Internship Report On OGDCL (Finance)

Oil & Gas Development Company Ltd.
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TABLE OF CONTENTS

INTERNSHIP LETTER ............................................................................................................................... 3
EXECUTIVE SUMMARY .......................................................................................................................... 4
1. INTRODUCTION ............................................................................................................................... 5
1.1. COMPANY BACKGROUND ................................................................................................... 5
1.1.1. Establishment Of OGDC ...................................................................................................... 5
1.1.2. Conversion I nto PLC ........................................................................................................... 6
1.2. OBJECTIVES ............................................................................................................................. 6
1.2.1. Vision .................................................................................................................................... 6
1.2.2. Mission ..................................................................................................................................... 6
1.2.3. Values ................................................................................................................................... 7
1.2.4. Objectives.............................................................................................................................. 7
1.3. DEPARTMENTS ........................................................................................................................ 8
1.3.1. E&P Department .................................................................................................................. 8
1.3.2. Corporate Department ......................................................................................................... 8
1.3.3. Technical Services Department ........................................................................................... 8
1.4. STRUCTURE OF FINANCE & ACCOUNTS SECTION ...................................................... 9
1.5. PRODUCTS OFFERED........................................................................................................... 10
1.5.1. Crude Oil ............................................................................................................................ 10
1.5.2. GAS ..................................................................................................................................... 10
1.5.3. Liquefied Petroleum Gas (LPG) ........................................................................................ 10
1.5.4. Sulphur ............................................................................................................................... 10
2. LEARNING & EXPERIENCE........................................................................................................ 11
2.1. DURATION & RATIONALE FOR SELECTION ................................................................ 11
2.2. DETAIL OF TRAINING & TASKS PERFORMED ............................................................ 12
2.2.1. Final Accounts................................................................................................................... 12
2.2.2. Payable Section .................................................................................................................. 13


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2.2.3. Bank Section ...................................................................................................................... 15
2.2.4. Cash Section ...................................................................................................................... 16
2.2.5. Sales Section...................................................................................................................... 17
2.2.6. Imprest Section ................................................................................................................... 18
2.2.7. Import Section .................................................................................................................... 19
2.2.8. I nsurance Section............................................................................................................... 20
2.3. SWOT ANALYSIS OF OGDCL ............................................................................................. 21
2.3.1. Strengths............................................................................................................................. 21
2.3.2. Weaknesses......................................................................................................................... 22
2.3.3. Opportunities ...................................................................................................................... 22
2.3.4. Threats................................................................................................................................ 23
2.4. RECOMMENDATIONS .......................................................................................................... 23
CONCLUSION ........................................................................................................................................... 25
REFERENCES ........................................................................................................................................... 26
APPENDIX ................................................................................................................................................. 28
ACKNOWLEDGEMENTS ........................................................................................................................ 30


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INTERNSHIP LETTER


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EXECUTIVE SUMMARY

My internship report is based on the practical application of my knowledge that I have gained in
my course of BBA. For the completion of my BBA program it is required to attend an internship
training program in a reputed organization for a period of eight weeks, after studying a lot about
the companies practices and working of different organizational structure and setup, it was a
time to look out for practical realities. So, I selected OGDCL for my internship. I have
completed an internship of Eight weeks in OGDCL, not only to meet the degree requirements but
also to gain a professional awareness of the knowledge.
I was able to acquire a handful of knowledge about procedures, processes and basic functions of
the particular departments during the eight-weeks of my internship program, which may appear
to be fruitful for me in my future career.
This report is a brief of what i have learned at OGDCL as a student internee for 8 week period
for my internship project. First of all, i have explored the company background, its present
situation & future prospects. The objective of the report was to learn about the functions of the
various sections of the finance and account department i was rotated to. I have attempted to
highlight the major functions of in my report. A brief account of the companys products is also
included in the report.
I have listed the tasks which I have performed in eight sections of Finance and Accounts
Department. On the basis of these tasks performed, I have done an in depth SWOT analysis of
the organizations. At the end I put forward some recommendations on some issues which I have
discovered through SWOT analysis.


