Interim Report and

Financial Information
Half Year Ended 31 December 2023
Corporate Information 02
Directors' Interim Review 03

CONDENSED INTERIM FINANCIAL INFORMATION

Independent Auditors' Review Report to the Members 07

Statement of Financial Position 08
Statement of Profit or Loss 10
Statement of Comprehensive Income 11
Statement of Changes in Equity 12
Statement of Cash Flow 13
Notes to the Interim Financial Statements [unaudited] 14
Directors' Interim Review ( ) 35
 Corporate Information

Board of Directors
Mr. Zafar Masud Chairman
Mr. Momin Agha Director
Mr. Shakeel Qadir Khan Director
Mr. Imdad Ullah Bosal Director
Mr. Hassan Mehmood Yousafzai Director
Mr. Muhammad Riaz Khan Director
Mrs. Shamama Tul Amber Arbab Director
Mr. Jahanzaib Durrani Director
Mr. Ahmed Hayat Lak MD/CEO/Director
The election of directors has been deferred as per the Government directives; incumbents to serve until new
appointments. During the reporting period, five directors resigned from the Board while three new directors namely
Mr. Momin Agha, Mr. Shakeel Qadir Khan and Mr. Hassan Mehmood Yousafzai were appointed to the Board.

Chief Financial Officer

Mr. Muhammad Anas Farook

Acting Company Secretary

Mr. Wasim Ahmad

Auditors
M/s KPMG Taseer Hadi & Co., Chartered Accountants
M/s A.F. Ferguson & Co., Chartered Accountants

Legal Advisor
M/s Khokhar Law Chambers

Tax Advisor
M/s A.F. Ferguson & Co., Chartered Accountants

Registered Office/Head Office

OGDCL House, Plot No 3, F-6/G-6, Blue Area,
Jinnah Avenue, Islamabad.
Phone: (PABX) +92 51 9209811-8
Fax: +92 51 9209804-6, 9209708
Website: [Link]
Email: info@[Link]

Registrar Office
CDC-Share Registrar Services Limited,
CDC House, 99-B, Block-B, S.M.C.H.S.,
Main Shahrah-e-Faisal, Karachi-74400.
Phone: +92 21 111 111 500
Fax: +92 21 34326053
Website: [Link]
Email: info@[Link]

02 Oil & Gas Development Company Limited

Directors’ Interim Review
The Board of Directors of Oil & Gas Development Company Limited (OGDCL) is pleased to present a concise review of
the Company's operational and financial performance accompanied with unaudited condensed interim financial
information for the half year ended 31 December 2023.

Despite geopolitical tensions and continued oil supply cuts by OPEC+ group, international crude oil prices remained
lower in comparison to the corresponding period last year. Average basket price of crude oil recorded was US$
84.96/barrel against US$ 93.53/barrel in the comparative period. Amidst volatility in international oil prices and issues
with respect to opening of LCs, OGDCL during the period under review delivered stable performance on operational
and financial fronts. In pursuance to production optimization plan, incremental cumulative daily production of 1,130
barrels of crude oil and 2 MMcf of gas were recorded at various operated wells. On the financial front, the Company
registered robust performance with its top and bottom line financials exhibiting growth of 16% and 30% respectively
for the half year ended 31 December 2023.

Exploration and Development Activities

Being the market leader in E&P sector of Pakistan, OGDCL holds the largest exploration acreage which as of 31
December 2023 stood at 91,782 sq. km representing 38% of the Country's total area under exploration (source:
PPIS). The Company's exploration portfolio currently comprises 50 owned and operated joint venture exploration
licenses. Additionally, the Company possesses working interest in 11 exploration blocks operated by other E&P
companies.

In line with its exploration-led growth strategy, OGDCL during the period under review acquired 652 Line km of 2D (1H
2022-23: 626 Line km) and 262 sq. km of 3D seismic data (1H 2022-23: 221 sq. km). The acquired seismic data
represents 45% and 88% of total 2D and 3D seismic data acquisition in the Country respectively. Moreover, the
Company using in-house resources processed/reprocessed 3,809 Line km of 2D seismic data. However, 3D seismic
activities were affected by non-availability of imported ground electronics owing to LC issues and heavy rainfall.

On the drilling front, OGDCL spud 5 wells (1H 2022-23: 4 wells) including 2 exploratory wells; Kharo-1 & Bettani
Deep-1 and 3 development wells; Togh-2, Sono-9 & Kunnar West-3. Moreover, drilling and testing of 4 wells
pertaining to previous fiscal year was also completed. Total drilling recorded was 18,649 meters (1H 2022-23:
17,249 meters). However, drilling activities were impacted by non-availability of spare parts for top drive system
(TDS) and other critical items; drilling line, bridal line and downhole equipment due to LC issues leading to stacking of
rig N-1.

Discoveries
OGDCL's exploratory efforts to locate new reserves during the period under review yielded 2 gas condensate
discoveries viz., Chak 214-1 in district Rahim Yar Khan, Punjab province and Dars West-2 in district Tando Allah Yar,
Sindh province (1H 2022-23: 3 discoveries). The expected combined daily production potential of these discoveries
is 360 barrels of oil and 11 MMcf of gas. The Company drilled 2 exploratory wells during the period out of which
Kahro-1 in district Khairpur, Sindh province resulted in gas condensate discovery in February 2024 having daily
production potential of 14.3 MMcf of gas and 93 barrels of oil, whereas Bettani Deep-1 is under drilling.

Development Projects
The current status of ongoing development projects is tabulated below:

Half Yearly Report 2023-24 03

Production
OGDCL being a state owned enterprise is making all viable efforts to maintain and optimize hydrocarbon production by
expediting connectivity of new exploratory, appraisal and development wells in the production gathering system
coupled with employing latest production techniques and cutting edge technologies to minimize natural decline in the
mature fields. In this pursuit, Company's production during the period under review contributed around 46%, 28% and
37% towards Country's total oil, natural gas and LPG production respectively (source: PPIS).

OGDCL's average daily net saleable crude oil, gas and LPG production clocked in at 32,984 barrels, 716 MMcf and
724 tons in comparison to 33,061 barrels, 772 MMcf and 730 Tons in the comparative period of last year. The
Company recorded stable crude oil and LPG production primarily on the back of production optimization efforts and
production start-up from Bettani field. However, natural decline at mature producing fields coupled with mechanical
issues at Tando Alam-21 and Kal-1 well and Annual Turn Around at Chanda, Dakhni, Uch, Qadirpur and KPD-TAY
plants impacted production. The less gas intake by SNGPL from Qadirpur field due to SNGPL system constraints and
by UPL from Uch field due to less demand from power purchaser resulted in lower gas production. Without SNGPL
and UPL curtailment, average daily net saleable crude oil, gas and LPG production would have clocked in at 33,080
barrels, 752 MMcf and 727 tons respectively. Moreover, reduction in production from NJV fields also contributed
towards lower hydrocarbon output.

The decline in production was partially mitigated by injection of 4 operated wells in the production gathering system
viz., Nim East-1, Nashpa-11 and Suleiman-1 & 2 which cumulatively yielded gross crude and gas production of
130,097 barrels and 579 MMcf respectively. In an effort to arrest natural decline and sustain production from mature
wells, the Company carried out 56 work-over jobs comprising 7 with rig and 49 rig-less. Moreover, to induce
improvement in the current well flow parameters, pressure build-up survey jobs were completed at various wells of
Dakhni, KPD-TAY, Uch and Qadirpur fields. Additionally, electrical submersible pump was successfully installed at
Pasahki-11 resulting in incremental oil production of 1,350 barrels per day. Through in-house arrangement of
compression and operational modifications, 6 low pressure wells from KPD field were also reinjected in December
2023 leading to daily production realization of 16 MMcf of gas, 150 barrels of condensate and 18 Tons of LPG.

The peak daily net production recorded for crude oil, gas and LPG was 34,984 barrels, 839 MMcf and 788 tons
respectively. Average daily net saleable crude oil, gas and LPG production including share in both operated and non-
operated JV fields is as follows:

Unit of 1H 1H
Products
Measurement 2023-24 2022-23

Crude oil Barrels per day 32,984 33,061

Gas MMcf per day 716 772

LPG Tons per day 724 730

Bettani Field Development

OGDCL has successfully brought Bettani field into production by completing development of early production facilities

04 Oil & Gas Development Company Limited

(EPF) at Wali-1 in June 2023. The field is currently operational and producing around 850 barrels per day of crude oil
and 12 MMcf per day of gas. At present, further field development is being undertaken to enhance oil and gas
production, whereby drilling activities are underway at Bettani-2 and Bettani Deep-1 wells.

Reko Diq Mining Project

In line with its plan to diversify its business, OGDCL entered into definitive agreements with the Federal Government,
Government of Balochistan, GHPL, PPL and Barrick Gold Corporation for extraction of gold and copper reserves from
Reko Diq. The state-owned enterprises (SOEs); OGDCL, PPL and GHPL hold 25% of equity in the project, divided
equally among these companies. While 50% of the equity is held by the Barrick Gold along with management and
operatorship rights and remaining 25% of the equity is held by the Government of Balochistan. In order to manage the
equity shareholding of the SOE's, a special purpose vehicle (SPV) namely Pakistan Minerals (Private) Limited (PMPL)
has been incorporated. Currently, project feasibility study is in progress and expected to be completed by December
2024.

Abu Dhabi Offshore Block-5

At offshore block-5, planned exploration and evaluation activities are underway. In this regard, Assess and Select
Study has been completed, while the Concept Design (Pre-FEED) Study is in progress. Non-binding FDP has been
submitted to ADNOC on 15 December 2023 and currently under review by the ADNOC technical team. Moreover, 1
shallow exploration well and 3 appraisal wells are expected to be drilled during March to November 2024.

