New Delhi: Oil and Natural Gas Corporation (ONGC) has got a new director to head its new energy, power and natural gas policy. Petrochemicals And Corporate Strategy This is part of a board restructuring aimed at breathing new life into the state-controlled giant. Arunangshu Sarkar has been appointed as the Director of Strategy and Corporate Affairs, ONGC said in a stock exchange filing.
Prior to his promotion, Sarkar, a petroleum engineer from the Indian School of Mines, Dhanbad, was the group general manager (production) at ONGC. He had earlier worked as general manager (strategy and corporate planning) at ONGC Videsh Ltd, the overseas investment arm of ONGC.
ONGC’s board was reconstituted two years ago. Apart from the creation of a new post of Director (Strategy and Corporate Affairs), the post of Director (Onshore) was merged to create Director (Production), who is in charge of all functions. oil and gas A Director (Offshore) to look after all land-based offshore areas and a Director (Offshore) to look after all offshore assets, such as the flagship Mumbai High Fields, have been appointed.
Apart from the posts of Director Production and Director Strategy & Corporate Affairs, other key directorships at ONGC include Exploration, Finance, Human Resources and Technical & Field Services divisions, and all the segments report to ONGC Managing Director Arun Kumar Singh.
According to the office order dated July 2023, the new director (strategy and corporate affairs) will be in charge of joint ventures, downstream petrochemicals, new energy (renewables, hydrogen and carbon capture), corporate strategy, corporate marketing and legal affairs.
It said, “The present Corporate Strategy and Planning (CS&P) group will be bifurcated into two parts, namely, Corporate Planning and Corporate Strategy. Corporate Planning will continue to report to the Chairman, while the Corporate Strategy group will report to the Director (Strategy & Corporate Affairs).”
It said the Corporate Affairs Group under CS&P has been renamed as Ministry and Parliament Coordination Group and will report to the Chief Corporate Affairs.
This restructuring is being done on the lines of the Organization Transformation Project (OTP) suggested by consulting firm McKinsey.
Most of the current board-level posts were created under the McKinsey OTP scheme in 2001. McKinsey’s OTP was initiated in 2000 by then ONGC chairman and managing director Bikash Bora and was implemented despite opposition within the company by his successor (late) Subir Raha, who renamed the OTP as Corporate Turnaround Drive (CRC).
In 2001, in line with McKinsey’s recommendations, ONGC’s Director – Personnel was renamed as Director Human Resources, Director – Operations was renamed as Director – Offshore, Director – Technical was renamed as Director – Onshore, while Director – Drilling was renamed as Director – Technology and Oil Field Services.
The exploration and finance titles remained unchanged.
The second phase of McKinsey’s recommendations is now being implemented, sources said. They said the company management has been discussing the reform at the board level with the parent administrative Ministry of Petroleum and Natural Gas since mid-2021.
The post of Director (Research & Development) was also suggested, but has not been implemented yet.
In March 1997 ONGC initiated a project to restructure the company in consultation with international management consultancy McKinsey & Company Inc.
The consultants submitted their recommendations on the Organisation Transformation Project (OTP) of ONGC to the Management in a phased manner during the year 1997 to 1999.
The recommendations highlighted the need for greater focus on ONGC’s core activities of exploration and production of oil and gas, better management of skills and expertise in oilfield services, greater commercial and performance accountability and quick decision making through decentralisation.
McKinsey stressed the need to focus on structural changes and changes in systems and processes in the areas of exploration, reservoir management, drilling, materials management, logistics, human resources, budget and cost, performance management systems, research and development institutions, and information services.
In the first part of its report, McKinsey recommended that ONGC should focus on increasing reserves and production, promote organisational and individual accountability, and pursue commercial goals.
It had identified four critical areas – reserve accretion, commercial responsiveness, multi-disciplinary approach and overseas opportunities, that are essential for ONGC to maintain its dominant position in the market. Indian Oil Area.
From a functional perspective, McKinsey suggested that different departments work collaboratively with one another and pool talent and expertise from other departments.