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1. INTRODUCTION
OGDCL is the national oil & gas corporation of Pakistan and the star of the countrys E&P
segment. The Company is the local market spearhead in terms of assets, production and acreage,
and is registered on all three stock exchanges in Pakistan and also on the London Stock
Exchange since December 2006. The Company is all set to ride the wave of E&P activity,
equipped with its Vision & Mission, Business and Strategic Plan, a debt-free and robust balance
sheet and healthy cash reserves. The Company is ready to take on the challenges of a volatile
E&P industry.
1.1. COMPANY BACKGROUND
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 non-
existent. With exploration activity at its lowest ebb several foreign exploration contracting
companies terminated their operation and either reduced or relinquished land holdings in 1961.
1.1.1. 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


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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.
1.1.2. Conversion I nto PLC
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 w.e.f. 23 October 1997 and is now known as OGDCL (Oil & Gas Development
Company Ltd.)
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 up to 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.

1.2. OBJECTIVES
1.2.1. Vision
To be a leading multinational Exploration and Production Company
1.2.2. Mission
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.


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1.2.3. Values
Merit
Integrity
Team Work

Safety
Dedication
Innovation
1.2.4. Objectives
1.2.4.1. Financial
Build strategic reserves for future growth/expansion
Double the value of the Company in the next five years
Reduce cost and time overruns to improve performance results

1.2.4.2. Customer
Constantly increase quality of service and responsiveness to keep a satisfied
customer base
Improve reliability and efficiency of supply to the customer

1.2.4.3. Learning & Growth
Motivate our workforce, and enhance their technical, managerial and business
skills through modern HR practices
Acquire, learn and apply state of- the-art technology
Fill the competency gap within the organization by attracting and retaining best
professionals

1.2.4.4. Internal Process
Synergize through effective business practices and teamwork
Improve internal business decision making and strategic planning through state-
of-the art MIS


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1.3. DEPARTMENTS

1.3.1. E&P Department
Exploration Prospect Generation
Production
Exploration Studies & Research
Process
Process Department

1.3.2. Corporate Department
Administration
Medical
Human Resource Department
Corporate Affairs
Personnel
Aviation
Security
Finance & Accounts
Legal
OGTI
Communication
G & R Lab
Supply Chain Management
Secretariat
Material Management
Internal Audit
System Support

1.3.3. Technical Services Department
Drilling
Stimulation
Engineering/Workshops
Geological / Geophysical
Mud Engineering
Seismic Data Processing
Well Services Department
Logistic
Cementation
Data Logging


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1.4. STRUCTURE OF FINANCE & ACCOUNTS SECTION
Finance & Accounts Department has been playing marvelous role in the development of the
OGDCL. OGDCL has acquired the services of highly qualified professionals like CAs, CMAs,
MBAs and M.com for its Finance and Accounts Department. Finance & Accounts Department
is directly under the administrative control of Executive Director Finance. The Executive
Director (Finance) heads the Finance & Accounts Department. General Manager (Finance),
General Manager (Accounts) & General Manager (Treasury) assist the Executive Director
(Finance) for effective and efficient controlling of OGDCL financial activities. Then there are
Managers and below Managers there is a chain of Chief, Deputy Chief, Senior Accountant,
Accountant, Assistant Accountant and then staff members.
Jr. Accounts Assistant
Accounts Assistant
Assistant Accountant
Accountant
Sr. Accountant
Dy Chief Accountant
Chief Accountant
Manager
General Manager
Executive Director
Finance


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1.5. PRODUCTS OFFERED
The business volume and the sales revenues are the reflection of an operators management
decisions, execution and skills. OGDCLs financial performance has been consistently
improving since becoming a self-financing entity. The main product lines of the company are as
follows:
1.5.1. Crude Oil
Crude oil is the mixture of petroleum liquids and gases (including impurities such as
Sulphur) that is pumped out of the ground by oil wells. Main production Oilfields of the
company are Dakhni, Dhodak, Bobi, Tandoalam, Chanda, Toot & Rajian.
1.5.2. GAS
Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of
methane, with other hydrocarbons, carbon dioxide, nitrogen and hydrogen sulfide. Natural gas is
an important energy source to provide heating and electricity. It is also used as fuel for vehicles
and as a chemical feedstock in the manufacture of plastics and other commercially important
organic chemicals. The major gas fields of the company are Dakhni, Dhodak, Qadirpur,
Nandpur, Panjpir, Pirkoh and Uch.
1.5.3. Liquefied Petroleum Gas (LPG)
A mixture of hydrocarbons found in natural gas and produced from crude oil, used
principally as a feedstock for the chemical industry, home heating fuel, and motor vehicle fuel.
The major fields of the company having LPG production facilities are Dakhni, Dhodak, Sadkal,
Kunner and Bobi.
1.5.4. Sulphur
A yellow mineral extracted from petroleum for making fertilizers, pharmaceuticals and
other products. The Sulphur is produced at the Dakhni oil & Gas field near Jand, Attock.


