Contents

1 Introduction of Petroleum Industry ........................................................................................................... 2

1.1 Historical Background ......................................................................................................................... 3
1.2 OGDCL ............................................................................................................................................. 4
2 Introduction to PARCO ............................................................................................................................... 5
2.1 Vision and mission........................................................................................................................... 6
2.2 Major business ................................................................................................................................ 7
3 Introduction to PSO (Pakistan State Oil) .................................................................................................. 12
3.1 Vision, Mission and Values................................................................................................................ 13
3.2 Product & Services of PSO ............................................................................................................ 15
4 What is Workforce diversity .................................................................................................................... 19
5 Workforce diversity in PARCO.................................................................................................................. 20
5.1 Polices of workforce Diversity by Parco ............................................................................................ 21
5.2 Equal Opportunity Employer ........................................................................................................ 22
6 Workforce Diversity in PSO ...................................................................................................................... 25
6.1 Internal Culture of PSO ..................................................................................................................... 26
6.2 Facilities for the Employees: ......................................................................................................... 26
Challenges......................................................................................................................................... 28
How to resolve .................................................................................................................................. 28
7 Comparison between Pakistan and western countries ........................................................................... 29
8 Conclusions .............................................................................................................................................. 32
9 Recommendations ................................................................................................................................... 33
10 References ............................................................................................................................................. 33
 ACKNOWLEDGEMENT

“For whom who create us, fed us, brought us up and give us knowledge. Who is the
most merciful, most beneficial and most forgiver. "In the name of God, the Merciful, the
Compassionate. Say (O Muhammad) He is God the One God, the Everlasting Refuge,
who has not begotten, nor has been begotten, and equal to Him is not anyone." For
whom who is more loving and kinder than a mother to her dear child? For whom who is
the First and the Last?”
We are very thankful to Mr. Fahad laber who gives chance to prove ourselves, to gain
something, to learn something, to experience something and to test ourselves, and to
test our abilities, our learning and our perception.

1 Introduction of Petroleum Industry

1.1 Historical Background
Petroleum exploration in subcontinent began more than a century ago. The first well
was drilled in 1866 at an oil seepage Kundal in the Mianwali District of Punjab Province.
This was seven years after the World’s 1st well was drilled in 1859 in Titusville,
Pennsylvania by Edwin Drake. Activities continued during the last quarter of the 19th
century, a discovery of oil at Khattan in Balochistan was the main success where
thirteen shallow wells produced 25,000 barrels of oil between 1885 and 1892. The
Government of Indio-Pak controlled the drilling activities during this early phase.

The first commercial success came with the drilling of Khaur-1 by Attock Oil Company in
1915 , in the Potwar Basin. After a lull, the exploration activity passed into private
hands: during 1912-1947, private oil companies. Including Attock Oil Company, Burmah
Oil Company, Indolex Petroleum Company and Whitehall Petroleum Corporation carried
out extensive exploration, basing their drilling operations on geological investigations.

After independence in 1947 , there was a need for an appropriate legislative framework
to organize the petroleum sector and in 1949 the Pakistan Petroleum(Production) rules
were introduced. These rules contained incentives that triggered a new wave of
exploration. After the dissemination of these rulers, Attock Oil and Burmah Oil
companies established Pakistan Oil Fields Ltd (POI.) and Pakistan Petroleum Ltd
(PPL).

No new oilfields were discovered except for a very small one at Karsal ( 1956 ) in
Potwar where production declined very rapidly. The drilling activities by other foreign oil
companies were also unsuccessful. The Government of Pakistan decided to enter
directly into oil exploration in order to sustain the exploration effort, and with assistance
from U.S.S.R. they established the Oil and Gas Development Corporation (OGDC) in
the public sector in 1961 . The exploration in offshore regions which had started in 1961
remained limited to the drilling of only eleven exploratory wells of which nine were
located in the Indus offshore During the period from 1983 to1987a total of 65
exploratory wells were drilled at an average of 13 wells per year with a success ratio of
1: 2.7.

The private companies made the initial discoveries; in the early 1960s OGDCL was
created which developed a successful track record in discovering oil. oil crises in 1973
number of impressive discoveries were made both by private sector and OGDCL. In
order to remain attractive in highly competitive global exploration market ,the
Government has been making progressive changes in the investment polices and
regulations at regular intervals. With first E&P policy of 1991 ,Pakistan caught the
attention of international petroleum industry andfurther subsequent improvements
through policies of 1993, 1994, and 1997made Pakistan an attractive location for
upstream investment. Pakistan overhauled the policy in 2001 and introduced
corresponding regulation in2001 for onshore areas and in 2003 for offshore areas. The
government was slow in making a policy for this sector because previously government
felt that there was less need to priorities this sector given that cheap imported oil was
available. However in 1980s due to increased oil prices, government in 1991 gave its
priority to this sector by launching first petroleum policy in 1991.

1.2 OGDCL

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.

It was created under an agreement signed by GOP with USSR for financing equipments
and services of Soviet experts for exploration of oil and gas in the sector. During 1970s,
Western technology was introduced and it also under took an aggressive program in
Exploration sector of Pakistan. Seventies developments resulted in discovery of number
of oil fields and hence OGDCL financial independence. In 1997 OGDCL was
incorporated as public limited un-listed company managed by independent Board of
Directors. The company has 37.4% of the total area granted by government to the
petroleum sector. It has 37% of the total oil reserves of the country. It has 61% of the
country’s total oil production.

Listing
On 4 May 2009, the government of Pakistan appointed a Citigroup-led consortium to
advise the state-run Privatization Commission on the sale of 10 to 15 per cent (or 430 to
645 million shares) of the company. OGDCL is the second Pakistani company to have
been listed at the London Stock Exchange. The company was also listed in Pakistan at
all the three exchanges of the country namely Karachi Stock Exchange (KSE), Lahore
Stock Exchange (LSE) and Islamabad Stock Exchange (ISE).

Business challenges and risks

OGDCL is exposed to the following operational and non-operational risks that can
unfavorably affect its operations and financial performance. The company managed to
drill more than one third of the total wells drilled in the country during 2010. In addition
to that, OGDCL was also joint venture partner in sixteen wells drilled by other operators.

companies

The two well known petroleum companies chosen for seeing workforce diversity issues
and how they manage their workforce are.

