National College of Business Administration

& Economics Multan

Recruitment & Decruitment in OGDCL Ltd, Pakistan

Report Submitted By:

Umar Farooq
Ayyaz Hassan
Aman Ullah
Haris Bilal
Babur Khan
Bilal Haider

(MBA-Executive/3.5 Years)
Fall-2017
February, 2019
 ACKNOWLEDGEMENT

In the name of ALLAH who is the owner of the whole world and all admiration belong to him.
He gives us wisdom and knowledge so that we can experience and learn new things.

The teaching of the Holy Prophet Muhammad (PBUH) were also the continuous source of
guidance who teaches us and made us civilized and cultured human beings by providing lot of
knowledge.

At the very outset, I would like to express my hearties and sincerest sense of gratitude to all my
worthy teachers Professor Mr. Salman Bashir of NCBA&E Multan for their inspiring guidance
and constructive criticism.

I am very grateful to the whole team working over there in the organization that have provided
me the opportunity to explore the practical knowledge. Mr. Mohammad Akram (HR
Department) & Mr. Murtaza Lashari (Project Manager) have helped me a lot during my
meeting in the OGDCL Ltd.

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 DEDICATION

This report dedicated to Prophet Muhammad (PBUH) is an inspiration to hundreds of millions

of people around the world.

When a person do a good work then there is an inspiration who becomes able that person to do
that and the inspiration may be from his parents, friends and teachers.

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 EXECUTIVE SUMMARY

The first chapter provides an introduction which consists of company profile of OGDCL Ltd as
well as background. The next chapter provides a critical analysis of the literature review. After
the literature review, third chapter consist of practical exposure of company. The fourth chapter
is based on the conclusion based on the research outcomes, limitations of the study, and
recommendations for future research and The finally references of the complete report.

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 TABLE OF CONTENTS

Contents Page
Acknowledgement

Dedication

Executive summary

Table of contents

Chapter:-1 Introduction

1.1 Company Profile 8-10

1.2 Vision Statement 10

1.3 Mission 10

1.4 Corporate Information 11

1.5 OGDCL Goals & Core Values 11-12

1.6 Exploration 13-14

Chapter:-2 Practical Explosures

2.1 Human Resource Department 17

2.2 Functions of Human Resource Department 17

2.3 No. Of Employee in Human Resource Department 17

2.4 Recruitment and Selection 18

2.5 Recruitment and Selection Policies 18

2.6 Functions of Recruitment Section 19

2.7 Practices of Recruitment 19-20

2.8 Recruitment Types 20

2.9 Selection 21

2.10 Decruitment 22

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Chapter:- 3 Analysis and Discussion 23

Chapter:- 4 Conclusion and Recommendations 24

References 25

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 Chapter 1

INTRODUCTION

1.1 COMPANY PROFILE

1.1.1 Prior to OGDCL

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

1.1.2 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 after having reached its peak in mid-1950s,
declined in the late fifties. Private Companies whose main objective was to earn profit were
not interested in developing the gas discoveries especially when infrastructure and demand
for gas was non-existent. With exploration activity at its lowest ebb several foreign
exploration contracting companies terminated their operation and either reduced or
relinquished land holdings in 1961..

1.1.3 Establishment of OGDC

To revive exploration in the energy sector the Government of Pakistan signed a long-term
loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million
Rubles to finance equipment and services of Soviet experts for exploration. Pursuant to the
Agreement, OGDC was created under an Ordinance dated 20th September 1961. The
Corporation was charged with responsibility to undertake a well thought out and systematic
exploratory programme and to plan and promote Pakistan's oil and gas prospects.

As an instrument of policy in the oil and gas sector, the Corporation followed the
Government instructions in matters of exploration and development. The day to day
management was however, vested in a five-member Board of Directors appointed by the

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Government. In the initial stages the financial resources were arranged by the GOP as the
OGDC lacked the ways and means to raise the risk capital. The first 10 to 15 years were
devoted to development of manpower and building of infrastructure to undertake much larger
exploration programmes.

