Oil and Gas Development Company

Oil and Gas Development Company

Type	Public (KSE: OGDC) (LSE: OGDC)
Industry	Oil and gas
Founded	March 4, 1961
Headquarters	Islamabad, Pakistan
Key people	Mr. Kamran Lashari, Chairman
Products	Oil, Natural gas
Revenue	US 1.54 Billion (2009)[1]
Net income	US 653.411 Million(2009)[1]
Total assets	US 2.498 Billion (2009)[2]
Employees	11,000 [3]
Website	www.ogdcl.com/

Oil and Gas Development Company Limited (OGDCL) is a state corporation of Pakistan. It was established in 1961 to prospect, refine and sell oil and gas in Pakistan. By 1966, OGDCL had emerged as the dominant prospector in Pakistan with several significant discoveries in the Indus Basin. OGDCL was converted into a public limited company in 1997. 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. As on June 2010, the Government of Pakistan holds 74.82% stake in the company.

Listing

On May 4, 2006 the government of Pakistan appointed a Citigroup-led consortium to advise the state-run Privatisation 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 is 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).

OGDCL Headquarter Islamabad

Awards

OGDCL has been ranked amongst the "Top Twenty Five Companies" on the Karachi Stock Exchange (KSE) for the fifth consecutive year (2004–2008) on the basis of dividend payout, return on equity and compliance with listing regulations.

OGDCL won the Seventh National Forum for Environment and Health (NFEH) Environment Excellence Award 2010. NFEH is affiliated with the United Nations Environment Programme (UNEP) and is supported by Ministries of Environment, Government of Pakistan & Sind and Federation of Pakistan Chambers of Commerce and Industry.

Business challenges and risks

OGDCL is exposed to the following operational and non-operational risks that can unfavourably affect its operations and financial performance.

• Crude oil price
• Environmental risks
• Exploration and drilling risks
• Exchange rate
• Law and order
• Legislation
• Reserve Depletion
• Under performance of oil and gas field

Board of directors (2010)

All the directors are nomitated by the Government of Pakistan and all the directors except the Managing Director/CEO are non-executive directors.

Kamran Lashari - Chairman Mohammad Naeem Malik - Managing Director/CEO Ahmad Bakhsh Lehri - Director Dr. Kaiser Bengali - Director Fahd Shaikh - Director Muhammad Ejaz Chaudhry - Director

Senator Mir Wali Muhammad Badini - Director Syed Amir Ali Shah - Director Syed Masieh-ul-Islam - Director Tariq Faruque - Director Wasim A. Zuberi - Director[4]

Development projects

• Dakhni expansion project: The gas processing plant started commercial production in 1990 and over the years, the composition of H₂S contents of raw gas increased considerably resulting in prcessing limitation on the existing plant.
• KPD/TAY integrated development project: The field are located about 25 km from Hyderabad city
• Jhal Magsi project: Jhal Magsi field located in Dera Murad Jamali was discovered in 2003
• Qadirpur compression project: The company is the operator of Qadirpur gas field (third largest gas field in Pakistan located in Sindh province) with 75% working interest. Production rate from the field was on the decline due to decrease in reservior pressure. The company undertook to install fourteen reciprocating compressors. An interim compression project consisting of a battery of 14 compressors has been installed in 2010.
• Sinjhoro development project is located in district Sanghar, Sindh
• UCH-II development project: The UCH gas field is located about 67 kilometers south-east of Dera Bugti in Balouchistan province.

Discoveries and exploration

During the fiscal year ended June 30, 2006 the Company made five oil and gas discoveries at Nim-1, Dars Deep-1, Tando Allah Yar North-1, Kunnar Deep-1 and Bahu-1. OGDCL's daily production, including share from joint ventures averaged 39,659 barrels (6,305.3 m³) of oil; 937 million cubic feet (26,500,000 m³) of gas, and 358 metric tons of liquefied petroleum gas. The Company holds exploration acreage comprising 40 exploration licenses covering an area of 75,905 square kilometers, including 16 exploration licenses covering an area of 28,066 square kilometers granted to OGDCL during fiscal 2006.[1] During the year 2009-2010, the company acquired four new exploration blocks (Channi Pull, Jandran west, Lakhi Rud and Mari east), covering area of around 4,795 Square kilometers. Three exploration licenses namely Khiranwala, Thatta and Thatta east were surrendered and operatorship of offshore Indus-S was transferred to BP Alpha.

Employees

The company has 11,000 employees on its payroll.