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2. LEARNING & EXPERIENCE
2.1. DURATION & RATIONALE FOR SELECTION
Doing Internship at OGDCL was unique and interesting in the sense that OGDCL is one of
the biggest corporate setup in Pakistan. Usually in the mid size organization, plenty of work is
being performed by few individuals, so due to that work load, it is nearly impossible for them to
facilitate an internee in a deep and appropriate manner. This makes difficult for me to choose the
organization where I can learn some practical knowledge in a true sense.
As OGDCL is a gigantic corporation in terms of its size and operations, due to which its Finance
Department has to perform plenty of work. In addition, Finance & Accounts section is further
divided into number of sections and in each section there are hundreds of officials who are
performing different tasks. This attribute of OGDCL motivates me to select the organization.
The size of the department is so big that during my 8-week internship I was hardly able to cover
8 sections of Finance and Accounts Department.
Following are the main intentions of studying the organization:
To fulfill the requirement of obtaining BBA degree from CIIT
For applying the theoretical concepts with practical applications.
To know, how the accounting operations are performed, projects are implemented
and assets are maintained etc.
To know the procedures for collection of funds, transfer of funds, import of plant &
equipment etc.
Analyzing the overall strength, weaknesses and opportunities available to that
organization.
The procedure of execution of various agreements / contracts relating to supply of
materials and acquiring services for implementation of various Projects.
I completed all the activities in a very well manner & learn so much, so i can say that
practical experiences are of so much importance along with the theoretical
knowledge.


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I started my internship at OGDCL, Head Office Islamabad on 6th July 2012. They attached me
with different sections of Finance & Accounts Department. The duration of my Internship was 8-
weeks from 6th J uly 2012 to 30th August 2012.
2.2. DETAIL OF TRAINING & TASKS PERFORMED
During my 8-week Internship I was attached with the following sections;
Final Accounts
Payable Section
Bank Section
Cash Section
Sales Section
Imprest Section
Import Section
Insurance Section
In each section, I was briefed about the working of that department. Mainly I was made to
understand the working of the section by going through the different files related to the
functioning of the department. Moreover I also did some practical work and also get a chance to
work on Oracle in few sections.
During my internship, I observed working of different sections; the detail is given below;
2.2.1. Final Accounts
On the very first day, I was attached to Mr Kamal Khan (Deputy Chief). In this section,
periodical/annual financial statement is prepared. This section is also responsible for providing
desired information to requested sections. Furthermore Final accounts section also prepares
variance analysis of the record.
I have to stay till five days in this particular section so he made the schedule accordingly.
First of all, I was given the task to thoroughly read the annual report of OGDCL for the year of
2011 and underline the major heads of the accounts. I did the same, as this was necessary to get
familiar with the working of F&A section. Then I was briefed by his subordinate about the
central information system (ORACLE Applications 11i), the whole department is integrated
centrally through an information system, every other section of Finance and Accounts
department forward its transaction to the Final Account section so it can made quarterly or yearly


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financial statements. The third and last briefing was about variance analysis. A variance analysis
is carried out by comparing the current values with the past years values and then analyzes the
cause of the difference.
2.2.1.1. Tasks Performed
It was my first task to have an In depth examination of Annual Report
I have Reviewed the financial statements of the company for the year 2010
and 2011 (as the annual report of 2012 was not published at the time of my
internship
I have reviewed the file records of data from different oil and gas fields as
well as different join ventures
I have done variance analysis of increase in the market price of the stocks of
the company and submitted a rough draft to the section head along with the
reasons of the increase
Discuss the International Accounting Standards related to the
Decommissioning cost with a member of internal audit dept. and clear my
concepts regarding this issue

2.2.2. Payable Section
It pays the Local purchase and foreign purchase orders submitted by the Procurement
(SCM) department to different parties/suppliers/contractors when material receipt is confirm or
advance payment against delivery to suppliers as per term & condition of the local or foreign
purchase order issued and request for payment by SCM department is made.
Submitted invoices are paid by comparing of delivery chalan with purchase order and
confirmation of receipt at delivery locations and with local receipt statement prepared by store
section and inspection made and material accepted by technical committee. Penalty is charged in
case material late receipts as per delivery period. Budget is confirmed for the items required by
the concerned department, and authorization of payment is also confirmed accordingly.