Financial Results
OGDCL during the half year ended 31 December 2023 registered improved Sales Revenue of Rs 235.375 billion (1H
2022-23: Rs 203.236 billion). Higher sales are primarily attributable to favorable exchange rate variance partially
offset by unfavorable crude price variance. Average realized prices of crude oil, gas and LPG were US$ 69.78/barrel
(1H 2022-23: US$ 78.60/barrel), Rs 711.87/Mcf (1H 2022-23: Rs 570.00/Mcf) and Rs 155,703/Ton (1H 2022-23:
Rs 139,661/Ton) respectively. Average exchange rate recorded was Rs 287.52/US$ (1H 2022-23: 223.85/US$).

However, Company's profitability was affected by higher operating expenses on account of rent, fee and taxes
(additional 15% of wellhead value on renewal of leases beyond 30 years mainly Pasahki, Pasahki North and Qadirpur)
combined with salaries, wages and benefits and amortization of development and production assets. Moreover,
increase in unallocated expenses of technical services coupled with finance cost also impacted the business
financials. While increase in share of profit in associate and reversal of provision for depletion allowance pertaining to
prior periods in light of Supreme Court judgment dated 8 January 2024 positively influenced the bottom-line
financials. Overall, the Company recorded Profit after Tax of Rs 123.296 billion (1H 2022-23: Rs 95.012 billion)
translating into Earnings per Share of Rs 28.67 (1H 2022-23: Rs 22.09).

Dividend
The Board has announced second interim cash dividend of Rs 2.50 per share (25%) for the year ending 30 June 2024.
This is in addition to the first interim cash dividend of Rs 1.60 per share (16.0%) already declared and paid during the
fiscal year.

Acknowledgement
OGDCL's Board of Directors places on record its sincere appreciation for the continued support extended by all the
stakeholders, which has always proved vital in the pursuit to achieve organizational goals and objectives. The Board
also wishes to place on record efforts put in by the Company employees at all levels to ensure that the business
continues to deliver industry leading performance, safely and responsibly.

On behalf of the Board

(Ahmed Hayat Lak) (Zafar Masud)

Managing Director/CEO Chairman
27 February 2024

Half Yearly Report 2023-24 05

 CONDENSED INTERIM
FINANCIAL INFORMATION
Independent Auditors' Review Report
To the members of Oil and Gas Development Company Limited

Report on review of Interim Financial Statements

Introduction
We have reviewed the accompanying condensed interim statement of financial position of Oil and Gas Development
Company Limited ("the Company") as at 31 December 2023 and the related condensed interim statement of profit or
loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and
condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended
(here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and
presentation of these interim financial statements in accordance with accounting and reporting standards as
applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial
statements based on our review.

Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial
statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim
financial statements are not prepared, in all material respects, in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting.

Emphasis of Matter
We draw attention to notes 13.1 and 14.1 to the accompanying interim financial statements which describe in detail
matter relating to overdue receivables on account of Inter-Corporate circular debt. Our conclusion is not modified in
respect of this matter.

Other Matter
The figures for the three-month period ended 31 December 2023 and 2022 in the condensed interim statement of
profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not
express a conclusion on them.

The engagement partners on the audit resulting in this independent auditors' report are Asim Masood Iqbal (A. F.
Ferguson & Co.) and Riaz Akbar Ali Pesnani (KPMG Taseer Hadi & Co.).

A.F. Ferguson & Co. KPMG Taseer Hadi & Co.

Chartered Accountants Chartered Accountants
Islamabad Islamabad
Date: 29 February 2024 Date: 29 February 2024
UDIN:RR202310053seXUtBkv6 UDIN: RR202310115ZsG1et92b

Half Yearly Report 2023-24 07

Condensed Interim Statement Of Financial Position [unaudited]
As at 31 December 2023

Unaudited Audited
31 Dcember 30 June
2023 2023

Note
SHARE CAPITAL AND RESERVES

Share capital 43,009,284 43,009,284

Reserves 4 38,302,241 38,112,050

Unappropriated profit 1,105,638,521 1,001,776,543

1,186,950,046 1,082,897,877

NON CURRENT LIABILITIES

Deferred taxation 83,453,493 87,644,041

Deferred employee benefits 38,353,051 36,910,439

Provision for decommissioning cost 5 59,416,520 55,648,929

181,223,064 180,203,409
CURRENT LIABILITIES
Trade and other payables 6 113,397,411 123,306,181
Unpaid dividend 7 39,429,655 37,452,267
Unclaimed dividend 204,954 205,560

153,032,020 160,964,008

TOTAL LIABILITIES 334,255,084 341,167,417

1,521,205,130 1,424,065,294

CONTINGENCIES AND COMMITMENTS 8

The annexed notes 1 to 29 form an integral part of these interim financial statements.

Chief Financial Officer Chief Executive Director

08 Oil & Gas Development Company Limited

 Unaudited Audited
31 December 30 June
2023 2023

Note

NON CURRENT ASSETS

Property, plant and equipment 9 86,738,682 85,815,832

Development and production assets 10 123,397,895 122,581,188
Exploration and evaluation assets 11 9,410,527 6,122,217
219,547,104 214,519,237

Long term investments 12 138,896,675 118,679,120

Long term loans 9,935,239 9,654,397
Long term prepayments 1,041,825 1,063,357
Lease receivables 13 113,025,662 121,031,547
482,446,505 464,947,658

CURRENT ASSETS
Stores, spare parts and loose tools 24,328,843 22,049,369
Stock in trade 1,674,462 1,349,347
Trade debts 14 604,729,987 576,968,545
Loans and advances 15 18,713,053 16,678,552
Deposits and short term prepayments 3,057,377 1,494,549
Other receivables 855,865 871,634
Income tax-advance 16 52,749,364 33,315,033
Current portion of long term investments 166,017,376 155,694,636
Current portion of lease receivables 13 44,416,220 37,625,777
Other financial assets 17 102,227,239 87,304,487
Cash and bank balances 19,988,839 25,765,707
1,038,758,625 959,117,636
1,521,205,130 1,424,065,294

Chief Financial Officer Chief Executive Director

Half Yearly Report 2023-24 09

Condensed Interim Statement of Profit or Loss
For Six Months Ended 31 December 2023

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

Note (Rupees '000)

Sales - net 18 115,234,239 97,223,303 235,375,183 203,235,513

Royalty (13,797,647) (11,297,536) (27,451,175) (23,474,451)

Operating expenses (32,550,263) (21,116,128) (60,445,201) (39,290,769)
Transportation charges (674,231) (300,719) (1,283,426) (755,377)
(47,022,141) (32,714,383) (89,179,802) (63,520,597)

Gross profit 68,212,098 64,508,920 146,195,381 139,714,916

Finance and Other income 19 11,018,353 9,233,973 27,269,502 27,737,820

Exploration and prospecting expenditure (2,394,667) (5,104,247) (5,025,618) (6,649,292)
General and administration expenses (2,431,604) (1,257,151) (4,631,395) (2,265,158)
Finance cost (1,749,978) (1,465,805) (3,432,259) (2,284,030)
Workers' profit participation fund (3,796,895) (3,402,119) (8,332,391) (8,044,610)
Share of profit in associate - net of taxation 3,283,681 2,126,708 6,272,201 4,637,953
Profit before taxation 72,140,988 64,640,279 158,315,421 152,847,599
Taxation 20 2,117,424 (22,931,147) (35,019,405) (57,835,928)
Profit for the period 74,258,412 41,709,132 123,296,016 95,011,671

Earnings per share - basic and diluted (Rupees) 21 17.27 9.70 28.67 22.09

The annexed notes 1 to 29 form an integral part of these interim financial statements.

Chief Financial Officer Chief Executive Director

10 Oil & Gas Development Company Limited

 Condensed Interim Statement of Comprehensive Income [Unaudited]
For Six Months Ended 31 December 2023

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

(Rupees '000)

Profit for the period 74,258,412 41,709,132 123,296,016 95,011,671

Other comprehensive (loss)/ income: - - - -

Items that will be subsequently reclassified to profit or loss:

Effects of translation of investment in a foreign associate (97,503) (20,016) (73,932) 229,698
Share of effect of translation of investment in foreign
associated company of the associates (760,527) 48,131 (460,877) 48,131
(858,030) 28,115 (534,809) 277,829
Other comprehensive (loss)/ income for the period (858,030) 28,115 (534,809) 277,829
Total comprehensive income for the period 73,400,382 41,737,247 122,761,207 95,289,500

The annexed notes 1 to 29 form an integral part of these interim financial statements.

