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Mr Najam K. Hyder, Managing Director of OGDCL, was born in August 1947 and has a Bachelor's Degree in Chemical Engineering from Karachi, and a Bachelor's and Master's degree in Business Administration from USA.
He is also a Law Graduate from S.M. Law College, Karachi. Apart from other professional development courses, Mr Hyder has also participated in the National Management Course of Pakistan Administrative Staff College.
Mr Hyder holds the Directorship of major companies like OGDCL, Mari Gas Company, Heavy Mechanical Complex and Pirkoh Gas Company, and has been a member of the Executive Committee of the Pakistan Engineering Council.
He is presently a member of the Executive Committee of Pakistan Exploration and Production Companies Association, and a Director of Petroleum Institute of Pakistan.
He has 30 years experience of working for the oil and gas sector. During his long association with the oil industry, he has held key positions in, and supervised the areas of Exploration, Production, Joint Ventures, Logistics, Marketing and Corporate Affairs.
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum Ltd (PPL) and Pakistan Oilfields Ltd (POL). In 1952, PPL discovered a giant gas field at Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign oil companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and geophysical surveys and drilled 47 exploratory wells.
As a result, a few small gas fields were discovered. Despite these gas discoveries, exploration activity declined in the late fifties.
Consequently, several foreign exploration contracting companies terminated their operations and either reduced or relinquished land holdings in 1961.
To revive exploration, the Government signed a long-term loan agreement on 4th March 1961 with the USSR, whereby, Pakistan received 27 million Rubles to finance equipment and services of Soviet experts for exploration.
OGDC was then created under an Ordinance to undertake a well thought-out and systematic exploratory programme, and promote Pakistan's oil and gas prospects.
The Corporation followed the Government instructions in matters of exploration and development.
The day-to-day management was however, vested in a Board of Directors appointed by the Government. Initially, the financial resources were arranged by the GOP. The first 10 to 15 years were devoted to development of manpower and building of infrastructure.
A number of donor agencies provided financial impetus for major development project. OGDC's efforts resulted in a number of major oil and gas discoveries between 1968 and 1982.
Toot oil field was discovered in 1968, paving the way for further exploratory work in the North.
During the period 1970-75, in 1975, the Company reformed the strategy for updating its equipment base and undertook an aggressive work programme.
This resulted in discovery of a number of oil and gas fields in the 80s.
A wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited was established in 1982 to undertake development of Pirkoh gas field in Dera Bugti, Balochistan.
In view of growing needs of the industry, OGDC established its own Oil and Gas Training Institute (OGTI), where training programmes and short duration refresher courses are offered. Lately, professionals from foreign oil companies have also started attending OGTI on specific subjects.
During the last 40 years, the Corporation has grown into a technically feasible and commercially viably organisation.
It has developed a highly qualified pool of professionals who can undertake and supervise almost all phases of oil and gas exploration and production. As on 1st March 2004, OGDCL has total manpower strength of 11,759.
In order to execute the exploratory and development programmes, OGDCL has also developed a sound equipment and operational base which includes 7 drilling rigs, 2 work-over rigs, a geological field party, 6 Seismic parties, 5 Engineering field parties, a gas gathering and pipeline construction party, Seismic Data Processing Centre, Geological Analysis Laboratory, Wireline Logging Unit, Cementing Units and Data Logging Unit.
Noting the Company's success 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. The obvious initial target during that year was to generate sufficient resources to maintain the momentum of exploration and development at a pace envisaged in the Public Sector Development Programme and to meet its debt servicing obligations.
OGDC not only generated enough internal funds to meet its debt obligations but also invested enough resources in exploration and development to increase the country's reserves and production.
OGDCL has also acquired modern seismic technology, and is presently carrying out survey and drilling activities in various areas of the country.
It has conducted extensive surveys to identify potential hydrocarbon bearing structures and has carried out drilling in order to exploit available oil and gas resources.
As of 1st March 2004, OGDCL has drilled 182 exploratory wells and 233 development wells.
Presently, OGDCL is producing approximately 21,410 barrels of oil per day, 788 MMCFD of gas, 230 tons per day of LPG and 65 tons per day of sulphur (as of 29th February 2004).
OGDCL has made various discoveries with an excellent success ratio.
