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.

Contents

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).

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.

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

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

Operational

Market capitalization

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

Non-operated joint ventures

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

External links