Chief Financial Officer Chief Executive Director

Half Yearly Report 2023-24 11

 Reserves
Capital reserves Other reserves
Share Unappropriated Total
Self Share of capital Share of self
capital Capital Foreign translation profit equity

12
insurance redemption reserve fund insurance reserve
reserve currency reserve
reserve in associated company in associated company

(Rupees '000)

Balance as at 1 July 2022 43,009,284 836,000 16,400,000 2,118,000 920,000 600,189 811,509,093 875,392,566

Total comprehensive income for the period

Profit for the period - - - - - - 95,011,671 95,011,671

Other comprehensive income for the period - - - - - 277,829 - 277,829
Total comprehensive income for the period - - - - - 277,829 95,011,671 95,289,500

Transfer to self insurance reserve - - 725,619 - - - (725,619) -

Charge to self insurance reserve - - (619) - - - 619 -

Transactions with owners of the Company

Distributions

Oil & Gas Development Company Limited

Final dividend 2022: Rs 2.50 per share - - - - - - (10,752,321) (10,752,321)
First interim dividend 2023: Rs 1.75 per share - - - - - - (7,526,625) (7,526,625)
Total distributions to owners of the Company - - - - - - (18,278,946) (18,278,946)
For Six Months Ended 31 December 2023

Balance as at 31 December 2022 43,009,284 836,000 17,125,000 2,118,000 920,000 878,018 887,516,818 952,403,120

Balance as at 1 July 2023 43,009,284 836,000 17,850,000 2,118,000 920,000 16,388,050 1,001,776,543 1,082,897,877

Total comprehensive income for the period

Profit for the period - - - - - - 123,296,016 123,296,016

Other comprehensive loss for the period - - - - - (534,809) - (534,809)
Total comprehensive income for the period - - - - - (534,809) 123,296,016 122,761,207

Transfer to self insurance reserve - - 725,646 - - - (725,646) -

Charge to self insurance reserve - - (646) - - - 646 -
Condensed Interim Statement of Changes in Equity [Unaudited]

Transactions with owners of the Company

Distributions

Final dividend 2023: Rs 2.75 per share - - - - - - (11,827,553) (11,827,553)

First interim dividend 2024: Rs 1.60 per share - - - - - - (6,881,485) (6,881,485)
Total distributions to owners of the Company - - - - - - (18,709,038) (18,709,038)

Balance as at 31 December 2023 43,009,284 836,000 18,575,000 2,118,000 920,000 15,853,241 1,105,638,521 1,186,950,046

The annexed notes 1 to 29 form an integral part of these interim financial statements.

Chief Financial Officer Chief Executive Director

Condensed Interim Statement of Cash Flows [Unaudited]
Six Months ended 31 December
For Six Months Ended 31 December 2023
2023 2022
Note (Rupees '000)
Cash flows from operating activities
Profit before taxation 158,315,421 152,847,599
Adjustments for:
Depreciation 5,450,984 4,868,097
Amortization of development and production assets 11,670,715 8,638,699
Delayed payments from customers (500,000) -
Fair value loss on PIBs 487,136 -
Royalty 27,451,175 23,474,451
Workers' profit participation fund 8,332,391 8,044,610
Provision for employee benefits 3,781,524 3,379,488
Unwinding of discount on provision for decommissioning cost 3,429,381 2,281,544
Interest income on investments and bank deposits 19 (20,745,532) (12,474,977)
Interest income on lease 19 (11,264,371) (3,923,265)
Un-realized (gain)/ loss on investments at fair value through profit or loss 19 (114,869) 32,554
Exchange loss/ (gain) on lease 2,125,934 (4,785,808)
Exchange loss/ (gain) on foreign currency investment and deposit accounts 2,034,339 (5,920,079)
Dividend income from NIT units 19 (8,627) (11,078)
Gain on disposal of property, plant and equipment (1,319) (1,278)
Share of profit (net) in associates (6,272,201) -
(4,637,953)
Stores inventory written off - 6,265
Reversal of trade debts provision (1,750) -
184,170,331 171,818,869
Changes in:
Stores, spare parts and loose tools (2,279,474) (1,001,362)
Stock in trade (325,115) (347,777)
Trade debts (34,497,393) (59,989,746)
Deposits and short term prepayments (1,562,828) (450,597)
Loan and advances and other receivables (2,299,574) 2,573,835
Trade and other payables 8,355,788 (3,737,758)
Cash generated from operations 151,561,735 108,865,464

Royalty paid (34,367,516) (18,870,435)

Employee benefits paid (3,324,592) (2,849,153)
Long term prepayments 21,532 (129,009)
Payment to workers' profit participation fund-net (20,198,567) (13,000,000)
Income taxes paid 16 (58,644,284) (59,192,500)
(116,513,427) (94,041,097)
Net cash generated from operating activities 35,048,308 14,824,367

Cash flows from investing activities

Capital expenditure (20,313,863) (6,228,701)
Interest received 14,687,632 8,479,025
Lease payments received 5,883,286 1,648,482
Dividends received 1,543,201 1,651,484
Investment in associated companies (9,058,419) (3,824,129)
Proceeds from disposal of property, plant and equipment 7,465 5,198
Net cash (used)/ generated from investing activities (7,250,698) 1,731,359

Cash flows from financing activities

Dividends paid (16,732,256) (16,176,169)
Net cash used in financing activities (16,732,256) (16,176,169)

Net increase in cash and cash equivalents 11,065,354 379,557

Cash and cash equivalents at beginning of the period 112,840,364 79,875,942
Effect of movements in exchange rate on cash and cash equivalents (2,034,339) 5,920,079
Cash and cash equivalents at end of the period 23 121,871,379 86,175,578

The annexed notes 1 to 29 form an integral part of these interim financial statements.

Chief Financial Officer Chief Executive Director

Half Yearly Report 2023-24 13
Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

1 LEGAL STATUS AND OPERATIONS

Oil and Gas Development Company Limited (OGDCL), 'the Company', was incorporated on 23 October 1997 under
the Companies Ordinance, 1984 (now the Companies Act, 2017). The Company was established to undertake
exploration and development of oil and gas resources, including production and sale of oil and gas and related
activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961. The
registered office of the Company is located at OGDCL House, Plot No. 3, F-6/G-6, Blue Area, Islamabad, Pakistan.
The shares of the Company are quoted on Pakistan Stock Exchange Limited. The Global Depository Shares (1GDS =
10 ordinary shares of the Company) of the Company are listed on the London Stock Exchange.

Government of Pakistan (GoP) held 74.97% (30 June 2023: 74.97%) paid up capital the Company. Further, persuant
to the decision of the Supreme Court of Pakistan as explained in note 7, the shares currently held by OGDCL
Employees' Empowerment Trust (OEET) 10.05% (30 June 2023: 10.05%) will be transferred back to GoP. During the
period, the Pakistan Sovereign Wealth Fund Act, 2023 became effective. Under the said Act, the GoP's shareholding
in the Company including shares held by OEET stands transferred to the Pakistan Sovereign Wealth Fund (PSWF).
Accordingly, the GoP is in the process of taking necssary actions required to record the transfer of the shares to
PSWF.
2 BASIS OF PREPARATION
These condensed interim financial statements (here in after referred to as the ""interim financial statements"") have
been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim
financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting
comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting
Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the
provisions of and directives issued under the Companies Act, 2017 have been followed.

The disclosures in these interim financial statements do not include those reported for full annual audited financial
statements and should therefore be read in conjunction with the annual audited financial statements for the year
ended 30 June 2023. Comparative statement of financial position is extracted from the annual audited financial
statements as of 30 June 2023, whereas comparative statement of profit or loss, statement of comprehensive
income, statement of changes in equity and statement of cash flows are stated from unaudited interim financial
statements for the six months period ended 31 December 2022.

These interim financial statements are unaudited and are being submitted to the members as required under Section
237 of Companies Act, 2017.
3 ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS
The accounting policies, significant judgments made in the application of accounting policies, key sources of
estimations, the methods of computation adopted in preparation of these interim financial statements and financial
risk management policies are the same as those applied in preparation of annual audited financial statements for the
year ended 30 June 2023.

3.1 STANDARDS, INTERPRETATIONS AND AMENDMENTS TO APPROVED ACCOUNTING AND

REPORTING STANDARDS THAT ARE NOT YET EFFECTIVE
The following International Financial Reporting Standards (IFRS Standards) as notified under the Companies Act,
2017 and the amendments and interpretations thereto will be effective for accounting periods beginning on or after
01 January 2024:
Effective dates

Amendments to IAS-1 Classification of liabilities as current or non-current 01 January 2024

Amendments to IAS-1 Non Current Liabilites with Covenants 01 January 2024
Amendments to IAS-7 and IFRS-7 - Supplier finance 01 January 2024
Amendments to IFRS-16 Leases on sale and lease back 01 January 2024
Amendments to IAS-21 Lack of Exchangeability 01 January 2025

The above amendments are not likely to have an impact on the Company’s interim financial statements.

14 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

Furthermore, because of reasons as disclosed in note 2.5.3 to the annual audited financial statements for the year
ended 30 June 2023, the Securities and Exchange Commission of Pakistan (SECP) has notified that the requirements
contained in IFRS 9 with respect to application of Expected Credit Loss (ECL) method shall not be applicable till the
financial year ending on or before 31 December 2024 in respect of companies holding financial assets due from the
Government of Pakistan (GoP), including those that are directly due from GoP and that are ultimately due from GoP in
consequence of the circular debt issue. Such companies shall follow relevant requirements of IAS 39 ' Financial
Instruments: Recognition and Measurement' in respect of above referred financial assets during the exemption
period. ECL method on financial assets as mentioned above will be applicable on 01 July 2024.

Unaudited Audited
31 December 30 June
2023 2023
4 RESERVES Note (Rupees '000)
Capital reserves:
Capital reserve 4.1 836,000 836,000
Self insurance reserve 4.2 18,575,000 17,850,000
Capital redemption reserve fund- associated company 4.3 2,118,000 2,118,000
Self insurance reserve- associated company 4.4 920,000 920,000
Other reserves: 22,449,000 21,724,000

Foreign currency translation reserve 4.5 1,887,608 1,961,540

Foreign currency translation reserve- associated company 4.6 13,965,633 14,426,510
15,853,241 16,388,050

38,302,241 38,112,050

4.1 This represents bonus shares issued by former wholly owned subsidiary- Pirkoh Gas Company (Private) Limited
(PGCL) prior to merger. Accordingly, this reserve is not available for distribution to shareholders.