The Company made oil and gas discovery in Chanda Well-1 drilled in District Kohat, located in Shakardara Exploration Licence in October 1999.
This is the first discovery made by any company in the NWFP and will open up a new era for hydrocarbon exploration in the Indus Basin.
The zone-1 in Datta Formation was tested through Drill Stem Test on November 13, 1999. The well flowed 1,223 barrels of oil per day of 41 API gravity and 5.19 million cubic feet per day of gas through 1/2" choke with a well head flowing pressure of 1,550 psi.
Drilling operations were carried out on another well, Chanda Deep-1 which was completed as an oil producer.
OGDCL's updated estimates for remaining recoverable oil and gas reserves as on 1st February 2004, stood at 9,743.851 billion standard cubic feet (BSCF) of gas and 134.122 standard million barrels of oil.
OGDCL's financial performance has been consistently improving. The gross sales of OGDCL have increased to Rs 45.008 billion in 2002-2003 while its profit after tax has increased to Rs 20.673 billion in 2002-03.
OGDCL has also implemented a number of major development projects. The Dhodak condensate field development project located in district D.G. Khan, Punjab and Qadirpur gas field located in district Sukkur, Sindh, the Pirkoh Compression Project in Dera Bugti Agency, Balochistan, the Nandpur & Panjpir Development Project in Punjab, and the Uch gas field Project at Dera Bugti Agency, Balochistan, have also been implemented for supply of low BTU gas for power generation.
OGDCL also participated in development of the Kandanwari gas field under a joint venture with M/s Lasmo (now M/s Eni Pakistan), and that of Miano gas field under a joint venture with M/s OMV of Austria.
OGDCL not only carried out exploration and development activities on its own but also entered into joint ventures for oil and gas exploration. Presently, OGDCL is 100% owner in 7 concessions.
In addition, it is the operator as well as a working interest owner in 12 concessions, and partner in another 17 concessions operated by other oil companies.
From the period 2001 to date, OGDCL was successful in making eight landmark discoveries, out of which seven are in Sindh and one in NWFP.
The Company is now ready for another transformation to public and private partnership. The Petroleum Policy 1994 emphasised the need for restructuring of OGDC on commercial lines.
The Petroleum Policy 1994 also envisaged conversion of OGDC from a statutory Corporation into a public limited joint stock company and restructuring of Government investment in OGDC.
Hence w.e.f. 23rd October 1997, the statutory Corporation was converted into a Public Limited Company henceforth known as OGDCL (Oil and Gas Development Company Limited) with an authorised capital of Rs 50 billion.
The position of Chairman/ CEO has been bifurcated into a non-executive Chairman and Managing Director/CEO.
The Board of Directors of the Company has been reconstituted w.e.f. 16 February 2000 and made independent.
In April/May 1999, Privatisation Board of Pakistan approved privatisation of OGDCL and appointment of Financial Advisors. In June 1999, Privatisation Commission invited Expression of Interest for Financial Advisory Services for OGDCL.
Messrs Merrill Lynch were then appointed as Financial Advisors. Recently, the Government decided to disinvest part of its shareholding in the company. Initially, 2.5% of the equity with an additional green-shoe option up to 2.5% of equity has been offered.
The said offer has received an overwhelming response and will be recorded as a landmark transaction in the history of Pakistan's capital markets. With the Company listed on the Stock Exchange, OGDCL looks forward to a new corporate culture.
The company has been provisionally listed on the Stock Exchanges effective from October 29, 2003 and shifted to the ready board on December 22, 2003.
OGDCL has, no doubt, been successful in achieving its objective to promote the sustainable supply of energy for the country.
It has been consistently contributing towards self-reliance in the energy sector and betterment of the nation through production of oil and gas, and various social development projects.



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Financial Performance
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1999-2000 2000-2001 2001-2002 2002-2003
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Gross Revenues Net of
Govt. Levies Rs in Million 28,553 42,459 44,005 48,529
Profit Before Tax Rs in Million 13,945 24,385 26,774 26,723
Profit After Tax Rs in Million 11,193 17,378 17,529 20,848
Return on Average
Capital Employed % 24% 32% 29% 31%
Earnings per Share Rupees 10.37 16.11 16.30 19.39
Break-up Value per Share Rupees 43.14 53.05 59.30 65.84
Current Ratio Times 4.4 3.9 5.8 7.4
Quick Ratio Times 3.5 3.3 4.8 6.4
Working Capital Rs in Million 26,954 31,242 32,464 41,147
Payments to National
Exchequer Rs in Million 19,153 30,271 33,987 35,243
Foreign Exchange Savings
(Excluding non-operated US$ in Million 719 946 862 1,100
joint ventures)
==================================================================================================

(Managing Director, OGDCL)
Copyright Business Recorder, 2004

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