Pakistan Oil fields Limited (Oil & Gas Industry sector) Truly Private Sector Full report regarding Finance

1. INTERNSHIPREPORT
MUHAMMAD SOBANSIDDIQUI

2. (INTERNEE)

5. INTERNSHIP REPORT
Executive Summary
I did Six weeks internship at Pakistan Oilfields Limited, as a
compulsory for my BBA (Hons) Degree Program from
Foundation University Rawalpindi Campus (FURC).It is

6. necessary for every student to do internship with any
organization with relevant their subject of Study. The stipulation
is a way of familiarizing the students with the practical world
which they intend to enter after the completion of their
education.
During the tenure of my internship I got an opportunity to
understand the organization and apply my knowledge and
theoretical concepts in a better manner. This report precisely
states my experience.
The following report has been written on the format provided by
the University Administration. It initiates with the Introduction
of the Company, background and proceeds with its contribution
to Pakistan’s Economy.
COMPANY INFORMATION :
Pakistan Oilfields Limited (POL) is a leading oil and gas
exploration and production company listed on all the three stock
exchanges of Pakistan. The Company's prime focus is to deliver

7. performance through excellence in the field of exploration,
drilling and production of crude oil and gas.
Pakistan Oilfields Limited (POL), a subsidiary of The Attock
Oil Company Limited (AOC), was incorporated on November
25, 1950. AOC was founded in 1913 and made its first oil
discovery in 1915 at Khaur, District Attock. AOC has, therefore,
pioneered exploration and production of oil and gas in this
region nearly a century ago. In 1978, POL took over the
exploration and production business of AOC. Since then, POL
has been investing independently and in joint venture with
various exploration and production companies for the search of
oil and gas in the country.
In addition to exploration and production of oil and gas, POL
also manufactures LPG, Solvent Oil and Sulphur. POL markets
LPG under its own brand named POLGAS as well as through its
subsidiary CAPGAS (Private) Limited. POL also operates a
network of pipelines for transportation of its own as well as
other companies' crude oil to Attock Refinery Limited.
In 2005, the Company acquired a 25% share in National
Refinery Limited, which is the only refining complex in the
country producing fuel products as well as lube base oils.

8. Stock Exchange Symbol:POL
CompanyStatus: Listed Company
CUIN Registration#: 0000408
NationalTax#:0657658-3
Sales Tax Reg. #: 07-03-2802-001-46
 SUBSIDIARY - CAPGAS (PRIVATE) LIMITED
CAPGAS (Private) Limited is a subsidiary of Pakistan Oilfields
Limited. CAPGAS was incorporated on June 04, 1989 and
commenced its operations in March 1991.
CAPGAS is engaged in storage, filling and distribution of
Liquefied Petroleum Gas (LPG) and receiving LPG from Adhi
field operated by PPL and PARCO. CAPGAS utilizes its own
bowzer to transport PARCO LPG from Mahmood Kot to Adhi.
CAPGAS has a vast distribution and marketing network in
Punjab, KPK/FATA, Azad Jammu Kashmir and Gilgit Baltistan,
fulfilling the fuel requirements of over 92,000 consumers.

9. CAPGAS has introduced excellent quality imported cylinders
which are made to the highest specifications under third party
inspection. CAPGAS has an electronic filing system to provide
full weight of 11.8 Kg, 15 Kg & 45.4 Kg of LPG in cylinders to
its consumers. CAPGAS has imported computerized filling
control system from Denmark. It has been installed with eight
electronic filling machines, the activity of which is now being
controlled and monitored through this system. The system also
caters for recording filling data in respect of these machines
which is also retrieved for office purposes.
The Company has a paid up capital of Rs.6.75 million, 51% of
which is being held by Pakistan Oilfields Limited.
Vision, Mission & Core Values
 Vision :
To be the leading oil and gas exploration and production
Company of Pakistan with the highest proven hydrocarbon
reserves and production, and which provides optimum value to
all stakeholders.