1.1.4 Initial Successes

A number of donor agencies such as the World Bank, Canadian International Development
Agency (CIDA) and the Asian Development Bank provided the impetus through assistance
for major development projects in the form of loans and grants. OGDC's concerted efforts
were very successful as they resulted in a number of major oil and gas discoveries between
1968 and 1982. Toot oil field was discovered in 1968 which paved the way for further
exploratory work in the North. During the period 1970-75, the Company reformed the
strategy for updating its equipment base and undertook a very aggressive work programme.
This resulted in discovery of a number of oil and gas fields in the eighties, thus giving the
Company a measure of financial independence. These include the Thora, Sono, Lashari,
Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and
Panjpir gas fields which are commercial discoveries that testify to the professional
capabilities of the Corporation.

1.1.5 Transition to a Self Financing Entity

Noting the Company's success, due to major oil and gas discoveries 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. It was a great challenge
for OGDC. The obvious initial target during the first year of self-financing was to generate
sufficient resources to maintain the momentum of exploration and development at a pace
envisaged in the Public Sector Development Programme (PSDP) as well as 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.

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1.1.6 Conversion into Public Limited Company

Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC
(Oil & Gas Development Corporation). It was incorporated as a Public Limited Company
w.e.f. 23 October 1997 and is now known as OGDCL (Oil & Gas Development Company
Ltd).

1.1.7 Initial Public Offering

Government of Pakistan disinvested part of its shareholding in the Company in 2003. Initially
2.5% of the equity with an additional green-shoe option upto 2.5% of equity was offered to
the general public. The said Offer received an overwhelming response from the general
public and was recorded as a landmark transaction in the history of Pakistan’s capital
markets.

1.1.8 GDR

In December 2006, the Government of Pakistan divested a further 10% of its holding in the
company. The Company is now listed on the London Stock Exchange since December 06,
2006.

1.2 OUR VISION

To be a leading multinational Exploration and Production Company.

1.3 OUR MISSION

To become the leading provider of oil and gas to the country by increasing exploration and
production both domestically and internationally, utilizing all options including strategic
alliances.

To continuously realign ourselves to meet the expectations of our stakeholders through best
management practices, the use of latest technology, and innovation for sustainable growth,
while being socially responsible.

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1.4 Corporate Information

Status of the Company: Large Scale Public Sector Company

Incorporation Structure: Listed Public Limited Company
Nature of Business: Exploration and Production of Oil and Gas
Administrative Ministry: Ministry of Petroleum & Natural Resources

1.5 OGDCL Goals & Core Values

1.5.1 Core Values

 Merit
 Integrity
 Team Work
 Safety
 Dedication
 Innovation

1.5.2 Goals Financial

 Build strategic reserves for future growth/expansion

 Growth and superior returns to all stakeholders

 Double the value of the company in the next five years.

 Make investment decisions by ranking projects on the basis of best economic

indicators

 Maximize profits by investing surplus funds in profitable avenues

 Reduce cost and time overruns to improve performance results.

1.5.3 Customers

 Continuously improve quality of service and responsiveness to maintain a satisfied

customer base.
 Improve reliability and efficiency of supply to the customer

 Be a responsible corporate citizen

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1.5.4 Learning & growth

 Motivate our work force, and enhance their technical, managerial and business skills
through modern HR practices.
 Acquire, learn and apply state-of-the-art technology.

 Emphasize organizational learning and research through effective use of knowledge

management systems.

 Fill the competency gap within the organization by attracting and retaining best
professionals.

 Attain full autonomy in financial and decision making matters.

1.5.5 Internal Processing Goals

 Evolve consensus through consultative process inter-linking activities of all

departments
 Excel in exploration, development and commercialization

 Be transparent in all business transactions

 Synergize through effective business practices and teamwork

 Have well-defined SOP’s with specific ownerships and accountabilities

 Improve internal business decision making and strategic planning through state-of-
the-art MIS

 Improve internal controls

 Periodic business process reengineering.