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All payments against Local or Foreign purchase order are entered in Oracle System and vouchers
are made by applying matching receipt of each order of different suppliers in Oracle System and
if, matching is in line then voucher oracle generated is printed out. Voucher is then sent to other
person for checking. When checking is complete then it is validated by concerned officer who
has authority in Oracle System. After authorization the voucher is then sent to Bank Section for
preparation of cheques. Cheques are then sent to the parties at the address as per given in
purchase order issued by SCM Department.
The products of the company are transported by NLC, so after calculating the
payable amount with the help of rate given, I have made payment vouchers of
transportation charges for NLC. (sample attached in the appendix)
After checking the attendance register, made vouchers for salary payments for
the third party workers of OGDCL
Handover the vouchers which are made in the payable section to the bank
section

Invoices from Employees House
Rent Advance & third parties
House Hiring
Invoices from Medical stores,
Dr. & Hospital bills
Invoices from suppliers,
contractors & consultants.
Employees Invoices for refund
& Telephone charges.

A
c
c
o
u
n
t
s

P
a
y
a
b
l
e

BANK
SECTION
FOR
CHEQUES
CHEQUES
TO THE
SUPPLIER


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2.2.3. Bank Section
Bank Section performs the issuance of cheques for all kinds of payments to employees,
contractors, suppliers, and etc. It also Deposits the cheques received from employees for
settlement of their matters. Cheques are also received from various parties against sale of crude
oil, gas, LPG, white petroleum products, services, and various miscellaneous incomes. Bank
section is responsible for the transfer of funds to all regional offices, and different field locations
according to their authorized imprest or as per their demand. Reconciliation of all bank accounts
is also being done in this section.
I have Studied the files regarding the previous records of bank accounts, bank
reconciliation statements, dividend payments and other transfer of funds
It was one of my task to Counter check the amount of the dividend payable
and the name of the owner
Record keeping of the invoices number which are presented by suppliers and
contractors on the registers
With the help of an assistant accountant of the bank section, I have prepared a
bank reconciliation statement in the ORACLE (Document Attached)

Receipts Relating To Different
Departments
Payments Relating To
Different Departments
Receipts from Suppliers
Payments Relating To
Suppliers
B
a
n
k

S
e
c
t
i
o
n

Reconciliation
Management
Imprest


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2.2.4. Cash Section
Cash Section deals with petty payments at Head Office Islamabad only to the
employees. Any payment less than Rs. 5,000 are dealt by Cash Section. Cash payments
include salaries, wages, and advances to employees against TA/DA, newspapers expense,
medical expense, petrol expenses, and miscellaneous payments up to that limit. These
payments are made against vouchers received from Payroll Section and Payable Section.
Cash Section is allowed to keep Rs. 1.5 million in its safe at H.O, as all this money is
insured. The payments are also entered in the Online ORACLE System.

Record keeping
I have assist a worker at the payment window of the cash section at the
head office in calculation and collection of the cash

Payroll Section

Payable Section

CASH
SECTION

HBL
Petty Payments


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2.2.5. Sales Section
Sales Section is the most important section of OGDCL. It is responsible to record
sales revenue, and controls accounts receivable. Sales revenues are generated from the sale
of products such as; Crude Oil, Gas, LPG and Sulphur. All sales of OGDCL are on credit,
and credit period varies depending upon the status of its customers. For example the period
is 15 days for private sector, 30 days for the public sector, and 45-60 days for joint ventures.
Sales Section pays Government levies. It also executes agreements, when Production
Department ends. Sales section also has the authority to decide all terms of payments. It also
collects payments from the customers and in the case of late payments, interest and
surcharge sort of payments are also received by sale section. Sales section determines the
price of its products according to the Government and International rules and regulati ons.
Invoices are dispatched to buyers (customers). Remittances are received from its customers,
which is then properly accounted for, and then handed over to Bank Section for proceed
realization.

