McKinsey proposes changes to ONGCآ’s board

Vol 3, PW 19 (13 Oct 99) Exploration & Production
     

A number of changes are expected to come into force on the board of ONGC, in response to reforms proposed by consultants McKinsey.

Chairman Bikash Bora has written to the Ministry of Petroleum & Natural Gas with a proposal seeking permission to abolish the posts of Director Operations (currently held by AS Soni) and Director Technical (presently held by RC Gourh) as part of an organisational restructuring programme. It is understood that Bora proposes to replace these two posts with the new position of Director Operations (Onshore) and Director Operations (Offshore).

This report learns Boras proposal stems from a detailed report compiled by McKinsey which continues its programme of structural reform at ONGC. The idea, it appears, is to restructure ONGC, "so it can better meet the challenges of a deregulated oil and gas sector", scheduled to come into force on 31st March 2002.

A source at ONGC tells this report that if the government accepts the proposal, the organisation will revert to a "pre-1984 situation when we had separate positions for onshore and offshore operations". Meanwhile, Petrowatch learns that ONGC Director Operations AS Soni has been given the additional charge of Director Exploration to replace TK Gopalaswamy who formally left his post on 30th September.

It is understood Gopalaswamy has another two years in his post before reaching the official ONGC retirement age of 60 but preferred to take early retirement. Gopalaswamy's future plans are not yet known.

First indications are that he plans to settle down to a retired life in his native city of Madras. Soni, meanwhile, is scheduled to retire in July 2000.