The Hindu Business Line : ONGC set to unveil new exploration strategy

Oil and Natural Gas Corp (ONGC), the country's largest oil producer, which has been facing flak for decline in its exploration and production (E&P) activities, is expected to unveil its revamped exploration strategy on Monday.

Sources told Business Line that under the new structure, each acreage of the company would be considered as a discreet virtual company or a strategic business unit.

The concept

Elaborating on the concept, sources said the top management of the company felt that grass-root level awareness needs to be strengthened in the new structure and even executives down the line need to be empowered to take decisions. Once the new structure is implemented, each acreage manager will work as a CEO of the E&P block with financial and administrative powers. Each acreage manager will have two to four exploration personnel working with him. The acreage manager and his team would be answerable to a block manager, who would be responsible for monitoring the number of acreages decided by the Director (Exploration) of ONGC.

The block manager would do the data integration and would be reporting to a basin manager, who would be responsible for the entire basin, allocate budget for development work, monitor the acreage, and also coordinate with the corporate head office. The basin manager would be answerable to the Director (Exploration).

Fresh approach

"With growing competition in the E&P activities as more and more private sector players are entering the sector, the company felt that time-bound compliance of work commitment for exploration activities was necessary and hence a fresh approach had been adopted for the segment," sources said.

By adopting this new structure, the company hopes to have a more transparent and result-oriented E&P set up. The Petroleum Ministry has, time and again, voiced concern on ONGC's E&P activities, which is the core business of the company. The Ministry at the company's business plan review meeting had asked ONGC to focus more on its core competency. The company has over 150 exploration acreages under it in the country's all seven producing basins.

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