Oil and Gas Development : Annual Report 2021

Exploring New Frontiers

Cover Story

Annual Report cover depicts our pursuit of exploration-led growth strategy to exploit commercially viable opportunities and ensure sustainability of E&P operations in the long run. Our efforts are not limited to national boundaries as a consortium including OGDCL was awarded offshore block-5 by ADNOC in Abu Dhabi. This opportunity will open avenues to explore oil and gas resources in the new frontiers alongside establishing strategic relationships with the companies of international repute.

The spirit of being a national oil and gas company has given us the faith to make exploratory endeavors in the high risk areas to meet rising energy demands of the nation. Our aggressive participation in the competitive bidding round of January 2021 resulted in the award of ten exploration blocks by the GoP. We promise to meet future growth challenges with a proactive approach that maximizes our performance in a smart, safe and responsible way.

Contents

04	Product Portfolio and Net	33	Attendance of the Board and	50	Statement of Value Addition	82	Health, Safety, Environment	116	Statement of Changes in
04	Saleable Production		Committee Meetings and	51	Analysis of Variation in	88	and Quality	117	Equity
Product Share in Net Sales		Remuneration		Results Reported in Interim	Principal Risks/Uncertainties	Statement of Cash Flows
06	Notice of Annual General	34	Organizational Chart		Reports		and Mitigation Measures	118	Notes to the Financial
	Meeting	35	Management Objectives and	52	DuPont Analysis	91	Risk Management Policy and		Statements
10	Calendar of Major Events		Strategies	54	Share Price Sensitivity		Business Continuity Plan	194	Pattern of Shareholding
12	Highlights of the Year	36	Core Management Team		Analysis	92	Information Technology	198	Categories of Shareholders
14	Vision and Mission	38	Risk and Opportunity Report	55	Investor Relations	94	Review Report to the	237	Directors' Report (Urdu)
16	Core Values and Goals	40	Exploration Licenses	56	Relationship and Engagement		Members	238	Abbreviations
18	Code of Conduct	42	Development and		with Stakeholders	95	Statement of Compliance		Form of Proxy
20	Corporate Information		Production/Mining Leases	58	Human Resource	105	Independent Auditors' Report		Entry Card
22	Profile of the Board of	44	Geographical Presence	60	Managing Director's Review		to the Members
	Directors	46	Six Years Performance	65	Review Report by the	112	Statement of Financial
28	Committees of the Board	49	Vertical and Horizontal	66	Chairman	114	Position
			Analysis	Directors' Report	Statement of Profit or Loss
						115	Statement of Comprehensive
							Income

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Annual Report 2021

• Exploring New Frontiers

5

Product

Portfolio

and Net Saleable Production

CRUDE OIL

GAS

LPG

SULPHUR

36,892 870 803 52

Barrels per dayMMcf per dayTons per dayTons per day

Major Producing Fields

Nashpa, Pasakhi,	Qadirpur, Uch,	Nashpa, Sinjhoro,	Dakhni
Chanda, Kunnar,	KPD-TAY, Nashpa,	KPD-TAY, Bitrism, Bobi,
Rajian, Mela, Sinjhoro	Sinjhoro, Dakhni, Loti	Chanda

Product

Share

in Net Sales

40.68% ●Crude Oil

50.97% ●Gas

8.14% ●LPG

0.21% ●Others

Net Sales: Rs 239 billion

6	Annual Report 2021

• Exploring New Frontiers

7

Notice of

Annual General Meeting

Notice is hereby given that the 24th Annual General Meeting of Oil and Gas Development Company Limited will be held at OGDCL Head Office, Islamabad on 28 October 2021, at 09:00 a.m online through video link to transact the following business:

ORDINARY BUSINESS

1. To confirm the minutes of 11th Extraordinary General Meeting held on 17 March 2021.
2. To confirm the minutes of 12th Extraordinary General Meeting held on 19 July 2021.
3. To receive, consider and adopt the audited accounts of the Company for the year ended 30 June 2021 together with the Directors' and Auditors' Reports thereon.
4. To approve the final cash dividend @ 15% i.e. Rs 1.50 per share for the year ended 30 June 2021 as recommended by the Board of Directors. This is in addition to three interim cash dividends totaling to 54% i.e. Rs 5.40 per share already paid during the year.
5. To appoint Auditors for the year 2021-22 and fix their remuneration. The present auditors M/s KPMG Taseer Hadi & Co., Chartered Accountants and M/s A.F. Ferguson & Co., Chartered Accountants will stand retired on the conclusion of this meeting.
6. To transact any other business with the permission of the Chair.

By order of the Board

Islamabad	Ahmed Hayat Lak
4 October 2021	Company Secretary

Notes:

1. Coronavirus Contingency Planning for Annual General Meeting: In the wake of prevailing situation due to Covid-19pandemic, SECP has instructed listed companies to modify their usual planning for General Meetings for the safety and wellbeing of the shareholders and public at large. Accordingly, the Company intends to convene this AGM with minimal physical interaction with shareholders while ensuring compliance with quorum requirements and requests the Members to consolidate their attendance and voting at the AGM through video link.

The Company, furthermore, has made arrangements to ensure that all participants, including shareholders, can now participate in the AGM proceedings via video link. Accordingly, Members are required to provide their email address, full Names, Folio Numbers, CNIC Number, Email address or mobile Number and Number of Shares held in their names with subject "Registration for 24th AGM of OGDCL" at [e-mail]. Video Link to join the AGM will be shared with only those Members whose emails, containing all the required particulars, are received at the given email address not less than 48 hours before the time of the AGM.

2. Participation in the Annual General Meeting:

A member entitled to attend and vote at this meeting is entitled to appoint another person as his / her proxy to attend and vote. Proxies

in order to be effective must be received at the Registered Office of the Company duly stamped and signed not less than 48 hours before the meeting.

3. CDC Account holders will further have to follow the under mentioned guidelines:

1. For attending the meeting
   In case of individuals, the account holder or sub-account holder and/ or the person whose securities are in group account and their registration details are uploaded as per regulations, shall authenticate his/her identity by showing his/ her original Computerized National Identity Card (CNIC)/original passport at the time of attending the meeting.
   In the case of corporate entities, the Board of Directors' resolution/power of attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting.

1. For appointing proxies

1. In case of individuals, the account holder or sub-account holder and/ or the person whose securities are in group account and their registration details are uploaded as per regulations, shall submit the proxy form as per the above requirement.
2. The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be mentioned on the form.
3. Attested copies for CNIC or the passport of the beneficial owners and of the proxy shall be furnished with the proxy form.
4. The proxy shall produce his/her original CNIC or original passport at the time of the meeting.
5. In the case of a corporate entity, the Board of Directors' resolution/ power of attorney with specimen

signature of the person nominated to represent and vote on behalf of the corporate entity shall be submitted (unless it has been provided earlier) along with proxy form to the Company.

1. Closure of Share Transfer Books
   The share transfer books of the company will remain closed and no transfer of shares will be accepted for registration from 22 October 2021 to 28 October 2021 (both days inclusive). Transfers received in order at the Share Registrars' office by the close of business on 21 October 2021 will be treated in time for the purpose of payment of final cash dividend, if approved by the Shareholders.
2. Change in Address Members are requested to promptly notify any change in their address.