First of all, I have studied and examine past records of data of sales and taxes
I have calculate the GST and WHT according to the rates given by the
instructor as an exercise
I have made the sales invoices of gas and crude oil for different Consumers.
(Sample Attached in Appendix)

Customers
Marketing
Department
Bank Section
SLAES
SECTION


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2.2.6. Imprest Section
Imprest section is playing a vital role in the finance & accounts department of OGDCL to
control, manage and transfer of funds to fields/locations, and the replenishment of head office
imprests, and the payment of land compensation to all fields/land owners. Imprest section is
involved in processing of field remittances, preparation of bank payment vouchers for
transferring fund, maintaining the field remittances register and in preparation of variance
analysis report.

My first duty was to study the past records of imprest allocation to different
fields
I have also made bank payment vouchers for transfer of funds. These
vouchers are very much similar to those which I have made in the payable
section as the format and the procedure of making the vouchers is almost the
same.
I also spent a day on the record keeping of remittances register

Fields/
Locations
IMPREST
SECTION

Bank
Section

NBP


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2.2.7. Import Section
Import Section deals the payment which pertains to foreign and is against letter of credit.
The Import section is responsible for the establishment of Letter of Credit (LC). The import
section also Establish the letters of credit for import of goods and payments against these
letters of credit. Establishment of letters of credit for hiring services and payments of these
services against Letters of Credit is also performed in this section. Inland letters of credit
are also established for procurement of material locally against Local Purchase Order (LPO)

I have also Study the previous letter of credits and the process involved in the
establishment of letter of credit
I have maintained source wise record of Letter of Credit
Sequence of verification really matters in the process of LOC, so I have
gained some knowledge that how the file is transferred from one department
to the other for the purpose of authentication and verification
I have carefully examined the files relating the local purchase order and
foreign purchase order, and then learn how the payment is made for the LPOs
and FPOs
Supply Chain
Department
IMPORT
SECTION
Stores
Department
Seller
(Third Party)
Commercial
Bank
Budget
Section


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2.2.8. I nsurance Section
Insurance Section takes care of insurance of employee under the Group Life
Insurance Policy. It also arranges insurance covers for house building loaners under the
House Building Loan Insurance Policy. Insurance matters related to Companys assets are
also handled in this section. It takes care of the Rig Insurance Fund, Vehicle Insurance, and
Workmens Compensation Fund, Plant insurance Fund, Pipelines Insurance Fund, wells
Insurance Fund, which were created to address insurance needs in-house for specific assets.
Insurance section of OGDCL coordinates with EFU, Metropolitan and National Insurance
Corporation for procurement of the desired insurance covers. It also gets settlement of
insurance claims, pays claims to employees/ legal heirs, pays premium to insurers and
responds requirements/ queries of internal, external, government, and other auditors.
Insurance Section also performs closing and reconciliation of account relating to the section.
It prepares schedules/ statements about section work in routine and on demand.
I have studied the procedures and policies of the insurance claims
As always, I have also reviewed the past record in this section
I have prepared vouchers and then post them on the system.
Insurance Section also performs closing and reconciliation of account
relating to the section.
It prepares schedules/ statements about section work in routine and on
demand.

Insurance
Companies
INSURANCE
SECTION
Investment
Companies
Employees
Legal heirs


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2.3. SWOT ANALYSIS OF OGDCL
I have done a widespread SWOT analysis of Oil & Gas Development Company Limited
which will provides me an in-depth picture of the company's businesses and operations. The
analysis has been compiled to have a clear and an unbiased view of the company's key strengths
and weaknesses and the potential opportunities and threats.
2.3.1. Strengths
As OGDCL is a government owned organization and 74% share are held by Govt.
of Pakistan, so it is given preference whenever a new license of exploration is
issued
Highly cutting-edge and up-to-date machinery and tools are controlled by
OGDCL.
OGDCL has a well enough training facility structure in the form of OGTI.
Annual bonuses are announced to motivate employees.
OGDCL believes in merit driven hiring process
In the recent years, OGDCL has introduced a very professional and up to date
management information system which allow inline and computerized flow of
work
OGDCL believes and already is socially responsible; the organization has
established a vocational training school in Tando Alam Sindh.
OGDCL has established its own gas transmission and distribution network.
OGDCL has huge financial reserves available.
OGDCL has been a highly profitable entity since its creation.
Specialization is achieved through selecting the personnel on the basis on
technical expertise.
By giving attractive salaries packages, OGDCL is capable to retain its loyal and
highly professional man power.


