Introduction:

Oil and Gas Development Company Limited commonly known as OGDCL is a

Pakistani multinational oil and gas company. It has a primary listing on the Pakistan Stock Exchange,
and secondary listing on the London Stock Exchange. Established in 1961 by the Government of
Pakistan, it was turned into a public listed company on 23 October 1997. Today it is involved in
exploring, drilling, refining and selling oil and gas in Pakistan. It is the market leader in terms of
reserves, production and acreage. It is based on Jinnah Avenue, Blue Area in Islamabad, with
the Government of Pakistan holding 74% stake in the company. Rest are held by private investors. In
2013, it has revenue of Rs. 223.365 billion and profit before tax soaring at Rs. 90.777 billion.

It is the largest company in Pakistan in terms of market capitalization, and has repeatedly ranked
among the Forbes Global 2000.

Company 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 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.

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.
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.
 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
Management objectives and strategies are tasked at improving corporate performance and creating
material value for shareholders in the future. These objectives and strategies are in line with
OGDCL’s strategic plan and may change/alter depending upon change(s) in the internal and
external environment.

Management objectives and strategies are summarized as follows:

 Pursue investment choices that are financially viable for the purpose of reserve building, production
enhancement and growth in distributions to shareholders in the coming years;

 Formulate value driven joint ventures with leading E&P companies both locally and internationally to
introduce new partners with complementary skills and to carry out exploration, development and
production operations cost effectively;

 Ensure the existence of a mixed exploration portfolio constituting exploration concessions in the
established, promising and unexplored areas alongside keeping a balance between enhancing
exploratory endeavors and mitigating risk with acceptable drilling success leading to reserves
accretion and sustainable long term business growth;

 Maintain and accelerate the exploratory endeavors including fast track seismic data acquisition, data
processing/interpretation and active drilling campaigns to tap additional reserves and optimize
hydrocarbon production to address energy challenges in the Country;
 Seek production growth from owned and operated joint venture fields through expediting efforts for
completion of ongoing development projects, fast track development of newly discovered fields and
utilizing latest production techniques and innovative technologies to maximize hydrocarbon recovery;

 In carrying out intensified E&P activities to maintain market leadership status, ensure adherence to
high safety standards coupled with respecting the environment and local communities that may be
affected by the business operations. Being a socially responsible entity, carry on CSR activities
through investment in following areas:
 Education.
 Health.
 Water supply.
 Infrastructure development and providing generous donations in the case of natural calamities;

 Based on suppressed international oil prices impacting the business financials, maintain a rigorous
approach to capital allocation and concentrate on efficiency and competitiveness in carrying out
business activities;

 Improve efficiency and output of the employees by continuing to provide training in the form of
workshops, seminars and conferences alongside building and maintaining strong relationships with
the stakeholders to ensure business growth and success;

 In line with the business vision, focus on establishing foot prints abroad by undertaking suitable
farm-in/ farm-out opportunities as well as acquisition of concessions in domestic and international
markets. In this respect, cash in on such overseas opportunities which can be monetized quickly and
deliver immediate production boost; and

 To exploit unconventional sources of energy like shale gas and coal bed methane, carry on the
study initiated in the business operated blocks to evaluate shale and tight gas potential and define
development strategy for operated reservoirs.

OUTPUT MEASURES
Output indicators are about what has been achieved by the company i.e. products of the
company, the major products of the company are crude oil, natural gas, liquefied petroleum gas
and petroleum products.
Crude Oil,
The total supply of crude oil for the fiscal year 2010-11 was 75.3 million barrels.
Natural Gas
As on December 31st 2011, the balance recoverable natural gas reserves have been estimated at
24.001 Trillion Cubic Feet.
The average production of natural gas during July- March 2011-12 was 4236.06 million cubic
feet per day (Mmcfd)as against 4050.64 (Mmcfd) during the corresponding period of last year,
showing an increase of 4.57 percent.

Liquefied Petroleum Gas-LPG - LPG

currently contributes only 0.5 percent to the total primary energy supply in the
country. However, 87 percent of its demand is met through local production. The rest is
imported.
The annual total supply of LPG remained 467,476tonnes; 1, 281 tonnes were produced daily during
2012, out of this 46 percent is produced inthe private sector while 54 percent is produced in the
public sector. The three main sources of LPG are; refineries 32 percent, gas producing fields 55
percent and imports 13 percent.
Petroleum products
are produced from the processing of crude oil at petroleum refineries and the extraction of liquid
hydrocarbons at natural gas processing plants. These products are further classified into Energy
and Non-Energy products.
During2009-10; thus posting a negative growth of 1.36 percent Out of 9.40 million tons
8.91million tons are energy products while 0.49 million tons are non energy products.

D u r i n g 2011 the total production of petroleum products (energy and non-energy) remained9.40
million tons compared to 9.53 million tones.