10.  Mission :
We aim to discover and develop new hydrocarbon reserves and enhance
production from existing reserves through the application of the best
available technologies and expertise. In achieving our aim, we will
maximize the return to our shareholders, fully protect the environment,
enhance the well-being of our employees and contribute to the national
economy.
 Core Values :
Leadership:
POL values leadership qualities with the necessary managerial
and professional competence coupled with integrity, energy and
the drive to challenge the status quo.
Continuous quality improvement:

11. We strongly believe that quality and an unyielding commitment
to continuous improvement are indispensable ingredients to
achieving success. At POL, we encourage and promote an
environment conducive to the development of breakthrough
ideas leading to innovative solutions.
Ethics and integrity:
Honesty, ethical behavior and integrity combined with the
highest professional and personal standards form the cornerstone
of all our activities.
Profitability:
We believe in maximizing the return to our shareholders and
enhancing the long term profitability of the company through
the application of the best available technology and expertise.
Employees’ growth and development:
We believe in the creation of an environment focused on
encouraging and empowering employees to contribute to the
company’s success through personal growth and development.
Community involvement:
We strongly believe actively involving the communities in
which we operate for the advancement of their cultural and
social life.

12. Safety, health and environment:
We care about the health and safety of our employees and of the
communities in which we conduct our business. We remain
deeply committed to respect and protect the environment.
 PRODUCTSOF PAKISTANOIL FIELDS(POL)
 Crudeoil
 Solvent oil
 Naturalgas

13.  Lpg
 Sulphur
 Crude oil:
Crude oil is a naturally occurring, unrefined petroleum product
composed of hydrocarbon deposits and other organic materials.
Crude oil can be refined to produce usable products such as
gasoline, diesel and various forms of petrochemicals.
 Solventoil:-
An oil solvent is a chemical compound that breaks down
petroleum products, such as oil, to leave a clean, oil-free finish
on a floor, machinery or metal parts.
 Naturalgas:-
Natural gas occurs deep beneath the earth's surface.
Natural gas consists mainly of methane, a compound with one
carbon atom and four hydrogen atoms. Natural gas also contains

14. small amounts of hydrocarbon gas liquids and nonhydrocarbon
gases. We use natural gas as a fuel and to make materials and
chemicals.
 Sulphur:-
Sulphur is a chemical element with symbol S and
atomic number 16.
Sulphur is an essential element for all life. Sulfur has elements
that can eliminate acne, so it is included in their treatments.
Medications for dandruff, pityriasis versicolor rosacea and warts
have this ingredient. Seborrheic dermatitis and scabies can be
treated with this element. Sulfur is effective because of its
keratotic, antibacterial and anti-fungal properties. Combining
alcohol and sulfur can be used to treat acne and other skin
disorders.
 Liquefied petroleumgas (LPG):-

15. LPG – Liquefied Petroleum Gas –
describes flammable hydrocarbon gases including propane,
butane and mixtures of these gases. LPG is used as heating,
cooking and auto fuel. LPG comes from natural gas processing
and petroleum refining. LPG gases can all be compressed into
liquid at relatively low pressures. LPG is generally stored, as a
liquid, in steel vessels ranging from small BBQ gas bottles to
larger gas cylinders and LPG storage tanks
 JOINTVENTURESSECTION
(Week1)
SHARE HOLDING IN EXPLORATION LICENSES and
making the D/P Mining Leases
Exploration Licenses:
 Ikhkas (POL) 80 %
 Kirthar Sindh (POL) 85 %
 D.G Khan (POL) 70 %
 Gurgalot (OGDCL) 20 %
 Tal Block (MOL) 25%
 Margala (MOL) 30%

16. D&P/MINING LEASE:
 Balkassar (POL) (100%)
 Dhulain (POL) (100%)
 Joyamair (POL) (100%)
 Khaur (POL) (100%)
 Meyal / Uchri (POL) (100%)
 Minwal (POL) (82.50%)
 Pariwal (POL) (82.50)
 Pindori (POL) (35%)
 Turkwal (PPL) (67.37%)
 Adhi (POL) (11%)
 Chaknaurang (OGDCL) (15%)
 Jhal Magsi (OGDCL) (24%)
 Bhangali (OPL) (7%)
 Dhurnal (OPL) (5%)
 Ratana (OPL) (4.5%)
 Manzalai (MOL)
 Makori (MOL)
 Makori East (MOL)
 Maramzi (MOL)
 Mamikhel (MOL)