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OGDCL, under a dynamic leadership foresees the organization to be a leading
energy with the objective to maximize the profits and ensure healthy returns to the
stock holders.

2.3.2. Weaknesses
Outdated procurement procedures and stores inventory management system of
OGDCL undermines OGDCLs performance.
It is noticed that there is the lack of implementation of rules and regulations
There are too much hierarchical formalities and greater spaces in chain of
command so a plenty of time is wasted for the circulation of files for the
verification purposes
Sometimes decisions are late due to rigid processes
Job descriptions are not properly defined to the staff and division of work is done
in an inefficient manner
Political influences some times halts major decision which might be beneficial for
the organization
Approach of the workers to work is not practical as of job security element. They
have fair idea that no one can sack them from this organization.
Annual bonuses are declared for whole organization irrespective of their
individual performance, which leads to a free rider problem.

2.3.3. Opportunities
There are Substantial unexplored gases and oil reserves exist in Pakistan.
Inflationary trend in the prices of oil in the international markets is noticed in this
current era.
Massive consumer market can be targeted for the products offered.
There is an ever rising demand of gas due to changing attitude of people.
Government is giving incentives to Energy Sector for doing better projects.


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There is no tough competition faced by OGDCL from any company having the
same large setup with such huge finances.
Minimum price allowed by the Government at different location is a great support
for those fields where price after discount is less than official price.
Economies of scale can be achieved by the right sizing of employees.

2.3.4. Threats
Being a Government owned organization; Government has maximum interference
while deciding its investment policies.
Global trends are rapidly changing which might affect its performance.
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.

2.4. RECOMMENDATIONS
During my stay in OGDCL, I carefully observed the major flaws and setbacks face by the
company which are also mentioned in the SWOT analysis. For the hopeful results and to
overcome these weaknesses and drawbacks, I want to suggest some practical steps which I think
might be helpful to improve the existing practices.
With the passage of time many modern technological changes take place in
OGDCL, online system is introduced but many early workers are not familiar that
how to use this facility. OGDCL must take necessary action to educate modern
technologies to those workers so that they can work in an efficient manner and in
this way they can play more effective role in organizational success.
The management should pay full attention to the intensive professional training of
staff in related fields. The department concerned can organize professional
training at OGTI and latest literature newspapers and magazines etc. of
professional interest should be provided at sites free of cost.


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Compensation and promotions should be performance based rather than seniority
or favoritism.
As the promotion policy of the corporation clearly shows merit + seniority, so it
should be fully implemented.
Clear job description is needed so that employees know about their duties and
complete them with honesty and fairness.
Training facilities should be awarded according to the requirement of the job.
Hierarchy levels should be reduced in order to improve interaction,
communication and coordination at each level.
Decision making and authority should be delegated to a certain extent for
reducing delayed procedures and saving time.
There should be informal communication among the superiors and sub-ordinates
by arranging tea party once in four months or six months and in this way the
distance among them will be reduced. As a result employees efficiency can be
enhanced.
It is also needed 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.
Quarterly comparison of actual verses budgeted expenditure must be carried out
to discover weakness and cost over-runs.
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 unable the organization to achieve
its objective.
OGDCL should emphasize on reducing production cost and optimizing
productivity by introducing new technology and employing skillful human
resource.
Management should try to develop maximum and minimum store inventory levels
and also 100% physical verification to be done at least once a year.


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CONCLUSION
The Company has come a long way from its beginning as a public sector corporation to a leading
exploration and production company with its presence
in all the provinces of the Country. OGDCL is now
listed on all the three stock exchanges of Pakistan as
well as on the London Stock Exchange. The analysis
of OGDCLs financial statement shows that it has a
high tendency to pay its debts and to convert assets
into liquid form within short intervals of time. The
sales of the company are on a very large scale and
also give rise to the company opportunity to generate huge profits in the long run. Its
Profitability ratios clearly reflect its great ability to generate huge profits and of generating
dividends for its shareholders. Solvency ratios of OGDCL clearly reflect the ability of company
to survive over a long period of time and also provide a measurement of how likely the company
will be to continue meeting its debt obligations. These financial results have been possible
largely due to the dedicated efforts of the Companys employees under the able guidance of the
Management, Board of Directors and support of Ministry of Petroleum & Natural Resources.
Considering the achievements made by the Company during these years together with favorable
price environment, speedy development of recently discovered fields and aggressive exploration
& development program, Companys growth and success in the years ahead can be predicted.