4.2 The Company has set aside a specific capital reserve for self insurance of rigs, buildings, wells, plants, pipelines,
workmen compensation, inventory, terrorism, vehicle repair and losses for petroleum products in transit. Refer note
12.4 for investments against this reserve. Accordingly, this reserve is not available for distribution to shareholders.

4.3 This represents reserve created by the associated company for redemption of redeemable preference shares in the
form of cash to the preference shareholders.

4.4 This represents a specific capital reserve set aside by the associated company for self insurance of assets which have
not been insured, for uninsured risks and for deductibles against insurance claims.

4.5 This represents accumulated balance of translation effect of a foreign operation in Rupees as per the Company's
accounting policy.

4.6 This represents accumulated balance of translation effect of foreign operations in Rupees of associated Companies.

Unaudited Audited
31 December 30 June
2023 2023
5 PROVISION FOR DECOMMISSIONING COST (Rupees '000)
Balance at beginning of the period/year 55,648,929 43,121,524
Provision during the period/year 338,210 487,999
Decommissioning cost incurred during the period/year - (224,656)
Reversal of provision for decommissioning cost - (36,960)
55,987,139 43,347,907
Revision due to change in estimates - 7,592,722
Unwinding of discount on provision for decommissioning cost 3,429,381 4,708,300
Balance at end of the period/year 59,416,520 55,648,929

Half Yearly Report 2023-24 15

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023
Unaudited Audited
31 December 30 June
2023 2023
(Rupees '000)
6 TRADE AND OTHER PAYABLES
Creditors 966,362 1,615,576
Accrued liabilities 22,911,611 17,894,851
Payable to partners of joint operations 11,714,968 9,712,871
Retention money payable 6,305,716 7,989,139
Royalty payable to the Government of Pakistan 32,371,529 39,287,870
Excise duty payable 214,947 187,617
General sales tax payable 2,417,155 2,631,123
Petroleum levy payable 217,896 174,075
Withholding tax payable 952,132 336,089
Trade deposits 164,227 164,227
Workers' profit participation fund- net 8,332,391 20,198,567
Employees' pension trust 6,532,756 6,005,907
Gratuity fund 22,576 31,466
Provident fund 85,832 -
Advances from customers- unsecured 6,468,693 6,730,026
Other payables 13,718,620 10,346,777
113,397,411 123,306,181

6.1 Gas Infrastructure Development Cess (GIDC) amounting to Rs 2,255 million (30 June 2023: Rs 2,255 million) is
recoverable from customers and payable to the GoP. These financial statements do not reflect the said amount since
under the provisions of the GIDC laws and regulations, the Company is required to pay the said amount as and when the
same is collected from customers. The GIDC is presented as payable to the extent that it is received from customers but
not deposited with the GoP. As at period end, no such amount was received which was not deposited with the GoP. On 13
August 2020, the Supreme Court of Pakistan has decided the matter of GIDC by restraining from charging GIDC from 01
August 2020 onward and ordered gas consumers to pay GIDC arrears due upto 31 July 2020 in instalments. The fertilizer
companies have obtained stay against recovery from the Sindh High Court, where the matter is subjudice.

7 UNPAID DIVIDEND
This includes an amount of Rs 38,926 million (30 June 2023: Rs 37,046 million) on account of shares held by OGDCL
Employees' Empowerment Trust (OEET) under the Benazir Employees' Stock Option Scheme (BESOS) since the GoP was
considering to revamp BESOS as was communicated to the Company by Privatization Commission of Pakistan (PCP).
PCP vide letter no. F. No. 13(4)12/PC/BESOS/OGDCL dated 15 May 2018 informed that the matter of BESOS, as a
scheme, was pending adjudication before the Honorable Supreme Court of Pakistan, hence status quo may be
maintained till final decision of Honorable Supreme Court of Pakistan. The PCP vide letter no D.O. No.
1(2)PC/BESOS(Wind-up)2019 dated 30 December 2020 informed that the fund maintained by PCP has been closed
since December 2020, therefore, the amounts retained on account of Employees Empowerment Fund be directly
deposited in the Federal Consolidated Fund maintained by Finance Division.

During the year ended 30 June 2022, the Honorable Supreme Court of Pakistan has issued detailed judgement and
declared the BESOS scheme to be ultra vires and that any benefits arising out of this scheme are illegal and unprotected.
The Ministry of Energy, GoP vide letter dated 16 April 2022 required that the matter of transfer of all the accrued BESOS
principal amount along with interest earned thereon be placed before the Board of Trustees of Employee Empowerment
Trusts (EETs). In pursuance of which OEET through Board of Trustees resolution dated 25 April 2022 approved and
transferred to the Company Rs 2,316 million representing dividends previously received from OGDCL and Rs 1,484
million representing interest earned thereon for onward settlement by the Company with the GoP. The Finance Division
vide letter no [Link].8(6)AO-CF/2021-22 dated 09 May 2022 directed the Company to deposit the balance in the Federal
Consolidated Fund within seven days as it was agreed with SOEs that the amount will be settled through cash deposit or
non-cash adjustment. The Company requested vide its letter dated 16 May 2022 that BESOS amount should be settled as
a non cash adjustment against the Company's circular debt. Management is currently under discussion with the GoP for
settlement of these amounts.

16 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023
8 CONTINGENCIES AND COMMITMENTS

8.1 Contingencies

8.1.1 Claims against the Company not acknowledged as debts amounted to Rs 165 million at period end (30 June 2023: Rs
212 million).

8.1.2 On 17 December 2018, Attock Refinery Limited (ARL) filed a writ petition against the Company before Islamabad High
Court and has disputed and withheld amounts invoiced to it prior to the signing of sales agreement i.e. 13 March 2018 on
account of adjustment of premium or discount as announced by Saudi Aramco for deliveries to Asian customers/
destinations under the sales agreement. The amount withheld and disputed by ARL amounts to Rs 1,292 million (30
June 2023: Rs 1,292 million). Further, ARL has also contested and claimed the amounts already paid in this respect
during the period 2007 to 2012 amounting to Rs 562 million (30 June 2023: Rs 562 million). The Company believes that
the debit notes/ invoices have been raised in accordance with the sale agreements signed with the GoP and no provision
is required in this respect.

8.1.3 Oil and Gas Regulatory Authority (OGRA) vide its decision dated 22 June 2018 decided that LPG producers, in public or
private sector, cannot charge signature bonus in compliance with LPG Policy 2016. The Company has challenged this
decision in Islamabad High Court on 23 July 2018. Signature bonus recognized as income by the Company after
decision of OGRA amounts to Rs 3,450 million (30 June 2023: Rs 2,863 million). The Company believes that the matter
will be decided in favour of the Company. Also refer note 19.1.

8.1.4 During the year ended 30 June 2022, Large Taxpayers Office Islamabad vide notices dated 05 October 2021 required all
Exploration and Production (E&P) companies including OGDCL to provide information relating to the value of
condensate sold during the period from July 2008 to September 2021, pursuant to the judgment of ATIR dated 08
September 2021 in case of another E&P company wherein the Appellate Tribunal Inland Revenue (ATIR) held that
condensate is separate product other than crude oil and is subject to sales tax @ 17% against zero percent charged by
the E&P companies. OGDCL and other E&P companies have filed writ petitions before Islamabad High Court challenging
issuance of above notices dated 05 October 2021 where stay has been granted to the Company till the date of next
hearing. The Company is confident that the matter will be decided in its favor.

8.1.5 Certain banks have issued guarantees on behalf of the Company in ordinary course of business aggregating Rs 1.281
million (30 June 2023: Rs 1.281 million).

8.1.6 For contingencies related to income tax matters, refer note 16.1 to 16.5, 20.1 and 20.2.

8.1.7 For contingencies related to sales tax and federal excise duty, refer note 15.1 and 15.2.

8.1.8 For matter relating to conversion of certain blocks to Petroleum Policy 2012, refer note 18.1.

8.1.9 As part of the investment in Pakistan International Oil Limited (PIOL), each associate of the consortium companies
including OGDCL have provided, joint and several, parent company guarantees to Abu Dhabi National Oil Company
(ADNOC) and Supreme Council for Financial and Economic Affairs Abu Dhabi, UAE to guarantee the obligations of the
associate, PIOL. The exposure against the said guarantee as at period end amounts to US$ 170 million; Rs: 47,991
million (30 June 2023: US$ 195 million; Rs: 55,946 million).

8.2 Commitments

8.2.1 Commitments outstanding at the period end amounted to Rs 82,083 million (30 June 2023: Rs 75,556 million). These
include amounts aggregating to Rs 40,545 million (30 June 2023: Rs 42,409 million) representing the Company's share
in the minimum work commitments under Petroleum Concession Agreements (PCAs). The Company and its associated
company has given corporate guarantees to GoP under various PCAs for the performance of obligations.

8.2.2 Letters of credit issued by various banks on behalf of the Company in ordinary course of the business, outstanding at
period end amounted to Rs 1,913 million (30 June 2023: Rs 1,957 million).

8.2.3 The Company's share of associate commitments for capital expenditure, minimum work commitment under various
Petroleum Concession Agreements (PCAs) and other investment as at period end amounted to Rs 10,809 million (30
June 2023: Rs 9,524 million)

Half Yearly Report 2023-24 17

 Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023
8.2.4 As part of the Shareholders Agreement with the consortium partners in PIOL, associate, the Company has committed to
invest upto US$ 100 million in PIOL during the next five years from 31 August 2021, out of which US$ 60 million has been
invested till 31 December 2023 (30 June 2023: US$ 35 million). The remaining amount of US$ 40 million; Rs 11,292
million (30 June 2023: US$ 65 million; Rs 18,649 million) will be invested in subsequent years. The Company's share of
associate commitment in this respect amounts to US$ 13 million; Rs 3,697 million (30 June 2023: US$ 13 million; Rs
3,581 million).

