Description of OGDCL

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Oil and Gas Development Company Limited
(OGDCL)
Group # 5
Submitted by: Faizan Sabir (01-161142-013)
Zohaib Naseer (01-161151-10)
Umer Shahid (01-161151-106)
Submitted to: Sir Adil Naseer
Submission date: 03-12-2015
Class: Geophysics 2-A

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Contents
 Abstract ………………………………………………………………………..3
 Introduction…………………………………………………………………….4
 Establishment and History……………………………………………………..4
 Objectives………………………………………………………………………5
 Market Leadership……………………………………………………………...5
 Production………………………………………………………………………6
 Reservoirs and Reserves………………………………………………………..6
 Operations………………………………………………………………………7
 Discoveries …………………………………………………………………….9
 Corporate Social Responsibility (CSR) ………………………………………..10
 OGTI (Oil and Gas Training Institute) ………………………………………...10
 Company’s profits……………………………………………………………...10
 Employees ……………………………………………………………………..11
 Conclusions……………………………………………………………………11
 References……………………………………………………………………..11

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Abstract
This report is about the Pakistan’s national leading Oil and Gas Company named as Oil and Gas
Development Company Limited (OGDCL). Government of Pakistan established this Company
in 1961, with the assistance of USSR for exploration and production of hydrocarbons present in
Pakistan. This company was also established to rival the other oil and gas companies working in
Pakistan. OGDCL has made great success and development in last 50 years. This report will help
you gain knowledge about the Company’s history, its production, discoveries it has made,
Company’s operations, reservoirs and other activities.

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Introduction
Oil and Gas Development Company Limited (OGDCL) is a Pakistani national oil and gas
Company established in 1961 by the Government of Pakistan. This company is a flagship of the
country’s E&P sector. This company is responsible for research and development of Oil, Gas and
Energy products in the Country. This Company is well developed and 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. Today it is involved in exploring, drilling, refining and
selling oil and gas in Pakistan.
OGDCL is the local market leader in terms of reserves, production and acreage. Headquarter of
Company is located on Jinnah Avenue, Blue Area in Islamabad.
Establishment and History
Before the establishment of OGDCL, 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 interest in exploration and five major
foreign oil companies made agreements with the Government for exploration.
To explore oil and gas, Government of Pakistan did not had enough sources so they 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. According to
Agreement, OGDC was created under an Ordinance dated 20th September 1961. The Corporation
was charged with responsibility to undertake a well thought out and systematic exploratory
program and to plan and promote Pakistan's oil and gas prospects.
The first 10 to 15 years were devoted to development of manpower and building of infrastructure
to undertake much larger exploration programs. A number of donor agencies such as the World
Bank, Canadian International Development Agency (CIDA) and the Asian Development Bank
provided assistance for major development projects in the form of loans and grants. OGDC's
concerted efforts were very successful as they resulted in a number of major oil and gas discoveries
between 1968 and 1982.
During the period 1970-75, the Company reformed the strategy for updating its equipment base
and undertook a very aggressive work program. This resulted in discovery of a number of oil and

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gas fields in the eighties, thus giving the Company a measure of financial independence. These
include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh,
Uch, Loti, Nandpur and Panjpir gas fields.
Noting the Company's success, due to major oil and gas discoveries in the eighties, the Government
in July 1989, off-loaded the Company from the Federal Budget and allowed it to manage its
activities with self-generated funds.
The financial year 1989-90, was OGDC's first year of self-financing and was a great challenge for
OGDC. The obvious initial target during the first year of self-financing was to generate sufficient
resources to maintain the momentum of exploration and development. OGDC was able to generate
enough resources to meet its debt obligations but also invested enough resources in exploration
and development to increase the country's reserves and production.
Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC (Oil &
Gas Development Corporation). It was incorporated as a Public Limited Company on 23 October
1997 and is now known as OGDCL (Oil & Gas Development Company Ltd).
Objectives
Core values in which the company believes in are Merit, Integrity, Team Work, Safety, Dedication
and Innovation.
Main objective of company is to become leading multinational E&P Company and leading
provider of oil and gas to the country by increasing exploration and production both domestically
and internationally, utilizing all options including strategic alliances. To continuously realign
ourselves to meet the expectations of our stakeholders through best management practices, the use
of latest technology, and innovation for sustainable growth, while being socially responsible.
Market Leadership
It is listed on all three stock exchanges of Pakistan which are Islamabad, Lahore and Karachi, and
also on the London Stock Exchange since December 2006. Government of Pakistan holds 74% of
its stake and rest are held by private investors. The company accounts for
 52% of Pakistan’s recoverable reserves.
 37% of total Pakistan’s recoverable Gas reserves