1. Parco (pak Arab Refinery Limited)

2. PSO ( Pakistan State Oil )

2 Introduction to PARCO

PARCO-Incorporated in Pakistan in May 1974, as a Public Limited Company, PAK-

ARAB REFINERY LTD. (PARCO), is a Joint Venture between the Government of
Pakistan (60%) and the Emirate of Abu Dhabi (40%), through its Mubadala Investment
Company.
PARCO has the most modern refinery in Pakistan having a capacity of 100,000 BPD
(representing about 25% of the country`s refining capacity), over 2000 kms of cross
country pipeline network (including its JV subsidiary Pak-Arab Pipeline Company
Limited (PAPCO) with a strategic storage of over one million tons, and a rapidly
expanding retail network of TOTAL PARCO (TPPL) – a joint venture with TOTAL of
France. With the acquisition of Chevron’s fuel business in Pakistan, TPPL is now the
third largest Oil Marketing Company in the country. PARCO is also marketing
nationwide LPG under the brand of Pearl Gas and fuel oil under the brand of Pearl
fuels. High quality asphalt is also being marketed as Biturox.

With continued support of the Emirate of Abu Dhabi and Government of Pakistan,
PARCO over the years has been able to implement a number of energy projects that
have contributed significantly in enhancing the country’s economic growth, saving
foreign exchange, transferring technology and providing employment.

PARCO`s performance is reflected not only in its technical and financial results, but can
also be judged by its other achievements and awards e.g. Company has maintained its
AAA and A1+ long and short term credit rating by Pakistan Credit Rating Agency
(PACRA) for the nineteenth year running. The company is amongst the first in Pakistan
with three simultaneous international certifications: ISO 9001:2008 (Quality
Management System), ISO 14001:2004 (Environmental Management System) and
OHSAS 18001:2007 (Occupational Health and Safety Management System). PARCO
has also received Environment Excellence Awards for the last several years and is
rated among the top 10 organizations in Pakistan for outstanding achievement in
Environment Management.

From producing environment friendly products to efficient, world class facilities and
infrastructure, building a competent team, and major social initiatives, PARCO is doing
its utmost in Providing Energy with Responsibility.

2.1 Vision and mission

Vision

“To be a leading national energy company of choice for all stakeholders by employing a
strategy of diversification and integration with the right technology and adopting best
industry practices for sustained competitive advantage.”

Mission

“To transport refine and market petroleum and realated products in Pakistan in a safe,
efficient, reliable and environment-friendly manner maintaining professional excellence
and ensuring favorable returns on all employed resources”.
History and Evaluation of PARCO

 In Corporation (1974)

 KMK Pipeline (1981)

 MFM Pipeline (1997)

 A Refinery unit being installed (1999)

 Mid-Country Refinery Under Construction (1999)

 Tanks under construction (2000)

 Mid-Country Refinery (2000)

 Construction Phase of Port Qasim Station (2003)

 White Oil Pipeline being laid (2003)

 White Oil Pipeline (WOP) construction phase (2004)

 Construction at Ghazi Ghat (2004)

 Khalifa Coastal Refinery (Future Project

2.2 Major business

  Refining
 Transportation

1.Refining

Commissioned in the year 2000 and built at a cost of US$ 886 million, PARCO Mid-
Country Refinery (MCR) at Mahmoodkot near Multan has added 4.5 million tons per
annum ( 100,000 BPD ) to the country’s refining capacity . MCR was one of only fine
refineries bulit in the world at the beginning of the millennium and, therefore, can be
called the latest in terms of generations.

PARCO’s Mid-Country Refinery (MCR is the country’s most modern and largest
operating refinery and employs critical processes involved in refining. The Refinery
produces Liquefied Petroleum Gas (LPG), High Octane Blending component (HOBC) ,
Kerosene , jet Fuel , High speed Diesel (HSD) , Light speed Diesel (LDO , Furance Oil
(FO) and sulphur. These products are being delivered to customers through Gantry
Operation at MCR as well as via PARCO”s Mahmoodkot-Faislabad-Machike (MFM)
pipeline System. MCR is capable of producing lead free Motor Gasoline of 90 Octane .
it produces fuel oil with low sulphur content meeting the international standards and has
a Sulphur Recovery Unit with tail gas treatment to avoid pollution.

The Refinery has a refining capacity of 100,000 BPD of a mixed Arabian Light/Upper
Zakum /Murban/Das and indigenous Crude slate, which is transported to the Refinery
site by PARCO’s existing pipeline system from Karachi . MCR beign a grassroots
Refinery, has both primary and secondary processing facilities and supporting
infrastructure, which allows the process units to operate in an efficient manner in order
to product the desired slate of products in an economic and flexible manner.

The primary control centre is the Main Contro Room with a microprocessor-based
Distributed Control System (DCS) . IN addition three subsidiary control rooms
collectively manage eleven on site process units and off-site /Utilities and other
permanent facilities with 46 tanks to store Crude Oil , intermediate feeds stock and
finished products besides other specific areas of the refinery

2. Transportation
PARCO’s cross-Country network of pipelines , including those of its subsidiary PARCO ,
starts from Karachi and goes up to Machhike near Lahore , Covering over 2000
kilometres. These pipelines have played a major contribution in protecting the
environment of our country and reducing congestionon the roads by substituting
thousands of tank lorries. As this silent river of fluid energy flowing underground, much
of the noise , fatalities and pollution on the surface , thefts and contamination of the
prodduct have become a thing of the past.

2.3 PRODUCTS AND SERVICES of PARCO

PARCO caters to a wide range of products and services, and is the largest integrated
energy and oil logistics company in Pakistan. Along with refining, transportation and
storage, PARCO also has a successful marketing joint venture with TOTAL SA of
France in the form of Total PARCO Pakistan Limited (TPPL), with a rapidly expanding
retail outlets network. After the acquisition of Chevron Pakistan Limited (renamed as
TOTAL PARCO Marketing Limited) by TPPL, today, the TOTAL PARCO network is a
50:50 joint venture with more than 800 retail fuel outlets, plus a lubricants blending and
marketing business, making it the second Largest Oil Marketing Company in Pakistan.

