ONGC rolls-out two new 'Hybrid' E&P 'Assets'

Vol 20, PW 17 (18 May 17) Exploration & Production

Not since 2001 when Subir Raha turned ONGC upside down with his McKinsey-driven structural reforms have we seen anything like it.

Over the next few months expect ONGC to roll-out a new E&P model approved by its executive committee (of full-time directors) in March to give middle-ranking general managers (GM) and group general managers (GGM) the power to convert discoveries into revenue streams. "This is a new concept," an excited VP Mahawar, ONGC director onshore tells us.

"Soon GMs and GGMs can commercialise discoveries fast; they will be empowered to sell oil and gas." ONGC wants to set up new 'Exploratory Asset' operational centres charged not only with exploration but also production and marketing. Until now ONGC has assiduously separated exploration from production with 'Asset' managers in charge of production and 'Basin' managers charged with exploration.

Soon after the March decision ONGC renamed its 'Rajasthan Forward Base' operation - earlier charged with exploration only - to the 'Jodhpur Exploratory Asset' responsible also with production and sales, making it also ONGC's first 'Asset' in Rajasthan. ONGC has also set up a new 'Cachar Exploratory Asset' carved out of the 'Jorhat (producing) Asset' in Assam.

"These forward bases or basins were earlier only meant to explore for hydrocarbons," adds Mahawar. "In four or five years we want them to become fully-functioning (producing) Assets." Middle-ranking GMs and GGMs, not higher rank Executive Directors (EDs), will head the new 'Exploratory Assets', said Mahawar.