ONGC to restructure board on suggestions of McKinsey

26 Dec 2022 , 10:06 AM

According to sources, the Oil and Natural Gas Corporation (ONGC) Board of Directors is being revamped by merging two directorships into one and creating a new position of director for corporate affairs in an effort to inject new life into the state-owned conglomerate that is increasingly looking beyond oil and gas.

The ONGC Board of Directors currently consists of six directors representing exploration, onshore operations, offshore operations, finance, human resources, and technical and field services. It was previously led by a chairman and managing director.

The government appointed Arun Kumar Singh, the recently retired CEO of oil refining and fuel marketing company BPCL, as chairman of ONGC but not as its managing director earlier this month.

While this is the first time a 60-year-old retired person has been appointed as the CEO of a large state-owned corporation, the government has also initiated a board restructuring.

According to two sources familiar with the development, a new position of Director (Production) has been created by combining the positions of Director (Onshore), who oversees all onshore oil and gas fields, and Director (Offshore), who oversees all offshore assets such as the prime Mumbai High fields. A new Director (Strategy & Corporate Affairs) position has also been created.

After Director (Onshore) Anurag Sharma retires on February 28, 2023, the position of Director (Production) will take effect on March 1, 2023. Pankaj Kumar, Director, is the most likely candidate (Offshore).

According to sources, the idea behind the board revamp is to increase operational synergies and allow for more focused attention on oil and gas production with a single director responsible for all fields.

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