PARCO Biturox

In contrast to conventional Bitumen produced through simple distillation, PARCO

Biturox bitumen is chemically integrated and upgraded by controlled air oxidation;
known as Air Blowing. This gives the bitumen improved Thermal and Ageing
Stability.Bitumen quality depends on the harmonized balance of its chemical
components, Saturates, Aromatics, Resins and Asphaltenes. The Biturox ® process
creates & preserves valuable aromatic components and optimizes the ratio between
Resins and Asphaltenes.

Advantages of PARCO Biturox

Based in optimal crude selection for the purpose and Biturox Air Blowing Technology,
PARCO Biturox exhibits excellent properties even for standard grades and for important
parameters like Fraas Breaking Point and Stability after Ageing (RTFOT).

Produced through internationally renowned Poerner’s Biturox Air Blowing Technology,

PARCO Biturox performs better over a wide range and increases road service life as
compared to conventional bitumen, providing higher resistance against Rutting during
summer and Thermal Cracking in winters. Specific features of PARCO Biturox are:
  Stiffness against rutting
 High resistance against fatigue.
 Better adhesive properties.
 Resistance to ageing.
 Compatibility for polymers.
 Ability to emulsify.

Product Grades

Following high quality grades of PARCO Biturox are available:

 Pen Grade (60/70, 80/100) for roads and highways

 Multi-grade (30/40-M) for heavy duty roads and highways
 Industrial grade (10/20)

The variety of bitumen produced by PARCO meets the requirements of Pakistan and
International Standards.

Detailed Specifications

PARCO Biturox 60/70

This standard bitumen is intended for making all kinds of bituminous layers in road
surfaces constructed through “hot technology”.

PARCO Biturox 30/40 – M

This special multigrade bitumen with good resistance against deformation and fatigue is
intended for road construction in areas exposed to heavy traffic, such as main highways
with high lifetime requirements. Furthermore, it is recommended for road construction in
areas with high seasonal temperature fluctuation.

PARCO Biturox 80/100

This grade is intended for all kinds of bituminous layers and mixtures in road surfaces
constructed through “hot technology” for production of polymer modified bitumen
binders for road and roofing application and for production of bitumen emulsions
through “cold technology”.
PARCO Biturox 10/20

This industrial grade bitumen is mainly applied in the building material industry as an
adhesive substance for sealing and lining. It is also used in mixtures prepared for
coating and impregnation of bituminous insulation, waterproofing and roofing
membranes.

MARKETING OF PETROLEUM PRODUCTS

True to its reputation of always being a dynamic organization ready to adapt to the ever-
changing environment, PARCO has been successfully marketing Petroleum products
for the last several years. Having developed and extended its cross-country pipeline
system and storage facilities and having made a huge investment of US$886 million in
the MCR, it was all but logical for PARCO to increase its earnings by marketing its own
Petroleum products. The Refinery has placed PARCO in an ideal position to market
these products. Therefore, PARCO is delivering accurate quantities of high quality
products into the customer’s premises in a timely manner and at the lowest cost through
the shortest and safest routes.

PARCO through an optimal strategy has been marketing the following products:

PEARL: QUALITY & VALUE

PARCO is engaged in its marketing activities through the brand name “PEARL”. The
Word “PEARL” is associated with the Symbol of Purity and Preciousness, which
translates to a message of Quality and Value for petroleum products. PARCO under the
brand name of PEARL is marketing Furnace Oil (FO) to Captive Power, Cement Plants,
and other industries particularly in Punjab.

LPG

MCR is producing approximately 150,000 MTons of LPG annually, which is marketed to

leading LPG Marketing Companies operating in the Country. Also PARCO has its own
nationwide LPG distribution and marketing network. The product is marketed nationally
under brand names of Pearl Gas, Super Gas and Super Gas Bulk.

SULPHUR
Approximately 18,000-20,000 M.Tons of Sulphur is being produced at MCR per annum.
PARCO sells Sulphur to its Customers, either by announcing Monthly Prices or Open
Tendering on a quarterly basis, based on Market Dynamics and International Pricing
Trends.

3 Introduction to PSO (Pakistan State Oil)

The Pakistani government's move toward a nationalized oil sector began in 1974, with
the passage of Petroleum Products (Federal Control) Act. Under the new legislation, the
government took control of the two Pakistani oil companies, Pakistan National and
Dawood Petroleum. Following the takeover, Dawood was renamed Premier Oil
Company. Also in 1974, the government founded a new agency, the Petroleum Storage
Development Corporation (PSDC). That entity was subsequently renamed Pakistan
State Oil (PSO) in 1976.
Following the adoption of the new name, PSO then took over both Pakistan National
and Premier, in what was then the largest ever merger to take place in Pakistan. One
month later, the government also took over the operations of Esso in Pakistan, which
were placed under PSO. As such, PSO became the undisputed leader in the Pakistani
market.
Pakistan State Oil Company Limited is that country's leading oil marketing and
distribution company. Formerly a state-run agency, PSO controls approximately 70
percent of Pakistan's total finished fuel products market, and as much as 80 percent of
the total furnace oil market, the main fuel oil market in the country. PSO also controls 60
percent of the country's diesel fuel market. Despite a nationally operating network of
more than 3,750 PSO-branded filling stations, many of which include convenience
stores, PSO's share of the consumer gasoline and lubricants markets has dropped to
just 40 percent, in large part due to Shell Pakistan's aggressive expansion of its own
retail network. Shell remains PSO's largest competitor in the country, with a market
share of more than 25 percent. Other major competitors include Total and refinery
operators Attock and Caltex. PSO itself has engaged in a strategy of
developing vertically integratedoperations, including backing the construction of a new
refinery.
The company also produces and markets a variety of products under its own brand,
including motor oils and lubricants. PSO's sales extend to jet fuels and marine fuels,
LPG, CNG, kerosene, and other petrochemicals. The company is also the leading
supplier to Pakistan's utility and industrial sectors. Nonetheless, retail sales remain the
company's largest revenue-generator, representing some 90 percent of the group's
sales. These topped PKR 254 billion ($4.27 billion) in 2005, making PSO Pakistan's
largest company and the flagship of the Pakistani government's privatization effort in the
early 2000s. The Pakistani government continues to hold more than 25.5 percent of
PSO's shares, while a group of institutional investors, primarily banks, control more than
37.5 percent of group stock. PSO has been hailed for its dramatic turnaround, from
inefficient government-run organization to a streamlined, modern corporation, a
transformation largely credited to the leadership of Managing Director Tariq Kirmani.
PSO is listed on the Karachi Stock Exchange.