8.2.5 The Company has committed to invest a total amount up to USD 389 million; Rs 109,815 million (30 June 2023: USD 396
million; Rs 113,612 million) (including post-acquisition investments), to be adjusted for inflation, for funding its
proportionate share during Phase-1 of the Reko Diq project. In addition, the company has committed to contribute, in the
form of equity, up to USD 1 million; Rs 282 million per year towards its proportionate share in the administrative expenses
of Pakistan Minerals (Private) Limited (PMPL). Furthermore, the Company has provided a corporate guarantee to fund the
aforementioned obligations.
Unaudited Audited
31 December 30 June
2023 2023
9 PROPERTY, PLANT AND EQUIPMENT Note (Rupees '000)

Carrying amount at beginning of the period /year 85,815,832 92,685,118

Additions/adjustments during the period /year 9.1 6,839,629 4,292,240
Book value of disposals (6,146) (17,565)
Depreciation charge for the period /year (5,910,633) (10,980,725)
Revision in estimate of decommissioning cost during the period /year - (163,236)
Carrying amount at end of the period /year 9.2 86,738,682 85,815,832

9.1 Additions/adjustments during the period /year

Freehold land - 39,599
Buildings, offices and roads on freehold land 18,069 42,709
Buildings, offices and roads on leasehold land 63,478 1,159,149
Plant and machinery 1,658,784 3,249,075
Rigs 1,531 10,312
Pipelines 266,760 152,362
Office and domestic equipment 98,769 62,406
Office and technical data computers 176,186 109,182
Furniture and fixture 13,255 8,106
Vehicles 459,220 42,458
Capital work in progress (net movement) 2,439,162 244,061
Stores held for capital expenditure (net movement) 1,644,415 (827,179)
6,839,629 4,292,240
9.2 Property, plant and equipment comprises:
Operating fixed assets 76,035,062 79,195,789
Capital work in progress 4,289,880 1,850,718
Stores held for capital expenditure 6,413,740 4,769,325
86,738,682 85,815,832
10 DEVELOPMENT AND PRODUCTION ASSETS

Carrying amount at beginning of the period/ year 122,581,188 118,283,976

Additions during the period/ year 11,319,176 17,081,453
Transferred from exploration and evaluation assets during the period/ year 1,170,453 5,513,413
Stores held for development and production activities (net movement) (2,207) (1,583,706)
Amortization charge for the period /year (11,670,715) (19,616,009)
Impairment charge for the period /year - (4,975,263)
Revision in estimates of decommissioning cost during the period /year - 7,877,324
Carrying amount at end of the period /year 123,397,895 122,581,188

18 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

Unaudited Audited
31 December 30 June
2023 2023
Note (Rupees '000)
11 EXPLORATION AND EVALUATION ASSETS

Balance at beginning of the period/ year 5,117,678 12,780,350

Additions during the period/ year 4,743,624 5,012,660
9,861,302 17,793,010

Cost of dry and abandoned wells during the period/ year (248,318) (7,161,919)
Cost of wells transferred to development and production
assets during the period/ year (1,170,453) (5,513,413)
(1,418,771) (12,675,332)
8,442,531 5,117,678
Stores held for exploration and evaluation activities 967,996 1,004,539
Balance at end of the period/ year 9,410,527 6,122,217

12 LONG TERM INVESTMENTS

Investment in associates: 12.1 39,772,572 33,768,989

Mari Petroleum Company Limited, quoted 12.2 12,416,655 5,565,865
Pakistan International Oil Limited, unquoted 12.3 50,768,082 50,361,218
Pakistan Minerals (Private) Limited, unquoted

Investments at amortized cost 12.4 15,653,721 14,947,967

Term Deposit Receipts (TDRs) 12.5 21,044,577 14,522,249
Pakistan Investment Bonds (PIBs) 12.6 165,258,444 155,207,468
Term Finance Certificates (TFCs) 201,956,742 184,677,684
Less: Current portion shown under current assets (166,017,376) (155,694,636)
35,939,366 28,983,048
138,896,675 118,679,120

12.1 Mari Petroleum Company Limited (MPCL) is a listed company incorporated in Pakistan and is principally engaged in
exploration, production and sale of hydrocarbons. The Company has 20% (30 June 2023: 20%) holding in the associate.

12.2 Pakistan International Oil Limited (PIOL) is a company engaged in the business of extraction of oil and natural gas and is
registered as a limited liability company in the Emirate of Abu Dhabi and incorporated in Abu Dhabi Global Market. Each
consortium company (investors) which includes OGDCL, Mari Petroleum Company limited (MPCL), Pakistan Petroleum
Company Limited (PPL) and Government Holdings (Private) Limited (GHPL) have a 25% equity stake in PIOL. The
concession agreement between PIOL and Abu Dhabi National Oil Company (ADNOC) was signed on 31 August 2021 and
the Offshore Block 5 was awarded to PIOL. Till 31 December 2023, the Company has subscribed 6 million ordinary shares
of PIOL (30 June 2023: 3.5 million ordinary shares) by paying USD 60 million; Rs 13,442 million (30 June 2023: USD 35
million; Rs 6,395 million) including Rs 7,048 million paid during the period as advance against future issue of shares.

12.3 The Company has invested in the Reko Diq project company i.e. Reko Diq Mining Company (Private) Limited (RDMC)
through Pakistan Minerals (Private) Limited (PMPL). The Company has equity interest of 33.33% in PMPL with an
effective interest of 8.33% in RDMC. The total equity investment of the Company in the form of advance paid against future
issue of shares in the associate amounted to Rs 38,828 million as at 31 December 2023 (30 June 2023: Rs 36,727
million). During the period, the Company has decided to evaluate a potential engagement with sovereign foreign investors
with respect to the Reko Diq Project and has decided to appoint advisors through PMPL to assist in this regard. However,
as of the date of approval of these interim financial statements, nothing has been materialized.

12.4 This represents investments in local currency TDRs and includes interest amounting to Rs 5,654 million (30 June 2023:
Rs 4,947 million) carrying effective interest rate of 14% (30 June 2023: 14%) per annum and have maturities of five (5)
years. These investments are earmarked against self insurance reserve as explained in note 4.2 to these interim financial
statements.

Half Yearly Report 2023-24 19

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

12.5 This represents PIBs received from Uch Power Private Limited against partial settlement of overdue trade receivables on
27 June 2023 and 04 July 2023. Face value and fair value of the PIBs on the date of initial recognition amounts to Rs
21,866 million (30 June 2023: Rs 15,128 million) and Rs 20,286 million (30 June 2023: Rs 14,522 million) respectively
and are carried at floating interest rate of 21.84% per annum.

12.6 This represents investment in privately placed TFCs amounting to Rs 82,000 million. In 2013, the Government of Pakistan
(GoP), for partial resolution of circular debt issue prevailing in the energy sector, approved issuance of TFCs amounting to
Rs 82,000 million by Power Holding Limited (PHL), which is government owned entity and a related party. These TFCs
were subscribed by the Company in order to settle its overdue receivables from oil refineries and gas companies.

As per original terms of investor agreement between the Company and PHL, TFCs were for a period of seven (7) years
including grace period of three (3) years carrying interest rate of KIBOR + 1%, payable semi-annually. The principal
portion of these TFCs was to be paid in eight (8) equal instalments starting from 42nd month of date of transaction.
National Bank of Pakistan executed the transaction on 10 September 2012 as Trustee. These TFCs are secured by
Sovereign Guarantee of the GoP, covering the principal, mark-up, and/or any other amount becoming due for payment in
respect of investment in TFCs.

On 23 October 2017, PHL communicated to the Company that a proposal was submitted by the Ministry of Energy (Power
Division) to Economic Coordination Committee (ECC) of the Cabinet for extension in the tenure of TFCs of Rs 82,000
million from seven (7) years to ten (10) years including extension in grace period from three (3) years to six (6) years. The
ECC of the Cabinet considered and approved the proposal of Ministry of Energy (Power Division) subject to the condition
that a revised term sheet, based on above, with the Company shall be agreed by PHL. PHL requested the Company to
prepare revised term sheet for onward submission to Finance Division of the GoP for approval. During the year ended 30
June 2020, the Board of Directors resolved that the management may take further steps for the extension of investor
agreement with PHL for a further period of three (3) years. However, the revised term sheet has not yet been signed with
PHL. Currently, management is in discussion with Ministry of Energy and Ministry of Finance for settlement of outstanding
principal and interest.

As at 31 December 2023, principal repayment amounting to Rs 82,000 million (30 June 2023: Rs 82,000 million) and
interest amounting to Rs 83,258 million (30 June 2023: Rs 73,207 million) was past due. The Company considers the
principal and interest to be fully recoverable as these are backed by Sovereign Guarantee of the GoP. As disclosed in note
3.1, SECP has deferred the applicability of ECL model till financial year ending on or before 31 December 2024 on financial
assets due directly/ ultimately from the GoP in consequence of the circular debt.

13 LEASE RECEIVABLES
Net investment in lease has been recognized on gas sale agreements with power companies i.e. Uch Power (Private)
Limited (UPL) and Uch-II Power (Private) Limited (Uch-II) as follows:
Unaudited Audited
31 December 30 June
2023 2023
Note (Rupees '000)
Net investment in lease 157,441,882 158,657,324
Less: Current portion of net investment in lease 13.1 (44,416,220) (37,625,777)
113,025,662 121,031,547

13.1 Current portion of net investment in lease includes amounts billed to customers of Rs 32,951 million (30 June 2023: Rs
26,950 million) out of which Rs 29,407 million (30 June 2023: Rs 24,688 million) is overdue on account of inter-
corporate circular debt. As disclosed in note 3.1, SECP has deferred the applicability of ECL model till financial year ending
on or before 31 December 2024 on debts due directly/ ultimately from the GoP in consequence of the circular debt. The
amount is considered to be fully recoverable as the GoP is committed, hence continuously pursuing for satisfactory
settlement of inter-corporate circular debt issue. The Company has contractual right and is entitled to charge interest if
lease payments are delayed beyond agreed payment terms, however, the same is recognized when received by the
Company.

