ONGC to centralise procurement from Jan. 1

Vol 26, PW 24 (16 Nov 23) People & Policy

ONGC chairman Arun Singh continues to shake up the company's organisational structure and centralise power.

From January 1 (2024), ONGC will have a new department: the Central Procurement Department (CPD) headquartered in Delhi, which will manage all procurement. On November 1 (2023), executive director Sandeep Gupta released a notice detailing the executive committee's decision to bring in the new structure.

Gupta was chief of materials management services earlier but now has the newly created Chief Procurement Officer (CPO) designation. Under him will be nine groups: four in Mumbai and five in Delhi.

In Mumbai, procurement will be handled through the Central LSTK Procurement Group, the Central Drilling & Well Services Procurement, Central Logistics & Production Services Procurement and the Central RC (Rate Contracts) & Empanelment Procurement Group. In Delhi, the five groups are the Central Materials Procurement Group, the Central Exploration Services Procurement Group, the Central Digital IT Procurement Group, the Central Civil Works Procurement Group and the Central Finance Group.

Gupta's notice includes a detailed organisational chart showing which departments will report to Delhi and which ones to Mumbai. For instance, the Onshore Services Group (ONSG) and Offshore Services Group (OFSG) will report to Mumbai for rig hires, directional drilling, well and well stimulation, and cementing services.

Technical Services will report to Delhi and handle buying onland drilling and workover rigs or hi-tech drilling tools currently procured by ONSG. Onshore workover rig hiring or operations and maintenance services procurement will be done by corporate well services in Delhi from January 2024 instead of by ONSG.