Strategic Objectives

 Compliance with regulatory and legal requirements and assure ethical operations
in all spheres of business
 Focus on HR capital skill development and increased employee engagement for
an effective and motivated entrepreneurial team
 Optimize and ensure efficient supply chain and pursue long term supply
arrangements.
 Effective HSE compliance with steps taken to encourage use of fuels that reduce
carbon footprint.
 Increase market leadership and strategize measures to improve the bottom line.
 Continue to create upstream synergy and evaluate diversification opportunities
for growth.
 Focus on responsible corporate citizenship with active CSR initiatives in health,
education, community development and support for special persons.

3.1 Vision, Mission and Values

Vision

To excel in delivering value to customers as an innovative and dynamic energy

company that gets to the future first.

Mission
We are committed to leadership in energy market through competitive advantage in
providing the highest quality petroleum products and services to our customers.

Professionally trained, high quality, motivated workforce, working as a team in an

environment, which recognizes and rewards performance, innovation and creativity,
and provides for personal growth and development

 Lowest cost operations and assured access to long-term and cost effective
supply sources.
 Sustained growth in earnings in real terms.
  Highly ethical, safe environment friendly and socially responsible business
practices.

Values
 Excellence
We believe that excellence in our core activities emerges from a passion for
satisfying our customers' needs in terms of total quality management. Our
foremost goal is to retain our corporate leadership.
 Cohesiveness
We endeavor to achieve higher collective and individual goals through team. This
is inculcated in the organization through effective communication.
 Respect
We are an Equal Opportunity Employer attracting and recruiting the finest people
from around the country. We value contribution of individuals and teams.
Individual contributions are recognized through our reward and recognition
program.
 Integrity
We uphold our values and Business Ethics principles in every action and
decision. Professional and personal honesty, dedication and commitment are the
landmarks of our success. Open and transparent business practices are based
on ethical values and respect for employees, communities and the environment.
 Innovation
We are committed to continuous improvement, both in New Product and
Processes as well as those existing already. We encourage Creative Ideas from
all stakeholders.
 Corporate Responsibility
We promote Health, Safety and Environment culture both internally and
externally. We emphasize on Community Development and aspire to make
society a better place to live in.
3.2 Product & Services of PSO

Retail Fuels

Retail Fuels is one of the core business segments of PSO, with its finest quality brands
Altron Premium, Altron X Hi-Octane 97 and Action+. The Retail team at PSO works
relentlessly to fulfill the needs of the automotive and agricultural sector of the country.
With more than 3,500 retail outlets nationwide; PSO serves approximately 3 million
retail customers on a daily basis. We have 26 Company Owned Company Operated
(COCO) Retail Outlets across Pakistan which are state of the art facilities, run
effectively by PSO’s retail team.

PSO’s retail department has 14 divisional offices nationwide. All divisional offices are
linked to the head office through the modern enterprise resource planning software
SAP. Retail Department continuously strives to provide you with unmatched service and
care at PSO’s forecourts round the clock.

We strive to fulfill the requirements of our valued customers by providing superior

quality, energy-efficient fuels that improve the vehicle’s performance and provide a
great driving experience. Our fuel range is carefully designed and tested to help you
save fuel at no extra cost and help clean your engine thereby improving engine
efficiency. We ensure that only high quality fuel reaches your engine.

As our main focus is on utmost customer satisfaction, we believe that every customer
should leave our forecourt with a ‘WOW’ feeling. We strive to understand our
customers’ needs and relentlessly work towards fulfilling them by adding value in fuel
and non-fuel areas. Our Shop Stops and other non-fuel retail services provide you with
convenience and an array of products and services to choose from.

The retail business team ensures the maintenance of every safety standards at the
retail outlets. Utmost importance is given to the quality and quantity of the products. We
ensure that the right product in right quantity is delivered to our valued customers as
desired by them.
Altron Premium
As the leading oil marketing company, PSO is the first to introduce this new range of
upgraded and environmentally friendly petroleum products with higher RON ratings in
the country.
These fuels will:

 Give better mileage

 Improve engine performance
 Provide more engine power
 Enhance engine efficiency and reliability

Altron X Hi-Octane 97
As the leading oil marketing company, PSO is the first to introduce this new range of
upgraded and environmentally friendly petroleum products with higher RON ratings in
the country.
These fuels will:

 Give better mileage

 Improve engine performance
 Provide more engine power
 Enhance engine efficiency and reliability

Action+
Diesel is the leading power source for heavy-duty vehicles, because of its high
efficiency in compression-ignition engines. Diesel fuel oxidizes very slowly upon
continued exposure to air.
PSO – Action+ take part in combustion cycle of diesel engine with following
characteristics:

 Starting Ease
 Low Wear (High Lubricity)
 Good Fuel Economy
 Efficient to reduce SOx and NOx Emissions being Low Sulphur fuel
 Low Noise and Low Emissions
 Long Filter Life (Stability and Fuel cleanliness)
 High Flash Point for Complete Combustion
 Sufficient Power
 Low Particulate Matter
  Suitable for all Diesel Engine
 Low Temperature Operability

3. Gaseous Fuels
CNG and LPG have become ‘The Fuel’ for the automotive sector due to their
price competitiveness and are slowly and gradually replacing conventional liquid
fuels. In order to actively participate in ventures related to CNG and LPG, a
separate segment for ‘Gaseous Fuels’ was formed in 2006. This highly lucrative
and potential energy segment looks after the existing businesses of CNG and
LPG and also capitalizes on business projects related to the same.