20 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023
Unaudited Audited
31 December 30 June
2023 2023
14 TRADE DEBTS (Rupees '000)

Un-secured, considered good 604,729,987 576,968,545

Un-secured, considered doubtful 95,863 97,613
604,825,850 577,066,158
Provision for doubtful debts (95,863) (97,613)
604,729,987 576,968,545

14.1 Trade debts include overdue amount of Rs 534,336 million (30 June 2023: Rs 510,849 million) on account of Inter-
corporate circular debt, receivable from oil refineries, gas companies and power producers out of which Rs 226,096 million
(30 June 2023: Rs 210,304 million) and Rs 231,355 million (30 June 2023: Rs 200,577 million) are overdue from related
parties, Sui Southern Gas Company Limited and Sui Northern Gas Pipeline Limited respectively. The Government of
Pakistan (GoP) is committed, hence continuously pursuing for satisfactory settlement of Inter-corporate circular debt issue,
however, the progress is slower than expected resulting in accumulation of Company's trade debts. The Company considers
this amount to be fully recoverable because the Government of Pakistan has been assuming the responsibility to settle the
Inter-corporate circular debt in the energy sector. The Company recognizes interest/ surcharge, if any, on delayed payments
from customers when the interest/ surcharge on delayed payments is received by the Company. As disclosed in note 3.1,
SECP has deferred the applicability of ECL model till financial year ending on or before 31 December 2024 on financial
assets due directly/ ultimately from the GoP in consequence of the circular debt.

15 LOANS AND ADVANCES

15.1 This includes an amount of Rs 3,180 million (30 Jun 2023: Rs 3,180 million) paid under protest to Federal Board of Revenue
(FBR) on account of sales tax demand raised in respect of capacity invoices from Uch gas field for the period July 2004 to
March 2011. Based on Sales Tax General Order (STGO) 1 of 2000 dated 24 January 2000, the matter was argued before
various appellate forums, however, the Supreme Court of Pakistan finally decided the issue against the Company on 15 April
2013. The FBR granted time relaxation to the Company for issuance of debit note for an amount of Rs 750 million for the
period April 2011 to May 2012, accounted for as trade debt. Uch Power (Private) Limited (UPL) challenged the grant of time
relaxation/ condonation to the Company by FBR before Islamabad High Court. On 27 December 2013, the Honorable Court
decided the matter in favor of the Company. In light of the Islamabad High Court decision, the Company has applied to FBR
for obtaining condonation of time limit for issuing debit notes to UPL/ revision of sales tax returns for the remaining amount
of Rs 3,180 million for the period July 2004 to March 2011, FBR responded that as per the decision of Islamabad High court
no condonation is required for payment of sale tax and accordingly also withdrawn early granted condonation for Rs 750
million vide letter dated 12 July 2017.

UPL filed an intra-court appeal against the decision of the Islamabad High Court (IHC). IHC through its order dated 17
November 2016 dismissed the intra-court appeal in favour of the Company. In January 2017, UPL filed a Civil Petition for
Leave to Appeal (CPLA) against the Company and others, before the Honorable Supreme Court of Pakistan against the
decision of IHC. On 21 August 2023, the Honorable Supreme Court of Pakistan dismissed UPL's CPLA as infructuous on the
grounds that FBR had withdrawn their earlier granted condonation dated 30 June 2012, vide letter dated 12 July 2017.

As per the direction of the Honorable Islamabad High Court, for the period July 2008 onward, debit notes can be issued
without condonation of time relaxation. However, for revision of sales tax returns condonation of time relaxation is required
from FBR. The Company is in the process of obtaining condonation from FBR for revision of sales tax returns and will issue
the debit notes for the period July 2004 to March 2011, once the said condonation is provided by FBR. The Company is
confident that the said condonation will be obtained and the amount will be recovered from UPL. Accordingly, no provision in
this respect has been made in these interim financial statements.

15.2 This also includes recoveries of Rs 317 million (30 June 2023: Rs 317 million) made by the tax department during the year
ended 30 June 2016, against Sales Tax and Federal Excise Duty (FED) demand of Rs 6,708 million (30 June 2023: Rs 6,708
million) relating to periods July 2012 to June 2014. The Appellate Tribunal Inland Revenue (ATIR) has accepted the
Company's appeals and annulled the demands passed by the tax authorities being void ab-initio and without jurisdiction. The
Commissioner Inland Revenue (CIR) has filed sales tax reference before Islamabad High Court (IHC) against judgment of
ATIR on 09 February 2018. IHC through its judgement dated 15 November 2023 set aside the decision/order of ATIR and

Half Yearly Report 2023-24 21

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

directed ATIR to decide the matter on merits. These demands were raised by tax authorities due to difference between
computation of sales/ production reported by the Company in its sales tax returns and sales/ production based on other
sources of data.

During the year ended 30 June 2021, additional demand of Rs 9,668 million (30 June 2023: Rs 9,668 million) relating to
periods 2017-18 and 2018-19 were raised on the same issue by the Deputy Commissioner Inland Revenue (DCIR), against
which, the Company had filed appeals before Commissioner Inland Revenue (Appeals) CIRA. CIRA vide order dated 29
November 2022 remanded back the case to DCIR. The Company has filed appeal before ATIR on 24 January 2023 which is
pending.

The Company believes that the matter against which the demands are raised are factually not correct and will be decided in
favour of the Company.
Unaudited Audited
31 December 30 June
2023 2023
16 INCOME TAX-ADVANCE Note (Rupees '000)
Income tax- advance at beginning of the period/ year 33,315,033 31,914,172
Income tax paid during the period/ year 58,644,284 116,480,131
Provision for current taxation- profit or loss 20 (39,209,953) (110,875,305)
Tax credit related to remeasurement loss
on employee retirement benefit plans- other
comprehensive income - (4,203,965)
Income tax- advance at end of the period/ year 16.1 to 16.5 52,749,364 33,315,033

16.1 This includes amount of Rs 29,727 million (30 June 2023: Rs 29,727 million) paid to tax authorities on account of
disallowance of actuarial loss amounting to Rs 63,232 million (30 June 2023: Rs 63,232 million) which the Company
claimed in its return for the tax years 2014 to 2018, 2020 and 2022. This actuarial loss was recognized in the books as a
result of retrospective application of IAS 19 (as revised in June 2011) 'Employee Benefits' from the year ended 30 June 2014
and onwards. CIRA upheld the disallowances on account of the actuarial loss for tax years 2015 and 2016, however, allowed
to claim the actuarial loss for tax years 2014, 2017 and 2018 over a period of seven years. Being aggrieved, the Company
has filed appeals against the orders of CIRA in the Appellate Tribunal Inland Revenue (ATIR) for tax years 2014, 2015, 2016,
2017, 2018 and 2020 on 08 January 2016, 30 June 2020, 05 January 2018, 21 August 2019, 12 February 2020 and 20
January 2023 respectively which are currently pending. For tax year 2022, the Company has filed appeal before CIRA on 27
March 2023 which is currently pending. The management, based on opinion of its tax consultant, believes that the actuarial
loss is an admissible expense under the tax laws and there is reasonable probability that the matter will be decided in favour
of Company by appellate forums available under the law.

16.2 During the year ended 30 June 2014, tax authorities raised demands of Rs 13,370 million (30 June 2023: Rs 13,370 million)
by disallowing effect of price discount on sale of crude oil from Kunnar field and have recovered Rs 5,372 million (30 June
2023: Rs 5,372 million) from the Company upto 30 June 2023. During the year ended 30 June 2015, appeal before ATIR
against the said demands were decided against the Company. The Company filed a reference application before Islamabad
High Court (IHC) against the decision of ATIR. IHC vide order dated 17 February 2016, set aside the order of ATIR and
remanded the case back to ATIR with the instructions to pass a speaking order. The case is currently pending before ATIR.
Further, IHC vide order dated 14 January 2019 directed ATIR to decide the appeal expeditiously and until seven days after the
decision on the Company's appeal, the tax department is restrained from adopting coercive measures for the recovery of the
disputed tax liability in the event the appeal is dismissed. Management and its legal advisor are of the view that the price
discount is not the income of the Company and hence not liable to tax. Accordingly, management is confident that the matter
will be decided in favor of the Company as the discounted price for Kunnar field was finally determined by the Ministry of
Energy (Petroleum Division) and the total amount of price discount amount has been paid to the Government of Pakistan
(GoP) upon directions from the Ministry of Finance, to this effect.

16.3 Income tax advance includes Rs 1,259 million (30 June 2023: Rs 1,259 million) on account of disallowances made by the
Additional Commissioner Inland Revenue (ACIR) in respect of decommissioning cost for tax year 2015. The CIRA vide order
dated 18 March 2020 has remanded the case back to ACIR and the Company has filed an appeal against the order of CIRA in
ATIR on 30 June 2020. Management believes that the disallowance is against income tax laws and regulations and
accordingly no provision has been made in this respect in these interim financial statements.