Struggle is the key to success. The results are the discretion of Allah. Hence hard
working and devoted workforce is the most precious asset for an organization, same
is the case with OGDCL.
Companys sales revenue and
profit after taxation increased by
9.2% and 7.4% to Rs 155.6 billion
and Rs 63.5 billion respectively,
resulting in Earnings per Share
(EPS) of Rs 14.77 compared to Rs
13.76 during the preceding year.


26

REFERENCES

http://www.ogdcl.com/
http://www.ogdcl.com/UploadFolder/financial/OGDCl_Complete_Ann2011.pdf

Mr. Sajid Mehmood
(Corporate Legal Officer)

Kamal Khan (DCA Final Accounts Section)
Murad Niaz (GM Finance)
Muhammad Khalid (Chief Acct. Bank Section)
Muhammad Saleem Rana (DCA Stores & Fixed Assets Section)
Shaukat Ali (Chief Acct. Sales Section)
Zahoor Mohyudin (Chief Acct. Import Section)
Arshad Mehmud (Chief Acct. Insurance Section)

NOTE: A photocopy of the Official Document issued by OGDCL Admin Section,
containing Signatures, stamps and contact number of the above mentioned
persons and the attendance clearance memo is attached in the next page.


27

1


28

APPENDIX

Employee Card
Sales Invoice of gas sold
Calculation of Oil Prices
Bank reconciliation Statement
Payment Voucher of NLC for transportation charges
NOTE The above mentioned documents are attached on the following page.


29

2


30

ACKNOWLEDGEMENTS

I am grateful to the entire management of OGDCL, Section heads of the Finance & Accounts
Department, and specially the Staff for their encouraging behavior and continuous support
towards the progress of my internship.
I am also thankful to all the Faculty of Management Sciences CIIT for their commitment and
Guidance and appreciate their contribution towards the knowledge which they have provided to
me during the period of last four years.
I would also like to thank the Mrs. Sarwat Kazmi for their untiring efforts in directing the
Students and helping me in one way or the other in the due course of completing this task.

Faisal Mehboob
(Student of Business Administration)


31

FAISAL MEHBOOB
H. No. 138-A, Street No. 20, Gulzar-e-Quaid, Rawalpindi
Phone: 0344-5499760
E-mail: faisal.raja@hotmal.com
OBJECTIVES
A career with a progressive organization that will use my education, skills and abilities, where I can
effectively contribute to operations in any capacity that best matches my skills and experience.
EDUCATION
COMSATS Institute of Information Technology, Islamabad, Bachelors in Business Administration,
CGPA = 3.24 (Continued)
SPECIALIZATION IN COURSES
Financial Accounting, Managerial Accounting, Financial Management, Business Finance,
Credit Management, Corporate Finance, International Finance, Investment & Portfolio Management etc.
Scholars College Cantt. Rawalpindi, Intermediate in Computer Science.
F.G Sir Syed Boys Secondary School Rawalpindi Cantt. Matriculation in Science
PARTICIPATION
Training Workshop on Consumer Issues, organized by The Network of Consumer Protection in
Pakistan, 18th of December 2011
Bringing in a change: An easy route, held on 21
st
May 2010 at COMSATS Institute of Information
Technology
SIDE PROJECTS
Make a project on ratio analysis of the past five year for OGDCL
Did a project on Risk & Return for Fauji Cement
Done a project on Investment and Portfolio Analysis of five companies.


32

MARKETING SKILL
Achieved sales of handicrafts amounting to 120% of forecast in cultural week at Comsats Islamabad
campus
Personally generated over Rs. 13000 through a kites stall on Spring Festival 2011 organized by
CIIT
COMMUNICATION SKILLS
Announced results for inter-department cricket competition
Participated as a host in the seminar on Auditing in CIIT
Spoke as a host for parliamentary debate between engineering and management science departments
of CIIT
MANAGEMENT SKILLS
Helped organize, conduct a highly successful campaign to gather donations for flood victims last year
Appointed as class representative in the second and third semester
Held responsible to manage the Cricket Competition last year
COMPUTER SKILLS
Proficient in Word, Excel and PowerPoint
Internet browsing
Windows and other software and hardware installations
INTERESTS
Playing Cricket
Travelling
Book reading
REFERENCES
Will be provided on request

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