17.  OIL WELL GAS REFINING
Planning :
Before a well is drilled, a geologic target is identified by a
geologist or geophysicist to meet the objectives of the well.
For a production well, the target is picked to optimize
production from the well and manage reservoir drainage.
For an exploration or appraisal well, the target is chosen to
confirm the existence of a viable hydrocarbon reservoir or
to ascertain its extent.
For an injection well, the target is selected to locate the
point of injection in a permeable zone, which may support
disposing of water or gas and /or pushing hydrocarbons
into nearby production wells.
 Drilling:
The well is created by drilling a hole 12 cm to 1 meter (5 in
to 40 in) in diameter into the earth with a drilling rig that
rotates a drill string with a bit attached. After the hole is

18. drilled, sections of steel pipe (casing), slightly smaller in
diameter than the borehole, are placed in the hole. Cement
may be placed between the outside of the casing and the
borehole known as the annulus. The casing provides
structural integrity to the newly drilled wellbore, in
addition to isolating potentially dangerous high pressure
zones from each other and from the surface.
With these zones safely isolated and the formation
protected by the casing, the well can be drilled deeper (into
potentially more-unstable and violent formations) with a
smaller bit, and also cased with a smaller size casing.
Modern wells often have two to five sets of subsequently
smaller hole sizes drilled inside one another, each cemented
with casing.
COMPLETION :
After drilling and casing the well, it must be 'completed'.
Completion is the process in which the well is enabled to
produce oil or gas.
In a cased-hole completion, small holes called perforations
are made in the portion of the casing which passed through
the production zone, to provide a path for the oil to flow
from the surrounding rock into the production tubing. In
open hole completion, often 'sand screens' or a 'gravel pack'
is installed in the last drilled, uncased reservoir section.
These maintain structural integrity of the wellbore in the

19. absence of casing, while still allowing flow from the
reservoir into the wellbore. Screens also control the
migration of formation sands into production tubulars and
surface equipment, which can cause washouts and other
problems, particularly from unconsolidated sand formations
of offshore fields.
After a flow path is made, acids and fracturing fluids may
be pumped into the well to fracture, clean, or otherwise
prepare and stimulate the reservoir rock to optimally
produce hydrocarbons into the wellbore. Finally, the area
above the reservoir section of the well is packed off inside
the casing, and connected to the surface via a smaller
diameter pipe called tubing. This arrangement provides a
redundant barrier to leaks of hydrocarbons as well as
allowing damaged sections to be replaced. Also, the smaller
cross-sectional area of the tubing produces reservoir fluids
at an increased velocity in order to minimize liquid fallback
that would create additional back pressure, and shields the
casing from corrosive well fluids.
In many wells, the natural pressure of the subsurface
reservoir is high enough for the oil or gas to flow to the
surface. However, this is not always the case, especially in
depleted fields where the pressures have been lowered by
other producing wells, or in low permeability oil reservoirs.
Installing a smaller diameter tubing may be enough to help
the production, but artificial lift methods may also be
needed. Common solutions include downhole pumps, gas

20. lift, or surface pump jacks. Many new systems in the last
ten years have been introduced for well completion.
Multiple packer systems with frac ports or port collars in an
all in one system have cut completion costs and improved
production, especially in the case of horizontal wells. These
new systems allow casings to run into the lateral zone with
proper packer/frac port placement for optimal hydrocarbon
recovery.
Production :
The production stage is the most important stage of a well's
life; when the oil and gas are produced. By this time, the oil rigs
and workover rigs used to drill and complete the well have
moved off the wellbore, and the top is usually outfitted with a
collection of valves called a Christmas tree or production tree.
These valves regulate pressures, control flows, and allow access
to the wellbore in case further completion work is needed. From
the outlet valve of the production tree, the flow can be connected
to a distribution network of pipelines and tanks to supply the
product to refineries, natural gas compressor stations, or oil
export terminals.
As long as the pressure in the reservoir remains high enough, the
production tree is all that is required to produce the well. If the
pressure depletes and it is considered economically viable, an
artificial lift method mentioned in the completions section can
be employed.

21. Workovers are often necessary in older wells, which may need
smaller diameter tubing, scale or paraffin removal, acid matrix
jobs, or completing new zones of interest in a shallower
reservoir. Such remedial work can be performed using workover
rigs – also known as pulling units, completion rigs or "service
rigs" – to pull and replace tubing, or by the use of well
intervention techniques utilizing coiled tubing. Depending on
the type of lift system and wellhead a rod rig or flushby can be
used to change a pump without pulling the tubing.
Enhanced recovery methods such as water flooding, steam
flooding, or CO2 flooding may be used to increase reservoir
pressure and provide a "sweep" effect to push hydrocarbons out
of the reservoir. Such methods require the use of injection wells
(often chosen from old production wells in a carefully
determined pattern), and are used when facing problems with
reservoir pressure depletion, high oil viscosity, or can even be
employed early in a field's life. In certain cases – depending on
the reservoir's geomechanics – reservoir engineers may
determine that ultimate recoverable oil may be increased by
applying a waterflooding strategy early in the field's
development rather than later. Such enhanced recovery
techniques are often called "tertiary recovery".