22 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

16.4 Tax authorities have raised demand of Rs 4,703 million for tax years 2016, 2020, 2021 and 2022 (30 June 2023: Rs 17,280
million for tax years 2016, 2020, 2021 and 2022) on account of disallowances of post retirement medical benefits,
compensated absences, cost of dry and abandoned wells, workers' profit participation fund, GIDC payable and certain other
expenditures due to alleged non deduction of withholding taxes (30 June 2023: alleged production differences and by
making disallowances of post retirement medical benefits, compensated absensces, cost of dry and abandoned wells, field
decomissioned/ surrendered during the year, workers' profit participation fund, GIDC payable and certain other expenditures
due to alleged non deduction of withholding taxes) which has been paid (30 June 2023: Rs 16,520 million). Appeals in this
respect are pending with CIRA for tax 2022 and with ATIR for tax years 2020 and 2021 filed on 20 January 2023 which are
currently pending. Management is confident that the above disallowances do not hold any merits and the related amounts
have been lawfully claimed in the tax returns as per the applicable tax laws. Accordingly, no provision has been made in
respect of these in these interim financial statements.

16.5 The Honorable Supreme Court of Pakistan through its decision dated 29 November 2023 and written order issued on 8
January 2024, dismissed Civil Petition filed by the tax department and has decided the matter of depletion allowance in favor
of the Company. Persuant to the decision, for the purpose of calculation of depletion allowance in accordance with Rule 3 of
Part 1 of the Fifth Schedule to the Income Tax Ordinance, the royalty amount is not to be deducted when establishing the
wellhead value. Accordingly, the Company has reversed the provisions amounting to Rs 28,164 million carried in the
financial statements in respect of depletion allowance from tax years 1999 to 2023. The Company is in the process of filing
refund applications for relevant tax years.

Unaudited Audited
31 December 30 June
2023 2023
17 OTHER FINANCIAL ASSETS Note (Rupees '000)

Investment in Term Deposit Receipt (TDRs) - at amortised cost 17.1 101,882,540 87,074,657
Investment at fair value through profit or loss - NIT units 344,699 229,830
102,227,239 87,304,487

17.1 This represents foreign currency TDRs amounting to USD 357 million; Rs 100,476 million (30 June 2023: USD 300.926
million; Rs 86,185 million), and accrued interest amounting to USD 4.711 million; Rs 1,328 million (30 June 2023: USD
3.104 million; Rs 890 million), carrying interest rate ranging from 9.25% to 14.02% (30 June 2023: 10.15% to 13.56%) per
annum, having maturities up to six months (30 June 2023: six months).

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

18 SALES - net
(Rupees '000)
Gross sales
Crude oil 59,329,777 47,595,933 120,208,821 103,649,350
Gas 54,599,120 49,001,552 114,898,251 98,118,733
Liquefied petroleum gas 14,430,891 11,139,815 25,328,442 22,573,580
Sulphur - - 109,722 -
128,359,788 107,737,300 260,545,236 224,341,663

Government levies
General sales tax (12,297,195) (9,638,168) (23,480,862) (19,338,087)
Petroleum Levy (314,597) (314,246) (624,585) (623,771)
Excise duty (513,757) (561,583) (1,064,606) (1,144,292)

(13,125,549) (10,513,997) (25,170,053) (21,106,150)

115,234,239 97,223,303 235,375,183 203,235,513

Half Yearly Report 2023-24 23

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

18.1 In respect of six of its operated concessions, namely, Gurgalot, Sinjhoro, Bitrisim, Khewari, Nim and TAY Blocks and one
non-operated Tal Block, Petroleum Concession Agreements (PCAs) were executed under the framework of Petroleum
Policies 1994 and 1997. Later on, in pursuance to the option available under Petroleum Policy (PP) 2012, the Tal Block
working interest owners wherein the Company’s working interest is 27.7632% signed the Supplemental Agreement (SA)
dated 28 August 2015 with the GoP for conversion of eligible existing and future discoveries under Tal PCA to the PP 2012.
Further, for aforementioned operated Concessions, the Company also signed the SAs for conversion to PP 2012. Under
the said arrangement, price regimes prevailing in PP 2007, PP 2009 and PP 2012 in terms of PP 2012 shall be applicable,
correlated with the spud dates of the wells in the respective policies starting from 27 November 2007. The conversion
package as defined in the SAs included windfall levy on natural gas only.

Oil and Gas Regulatory Authority (OGRA) has been notifying the revised wellhead prices in accordance with the relevant
Supplemental Agreements for the period from the commencement of production of the respective discoveries.
Accordingly, the financial impacts of the price revision were duly accounted for in the financial statements for the years
ended 30 June 2016, 30 June 2017 and 30 June 2018 on completion of the process laid down in the law and in line with
the Company’s accounting policy.

On 27 December 2017, the Ministry of Energy (Petroleum Division) notified amendments in PP 2012 after approval from
the Council of Common Interests (CCI) dated 24 November 2017. These amendments include imposition of Windfall Levy
on Oil/Condensate (WLO). Under the said Notification, the Supplemental Agreements already executed for conversion
from Petroleum policies of 1994 and 1997 shall be amended within 90 days, failing which the working interest owners will
not remain eligible for gas price incentive. On 03 January 2018, the Directorate General Petroleum Concessions (DGPC)
has required all exploration and production companies to submit supplemental agreements to incorporate the
aforementioned amendments in PCAs signed under 1994 and 1997 policies, for execution within the stipulated time as
specified above.

Based on a legal advice, the Company is of the view that terms of the existing PCAs as amended to-date through the
supplemental agreements already executed cannot unilaterally be amended by the GoP through introduction of
amendment nor can the GoP lawfully require and direct that such amendments be made to include imposition of WLO
retrospectively and nor the GoP unilaterally hold and direct that the gas price incentive to which the Company is presently
entitled to and receiving under the conversion package as enshrined under the supplemental agreement stands withdrawn
or the Company ceases to be eligible for such incentive in case of failure to adopt the unilateral amendments in the existing
PCAs. Accordingly, the aforementioned amendments as well as the subsequent letters requiring implementation of the
amendments are not enforceable or binding upon the Company.

The Company along with other Joint Operation Partners has challenged the applicability of WLO against the backdrop of
supplemental agreements already executed pursuant to PP 2012 in the Honorable Islamabad High Court which has
granted stay order till next date of hearing against the CCI decision dated 24 November 2017 on imposition of WLO. As
mentioned above, the Company on the advice of its legal counsel is confident that it has sound grounds to defend the
aforesaid issue in the Court and that the issue will be decided in favour of the Company.

The cumulative past benefit accrued and recorded in the financial statements by the Company upto 23 November 2017 in
the form of revenue and profit after tax is Rs 8,550 million and Rs 4,426 million respectively. However, without prejudice to
the Company's stance in the court case, revenue of Rs 35,711 million (30 June 2023: Rs 31,090 million) related to gas
price incentive against the supplemental agreements has been set aside on a point forward basis effective 24 November
2017 (the date of decision of CCI).

18.2 Gas Sale Agreement (GSA) in respect of Kunnar Pasakhi Deep (KPD) fields between the Company and Sui Southern Gas
Company Limited is being finalized and adjustments, if any, will be accounted for in these interim financial statements
after execution of GSA.

18.3 Gas sales include sales from Nur-Bagla field invoiced on provisional prices. There may be adjustment in revenue upon
issuance of final wellhead prices notification by Ministry of Energy (Petroleum Division).

24 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

19 FINANCE AND OTHER INCOME Note (Rupees '000)
Interest income on:
Investments and bank deposits 10,518,372 7,595,639 20,745,532 12,474,977
Finance income - lease 5,595,946 2,037,056 11,264,371 3,923,265
Delayed payments from customers 500,000 - 500,000 -
Fair value loss on PIBs 12.5 - - (487,136) -
Dividend income from NIT units - 11,078 8,627 11,078
Un-realized gain/ (loss) on investments
at fair value through profit or loss 100,340 (9,626) 114,869 (32,554)
Exchange (loss)/ gain- net (5,810,566) (1,897,298) (5,670,927) 9,322,613
Signature bonus/ contract renewal fee 19.1 98,947 1,186,942 586,525 1,358,831
Income on account of liquidated
damages/ penalty imposed on suppliers (9,949) 46,862 43,736 124,771
Others 25,263 263,320 163,905 554,839
11,018,353 9,233,973 27,269,502 27,737,820

19.1 This represents income recognized on account of signature bonus/ contract renewal fee in respect of allocation of LPG
quota. For contingency related to this matter refer note 8.1.3.

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

Note (Rupees '000)
20 TAXATION
Current tax- charge for the period
- for the period 28,791,054 24,183,676 67,374,436 56,344,065
- for prior years 16.5 (28,164,483) - (28,164,483) -
626,571 24,183,676 39,209,953 56,344,065
Deferred tax- (credit)/ charge for the period (2,743,995) (1,252,529) (4,190,548) 1,491,863
(2,117,424) 22,931,147 35,019,405 57,835,928

20.1 Various appeals in respect of assessment years 1992-93 to 2002-03, tax years 2003 to 2022 are pending at different
appellate forums in the light of the order of the Commissioner of Inland Revenue (Appeals) and decision of the Adjudicator,
appointed by both the Company as well as the Federal Board of Revenue (FBR) mainly on the issues of decommissioning
cost, depletion allowance, prospecting, exploration and development expenditure, tax rate, super tax and unrealized
exchange gain/ loss. Total amount of tax demand against the major issues, raised in respect of assessment years 1992-
93 to 2002-03 and tax years 2003 to 2022 amounts to Rs 137,511 million out of which an amount of Rs 127,716 million
has been paid to tax authorities and has also been provided for in the financial statements. Prospecting, exploration and
development expenditure and unrealized exchange gain/ loss are timing differences, hence, the relevant impacts are also
taken in deferred tax.