Distribution of PSO’s gaseous fuels

PSO’s four LPG Plants have a total storage capacity of 780 MTs including 180
MTs of bottling facility present in Lahore, Dhurnal and Akora Khattak regions
which makes PSO efficient in supplying LPG to the general populace. Our LPG
Plants are equipped with state of the art electronic cylinder filling facility enabling
and ensuring accurate quantity to our valuable customers, proper LPG Bouzer
decanting and filling system with all four LPG Plant Health, Safety and
Environment complaint and ISO: 9001:2008 Quality management Systems are in
place.

Compressed Natural Gas (CNG)

We have maintained a leadership position among OMCs in the CNG industry since
inception. PSO was the first Oil Marketing Company to commission CNG facility in
January 1996. There are 257 PSO CNG stations in operations throughout the country
which is highest among all OMCs in Pakistan. We have maintained leadership position
among OMCs in the CNG industry as well as the POL market by holding CNG market
share of 22.5% in FY-13.
In order to ensure the safety standards, all our CNG dispensing facilities are carefully
inspected by qualified and equipped HSE specialists on regular basis. We annually
arrange CNG Technical Training Seminars on countrywide basis, in order to impart
knowledge pertaining to the safety and technical aspects of CNG business so that “Zero
incidents” at PSO CNG stations may be ensured.
CNG is a generic product, therefore in order to attract consumers towards PSO CNG
stations; we initiated brand building activities and organized CNG Customer Care Days
throughout Pakistan with various promotional campaigns. This event helped us in
creating brand equity for its CNG business and strengthening customer loyalty for PSO
CNG stations.
In order to encourage safe use of CNG in Pakistan, we have been playing a remarkable
role by instigating “CNG Customer Awareness Campaign” through print a as well as
electronic media (radio) and also at the forecourt all over Pakistan, wherein our team
interacted with the customers and provided safety precautions to be taken during CNG
refueling and installation/maintenance of CNG cylinders and kits, which is its step to
create safety awareness for general public.
Mobile CNG Quantity Measurement Unit is operative throughout the country to ensure
that the right quantity of CNG is delivered to our valued customers.

Liquefied Petroleum Gas (LPG)

We are in the LPG business since 1981 and the past 25 years have seen the company
evolve itself as an important player in the LPG domain. We supply LPG product in all
corners of the country through a web of distributors with the brand name “Pak Gas”. We
maintained LPG market share of 2.8% in FY-13.
In order to supply fuel efficiently to the populace, we have four LPG Storage and
Bottling Plants, one each in Karachi, Lahore, Dhurnal and Akora Khattak, with a
combined storage capacity of 780 MTs and a bottling capacity of around 180 MTs per
day. Our LPG Plants are equipped with state of the art electronic cylinder filling facility
which enables in ensuring accurate quantity to our valuable customers.
We have also successfully achieved ISO 9001:2008 Quality Management System for
Receipt, Storage, Filling and Marketing of LPG at all PSO LPG Plants across Pakistan
& Facilitation for CNG Investors to Install/Operate CNG facilities at PSO Retail Outlets
for Receipt, Storage and Refilling of CNG.

Alternate Fuels

Biodiesel
Biodiesel is a renewable, environment friendly substitute for petro-diesel fuel. It is
derived from Jatropha Curcas plant which is a hardy, wild oilseed perennial plant.
Conditions for cultivation of this plant are favorable in Pakistan, and the biodiesel
derived can reap benefits in the form of economic, environmental,

PSO’s focus is on using this plant as feedstock and utilizing country’s ample marginal
land for cultivation. This initiative would create employment opportunities and contribute
towards the development of the nation. Being a focal member of AEDB Biodiesel
Advisory Committee which is working on the roadmap of National Biodiesel Program,
PSO believes that biofuels will make a major contribution to road transportation and
power generation fuels. This will also lead to reduction in carbon emissions in the years
to come.

4. Lubricants
PSO has once again taken a big leap in the field of lubricants, by introducing the latest,
technologically advanced and state-of-the-art anti-counterfeit solution (Lubricant
security feature) with each retail size pack of lubricants. This anti-counterfeit solution
has been named “Secure Code”.
PSO has introduced first of its kind Lubricant Security Feature in small packs of
lubricants. A 16-digit secure code is printed on rear label of cans for which a logo for
“Secure Code” is also introduced on front side label. To confirm the high quality of PSO
genuine product,you will scratch the label to unveil the 16-digit secure code and SMS
the same to 5454. You will get a confirmation SMS accordingly ensuring that the
purchased product is high quality PSO lubricant.

4 What is Workforce diversity

Due to globalization, people from different countries and cities with different culture,
race and religion combine and work together which creates differences among
employees in terms of thinking, norms, values and religion. This has reshaped
workforce. Multi-generations also leads to workforce diversity. Now elderly people are
willing to do work even after retirement age due to increasing inflation and economic
problems of Pakistan.
One another reason for willingness of elders to do work even after retirement age is to
maintain their standard of living, and to remain busy. This creates a blend of young and
old people in workplace. Different cultures prevail in Pakistan because it has five
provinces which diversify the workforce and it becomes more diverse when foreign
people join the workforce.
The major focus for managers today is to manage the diversification of workforce and
protect the interests of everyone without discrimination. According to the work of a
researcher four key dimensions of Muhammad Ali Jinnah’s vision can help Pakistani
organizations manage the diversity.
1. Democratization ensuring the participation of all groups of people.
2. An egalitarian version of Islam, considered consistent with social justice
and equal opportunity.
3. The implementation of strict rule of law with no room for favoritism and
discrimination.
4. Special protective measures for minorities, women and other
disadvantaged groups.

5 Workforce diversity in PARCO

PARCO employees come from all over the country, irrespective of domicile/origin,
ethnicity, religion, gender, or any other non-job dimension. Thus there are workers of all
ages, from all provinces; from the northern most cities to the southernmost areas.
PARCO is a national employer, employing people without discrimination and strictly on
merit, from all parts of the Country.

Despite being a petroleum industry and engineering organization, PARCO encourages

women for employment in all business areas including the Mid-Country Refinery, which
is located in a remote area, by providing separate accommodation for single women.

