56-year-old Sarraf, who is currently Managing Director of ONGC's overseas arm, ONGC Videsh Ltd, has been selected to replace the incumbent Sudhir Vasudeva in February end next year.
Government headhunter Public Enterprise Selection Board (PESB) selected Sarraf from among four candidates who appeared before it for interviews on Friday.
"PESB recommended the following name for the post of Chairman & Managing Director, ONGC Limited -- D K Sarraf," it said on its website.
The PESB recommendation will now go the Oil Ministry and once Oil Minister M Veerappa Moily concurs, CVC and CBI clearances will be sought.
Upon being cleared, Sarraf's candidature will then be forwarded to the Cabinet Committee on Appointments (ACC).
Sarraf was Director (Finance), ONGC before moving to OVL in September 2011.
With an experience of almost three decades, he transformed the company into an aggressive overseas firm, stitching 4 deals worth over USD 11 billion in the past one year.
Sarraf holds a Bachelor's degree and a Master's degree in Commerce from the University of Delhi. He is also a member of the Institute of Cost and Works Accountants of India and the Institute of Company Secretaries of India.
As head of ONGC, his immediate task would be to raise the stagnant oil and gas output and aggressively look for more reserves.
(With PTI inputs)