20.2 During the year ended 30 June 2021, tax authorities have raised demand of Rs 1,047 million for tax year 2013 (30 June
2023: Rs 1,047 million) on account of alleged issue of not offering consideration of sale of working interest in a block for
tax. Appeal has been filed by the Company before CIRA on 30 June 2021, which is currently pending adjudication.
Management is confident that the above demand does not hold any merit under the applicable tax laws. Accordingly, no
provision has been made in respect of these in these interim financial statements.

Half Yearly Report 2023-24 25

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

Three months ended 31 December Six months ended 31 December

2023 2022 2023 2022

21 EARNINGS PER SHARE-BASIC AND DILUTED
Profit for the period (Rupees '000) 74,258,412 41,709,132 123,296,016 95,011,671
Average number of shares outstanding
during the period ('000) 4,300,928 4,300,928 4,300,928 4,300,928
Earnings per share-basic (Rupees) 17.27 9.70 28.67 22.09

There is no dilutive effect on the earnings per share of the Company.

22 FAIR VALUE HIERARCHY

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Level 1 Level 2 Level 3

Financial assets measured at fair value
Other financial assets- NIT units

31 December 2023 344,699 - -

30 June 2023 299,830 - -

31 December
2023 2022
23 Cash and Cash Equivalents (Rupees '000)
Cash and bank balances 19,988,839 24,505,776
Investment in Term Deposit Receipts 101,882,540 61,669,802
121,871,379 86,175,578

24 RELATED PARTIES TRANSACTIONS

As explained in note 1, The Pakistan Sovereign Wealth Fund Act, 2023 became effective during the current period. Under
the said Act, the GoP's shareholding in the Company stands transferred to the PSWF. PSWF is owned and controlled by
Federal Government. Therefore, all entities owned and controlled by the Government of Pakistan are related parties of the
Company. Other related parties comprise associated companies, major shareholders, directors, companies with common
directorship, key management personnel, OGDCL employees empowerment trust, employees pension trust and gratuity
fund. The Company in normal course of business pays for airfare, electricity, telephone, gas, yield analysis required under
Petroleum Concession Agreements and make regulatory payments to entities controlled by the GoP which are not material,
hence not disclosed in these interim financial statements. Transactions with related parties other than disclosed below are
disclosed in relevant notes to these interim financial statements. Transactions of the Company with related parties and
balances outstanding at period end are as follows:

26 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

Six months ended 31 December

2023 2022
(Rupees '000)
MPCL- Associated company- 20% share holding of the
Company and common directorship

Share of profit in associate- net of taxation 7,500,904 4,722,392

Share of other comprehensive income of the associate- net of taxation 37,253 48,131
Dividend received 1,534,574 1,640,406
Expenditure charged (by)/ to joint operations partner- net (3,779,637) 997,409
Cash calls (paid)/ received from joint operations partner- net (2,951,171) 74,451
Share (various fields) payable as at 31 December 1,711,435 1,115,236
Share (various fields) receivable as at 31 December 467,815 296,643

PIOL- Associated company- 25% share holding

of the Company and common directorship

Investment made during the period 7,047,500 2,227,500

Share of loss in associate (122,778) (134,439)
Share of other comprehensive income (73,932) 229,698

PMPL- Associated company- 33.33% share holding

of the Company and common directorship

Investment made during the period 2,010,919 36,059,129

Share of loss in associate (1,105,925) -
Share of other comprehensive income (498,130) -

Major shareholders

Government of Pakistan (74.97% share holding)

Dividend paid 12,624,344 12,334,840
Dividend paid- Privatization Commission of Pakistan 1,402,704 1,370,458

OGDCL Employees' Empowerment Trust

(10.05% share holding)- note 7

Dividend withheld 38,926,031 35,295,643

Related parties by virtue of the GoP holdings

and/ or common directorship

Sui Northern Gas Pipelines Limited

Sale of natural gas 55,761,115 42,918,415
Trade debts as at 31 December 249,809,408 187,225,268

Pakistan State Oil Company Limited

Sale of liquefied petroleum gas 416,465 601,166
Purchase of petroleum, oil and lubricants 1,444,339 37,556
Payable as at 31 December 146,502 17,100
Advance against sale of LPG as at 31 December 163,185 105,485

Half Yearly Report 2023-24 27

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

RELATED PARTIES TRANSACTIONS - Continued Six months ended 31 December

2023 2022
Related parties by virtue of GoP holdings and /or common directorship
(Rupees '000)
Pakistan Petroleum Limited
Payable as at 31 December 206 -
Expenditure charged (by)/ to joint operations partner- net (60,582) (114,765)
Cash calls paid to joint operations partner- net (1,004,776) (27,162)
Share (various fields) receivable as at 31 December 2,627,618 1,634,180
Share (various fields) payable as at 31 December 2,690,778 1,928,292

Pak Arab Refinery Company Limited

Sale of crude oil 13,677,025 10,509,155
Trade debts as at 31 December 4,995,799 3,226,584

PARCO Pearl Gas (Private) Limited

Sale of liquefied petroleum gas 903,923 403,623
Advance against sale of LPG as at 31 December 73,361 69,719

Pakistan Refinery Limited

Sale of crude oil 6,963,869 6,261,878
Trade debts as at 31 December 6,286,634 2,984,828

Khyber Pakhtunkhwa Oil & Gas Company (KPOGCL)

Expenditure charged to joint operations partner 50,498 8,506
Cash calls received from joint operations partner 500,000 27,033
KPOGCL share (various fields) receivable as at 31 December 890,653 5,137
KPOGCL share (various fields) payable as at 31 December - 4,328
Signature bonus received - 755,798

Sindh Energy Holding Company Limited (SEHCL)

Expenditure charged to joint operations partner 287 438
SEHCL share (various fields) receivable as at 31 December 8,064 28,265

Sui Southern Gas Company Limited

Sale of natural gas 27,097,416 26,440,238
Sale of liquefied petroleum gas 696,635 529,607
Trade debts as at 31 December 235,355,607 196,998,808
Advance against sale of LPG as at 31 December 44,081 48,122

Sui Southern Gas Company LPG (Pvt) Limited

Sale of liquefied petroleum gas 174,871 267,062
Advance against sale of LPG as at 31 December 43,782 111,584

Government Holdings (Private) Limited (GHPL)

Expenditure charged to joint operations partner 3,932,558 1,653,510
Cash calls received from joint operations partner 2,453,564 1,819,999
GHPL share (various fields) receivable as at 31 December 4,417,337 2,828,455
GHPL share (various fields) payable as at 31 December 1,488,006 2,809,845

National Investment Trust

Investment as at 31 December 344,699 262,520
Dividend received 8,627 11,078

28 Oil & Gas Development Company Limited

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

RELATED PARTIES TRANSACTIONS - Continued

Six months ended 31 December
2023 2022
(Rupees '000)
National Bank of Pakistan
Balance at bank as at 31 December 1,034,744 6,128,690
Balance of investment in TDRs as at 31 December 75,871,228 22,711,757
Interest earned 4,181,276 874,824

Power Holding Limited (PHL)

Mark-up earned 10,050,976 6,292,186
Balance of past due principal repayment of TFCs as at 31 December 82,000,000 82,000,000
Balance of past due mark-up receivable on TFCs as at 31 December 83,258,444 64,986,822

National Insurance Company Limited

Insurance premium paid 957,161 654,526
Payable as at 31 December 1,972 -

National Logistic Cell

Crude transportation charges paid 778,962 509,055
Payable as at 31 December 610,872 398,110

Enar Petrotech Services Limited

Consultancy services 11,348 8,520

Enar Petroleum Refining Facility

Sale of crude oil 17,651,144 11,550,702
Trade debts as at 31 December 5,659,338 5,864,181

Other related parties

Contribution to pension fund 1,250,000 1,000,000
Contribution to gratuity fund 144,342 59,149
Remuneration including benefits and perquisites of key management personnel 689,905 358,159

25 DISCLOSURE REQUIREMENTS FOR ALL SHARES ISLAMIC INDEX

Following information has been disclosed as required under para 10 of Part-I of the Fourth Schedule to the Companies Act,
2017.

Description Explanation Rupees '000

Bank balances as at 31 December 2023 Placed under Shariah permissible arrangement 602,089

Return on bank deposits for the period

ended 31 December 2023 Placed under Shariah permissible arrangement 513,103

Revenue earned for the period ended 31

December 2023 Earned from Shariah compliant business 235,375,183

Relationship with banks having Islamic windows Meezan Bank Limited, Dubai Islamic Bank
& Faysal Bank Limited

Disclosures other than above are not applicable to the Company.

Half Yearly Report 2023-24 29

Notes to the Interim Financial Statements [unaudited]
For Six Months ended 31 December 2023

26 RISK MANAGEMENT

Financial risk management objectives and policies are consistent with that disclosed in the annual audited financial statements
for the year ended 30 June 2023.

27 NON ADJUSTING EVENT AFTER REPORTING DATE

27.1 The Board of Directors approved interim cash dividend at the rate of Rs 2.50 per share amounting to Rs 10,752 million in its
meeting held on 27 February 2024.

28 GENERAL
28.1 Figures have been rounded off to the nearest thousand of rupees, unless otherwise stated.

29 DATE OF AUTHORIZATION FOR ISSUE

These interim financial statements were authorized for issue on 27 February 2024 by the Board of Directors of the Company.

Chief Financial Officer Chief Executive Director

30 Oil & Gas Development Company Limited

Half Yearly Report 2023-24 31
32 Oil & Gas Development Company Limited
Half Yearly Report 2023-24 33
34 Oil & Gas Development Company Limited
Half Yearly Report 2023-24 35