Pressure and opportunity

The government appointed AK Hazarika as CMD of Oil and Natural Gas Corporation (ONGC) with effect from 1 February 2011 for a period of three months on ad hoc basis. He will also hold additional charge of Director (Exploration). Even as the ministry is dragging its feet on the appointment of a full-time chairman, ONGC is expected to float its Rs 11,000 crore FPO on 15 March. To add to his woes, ONGC has lost its coveted Navratna status, and with it, the accompanying financial autonomy in a rush to launch the Rs 11,500 crore share sale. So the pressure to perform as the corporation’s brand is in full force. But so is the opportunity to prove he’s the man.

The pressure is greater because of the situation in Libya and Bahrain. ONGC does not believe that the geopolitical tension will impact investment sentiment in the sector. Even though its subsidy sharing burden will increase, as crude prices have breached a two-and-a-half year highs, ONGC said that it has not been flagged off as a concern by investors.

Even as ONGC seeks a foreign strategic partner to jointly bid for blocks, currently on offer under NELP IX, Hazarika says that ONGC needs technology access than money: “We are also trying to look for companies who have some experience in technology in deep water exploration business as we have many blocks in deep water.”

Hazarika has been working with ONGC as Director (Onshore) and he will replace RS Sharma, who retired. Hazarika is a graduate in Mechanical engineering from Assam Engineering College, Guwahati.