PARCO offers equal opportunity to all qualified applicants on merit base, irrespective of
gender or their belonging to various faiths, religion, origin, ethnicity, color, caste and
creed. PARCO ensures that no discrimination is made amongst employees and to date,
all male and female employees belonging to different religions are employed at all levels
including senior management positions.

Employees are given holidays in accordance with their religious customs. PARCO
provides employment opportunity to disabled applicants and bring them in the active
workforce to encourage their skills at work. PARCO ensures that employees abide by
the Company`s Code of Ethics. Every employee has to sign, at the time of induction, a
declaration agreeing to PARCO`s Principles which include a complete set of guidelines
on avoiding discrimination, ensuring fair and ethical dealings with all internal and
external stakeholders, communities, customers, suppliers and vendors.
5.1 Polices of workforce Diversity by Parco
PARCO discourages nepotism and every form of favoritism. Very conducive learning
environment is provided to all employees for their career growth. The policy of the
Company is to develop and promote employees from within the organization through
career and succession planning. Hiring and promotions are done on merit, performance
and the ultimate potential of each employee through professional and transparent HR
processes. If any employee exerts external pressure of any sort s/he is automatically
disqualified and faces disciplinary action.

PARCO undertakes regular summer and winter internship programs for students
belonging to business and engineering disciplines where the selection of internees is
done on merit. During 2017, PARCO inducted 40 interns and provided On The-Job
(OTJ) training to provide them hands-on working experience. PARCO also supports
research, conferences, trade fairs, workshops and other events of educational
institutions. The company provides technical equipment for labs of engineering
institutions. PARCO has donated 4 Gas Turbines to the Mechanical Engineering
Departments of top four engineering universities of Pakistan i.e. NED University-
Karachi, University of Engineering and Technology-Lahore, Mehran University-
Jamshoro, Bahauddin Zakariya University-Multan. These turbines are now being utilized
by the universities to provide hands-on training to the engineering students.

Universities show keen interest in visiting PARCO’s facilities and the company
organizes plant visits for petroleum, chemical, civil, electrical, electronics,
telecommunication, and other engineerin and business students belonging to different
universities. PARCO’s employees are competent specialists in many areas and in order
to share their expertise, they conduct internal trainings which creates continuous
learning environment in the organization.

PARCO offers Traineeship Program in the fields of management and engineering. The
training ranges from 1 to 2 years and provides the candidate learning and exposure to
different aspects of a real life working environment. Upon demonstrating satisfactory
performance during the training period, the Trainee is inducted as an employee if a
suitable vacancy exists.

Since 1975, PARCO has trained 1255 Engineering and Management Trainees. This
number is ever increasing and shows that PARCO has not stopped inducting fresh
talent even at a time when the Country was facing an economic downturn. To address
the issue of scarcity of trained manpower in the country, an ‘Apprenticeship Program’
has also been introduced. The objective of this six month’ program is to provide
technical training to fresh graduates and develop/upgrade their skills. PARCO has a
reservoir of highly skilled and experienced human capital. Please refer to the graph
below, showing our Talent Inventory in different areas.

Supporting Internal Stakeholders

 PARCO provides education assistance to employees’ children by providing

scholarships to deserving students, seeking professional education. PARCO
cares for its internal and external stakeholders. PARCO provides assistance for
funeral, daughter’s marriage and medical support on case to case basis.
Educational awards are given to children of employees including non-
management staff

 in recognition of their performance in Secondary Education. The Company also

supports its service providers’ staff in many ways on case to case basis,
whenever they need financial, medical or other support. All in all, PARCO acts as
a Socially Responsible Corporate Citizen in all possible ways to help its internal
and external stakeholders.

5.2 Equal Opportunity Employer

 All appointments in PARCO are based on merit for filling approved vacant
positions. Our recruitment process ensures fair and competitive matching of
candidates with job specifications. Non-job factors e.g. gender, origin, religion,
and external influence are not considered. Underage employment is strictly
forbidden.
 PARCO Job Advertisements clearly state that use of any extraneous influence
will disqualify the candidate.
 PARCO provides equal career growth opportunity to both male and female
employees. Females are also heading key departments and sections in the
Company. The company has females working in Engineering, Finance, Projects,
IT, Telecom, Marketing, HR, and Medical functions. Our target is zero
discrimination in a male dominated society and industry.
 Management and Engineering Trainees, upon successful completion of their
training, are considered on merit against vacant positions, as permanent
employees without discrimination, in case if there is vacant position.
 Benefits, facilities and allowances, as specified in the Company`s policies are
provided to all employees and their dependents without discrimination.
  They practice a merit-based equal-opportunity policy for recruitment and reject
any influence of gender, color, caste, faith, ethnic origin or recommendations by
influential persons.

5.3 Initiatives for Women Empowerment

Being an equal opportunity employer, PARCO makes efforts in taking initiatives to
empower women among its internal and external stakeholders. Some of these initiatives
are given below.

 The Government of Pakistan promulgated "Protection Against Harassment of

Women at the Workplace Act, 2010" with an objective to create a safe working
environment for women which is free of harassment, abuse and intimidation so
that they can work with dignity. PARCO enforces this Act throughout the
company and has placed it on its intranet portal and notice boards to educate
women at workplace about their rights. PARCO has a committee to deal with
harassment complaints, take suggestions and give recommendations to the
Management. Employees, including head of departments, are advised to report
any acts of harassment, as harassment is considered misconduct, liable to
disciplinary action. No case of harassment against women has been registered
since the inception of the Company.

 At the PARCO Mid-Country Refinery, the female spouses of the Company

employees have formed a Ladies Club which is financially supported by PARCO.
The club undertakes several social activities and events organized by the women
residing at the Refinery Housing Complex. At it’s Mid-Country Refinery Housing
Complex, the Company has separate housing for women. There are separate
sections and timing for facilities and club sports for women.