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 56% of total Pakistan’s Oil production
 22% of Pakistan’s Gas production
 22% of total of Pakistan’s exploration acreage
Production
Production of the company is increased every year because new methodology, instruments and
techniques are used. New reservoirs are also discovered and new wells are drilled which increase
the production of the company.
Production of the company for Month of October, 2015 is
 Daily oil production is 40,746 barrels (operating) and 9,712 barrels (non-operating joint
venture)
 Daily gas production 894 (MMcf) million cubic feet (operating) and 272 MMcf (non-
operating joint venture)
 Daily liquefied petroleum gas (LPG) production is 151 metric ton/day (operating) and 210
metric ton/day (non-operating joint venture)
 Daily Sulphur production is 9 metric ton/day (operating)
Reservoirs and Reserves
Currently OGDCL has 43 self-owned, 19 operating and 6 non-operated joint venture fields.
OGDCL’s reservoirs are present in all provinces of Pakistan including offshore reservoirs. Major
Fields includes Chanda, Thora, Pasakhi, Chak Nurang, Fimkasar, Nandpur panjpir, Uch, Daru.
Chanda (Oil Field)
Chanda field is located in Shakardarra area in District Kohat of the Khyber Pakhtunkhwa province
at a distance of about 70 KMs from Kohat city. Chanda oil field was first ever discovery of
Hydrocarbons in Khyber Pakhtunkhwa, was brought on to stream and it started production from
17 July, 2004. Chanda LPG plant was also installed in October 2006 producing 25-45 M.tons per
day of LPG. The field has added a new dimension to petroleum exploration in the province. It is a

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joint venture between OGDCL (72%), Government Holdings (Private) Limited (17.5%) and Zaver
Petroleum (10.5%).
Uch (Gas Field)
The Uch gas field accounted for 18%, 15% and 20% of our net gas production for FY 2012, FY
2013 and FY 2014, respectively. The field is located 60 Kms from the Sui gas field in the Dera
Bugti District, Baluchistan Province. The field was discovered in 1955, and the first well was
drilled and abandoned due to the high percentage of carbon dioxide present. Three separate
structures have been identified at the Uch gas field, namely North Western, Central and South
Eastern, having calorific values.
Chak Naurang (Oil Field)
The Chak Naurang Oil Field is located at a distance of about 90 Kms in the south-west of
Islamabad. The field was discovered in June 1986 and came on regular production from July 1987.
Chak Naurang is a joint venture with M/s. POL, OGDCL & POL shares are 85% and 15%
respectively.
Daru (Gas/ Condensate Field)
Daru structure is located in Tando Muhammad Khan District of Sindh province at a distance of 53
km from Tando Alam Oil Complex. First exploratory well was drilled in December 1988 and was
tested as gas/condensate producer. The field was put on regular production in October 1999.
Presently all wells of Daru Gas field are shut in
Remaining reserves of OGDCL are:
 more than 142 million barrels of oil
 more than 9,997 billion cubic feet of gas
Operations
OGDCL is doing different types of operations and providing services all across Pakistan. These
operations has helped OGDCL to earn a good reputation. These operations are done by fully
qualified and experienced professionals. Following are the operations of OGDCL:

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Explorations
OGDCL has a uniquely qualified team of professional geoscientists having 25-30 years’
experience in all varieties of geologic, tectonic, onshore & offshore exploration, working in all
provinces of Pakistan. They have been successful in discovering numerous oil and gas discoveries.
OGDCL is endlessly chasing to explore new hydrocarbon reserves which can benefit both
company and Pakistan.
 OGDCL is currently doing explorations in all provinces of Pakistan.
 OGDCL have been trying to acquire overseas exploration since last five years. In the past
attempt to acquire different opportunities in the following countries like Lybia, Algeria,
Egypt, Mali, China, Indonesia etc. OGDCL is continuously seeking to acquire
opportunities, which are Technically & Economically viable.
 OGDCL is also involved in doing the basin Studies which involves the basic data about a
reservoir, presence or absence of hydrocarbon, type of hydrocarbon, storage capacity
(Porosity), flow capacity and its distribution (Permeability).
Petro services
Petro services which OGDCL is providing are Drilling, geological and geophysical services.
 Drilling
To extract hydrocarbons from the earth wells are drilled. These wells are designed properly
and then drilled. Mud logging, cementation, case designing, drilling fluids and maintenance
are all part of this drilling well process. OGDCL is doing development in this process to
become self-sufficient in this.
 Geophysical services
OGDCL is also providing the geophysical services and collecting the data from the whole
country. OGDCL is providing these services to other local and international companies also.
Seismic data acquisition is the main services which is provided by the company.

