New Delhi: Aiming to become a 100-billion-Dollar integrated oil and gas major in 5 years, State-run Oil and Natural Gas Corp (ONGC) has proposed setting up of seven non-Government firms to manage its marketing, well drilling, LNG (Liquefied Natural Gas), logistics, shipping and petrochemical businesses under a new corporate structure.

In all the seven joint ventures, ONGC will have 50 per cent stake and the remaining would be offered to financial institutions and a strategic partner specialising that particular business, the company said in a presentation to the Petroleum Ministry.

ONGC says forced separation of regular manpower was not possible and competent and experienced professionals could not be attracted by PSU (Public Sector Undertaking) pay structure at middle or senior management levels.

"The only practical solution is to form JVs as non-Government companies for specific purposes," the company said identifying non-core activities with profit potential and new business requiring specialisations as areas for forming non-Government companies.

ONGC proposes change in the organisation structure. ONGC chairman will have a vice chairman (VC) and managing director (MD) responsible for the firm's core business that is exploration and production and another vice chairman and managing director for its overseas businesses (essentially ONGC Videsh Ltd).

While the non-Government firms will be managed by separate managing directors, both the VC&MD will have a host of presidents responsible for finance, exploration, projects and human resources reporting to them.