22.  Accounts Payable Section
(Week 2)
Accounts Payable Specialist
Job Description
 Review all invoices for appropriate documentation and
approval prior to payment
 Sort and distribute incoming mail

23.  Process 3 way P.O. matching invoices, up to 100 plus line
items
 Prioritize invoices according to cash discount potential and
payment terms
 Process check requests
 Audit and process credit card bills
 Match invoices to checks, obtain all signatures for checks
and distribute checks accordingly
 1099 maintenance
 Respond to all vendor inquiries
 Reconcile vendor statements, research and correct
discrepancies
 Assist in month end closing
 Maintain files and documentation thoroughly and
accurately, in accordance with company policy and
accepted accounting practices
 Assist with other projects as needed.
There Are Three Categories:
 COMPANY
 AOPs
 INDIVIDUALS

24.  Sale of goods to the companies by
FMCG (Fast Moving Consuming Goods) which are
companies 3%.
 Sales of goods by FMCG distributors which are not
companies 3.5% .
SALES TAX RATES Punjab
Federal Goods = 17% Series = 16 %
F/D Series = 16 %
General Goods Rate All Over Pakistan.
 CORPORATE Affairs Section
(WEEK 3)
 Physical share.
 CDC Share. (Central Deposit Company Limited).
 Half Annual Share
 Interm Share

25. Final Dividend :
No . Of
Shares.
Value Gross
Dividend
(250%)
Zakat
(2.5) %
Tax Net
Dividend
Tax Rate
288 2880 7200 72 900 6228 12.5%
130 1300 3250 32.5 650 2567.5 20%
Interm Dividend :
No . Of
Shares
Value Gross
Dividend
(250%)
Zakat
(2.5) %
Tax Net
Dividend
288 2880 7200 - 900 6300 Filler
130 1300 3250 - 650 2600 Non-Filler
Tasks Performed by The Corporate Affairs
Section
 Transfer Deed
 Verfication Of Transfer Deed
 Transfer Of Shares
 Transmission Of Shares
 Physical Shares

26.  CDC Shares
 Computation Of Shares
Current StockSituationOfPOL (PakistanOilFields Limited)
In StockMarket
LDCP Open Rate High rate Low Rate Closing
Rate
turnover CDC
Shares
443.75 441 456.5 441 4522 275750 5058
TotalNumberofshares= 108338706.00
PhysicalShares= 236545920.00
 FORMS USED FOR OFFICIAL PURPOSE IN
CORPORATE AFFAIRS
 FORM NO :- 26
SPECIALRESOLUTION

27.  FORM NO :- 28
&
 FORM NO :- 27
 POL (PAKISTAN OIL FILEDS)GAS ACCOUNTING
(WEEK 4)
 Over Looked transportation invoices.
 Verfied delivery notes of Cylinders.
 They also purchase some gas from ARL and PARCO to
form LPG gas and fill into gas cylinders and sale it.
 Checked purchases from RATANA LPG.
 Check sales summary Plant Wise.
PURCHASESPARTNERS :-
 OGDCL
(Oil Gas Develpoment corporation limited )
 BOBI

28.  KUNNAR
 NRL (NATIONAL REFINARY LIMITED )
 PARCO PAKISTAN ARAB-REFINARY COMPANY
 GHPL (Govt Holding Private Limited)
 MOL
 Imported for others as well ……
Sales :
 350 Distributors Of POLGas.
SELLLING PLANTS :-
Meyal
Pindori
Sahiwal
Types Of Cylinders
15 KGs = Security Rs.4500 Per Cylinder
35 KGs = Security Rs 8200 Per Cylinder

