(TH)
With the Oil and Natural Gas Corporation keen on acquiring Hindustan Petroleum Corporation, the Centre will have every reason to be pleased. For one thing, the sale of its 51 per cent stake in HPCL will rake in ₹30,000 crore. It will also set in motion the process of creating an integrated oil company which was announced in the Budget earlier this year.
Yet, to assume that the new relationship between ONGC and HPCL will be all hunky-dory is wishful thinking. Both organisations have different work cultures and this will be a huge challenge when it comes to dealing with a combined workforce of over 50,000 people.With ONGC clearly in the lead as the acquirer, HPCL will take second place in the revised scheme of things. The Centre, will of course, continue to be the owner of this new entity, but ONGC could have a larger say in daily operations. This is where ego clashes can come into play, especially at the senior level which could be quite disruptive.
“HPCL’s corporate identity will be intact but greater authority will rest with ONGC in the overall scheme of things. Whether this will affect smooth working remains to be seen,” says an oil industry executive. On the face of it, there should ideally be no clash given that one company is focussed on exploration and production, while the other, HPCL, is in the downstream space of refining and marketing.