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1.6 Exploration (OGDCL Portfolio)

OGDCL being the leading national E&P Company maintains a balanced portfolio of
exploratory assets in the established and unexplored areas. In line with its exploration led
growth strategy, OGDCL has acquired in-house state-of-the-art technology along with
qualified team of professionals to exploit potential exploration targets with minimized risks.

Exploration Department is well versed with adopting advanced exploration technology, with
seismic as the main sub-surface imaging technique for exploration of hydrocarbons.

OGDCL has five seismic acquisition crews, equipped with latest acquisition technology,
capable of acquiring 2D/3D data in diversified terrains.

Exploration Department also has its own seismic data processing center with state-of-the-art
supercomputing cluster capable of handling advanced image processing.

Exploration’s Prospect Generation Department has a highly skilled and experienced team of
explorationists, involved in seismic interpretation in various basins of Pakistan. The
department is equipped with leading interpretation software and 3D graphics visualization
technology. Keeping in view the importance of Quantitative Interpretation in exploration and
exploitation of reservoirs, Exploration Departments has a dedicated team involved in seismic
attributes, inversions and rock physics analysis.

OGDCL has a dedicated & dynamic team for the evaluation of unconventional hydrocarbon
potential of various prospective shale and tight oil & gas horizons. The team has conducted a
shale gas and tight gas study for Indus Basin and delineated 27 unconventionally focused
areas which have shown presence of significant in-place shale gas and tight gas resource.
These shale and tight gas horizons are comparable with proven producer shales of USA,
Canada and Argentina. After ranking, geo-modeling and simulation for Frac Design,
production forecast and economic analysis for three best areas have been completed. OGDCL
plans to drill first dedicated shale gas well soon. OGDCL is looking forward and shall
welcome dynamic, efficient and capable partnership or joint venture in developing shale gas-
tight gas assets.

OGDCL being a low cost operator is also focused on establishing foot prints abroad by
undertaking farm-in/farm-out opportunities as wells as acquisition of concessions in domestic

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and international market. In this respect, the Company is making all out efforts to seek
suitable opportunities that will augment the business strengths and deemed financially viable.

OGDCL is determined to carry on its extensive exploration program including fast track
seismic data acquisition, processing and interpretation followed by active drilling campaigns
to replenish and augment hydrocarbon reserves, ramp up oil and gas production and
contribute in the economic development of the country.

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1.6.1 OGDCL Fields Brief

Major Oil & Gas Fields

SINDH PUNJAB BALOCHISTAN KPK

Tando Alam (Oil) Fimkassar (Oil) Loti (Gas) Chanda (Oil)
Thora & Thora East (Oil) Missakeswal (Oil) Uch (Gas) Mela (Oil)
Sono (Oil) Toot (Oil) Pirkoh (Gas) Nashpa (Oil)
Lashari (Oil) Chak Naurang (Oil)
Missan (Oil) Rajian (Oil)
Pasakhi & Pasakhi North Kal (Oil)
(Oil)
Bobi (Gas/Condensate) Bahu (Gas)
Qadirpur (Gas) Nandpur (Gas)
Kunnar (Oil) Punjpir (Gas)
Kunnar Pasakhi Deep Dhakni (Gas/Condensate)
(Gas/Condensate)
Tando Allah Yar (Gas/Condensate) Dhodak (Gas/Condensate)
Norai Jagir (Gas/Condensate) Sadqal (Gas/Condensate)
Moolan/ Moolan North (Oil) Bhal Syedanl Gas/Condensate)
Daru (Gas/Condensate) Dhok Kamal Shah G/Condensate)
Hundi (Gas) Soghri (Gas/Condensate)
Sari (Gas)
Sinjhoro (Gas/Condensate)
Nur (Gas/Condensate)
Bagla (Gas/Condensate)
Maru & Reti Gas Field
Pali/ Pali Deep (Oil)
Jakhro (Gas/Condensate)
Jarwar (Oil)
Nim (Gas/Condensate)
Dachrapur (Gas)

