e completely discouraged %nd try to eliminate

political interference in recruitment# )ecause it .ill affect the efficiency and ultimately the

corporation .ill )e una)le to achie$e its o)'ecti$e

• !raining facilities should )e a.arded according to the re/uirement of the 'o)

• %s the promotion policy of the corporation clearly sho.s merit seniority# so it should )e

fully implemented

• !raining of staff and officers of CPC in the field of computeri3ation is essential and primary step

• On line information system may )e de$eloped among Personnel# CPC# %dministration and other

related departments !his .ill speed up information and pro$ide updated and accurate data

+;



C290TER )

REERENCE3

www.ogdcl.com.pk

• www.rajianogdc.com

• www.google.com.pk

9nnua Report

+?

http://www.ogdcl.com.pk/

http://www.rajianogdc.com/

http://www.google.com.pk/

http://www.rajianogdc.com/

http://www.google.com.pk/

http://www.ogdcl.com.pk/



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