Oil and Gas Development Company Limited (OGDCL)

Oil and Gas Development Limited (OGDCL) is the largest petroleum exploration and production (E&P) company in the Pakistan oil and gas sector, and is currently 95% owned by the Government of Pakistan (GoP). A strategic sale of 51% shareholding along with transfer of management control is envisaged by the GoP. A consortium led by Merrill Lynch International and KASB Securities Ltd. (KASB) are the Financial Advisor (FA) for this transaction.

Expressions of Interest (EoIs) for sale of 51% shares in OGDCL were invited in July 2002 and various oil & gas companies expressed interest, however the transaction was pended until completion of the privatisation of Pakistan Petroleum Ltd.

As of Augustl 2006, the GoP is looking to proceed with the divestment of 10% to 15% shares in OGDCL by means of an international offering through GDRs and a domestic public offering. It is expected that the transaction would be completed by 31 December 2006.
 

The Government of Pakistan established Oil and Gas Development Corporation (OGDC) in 1961 as a statutory corporation to undertake exploration and development of oil and gas resources. In October 1997 OGDC was converted into a public limited company and renamed as Oil and Gas Development Company Limited (OGDCL).

In November 2003, on behalf of the Government of Pakistan, the Privatisation Commission divested 5% of the GoP’s shareholding in OGDCL by way of an Offer for Sale through an Initial Public Offering at the domestic stock exchanges.

A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer. OGDCL has a wholly owned subsidiary Pirkoh Gas Company Limited (PGCL) which is responsible for operating Pirkoh gas field.

OGDCL’s annual sales for the year 2005 are 39,130 barrels of oil per day, 919 million cubic feet per day of gas, 334 metric tons per day of LPG and 71 metric tons per day of sulphur. OGDCL’s share in the total oil and gas production has been 47% and 23% respectively during the year 2004-05.

OGDCL holds the largest share of oil and gas reserves in the country, being 37% of total oil and 32% of total gas reserves, amounting to 115 million barrels of oil and 10.5 trillion cubic feet of gas as of July 1, 2005.  

OGDCL’s major oil and gas fields are located at Kunnar, Pasakhi, Bobi, Tanbdo alam, Thora, Lashari, Sono, Fimkassar, Kal, Sadqal, Rajian, Missakeswal, Dhodhak, Dhakhni, CHanda, Chak, Naurang, Qadirpur, Uch, Pirkoh, Loti, Nandpur/Panjpir and Hundi/Sari.

OGDCL has so far completed major development projects like Dhodak Development Project, Dhaki Development Project, Pirkoh Development Project , Nandpur/Panjpir Development Project, Sadqal Gas Compression Project, Uch Development Project and Bobi Development Projet.

OGDCL carries out exploration and development activities on its own as well as in joint ventures with other oil companies. OGDCL presently holds the largest acreage position in Pakistan and as on 30 June, 2005 was operating in 25 concessions covering an area of 59,968 Sq Km which constitutes 30% of total exploration area granted to various E&P companies in Pakistan. OCDCL also holds working interest in another three exploration concessions which are operated by other Joint Venture Partners. OGDCL has 39 Development and Production / Mining Leased which are operated by its besides working interest ownership in 29 non-operated leases.

OGDCL’s equipment base includes 7 drilling rigs, 2 work over rigs, a geological field party , 4 seismic parties, 4 engineering field parties, a gas gathering and pipeline construction party , seismic data processing centre, geological analysis laboratory, wireline logging unit, cementing units and data logging unit.

The company’s head office is located in Islamabad. As on 1st August 2005 OGDCL has total manpower strength of 11,624 out of which 1,868 are officers. The company possesses the largest professional/technical human resource base in the country's oil industry.

As of July 2005, OGDCL so far has drilled 198 exploratory and 246 development wells. On the basis of its activities since inception, has until July 2005, made 60 discoveries with a success ratio of 1:3. In the last 4 years, OGDCL has been successful in making 10 discoveries – two oil discoveries and eight gas/condensate discoveries.

The authorised share capital of OGDCL is Rs. 50 billion. The issued, subscribed and paid-up capital is Rs. 43.009 billion of which 5% is held by the general public and the rest is owned by the Government of Pakistan. OGDCL is the largest and most profitable oil company of Pakistan.

 Key figures for the financial years ending June 30, 2003, 2004 and June 30, 2005 are given below:

*Does not Includes production from the wholly owned subsidiary Pirkoh Gas Company Limited