Oil and Gas Development Company Limited
Encyclopedia
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.
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.
Operational
510.9 million in Karachi Stock Exchange
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Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
. 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).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
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 fieldQadirpur gasfieldQadirpur Gas Fieldis one of the major gas reserves of Pakistan. The field is located at a distance of 8 km from Ghotki in Sindh Province.Qadirpur Gas Field is a joint venture between Oil and Gas Development Company Limited , Kuwait Foreign Petroleum Exploration Company Pakistan B.V...
(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 39659 barrels (6,305.3 m³) of oil; 937 Mcuft 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.http://finance.google.com/finance?q=KAR:OGDC 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.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 30075 barrels (4,781.5 m³) per day
- Gas production of the company on working interest basis averaged 976 cu ft (27,637,242.7 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 PKRPakistani rupee
The rupee is the currency of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan, the central bank of the country. The most commonly used symbol for the rupee is Rs, used on receipts when purchasing goods and services. In Pakistan, the rupee is referred to as the...
510.9 million in Karachi Stock Exchange
Karachi Stock Exchange
The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. It is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. Currently located in Stock Exchange Building on Stock Exchange Road, in the heart of Karachi's Business...
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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.