 PARCO’s Sewing and Embroidery Center at its Mid-Country Refinery is playing

an instrumental role in training women on latest fashion design and marketing
techniques to become successful entrepreneurs. During 2017, PARCO continued
its support to many well-known vocational training institutions. The basic aim of
the project was to facilitate these nstitutions in building capacity for incorporating
latest techniques in building competencies amongst Pakistani youth. PARCO
supported Vocational Training Institutes in areas near PARCO facilities and
assisted 23 centers at Machike, Faisalabad, Kot Addu, Mahmood Kot, Qasba
Gujrat, Muzaffargarh, DG Khan, Multan, Fazilpur, Shikarpur, Bubak and Karachi.
The institutes were provided help through setting up state-of-the-art computer
labs for conducting various professional courses and vocational trainings
 pertaining to sewing and embroidery by providing electrical embroidery sewing
machines and furniture.

 PARCO has built and supported three schools with The Citizens Foundation – a
reputable NGO working in the area of imparting quality education – at Karachi
and Qasba Gujrat, near PARCO Mid-Country Refinery. These schools employ all
female staff belonging to the nearby communities. The existence of these
campuses has generated employment for these local women to earn a decent
living. There are 998 children receiving quality education at PARCO TCF
schools.

5.4 Employee voice in PARCO

 Employees are encouraged to voice their suggestions for improving the

Company’s performance and efficiency through an ‘Employee Suggestion
Program’, which is an ongoing program. The objective of this initiative is to
provide employees an opportunity to come up with innovative and creative
ideas for process improvement, cost savings, operations effectiveness,
safety and efficiency. Under this program, employee suggestions towards
improving organizational efficiency are recognized and rewarded.
Suggestions made by the employees are reviewed by the Managing
Director and the Executive Committee Members which Includes
Company’s top management.

 In order to obtain feedback from exiting employees on the problem areas

in the Company and on the employee’s concerns, complaints and
suggestions, an exit interview of all exiting employees are also conducted
and remedial actions are taken accordingly.

 For answering queries and listening to suggestions/complaints of

employees, the PARCO HR Department has a dedicated Help Desk.

 The Human Resource Department at PARCO regularly conducts visits of

PARCO installations at remote locations, to gather employee feedback,
complaints and suggestions. The HR department also conducts Employee
Focus Group sessions and Organizational Climate Survey where
employees are randomly selected from each department at all locations
irrespective of their grade or level. The objective of these discussions is to
gather information pertaining to issues faced by the employees. Station
 visits and Focus Group sessions for the current fiscal year have been
conducted during February and March 2018.

5.5 Unions in PARCO

 PARCO workers are free to form or join a trade union of their choice without fear
of intimidation or reprisal.

 The Company complies with Industrial Relations Ordinance 2012. PARCO has
one registered trade union comprising of all non-management employees
represented by 10 Collective Bargaining Agents (CBA).

 Management and CBA work together on many Employee Development and

Welfare Programs.

 PARCO has a history of good management – employee relations. There has

never been a labor strike since PARCO`s inception, and all CBA agreements
have been negotiated in a friendly atmosphere.

 Free and fair elections of CBA were held during May 2017. Next elections will be
held in May 2019

6 Workforce Diversity in PSO

We visit pso field office in pak lane tower near Eid gah chowk Multan we met with MR.
Rana Fiyaz who is deputy business manager there and ask some questions about
workforce diversity in PSO we have a very good session with him he briefly answers our
all questions .

When we reach his office there were round about 25 to 30 employees were there on
their seats but there were not a single female were there so we asked this question from
him he tell us that this is their field office and we do not female staff here he said of
course we have female staff but they were all in head office their ratio is round about 20
to 25 percent .

Then we asked about religious diversity they have employees who are from minorities
groups they said yes we have them but we respect them and they do not feel them that
they are in muslim employees there were not any degrading issues all muslim
employees respect them .

When we asked about the cultural backgrounds they said yes they have employees
belonging to diffent regions of Pakistan who come there and their were not any problem
at first they struggle a little bit because of their language sometimes but as a Pakistani
and and being educated employee this barrier will disappear after sometime .

He share his experience with us , he said once he transfer in sindh near thar he said
we are on a field visit we meet lot of peoples and asked them about their problems he
said they speak in pure sindhi language which he can not understand not even a little
bit so he said at that time I realize the it is very necessary for the employees to posted
near their hometowns because at that time we feel a big communication barriers .

On the question about employee voice he said in public sectors we get orders from the
higher authorities and they do not need our suggestion and moreover no one have
excess to that authorities .

When we asked about what about the employees age diversity in Pso he said their
majority employees are middle aged and tphey see them as a valuable asset of the
company.

6.1 Internal Culture of PSO

PSO is just like a family. There is strong coordination and social bonding among
different levels of employees. A low level worker can access the high level manager
without any hindrance. It is fully employee-oriented firm in which employees are the
most important asset for the company. When the Government went for downsizing,
PARCO contacted to the Ministry of petroleum and requested in the favor of their
employees. It has decentralized structure and team based environment. Employees
work in teams so that they may able to work together more efficiently. No unionization
isthere. To avoid such problems all low level workers are hired at contractual basis and
other management workers are on permanent jobs. PARCO is very much conscious

6.2 Facilities for the Employees:

PSO provides different facilities to its employees according to their designations. It tries
to satisfy their employees by giving them different facilities such as:
 1) HOusing Complex:

Different residential apartments are given to the workers. There are different categories
of houses. For bachelor employees there are Bachelors Hostels in which, there are
two categories one is for administrated staff and other for technical workers. Employees
are provided with apartment, houses, and bungalows as the got promotions.

2) Officers club

For recreation of employees officer club is established. Employees get the

memberships of this club and renew it annually. Different sort of activities are done by
this club. Melodious Geet & Ghazal Evenings and Sports Mania are some of the
activities that are held by officers club.

3) Hajj policy

PSO provides the opportunity of offering Hajj to their employees on its behalf. For this
purpose, every year some employees are selected from different department by lucky
draw.

