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Is it time for Sashi Mukandan to go?
Feb 14:
Sashi Mukundan, BP's India E&P boss since 2007, is well connected in his home country. He is close to the powers-that-be in New Delhi, and he has a good personal working relationship with his JV partner Mukesh Ambani. He has, no doubt, pushed BP's interest in India as hard has he could
8But Mukandan is also someone who has caused BP a lot of grief. He could be ranked among only a handful of BP's top managers in its history to have overseen the destruction of investment value of a very large magnitude. On an investment of perhaps up to $10 billion on RIL's E&P assets, he has made no return. And it is unlikely that the money will ever come back.
8What was BP's loss was RIL's gain, and the money from BP helped RIL build one of the world's largest telecom empires.
8The recent decision to sink in another $5 billion in the RIL-BP E&P asset in the east coast (of which BP will only pay its JV share) will provide for lackluster return in the face of low global gas prices. The RIL-BP foray into retailing has an uncertain future in the face of emerging technological changes in the market as well as regulatory constraints, and at a time when the Ambais' iinterest in the oil & gas sector is on the wane.
8WIth many years behind him in India, Mukandam has little to show in terms of success. By any yardstick, he has not been able to deliver results. In all these years, he has inextractably hitched BP's fortunes with RIL, thereby not allowing his company to look for more creative ways of venturing forth in India.
8When managers stay too long in one posting, there is a lack of fresh perspective. Ennui sets in.
8With his boss and mentor, BP's CEO Bob Dudley, gone, and a new team, which speaks a different language, in place at the head office, is it time for Mukundam to say goodbye to India?
Click on Details for more
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8But Mukandan is also someone who has caused BP a lot of grief. He could be ranked among only a handful of BP's top managers in its history to have overseen the destruction of investment value of a very large magnitude. On an investment of perhaps up to $10 billion on RIL's E&P assets, he has made no return. And it is unlikely that the money will ever come back.
8What was BP's loss was RIL's gain, and the money from BP helped RIL build one of the world's largest telecom empires.
8The recent decision to sink in another $5 billion in the RIL-BP E&P asset in the east coast (of which BP will only pay its JV share) will provide for lackluster return in the face of low global gas prices. The RIL-BP foray into retailing has an uncertain future in the face of emerging technological changes in the market as well as regulatory constraints, and at a time when the Ambais' iinterest in the oil & gas sector is on the wane.
8WIth many years behind him in India, Mukandam has little to show in terms of success. By any yardstick, he has not been able to deliver results. In all these years, he has inextractably hitched BP's fortunes with RIL, thereby not allowing his company to look for more creative ways of venturing forth in India.
8When managers stay too long in one posting, there is a lack of fresh perspective. Ennui sets in.
8With his boss and mentor, BP's CEO Bob Dudley, gone, and a new team, which speaks a different language, in place at the head office, is it time for Mukundam to say goodbye to India?
Click on Details for more