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 Geological services
Mud logging, wireline logging, well supervision are the geological services which are required
at the site of wells. OGDCL has its department which is responsible for all these services.
Reservoir management
It is a department which is responsible for development and management of 84 operated fields and
40 non-operated joint venture fields. Following are the objectives of this department:
 To Develop Oil & Gas Discoveries into full-fledged producing fields
 To Optimize the Field Production Rates for maximum ultimate recovery from the oil & gas
fields
 To Evaluate the Hydrocarbon Reserves & undertake the Economic Evaluation of oil & gas
fields
 To Design Enhanced Oil Recovery Schemes for depleting reservoirs
 To Monitor the Development and Reservoir Management of all non-operated joint venture
fields
Process and Plants
When the hydrocarbon are extracted from the earth, they are in raw form and cannot be used
commercially. They are converted into desired form to use them. OGDCL has processing plants
in which the raw natural gas/oil is conditioned, treated and processed, which is extracted, to obtain
marketable products i.e. fuel gas, stabilized oil, motor spirit, kerosene, diesel, LPG & sulphur. For
the safety of environment the dangerous chemicals and wastage is also ran through processing
plants to convert them into harmless form.
Discoveries
OGDCL has made 103 discoveries all across Pakistan until now. Few of them are following:
 Discovery of natural oil reserves from exploratory Well Palli Deep-1 and Jarwar-1, located
in District Tando Allah Yar, Sindh
 Hydrocarbon bearing horizon from exploratory well Aradin-I located in Khewari, Khairpur
district, Sindh on 15 September 2015

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 Discovery of hydrocarbon bearing horizons at exploratory well Soghri-1 and Jand-1 ,both
located in District Attock- Punjab on15 September 2014
 Discovery in Lower Sakessar area of District Chakwal, Punjab. Significant reserves of
hydrocarbons have been found at Chak Naurange South-1 on 5 August 2015
Corporate Social Responsibility (CSR)
OGDCL has always given top priority to the development of communities residing in and around
the Company’s area of operations. Company’s believes that “businesses cannot succeed in
societies that fail”. For CSR, a budget equivalent to 1% of OGDCL’s previous year’s net after tax
profit has been allocated for the year 2014-15, this amount comes to Rs. 907.77 million. This fund
was utilized in Women empowerment, Natural calamities, Education, Health, Infrastructure
development, Sports, Sanitation etc. This department has helped communities for improving their
quality of life.
OGTI (Oil and Gas Training Institute)
It is a training institute which was established in 1979 with technical assistance from Canadian
International Development Agency (CIDA). It is a premier institute for the training of
Geoscientists and Engineers of OGDCL and other E&P companies operating in Pakistan. It has
introduced various training programs with emphasis on Exploration, Drilling, Well Services, Gas
Processing, Production and Instrumentation. This includes 11 months training programs for fresh
graduates & technicians, and advanced training courses for experienced professionals. In March
2013, it became a degree awarding institute through affiliation with Quaid-e-Azam University
Islamabad and has initiated an MS Petroleum Engineering program
Company’s profits
From the day of establishment of company it profits are increasing every year. But company has
faced loss this year due to reduction in price of petroleum

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 Net Sales for Six Months FY (2014-15) Rs. 118.643 Billion
Profit After Tax for Six Months FY (2014-15) Rs. 47.828 Billion
 Net Sales for FY(2013-14) Rs. 257.014 Billion
Profit After Tax (FY2013-14) Rs. 123.914 Billion
Employees
Currently there are more or less 11,000 employees on the payroll of the company. These
professionals are given jobs and utilized wisely and on merit. Company also intake hundreds of
students and newly graduate every years for internship.
Conclusions
It is a leading E&P Company and responsible for research and development of Oil, Gas and Energy
products in the Pakistan. From the day it came into being it has discovered numerous hydrocarbon
reserves in Pakistan. OGDCL is one of the few companies giving huge amount of revenue to the
government. It has the biggest share of exploration blocks in Pakistan. It is must for every foreign
company to work in joint interest with OGDCL. Having 10 seismic crews, it performs in house
G&G activities. It has its own rigs, and drilling crews but further efforts are being made to become
self-sufficient in services such as mud logging, cementing, casing design etc. It is also playing a
vital role in the development of the societies in the country.
References
http://www.ogdcl.com/
https://en.wikipedia.org/wiki/Oil_and_Gas_Development_Company