Case study: Management Appraisal at Attock Refinery LimitedQuantitative dataThe initial capacity of Attock refinery was 2,500 barrels per day(bpd).The paid up capital of the company was Rs 80 million.The new plants with a capacity of 5,500 bpd were commissioned in 1940.The investment increased to Rs 291.6 millionTwo new crude distillation units with a refining capacity of 25000 bpd were installed in 1980.ARL had replaced an old 5,000 bpd heavy crude unit with one of 10,000 bpd.A catalytic reformer of 5000 bpd had also been added for the production of low lead premium motor gasoline.The up-gradation project had estimated cost of Rs 2.696 billion.It processed 35000 barrels of crude per day and 150,000 tons per annum of paving grade.The organization had 8 departments. There were 155 employees in the management staff and 550 in the non-management staff. 60% out of 155 management staff has acquired engineering education, 2% had management and accounting background and 36% had degrees in general education.The minimum return guaranteed by the government to the oil refineries was 10% net of taxes on issued capital.Returns over 40% were skimmed by the government.The petroleum policy removed the 40% limit on return if surplus percentage was to be used for development and expansion plans.Parco is setting up a refinery in multan with a capacity of 100000 bpd.The appraisal process consists of five steps and use 5 point scale.The employee was assessed against 32 performance dimensions.There are two types of increments. The normal increment is 5% and merit increment is 2.5%Qualitative factsThe attock refinery was set up under Morgah in 1922. It was incorporated as a private limited company in November 1978 to take over the business of Attock Oil Company (AOC) and subsequently converted to a public limited company in June 1979. Presently, it is quoted on three stock exchanges of Pakistan.Some of the unsafe and old units were closed to streamline the operations. Prior to this ARL was producing only regular grade gasoline. Both units were equipped with the latest distributed control system for controlling of plant operations.The refinery production depended on crude available in north and south regions which was capable of refining all types of light and heavy crude produced in the Potohar area. Southern crude from Badin block was also processed at ARL.The company produced wide range of petroleum products which includes:
Liquefied petroleum gas
Low lead premium motor gasoline
High speed diesel
Diesel fuel oil
Furnace fuel oil
Jute batching oil
Petroleum industryOil refining in Pakistan is a government regulated industry and there was indications that the government would further liberalize the oil and gas sector to attract foreign investment.The petroleum industry in Pakistan was facing a strategic shift due to internal and external environment specifically due to deregulation of the industry...