Oil and Gas Development of Pakistan Financial Management Policies

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Oil and Gas Development of Pakistan |

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Introduction:

Oil and Gas Development Company Limited (OGDCL), was established in 1961 to prospect, refine and sell oil and gas in Pakistan. It is based on Jinnah Avenue, Blue Area in Islamabad. By 1966, OGDCL had emerged as the dominant domestic prospector with several significant discoveries in the Indus Basin. OGDCL was converted into a public limited company in 1997. As on June 2010, the Government of Pakistan holds 74.82% stake in the company.OGDCL is the national oil &Gas Company of Pakistan and the flagship of the country’s E&P sector. The Company is the local market leader in terms of reserves, production and acreage, and is listed on all three stock exchanges in Pakistan and also on the London Stock Exchange since December 2006. The Company is all set to ride the wave of E&P activity, equipped with its Vision & Mission, Business and Strategic Plan, a debt-free and robust balance sheet and healthy cash reserves. The Company is ready to take on the challenges of a volatile E&P industry.

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 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...