Before 2001, ONGC had four departments – Drilling, Operations/Production, Technical, and Personnel and Accounts, which often led to fragmentation of efforts.
Prior to his promotion, Sarkar, a petroleum engineer from the Indian School of Mines, Dhanbad, was the group general manager (production) at ONGC. He had earlier worked as general manager (strategy and corporate planning) at ONGC Videsh Ltd, the overseas investment arm of ONGC.
ONGC’s board was reconstituted two years ago. Apart from the creation of a new post of Director (Strategy and Corporate Affairs), the post of Director (Onshore) was merged to create Director (Production), who is in charge of all functions. oil and gas A Director (Offshore) to look after all land-based offshore areas and a Director (Offshore) to look after all offshore assets, such as the flagship Mumbai High Fields, have been appointed.
Apart from the posts of Director Production and Director Strategy & Corporate Affairs, other key directorships at ONGC include Exploration, Finance, Human Resources and Technical & Field Services divisions, and all the segments report to ONGC Managing Director Arun Kumar Singh.
According to the office order dated July 2023, the new director (strategy and corporate affairs) will be in charge of joint ventures, downstream petrochemicals, new energy (renewables, hydrogen and carbon capture), corporate strategy, corporate marketing and legal affairs.
It said, “The present Corporate Strategy and Planning (CS&P) group will be bifurcated into two parts, namely, Corporate Planning and Corporate Strategy. Corporate Planning will continue to report to the Chairman, while the Corporate Strategy group will report to the Director (Strategy & Corporate Affairs).”
It said the Corporate Affairs Group under CS&P has been renamed as Ministry and Parliament Coordination Group and will report to the Chief Corporate Affairs.
This restructuring is being done on the lines of the Organization Transformation Project (OTP) suggested by consulting firm McKinsey.
Most of the current board-level posts were created under the McKinsey OTP scheme in 2001. McKinsey’s OTP was initiated in 2000 by then ONGC chairman and managing director Bikash Bora and was implemented despite opposition within the company by his successor (late) Subir Raha, who renamed the OTP as Corporate Turnaround Drive (CRC).
In 2001, in line with McKinsey’s recommendations, ONGC’s Director – Personnel was renamed as Director Human Resources, Director – Operations was renamed as Director – Offshore, Director – Technical was renamed as Director – Onshore, while Director – Drilling was renamed as Director – Technology and Oil Field Services.
The exploration and finance titles remained unchanged.
The second phase of McKinsey’s recommendations is now being implemented, sources said. They said the company management has been discussing the reform at the board level with the parent administrative Ministry of Petroleum and Natural Gas since mid-2021.
The post of Director (Research & Development) was also suggested, but has not been implemented yet.
In March 1997 ONGC initiated a project to restructure the company in consultation with international management consultancy McKinsey & Company Inc.
The consultants submitted their recommendations on the Organisation Transformation Project (OTP) of ONGC to the Management in a phased manner during the year 1997 to 1999.
The recommendations highlighted the need for greater focus on ONGC’s core activities of exploration and production of oil and gas, better management of skills and expertise in oilfield services, greater commercial and performance accountability and quick decision making through decentralisation.
McKinsey stressed the need to focus on structural changes and changes in systems and processes in the areas of exploration, reservoir management, drilling, materials management, logistics, human resources, budget and cost, performance management systems, research and development institutions, and information services.
In the first part of its report, McKinsey recommended that ONGC should focus on increasing reserves and production, promote organisational and individual accountability, and pursue commercial goals.
It had identified four critical areas – reserve accretion, commercial responsiveness, multi-disciplinary approach and overseas opportunities, that are essential for ONGC to maintain its dominant position in the market. Indian Oil Area.
From a functional perspective, McKinsey suggested that different departments work collaboratively with one another and pool talent and expertise from other departments.
Before 2001, ONGC had four departments – Drilling, Operations/Production, Technical, and Personnel and Accounts, which often led to fragmentation of efforts.
