Oil and Pure Fuel Company (ONGC) has bought a brand new director to spearhead its new power, petrochemicals and company technique as a part of a board revamp aimed toward respiratory recent life into the state-controlled behemoth. Arunangshu Sarkar has been appointed as Director for technique and company affairs, ONGC stated in a inventory change submitting.
Earlier than the elevation, Sarkar, a petroleum engineer from the Indian College of Mines, Dhanbad, was Group Common Supervisor (Manufacturing) at ONGC. He had beforehand labored as Common Supervisor (Technique & Company Planning), ONGC Videsh Ltd – the abroad funding arm of ONGC.
Two years again, the board of ONGC was reorganised. Moreover creating the brand new publish of Director (Technique & Company Affairs), the publish of Director (Manufacturing) was created after merging Director (Onshore), who’s in control of all oil and gasoline fields situated on land, and Director (Offshore) who takes care of all offshore property, such because the prime Mumbai Excessive fields.
Along with the publish of Director Manufacturing and Director Technique and Company Affairs, the opposite key directorial positions at ONGC embrace the exploration, finance, human sources and technical & area providers divisions, with all segments reporting to ONGC Managing Director Arun Kumar Singh.
In keeping with an workplace order of July 2023, the brand new Director (Technique & Company Affairs) will likely be in control of joint ventures, downstream petrochemicals, new power (renewable, hydrogen and carbon seize), company technique, company advertising and authorized.
“Current company technique and planning (CS&P) group (will) be cut up into two verticals viz company planning and company technique. Company planning would proceed to report back to the chairman, whereas the company technique group would report back to the director (technique and company affairs),” it stated.
The company affairs group underneath CS&P has been renamed because the ministry and parliament coordination group and can report back to chief company planning, it added.
The revamp is on the traces of the Organisation Transformation Challenge (OTP) advised by consulting agency McKinsey.
Many of the current board-level positions had been created in 2001, underneath a McKinsey OTP plan. McKinsey’s OTP was initiated in 2000 by then ONGC chairman and managing director Bikash Bora and applied regardless of resistance from throughout the firm by his successor (late) Subir Raha, who renamed OTP because the Company Rejuvenation Marketing campaign (CRC).
In 2001, consistent with McKinsey’s suggestions, ONGC’s Director – Personnel was renamed Director HR, the Director – Operations grew to become Director – Offshore, Director – Technical grew to become Director – Onshore, whereas Director – Drilling grew to become Director – Expertise and Oilfield Providers.
The Exploration and Finance titles had been unchanged.
The second part of McKinsey’s suggestions is being applied now, sources stated, including that the corporate administration has been discussing the board-level revamp with the father or mother administrative Ministry of Petroleum and Pure Fuel since mid-2021.
The place of Director (Analysis and Improvement) was additionally advised, however this has not been applied but.
ONGC, in March 1997, initiated a venture for restructuring of the corporate in session with worldwide administration advisor McKinsey and Firm Inc.
The consultants submitted their suggestions on the Organisation Transformation Challenge (OTP) of ONGC to its administration in phases in the course of the years 1997 to 1999.
The suggestions highlighted the necessity to have a higher deal with ONGC’s core actions of discovering and producing oil and gasoline, higher administration of expertise and experience in oil area providers, higher industrial and efficiency accountability and faster decision-making by decentralisation.
McKinsey had referred to as for the necessity for focussed consideration on structural adjustments and in addition adjustments in programs and procedures within the areas of exploration, reservoir administration, drilling, materials administration, logistics, human sources, budgeting and costing, efficiency administration programs, analysis and improvement institutes and data providers.
Within the first a part of its report, McKinsey advised that ONGC ought to deal with reserve accretion and rising output, promote organisational and particular person accountability and performance with industrial objectives uppermost in thoughts.
It had recognized 4 thrust areas — reserve accretion, industrial accountability, multi-disciplinary approaches and abroad alternatives important for ONGC to take care of its dominant place within the Indian oil sector.
From a purposeful view, McKinsey advised that completely different departments function in a cross-functional method, pooling expertise and experience from different departments.
ONGC in pre-2001 had 4 departments — drilling, operation/manufacturing, technical, and private and accounts, which regularly led to fragmentation of efforts.