The Hindu Business Line : ONGC moots new corporate structure

As per the proposal submitted to Petroleum Ministry, the ONGC Chairman will have a Vice-Chairman and Managing Director responsible for the firm's core exploration and production business and a similar set for its overseas businesses (ONGC Videsh Ltd).

New Delhi , Jan. 19

OIL and Natural Gas Corporation (ONGC) has suggested a new corporate structure to the Petroleum Ministry for the company, as it gears up to strengthen its presence in the hydrocarbon value chain.

"We have suggested to the Ministry of Petroleum and Natural Gas to appoint two Vice-Chairmen to manage domestic and overseas business," the ONGC Chairman and Managing Director, Mr Subir Raha, said.

Both the Vice Chairmen and Managing Director would have directors responsible for finance, exploration, projects and human resources reporting to them, he said.

Cutting workload: ONGC's subsidiary Mangalore Refinery and Petrochemicals Ltd willcontinue to have a Managing Director directly reporting to the Chairman. Sources said the proposed changes in the corporate structure was intended to bring down some of the workload of the Chairman, who is currently responsible for all domestic exploration and production, besides overseas and new area projects.

Further, the company proposes to set up a Corporate Executive Committee, similar to a board of directors, for business planning, resource allocation and management interface.

The committee will comprise a Chairman, two Vice-Chairmen and functional directors, besides a nominee director each from the Ministries of Petroleum and Finance and six independent directors.