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Pratim Ranjan Bose

To improve production efficiency, check flight of human capital

Kolkata March 28 ONGC is considering floating an exploration service subsidiary for taking up overseas projects for ONGC Videsh Ltd (OVL). The new company is likely to be run by ONGC's existing manpower in exploration and production.

Apart from ensuring higher revenues for the group, the proposal - which will soon be placed before the committee of executive directors of ONGC - is aimed at improving the company's efficiency in exploration and production at home and also check flight of human capital.

ONGC has roughly 6,000 experienced employees engaged in exploration, drilling, production engineering and other related services.

OVL, which is pursuing an aggressive acquisition policy abroad and is operating in a number of blocks and producing fields, often hires such services from other sources.

According to sources, while ONGC's vast pool of human resource often earns admiration of rival companies and is subjected to very high incidence of poaching, the company's productivity continues to suffer.

"The same set of employees who drill four wells for ONGC in India are found drilling four wells with the same rig while working for some other employer abroad," a senior company official told Business Line.

Tapping resources

To solve the problem, ONGC is now planning more gainful use of its employees' talents in highly profitable overseas projects while at home it would rely more on outsourcing.

"Ideally it is a win-win situation for all.

"The employees will have the opportunity of earning in dollars while being in the same group.

"Apart from an increase in profitability owing to more productive use of its existing human resources, the proposed move will make our E&P activity in India less costly, more focused and accountable," the official said.

According to him, the company plans to outsource a lion's share of exploration services in India.

More Stories on : Overseas Investments | Petroleum | Oil & Natural Gas Corporation Ltd

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