ONGC to create post of Director (Non-E&P)

Aiming to invest Rs 30,000 crore in non-core businesses like oil refining and LNG terminals, state-owned Oil and Natural Gas Corp (ONGC) will create a director-level post on the company board to deal with subject.
ONGC besides maintaining its leadership position in producing oil and gas in the country, has been investing selectively in non-E&P (exploration and production) business to grow triple its profit by 2030.
Non-E&P business is projected to give 30 per cent of the company's revenue by 2030 and the company feels this needs senior management attention and drive.
With this background in mind, ONGC is creating a post of Director (Non-E&P), company sources said.

In 2012-13, ONGC reported a net profit of Rs 20,926 crore on a turnover of Rs 82,552 crore, most of which came from sale of oil and gas.
ONGC currently has seven functional directors including the Chairman and Managing Director. These are Directors for Human Resources (K S Jamestin), Finance (A K Banerjee), Technical & Field Services (Shashi Shanker), Exploration (N K Verma), Offshore (T K Sengupta) and Onshore (vacant with Chairman D K Sarraf holding additional charge).

Besides, the board has two government directors and nine positions for independent directors.
Presently, ONGC's non-E&P portfolio comprising stake in Mangalore Refinery, a 726 MW power plant in Tripura, petrochemical unit in Gujarat and wind and solar projects come under Business Development and Joint Venture (BD&JV) Group which reports to Director (HR).

Sources said considering HR portfolio in itself heavy beat, the company is hiving off the BD&JV group to Director (Non-E&P).
Also, the size of current and future investments in Non-E&P portfolio warrants a distinct attention at senior most level given existing and upcoming operations of a very different technological landscape, they said.
ONGC's current non-E&P portfolio consists of refining and petrochemicals in downstream business through Mangalore Refineries & Petrochemical Ltd (15 million tons refinery), ONGC Petro Additions Ltd (1.1 million tons cracker), ONGC Mangalore Petrochemical Ltd (aromatic, para-xylene and benzene plants).
Besides, it has forayed into gas-based power generation though ONGC Tripura Power Company Ltd (726 MW), wind power portfolio through plants at Gujarat and Rajasthan (combined 150 MW), LNG through Mangalore terminal (2.5 million tons), 12.5 per cent stake in Petronet LNG Ltd and a proposed 2.5 million tons fertilisers plant.

ONGC plans to invest Rs 30,000 crore in scalling up refining capacity to 21 million tons and creating more capacities in petrochemicals sector besides owing 6.5 GW of power generation across wind, solar and nuclear.