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 Chapter 2

Practical Explosures

2.1 Human Resource Department

Human resource department of OGDCL is one of the main departments of the OGDCL.
Human Resource Deportment at OGDCL is being reorganized to manage people and develop
their skills for meeting Company’s requirements. Being the largest exploration and
production Company, OGDCL seems to be an attractive company for talented and motivated
people in which high levels of personal and company’s performance are recognized and
rewarded. Human Resource Department seems to ensure development of world class
workforce, as per OGDCL’s mission statement, target based working and performance based
reward system has been evolved.

2.2 Functions of HR Department

The Company is focusing on the human resource department, as it aims to motivate its
employees through proper placement, employee recognition, effective appraisals,
empowerment, and communication and promoting employees skill development programs.
Various human resource polices are being reviewed and rationalized by taking into account
the industry norms to bring about an effective change in order to meet the challenges of
highly competitive business environment. It helps to understand and evaluate the different
and sometimes ambiguous views of human resource management by investigating its origins,
explanatory models, technology and practice.

2.3 Number of employees in HR Department

In OGDCl, HR Department consists of number of employees under different job titles. There
are round about 13 officers and 97 total staff, as well as there are also data processing
officers. Detailed description is given below in HR Organogram ( for details, refer to
appendix, figure 4)

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2.4 Recruitment and Selection

Recruitment process in OGDCL is conducted under the recruitment section, which generates
pool of potential candidates and acts as a real base to provide facilities of selection of new
and old employees.

2.5 Recruitment and Selection Policies

It is the company’s policy to implement an appropriate recruitment system base on careful

determination of the required competencies and objectives by implying effective search and
selection methods along with the efficient means of communication with potential candidates.

It is the policy of the company that, when ever possible, positions should be filled through
internal job posting and promotions.

All departments’ heads (EDs, GMs, Managers) are to fully participate and contribute to the
hiring process of their respective management staff in collaboration with HR Department.
The hiring process/procedures shall be specified by the HR Department.

All department heads are responsible for making respective description and job specification
in collaboration with an Hr Department, for the purpose of allowing Hr to set annual hiring
plan.

All recruitment (direct or through services contractors) shall be done through human resource
department in compliance with the company’s laid down procedures and standards, no
individual shall conduct recruitment or hiring activity without the specific knowledge and
involvement of ED human resources.

Candidates will be selected on the basis of applicable recruitment tests ( for entry level
positions only ), qualification, experiences, ability, interest, aptitude and adoptability to the
specific job recruitments, as already defined in the respective position description.

The salary offered will be with in approved salary policy guideline of the company
(Muhammad Akram HR Deptt)

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2.6 Functions of Recruitment Section

Recruitment section basically performs the following functions

When ever any department in OGDCL seems to require new employee, it informs the HR
Department to hire new employee for that. Then HR Department analyzes the real situation,
whether there is real need of new employee or not.

HR Department advertize the vacant position in the news paper and in the media to generate
the pool of potential candidates and through the recruitment process hire the new employee
for the specific required department.

Same as mentioned above when ever any department feels the need of employee for the hire
position, it informs the HR Department. On the behalf of that department HR Department
recruit the employee by generating the pool of potential candidates.
When ever there is pool of potential candidates, to select the most appropriate candidate for
the vacant position, HR Department conducts examination, interview and short list the
available applicants. (Muhammad Akram HR Deptt.)

2.7 Practices of Recruitment

After circulation to every department they analyze that how many employees perform their
duties and how many are required and they take a deficiency with the scale.

After the completion of circulation or survey they take the official approval from chairman
and give advertisement through public relation department of the most required vacancies.
The sources of advertisements used by HR department are news papers, media and internet.

