MUMBAI: State-run energy major Oil and Natural Gas Corporation (ONGC) is close to filling two key senior management positions as the Public Enterprises Selection Board ( PESB) has recommended names of PK Borthakur – executive director and asset chief, Mumbai High – for the post of director (offshore), and AK Banerjee – group general manager, finance – for the post of director-finance.
These posts have been vacant for around six months now as the erstwhile director (offshore) Sudhir Vasudeva was elevated to the post of chairman in October 2011, and DK Saraff, who was earlier holding the position of director (finance), became the managing director of ONGC Videsh – the foreign exploration arm of ONGC – in September 2011.
“The PSEB has empanelled both Borthakur and Banerjee for the position of director offshore and director finance. These names will now be sent to the petroleum ministry, which will get all the necessary clearances like CVC, etc” said a source close to the company.
After finishing all the formalities, the ministry will send its recommendations to the department of personnel and training and then the Prime Minister’s Office will grant the final approval. The entire process could take another 1-2 months.
Both Borthakur and Banerjee have spent 30 years in ONGC, and now have a job on their hands as the company is going through tough times, especially because of the lack of clarity on the subsidy-sharing mechanism.
The subsidy-sharing proportion of upstream oil companies for the nine months ended December 2011 was raised to 38% from 33% for the half-year ended September. This pushed up the subsidy share in the December quarter to 47%, or 15,261 crore. ONGC’s subsidy burden in the December quarter stood at 12,536 crore.
Higher subsidy affected the company’s net realisation for the December quarter, which fell to $44.96 (around 2,208 on Wednesday) per barrel from as high as $83.01 in the September quarter and $64.79 in the same period last year.
ONGC is also struggling to boost production in its key offshore assets in the Krishna-Godavri basin. It started production in its GS 15 block in KG basin in a small way in August last year producing about 2,000 barrels of oil per day and 0.18 cubic metres of gas.
But, the entire project that covers a larger area including some deeper blocks requires huge investments. So, it has invited global energy majors to invest in these blocks but is yet to find a suitable fit.