Oil and Pure Fuel Company (ONGC) has acquired a brand new director to spearhead its new vitality, petrochemicals and company technique as a part of a board revamp geared toward respiratory contemporary life into the state-controlled behemoth. Arunangshu Sarkar has been appointed as Director for technique and company affairs, ONGC stated in a inventory alternate submitting.
Earlier than the elevation, Sarkar, a petroleum engineer from the Indian College of Mines, Dhanbad, was Group Normal Supervisor (Manufacturing) at ONGC. He had beforehand labored as Normal Supervisor (Technique & Company Planning), ONGC Videsh Ltd – the abroad funding arm of ONGC.
Two years again, the board of ONGC was reorganised. Apart from creating the brand new submit of Director (Technique & Company Affairs), the submit of Director (Manufacturing) was created after merging Director (Onshore), who’s in command of all oil and fuel fields positioned on land, and Director (Offshore) who takes care of all offshore property, such because the prime Mumbai Excessive fields.
Along with the submit of Director Manufacturing and Director Technique and Company Affairs, the opposite key directorial positions at ONGC embrace the exploration, finance, human assets and technical & subject providers divisions, with all segments reporting to ONGC Managing Director Arun Kumar Singh.
In response to an workplace order of July 2023, the brand new Director (Technique & Company Affairs) will likely be in command of joint ventures, downstream petrochemicals, new vitality (renewable, hydrogen and carbon seize), company technique, company advertising and marketing 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 below 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 Mission (OTP) recommended by consulting agency McKinsey.
Many of the current board-level positions have been created in 2001, below 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, in keeping with McKinsey’s suggestions, ONGC’s Director – Personnel was renamed Director HR, the Director – Operations turned Director – Offshore, Director – Technical turned Director – Onshore, whereas Director – Drilling turned Director – Expertise and Oilfield Providers.
The Exploration and Finance titles have been unchanged.
The second section of McKinsey’s suggestions is being applied now, sources stated, including that the corporate administration has been discussing the board-level revamp with the mum or dad administrative Ministry of Petroleum and Pure Fuel since mid-2021.
The place of Director (Analysis and Improvement) was additionally recommended, however this has not been applied but.
ONGC, in March 1997, initiated a undertaking for restructuring of the corporate in session with worldwide administration guide McKinsey and Firm Inc.
The consultants submitted their suggestions on the Organisation Transformation Mission (OTP) of ONGC to its administration in phases throughout the years 1997 to 1999.
The suggestions highlighted the necessity to have a better deal with ONGC’s core actions of discovering and producing oil and fuel, higher administration of expertise and experience in oil subject providers, better industrial and efficiency accountability and faster decision-making by decentralisation.
McKinsey had referred to as for the necessity for focussed consideration on structural modifications and likewise modifications in methods and procedures within the areas of exploration, reservoir administration, drilling, materials administration, logistics, human assets, budgeting and costing, efficiency administration methods, analysis and growth institutes and data providers.
Within the first a part of its report, McKinsey recommended that ONGC ought to deal with reserve accretion and growing 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 keep up its dominant place within the Indian oil sector.
From a practical view, McKinsey recommended 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 frequently led to fragmentation of efforts.