Highlights 2010

Financial

• The company's sales revenue increased by 9.0% to PKR 142.6 billion (2008-09: PKR 130.8 billion)
• Net realized prices of crude oil and gas averaged US$ 61.37/bbl and PKR 186.47/thousand cu ft respectively (2008-09: 55.53/bbl and PKR 174.78/thousand cu ft)
• Profit of the company before taxation rose by 9.40% to PKR 88.6 billion (2008-09: PKR 80.9 billion)
• After tax profit of the company rose by 6.5% to PKR 59.2 billion (2008-09: PKR 55.5 billion)
• Earnings per share increased to PKR 13.76 (2008-09: PKR 12.91)
• The company declared dividend of PKR 5.50 per share (2008-09: PKR 8.25 per share)
• Total assets of the company increased to PKR 228.9 billion from PKR 178.0 billion
• The company contributed PKR 80.2 billion to national exchequer (2008-09: PKR 86.5 billion).

Operational

• The company made six oil, gas/condensate discoveries namely Reti-1A, Baloch-1, Dakhni-11, Maru-1, Nashpa-1 and Shah-1
• The company commenced production from Baloch-1 Nashpa-1, and Pakhro-1
• Crude oil production of the company on working interest basis averaged 30,075 barrels (4,781.5 m³) per day
• Gas production of the company on working interest basis averaged 976×10^⁶ cu ft (27,600,000 m³) per day
• LPG product on working interest basis averaged 202 metric tons per day
• During the year, the company acquired 2493 L. km of 2-D seismic data in Bagh South, Bitrism, Dhakni, Guddu, Mari East, Mianwali, Nashpa, Nim, Thando Allah Yar, Thano Beg and Thal concessions, 290 km² of 3-D seismic data in Soghri concession and Toot Mining Lease by running five seismic crews having latest technologies and equipped with quality control software for on-site data processing during the surveys
• Forty well locations were marked on ground and twenty six wells including thirteen exploratory, two appraisal and eleven development were spudded by the company.

Market capitalization

In early 2007, the company had a market capitalization of PKR 510.9 million in Karachi Stock Exchange.

Non-operated joint ventures

• Adhi field; OGDCL has 50% stake and Pakistan Petroleum Limited (PPL) is the operator of the field
• Badar field; OGDCL has 50% working interest and PEL (Pakistan Exploration private Limited) is the operator
• Badin-II, Badin-II revised and Badin-III fields; OGDCL has 49%, 24% and 15% stake respectively. BP Pakistan (British Petroleum Pakistan) is the operator
• Badhra, Bhit and Kadanwari fields; OGDCL has 20%, 20% and 50% working interest respectively and ENI (Eni Pakistan Limited) is the operator
• Bangali, Dhurnal and Ratana fields; OGDCL working interest is 50%, 20% and 25% respectively and M/s OPII is the operator
• Miano field; OGDCL has 52% stake and OMV (OMV Pakistan Exploration GmbH) is the operator of the field. During 2009-10, three wells were put on production
• Pindori field; OGDCL holds 50% working interest and POL (Pakistan Oilfields Limited) is the operator
• Sara and Suri fields; OGDCL has 40% stake in the fields and Tullow Pakistan is operating these fields
• TAL Block; OGDCL working interest is 27.76% and MOL Pakistan (MOL Pakistan Oil and Gas BV) is the operator.

Reserves

The remaining recoverable reserves of OGDCL stood more than 142 million barrels (22,600,000 m³) of oil and 9,997 billion cubic feet 9,997 billion cubic feet (283.1 km³) of gas as of June 30, 2010.

Turnover

In 2005, the company reported a turnover of Rs.96,755 million.

References

1. ^ ^{a b} "Official Web Site". OGDCL. 2011-08-31. http://www.ogdcl.com/media/Facts.htm. Retrieved 2011-09-24. 
2. ^ http://www.ogdcl.com/UploadFolder/financial/Half%20Yearly%20Report%20(Jul-Dec)%202009.pdf
3. ^ "OGDCL 04-09-07 - 1.pdf" (PDF). http://www.ogdcl.com/UploadFolder/financial/Complete%20Annual%20Report.pdf. Retrieved 2011-09-24. 
4. ^ "Board of Directors" (PDF). http://www.ogdcl.com/UploadFolder/financial/board%20of%20directors%202010.pdf. Retrieved 2011-09-24. 

External links

• Oil and Gas Development Company Limited
• Forbes report on OGDC privatization
• OGDCL Pakistan starts trading at London Stock Exchange