29.  Transport Contractor :
Saleem and Company
AMER AFSAR KHAN (AAK)
 SALES ACCOUNTING & RELATED ISSUES Section
(Week 5 )
DPR = Daily Production Report + Excise Duty.
Royalty (A specific mount paid in terms of taxes to an individual
or Government.)
 Royalty is payable within 10 days.
 Royalty is upon arrange for
transportation,treatment,storage of Royalty Petroleum.
 Royalty,the reward of the landlord for allowing
exploitation of the resources which he owns,becomes
payable with commencement of production.
 POL Products :-
 Crude Oil
 Condensate – Lite Oil

30.  LPG (Liquified Petroleum Gas) - Shrinkage
 Sulphur – Merit Tons
 Natural Gas - MMCF
 Solvent Oil - Litre
Natural Gas Own Fields Pakistan Oilfields
Limited
100 % Own feilds
 Meyal & Dhulian (Sale to SNGPL)
 Balkasar (Own Usage)
 Own Operated Joint Ventures
 Pindori = (POL,OGDCL,AOC)
 Pariwali = (POL,GHPL)
 Turkwal = (POL,AOC) Ptoduction is used for own Use.
Non – Operated Joint Ventures
 Makori
 Makori East
 Manzalai

31.  Mamikhel
 Maremzai
 Marandkhel
 Ocean Pakistan Limited (OPL)
 Ratana - 4.545 %
 Dhurnal – 5 %
 Pakistan Petroleum limited (PPL)
 Adhi – 11 %
POL Staff Pension & Provident Fund Accounting and Related
Issues
(week 6)
Introduction :

32. POL Fund section is employee oriented and works for the staff
benefits.Five types of funds in POL which are as follows:
 Staff Provident Fund (SPF)
 General Provident Fund (GPF)
 Management Staff Provident Fund (MSPF)
 Workers Profit Participation Fund (WPPF)
 Gratuity Fund (GF)
 Staff Provident Fund (SPF)
 This fund is for the permanent management staff.It comprises
of 20 % of the basic salary of the employees in which 10% is
deducted from the employees salary which is called
“Employee Subscription” and 10% is contributed by the
companywhuch is called “Company Subscription”. SPF is
the cumulative amount and will be given to the employee at
he time of the resignation or retirement from the company’s
service.
 General Staff Provident Fund (GSPF)
General Staff Provodent Fund is the fund Formed for non –
management employees.It is calculated similarly like a staff
provident fund.

33.  Management Staff Pension Funds (MSPF)
Management Staff Pension fund is the fund that is contributed
totally by the Company.This Fund is for all senior management and
jumior management staff.It comprises Of 14.65% of the basic salary ans
is totally cntributed by the company on monthly basis. At the time of
retirement each employee receivesq pension which is calculated as
follow :
Monthly Pension= Average Basic salary at the time of Retirement*
Service year * 2.3 %
 Workers Profit Participation Fund (WPPF)
Workers profit participation Fund is a type of fund which is applied on
5 % of profit before tax of a company.It is distibuted among the
government and workers.Contribution of 5 % of profit before tax will
be given to the fund’s trustee on 1st July of each year.WPPF has its own
account :
 Term Finance Cerificates (TFCs)
 Term Deposit Receipts (TDRs)
 Gratuity :
The company contributes one month gross month salaray of
each management and non- management to funds on regular
basis.The benefit is given to workerss equivalent to one month
slary of their service of each year but maximum upto 39 years of
service.

34. Period of service
 Service up to 5 years.
 Service from 5 – 15 years.
 Service more than 15 years.
GratuityBenefits
 No gratuity.
 Half basic salary for each year service.
 Full basic salary for each year.
 InvestmentProcedure:
Investment option must be presented in trustees meetings,
quotations are received from many financial institutions along
with their ratings. Funds are invested in best financial
institutions, where the funds of employees are safe, sound and
risk free.

35. CONCLUSION
Pakistan oil fields has an excellent working environment. I
personally had a wonderful time thorough tout my 6 weeks of
internship because I found everyone friendly, honest & helpful.
There is a consideration for each other in times of happiness and
in times of pressure of work. It was a great experience for me.
I was lucky enough to work with a group of enthusiastic and
communicative people who shared their knowledge. I learned
about team work and about the Industrial environment and how
everything work in professional environment. I learned a lot in
the field of Sales and Accounting, making the record of invoices
and paying the Royalty to the Government, the process of
calculation of royalty was very interesting .Similarly the shares
holders record keeping and calculation of the shares, its amount
and knowledge about the Funds was very helpful for me as it
improves my knowledge regarding employees funds and its
approval and processing.

36. Thank You