4) Ibn-e-sena Hospital

PSO is more conscious about there employees health. For this purpose certain
hospitals in which Ibn-e-Sina is one of them. There are separate hospitals for technical
and administration staff. All the facilities are available in these hospitals.
6.3 PSO Challenges in Diversity and their solutions
Challenges
Accommodation of Beliefs: In PSO
Diversity in cultural , spiritual and political
beliefs can pose a challenge in a diverse
workplace.
Ethnic and Cultural Differences: In PSO
sometime some individuals hold prejudice
against people who have different ethnic ,
cultural and religious backgrounds as their
own.
Gender Equality : Gender pay gap still
exists
Physical and Mental Disabilities:
Disabled employees often have a difficult
time navigating through their workplace
because proper accommodations as
simple as wheelchair ramps are not
available.
Generation Gaps: In PSO, there are more
diversified age groups , from teenagers to
senior citizens , As a result social circles
may be formed and some workers may be
isolated from the team.
Language and communication:
Language and communication barriers are
ever present in PSO with a diverse
How to resolve
Employees should keep their ethnic and
personal beliefs independent of their work
responsibilities and duties.
Cultural sensitivities training and diversity
awareness programs in the workplace can
help address in this issue.
Employers need to prevent gender
discrimination and maintain equality in
terms of hiring , salary , opportunities and
promotions.
Ensuring a fair and comfortable work
environment for employees with physical
and mental disabilities helps successfully
create diverse workforce.
Create an open communication culture
within your organization to help bridge the
gap between generations.
Language training for those who work in
KPK or sindh in this way speakers can
prevent miscommunication.
7 Comparison between Pakistan and western countries

Difference 1:
Employee from different cultures

Western – They try to learn other employees culture and be respectful towards other
culture employees.

Pakistan – They think only our culture is superior and they being disrespectful towards
other cultures employees.

Difference 2
Instructions

Westerners - try to be direct and clear in their instructions and comments to others.

Pakistan - often suggest their ideas and directives with subtle inferences and non-
verbal clues that are commonly used within their country.

Difference 3:
Asking Questions

Westerners - underlings are expected to ask questions that are explicit and even
challenging of their superior’s instructions and purposes.

Pakistan - subordinates often feel intimidated about posing clarifying questions

because they might be seen to be challenging an authority figure’s command of a
situation and risks loss-of-face.

Difference 4
Dealing with Challenges

Westerners - think it is best to solve problems directly and quickly with as little
emotional fuss as possible even if it means disrupting the feelings of others.

Pakistan - understand that the emotional states of others are of great importance and
spend a lot of time seeming to talk in circles about problems while working to find a
consensual solution that does not offend anyone.

Difference 5:
Authority

Westerners managers - often consider themselves part of the team but just happen to
be the ones in charge because of specialized skills and greater experience. (Note:
Management styles can vary tremendously among individuals.)

Traditional Pakistani managers - consider themselves a secondary father figures to

their employees. They give guidance and personal support to employees and expect
strong loyalty and obedience in return.

Difference 6:
Office Relationships

Westerners - believe that professional relationships with colleagues at work should not
become overly personal.

Pakistan - desire to form close relationships with people they work with and often feel
offended if others do not reciprocate.

Difference 7:
Punctuality

Westerners - try to arrive at the designated time and start meetings without much
delay.

Pakistan - commonly arrive 5 minutes after a meeting is to begin and then desire to
spend another 5 to 10 minutes warming up to the others in the meeting through non-
business related conversation.

Difference 8:
Meaning of YES
Westerners - understand “YES” to mean there is an agreement between people or a
commitment to do something.

Pakistan - often use the word “YES” to acknowledge that they are listening to what is
being said. It does not necessarily mean an agreement has been made or something
will get done.

Difference 9:
Hierarchies

Western society - felt to have a more flattened socio-economic structure with fewer
hierarchical levels. Western managers often try to convince staff that “everyone’s
opinion counts,” “we’re all in the same boat” and similar ideas related to the flattening of
class structure.

Pakistani society - felt to have a well defined class structure and everyone needs to
understand their place within the hierarchy so harmony can be maintained. Foreigners
are usually given a special and somewhat exalted status and can get away with much
more than locals.

Difference 10:
Reprimanding Staff

Western managers - feel there could be appropriate times when it is necessary to

criticize an employee or supplier in public.

Pakistani managers - rarely scold their staff or people associated with their business in
front of others.

Difference 11:
Privacy

Westerners - profess that information deemed confidential should remain so under

most circumstances.
Pakistan - consider it rude and disrespectful if colleagues and friends have secrets that
are not shared with the group.

Difference 12:
Accepting of Others

Westerners - often become distressed and angry if commitments are not upheld.

Pakistan - are generally more accepting of the imperfections of others -- including those
of foreigners.

Difference 13:
Personal Status

Westerners - publicly claim that worrying about one’s standing in the social pecking
order is akin to showing-off and is not important to them. That said, they seem to enjoy
when their own high status is displayed.

Pakistan - recognize that one’s ranking on the socioeconomic ladder is critical to a

person’s career and life advancement.

8 Conclusions

The petroleum industry of Pakistan especially PSO and Parco both encourage
workforce diversity. The minorities, especially the women, are increasingly becoming a
part of not only petroleum industry but every organization due to rising economic
problems, and to prove themselves as productive members of the economy. Multi-
generations is also increasingly resulting in workforce diversity. The elderly people are
willing to work even after their retirement age due to inflation, economic problems and a
desire to remain busy and occupied. Younge and the older generations considerably
differ in behaviors, goals, values, experiences and norms. This results in a conflict of
interest, which again requires effective management of workforce diversity by the
human resource managers.
9 Recommendations
It stands an important responsibility of the managers of an organization to create a
harmonious workforce by adhering to strict laws rejecting favoritism and nepotism. The
organizational culture should be based upon the principles of democratization and
egalitarianism, which calls for equal involvement of all employees, social justice and
equal opportunities. In addition, a need to formulate special laws preserving the rights of
the minorities, women and disadvantaged groups as an essential segment of the
diverse workforce should be emphasized.

10 References

https://psopk.com/
https://www.parco.com.pk
https://psopk.com/en/media-center/press-releases/news-details?newsId=242
https://www.parco.com.pk/about/
https://psopk.com/en/about-us/our-vision-mission-values
https://www.referenceforbusiness.com/history2/67/Pakistan-State-Oil-Company-Ltd.html
https://www.scribd.com/doc/47999777/Pakistan-Petroleum-Industry
https://www.pakistantoday.com.pk/2011/05/30/workforce-diversity/
Report-PARCO-Communication-on-Progress-2018