The Hindu Business Line : ONGC to embark on corporate revamp

Kolkata, Nov.29 ONGC is stepping into another phase of corporate restructuring shortly. The aim is to establish a fast and an efficient decision making process, as suggested by McKinsey.

Initiated a few years ago, the company has already restructured its operations by distinctly splitting the responsibilities of production, exploration and services (like drilling, logistics and others). Even in exploration, separate teams were created for oil and gas and coal-bed methane (CBM) exploration. Direct links were established between all the regional heads of different responsibilities with the top most management.

According to sources, in the recently concluded key executives meet at Dehradun, ONGC has decided to further de-layer the operations by creating a number of installations managers under each (production) Asset manager. Each installation manager is empowered to directly approach the concerned director and vice-versa for efficient decision-making.

While it was previously decided to create roughly 250 acreage managers each responsible for exploring hydrocarbon in a particular acreage with similar empowerment as installation managers, the company has now cleared all roadblocks and created the final blueprint for immediate implementation of the same.

Service areas

The services areas are integrated to ensure time bound implementation of the projects. To make each such department accountable for the success or failure of a particular production or exploration project, inter-department “service contract” will henceforth be made mandatory for all future projects.

“For example the drilling team head may have to enter into a service contract with the Acreage manager before starting the drilling campaign,” an ONGC source said.

To ensure de-layering the organisation, ONGC has decided to increase the financial empowerment of its mid level managers and department heads. The final blueprint of financial empowerment is yet to be circulated.

CBM project commenced

Meanwhile, ONGC has began the Rs 900-crore development drilling for coal bed methane in Jharia and Bokaro region. The first (of the 14 well-drilling programme) was spudded on Wednesday. The project was delayed by years due to land acquisition problems.

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

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