OGDCL - an overview

Oil & Gas Development Company Limited was originally established as a statutory corporation in pursuance of an agreement with the USSR in 1961 to undertake a planned and systematic exploratory programme and to 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 programmes. A number of donor agencies provided the impetus through assistance in the form of loans and grants.
OGDC's efforts led to some major oil and gas discoveries between 1968 and 1982. Toot oil field was discovered in 1968. In 1975, the Company undertook an aggressive programme resulting in discovery of a number of oil and gas fields in the eighties.
These include the Thora Sono, Lashari, Bobi, Tando Alam & Dhodhak oil/ condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields.
A wholly owned subsidiary, the Pirkoh Gas Company (Pvt) Limited (OGDCL) was established in 1982 to undertake development of Pirkoh gas field in Dera Bugti Agency, Balochistan with the assistance of Asian Development Bank.
Keeping in view the growing needs of Pakistan's petroleum industry, OGDC established its own Oil & Gas Training Institute (OGTI), offering training programmes and courses in the fields of Exploration, Drilling Well Services, Gas Processing, Production and Computing etc. Recently the function of research has also been included in the domain of Institute and name has been changed to Petro Research and Training Institute (PRTI).
During the last 45 years the Company has grown into a technically feasible and commercially viable organisation. As on 1st May 2006 OGDCL manpower strength totalled about 11000 strong. OGDCL has also developed a sound equipment and operational base which includes 7 drilling rigs, 2 Work-over rigs, a Geological Field Party 5 Seismic Parties, 4 Engineering field parties, a Gas Gathering and Pipeline Construction Party.
Seismic Data Processing Centre, Geological Analysis Laboratory, Wire line Logging Unit, Cementing Units and Data Logging Unit.
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 1989-1990 was hence OGDC's first year of self-financing.
Physical and Operational Performance
OGDCL has also acquired modern seismic technology and the company is presently capable of carrying out survey and drilling activities in various areas of the country.
As of 1st May 2006, OGDCL has drilled 211 exploratory wells and 250 development wells. Presently OGDCL is producing approximately 41302 barrels of oil per day, 1085 MMcfd of gas, 336 M. Tons per day of LPG and 68 M. Tons per day of Sulphur, (this includes OGDCL's production share from non-operated joint ventures). OGDCL's updated estimates for remaining recoverable oil and gas reserves as on 1st Jan, 2006 stood at 10394 billion standard cubic feet (BSCF) of gas and 106 standard million barrels of oil (MMSTB).
OGDCL's financial performance has been consistently improving since it become a self financing entity. The gross sales of OGDCL have increased to Rs 73.710 billion in 2004-2005 from Rs 51.326 billion in 2003-2004, while its profit after tax has increased to Rs 32.964 billion in 2004-2005 from Rs 22.414 billion in 2003-2004.
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 and 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.
Presently OGDCL is 100% owner in 23 concessions. In addition OGDCL is operator as well as a working interest owner in 13 concessions and partner in another 08 concessions operated by other oil companies.
Towards Privatisation
In April/May 1999, Privatisation Board of Pakistan approved privatisation of OGDCL. Recently Government of Pakistan 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 was offered to the general public.
The company is now listed on all the three Stock Exchanges in Pakistan with highest market capitalisation and it has around 24% weight-age on Karachi Stock Exchange 100-index.
GDR:
Government of Pakistan plans to further disinvest 10%-15% of its shares in OGDCL in the form of Global Depository Receipts (GDR) on the London Stock Exchange. A consortium of consultants, led by Citigroup as Financial Advisor has been appointed by the Privatisation Commission to handle the transaction.
OGDCL has no doubt, been successful in achieving its Objective to promote the sustainable supply of energy for the benefit of the country. It has been consistently contributing to the betterment of the nation not only through production of oil and gas, also through various social development projects.