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Sarraf big candidate to become next ONGC boss

02nd September 2013

ONGC receives recommendation from government headhunter to appoint Dinesh K Sarraf as next chief

Sarraf big candidate to become next ONGC boss
ONGC is looking to maintain its high overseas energy acquisitions whilst increasing oil and gas production from domestic fields

The Indian government’s headhunter organisation, the Public Enterprises Selection Board on Friday filed a recommendation for Dinesh K Sarraf to succeed Sudhir Vasudeva as next chief of national oil and gas company ONGC, national publications Times of India and The Hindu reported.

 

ONGC has been criticised of late by the country’s Comptroller and Auditor General (CAG) for lagging behind E&P goals, inefficient operations and not meeting expectations for drilling projects.

 

As ONGC chairman, Sarraf’s main task would be to maintain high overseas energy acquisitions, increase oil and gas production from domestic fields and quickly bring to production discoveries that are running behind schedule.

 

Sarraf, 56, was director of finance at ONGC before becoming responsible for the company’s overseas investments, in which capacity he pushed for acquisitions worth over USD 11bn last year against the company's total of USD 17bn foreign investments until 2011.

 

Last week, Sarraf arranged for ONGC to acquire US energy major Anadarko Petroleum Corporation's 10 per cent stake in a giant Mozambique gas field for USD 2.64bn. In June, he concluded a USD 2.4bn transaction to buy Videocon's 10 per cent stake in the same field. The field may hold as much as 65 trillion cubic feet of gas reserves.

 

ONGC is a company with USD 6-7bn annual expenditure. It produces around 72 per cent of India’s crude oil, a figure equal to 30 per cent of the country’s total demand, according to 2010 data from The Economic Times.