Professional Documents
Culture Documents
Oil and Gas Development Company
Oil and Gas Development Company
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
programme 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.
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 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.
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 .The financial year 198990, 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 Programme (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
enough resources in exploration and development to increase the country's reserves and
production.
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.
OGDCL Vision
To be a leading multinational Exploration and Production Company.
OGDCL Mission
To become the leading provider of oil and gas to the country by increasing exploration and
production both domestically and internationally, utilizing all options including strategic
alliances.
To continuously realign ourselves to meet the expectations of our stakeholders through best
management practices, the use of latest technology, and innovation for sustainable growth, while
being socially responsible.
Business strategy
As the leading exploration and production company in Pakistan, OGDCLs primary objective is
to enhance its reserves and production profile and ultimately maximize value for shareholders.
In order to achieve this goal, the Company seeks to execute the following strategies:
Core Values
Merit
Integrity
Team Work
Safety
Dedication
Innovation
Goals
Financial
Customers
Motivate our work force, and enhance their technical, managerial and business skills
through modern HR practices.
Acquire, learn and apply state-of-the-art technology.
Emphasize organizational learning and research through effective use of knowledge
management systems.
Fill the competency gap within the organization by attracting and retaining best
professionals.
Attain full autonomy in financial and decision making matters.