After the advertisement, they receive application from all over Pakistan and conducts written
examination. This examination is held in those departments, where the candidate want to join
and that department send the result to recruitment section. OGDCl also hire the external
agencies, which provide facilities of conducting examination of applicants.
The selection procedure is recently shortly changed and is as under:-
Written Test 40%weightage

Experience 30%weightage

Academic Qualification 30%weightage

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The time for a written test is usually one hour. Those candidates who qualified the test are
then sent a call for interview. Interviews are used to analyze the courage, boldness
communication skill, convincing power and also his dealing with other people. (Muhammad
Akram HR Deptt.)

2.8 Recruitment Types

Regular employees

Contract Basis employees

Trainees – Special Trainees

Hiring through Contractor

Classified appointment (Murtaza Lashari (PM), Personal Communication, Feb 19, 2019)

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2.9 Selection

2.9.1 Selection Practices

Selection process in OGDCL starts with preliminary interview of the applicant who qualified
the test. Depending upon the position, preliminary interviews board is formed, who conduct
the preliminary interview. An applicant’s knowledge, skills and attitude is judged on the basis
of following factors.

Education (academic and Professional), Previous experience, Applicable tests (for entry level
position only), Interviews References

The results of the candidates interviewed are compiled in the order of merit. After conducting
the preliminary interview, the successful candidates are preceded for the selection interviews,
conducted by selection board. This selection board is formed while considering the positions
required. After selection interview, the successful candidates are required for pre-employment
medical examination arranged by the HR department. In this way HR department completes
the selection process and formulates the job offer. Job offer or appointment letter is delivered
to the successful candidates. This letter clearly spells out the terms and the conditions of
employment and the benefits applicable to the position. All management position offer letters
are signed by ED (executive director HR), while Executive Director’s position letters are
signed by the chairman and CEO.

When there is no suitable replacement available within the company and when all sources has
been utilized with no results to fill the vacancy with highly potential candidate, then company
rehire an ex-employee on merit.

For the requirement of certain position the company re-engaged the retired employees who
are beyond the age of 60, after mutually agreed terms and conditions.

In order to keep the track of attrition, to know the reasons leaving job and to collect the feed
of leaving employee, the exit interview is conducted by the HR Department. This is also done
in order to reduce employee turn over, because greater the employee turn over, greater will be
the cost of employment. All these practices seem to be aligned with above mentioned
policies. (Murtaza Lashari (PM), Personal Communication, Feb 19, 2019)

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2.10 Decruitment

 Exit Interview is conducted by the HR Department.

 End of Contract.

 Regular Employee can make retirement after 25 years of service or age of 60 years

 Un-follow Rules & Regulations

There are very less chances to leave the job by the employees but before few years the
OGDCL some plant closed and employee shifted to other Projects (which are far to their
Home station some employee resign By giving resignation letter before one month for resign.

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 Chapter 3

Analysis & Discussion

To recruit the employees both internal and external methods are used within the OGDCL, but
analysis reveals that the corporation gives preference to the internal method. The main
drawback of this method is that it blocks the way for new generation which carry new ideas
and knowledge. Furthermore the recruitment system is also influenced by the nepotism of
politicians. Not only recruitment of employees is influenced by the nepotism of politicians,
but selection also. Employees for high positions are selected on the basis of personal relations
and blood relationship. Though OGDCL is the largest and very multifaceted organization, in
spite of that there is no computerized data based system to record the data of employees.

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 Chapter 4

Conclusion & Recommendations

The overall organization is very good and result oriented. But I feel there is a need of
improvement in some areas. The following are the recommendations for OGDCL by us.

 Recruitment system should be better and OGDCL should be give a chance to the other
people to join the OGDCL who are not touch with OGDCL, instead of reference only.

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REFERENCES

 www. OGDCL.com

 www.Scribd.com

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