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IPsec uses ISAKMP + OAKLEY + SKEME right? This is strange but even after checking the RFC of OAKLEY, i couldnt find what it basically stands for? Can someone please point me to the right direction or answer me here?

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IPsec uses ISAKMP + OAKLEY + SKEME right?

Current IPsec implementations actually use IKEv2. But its predecessor, IKEv1, was based on these protocols. The introduction of RFC 2409 (IKEv1) puts it this way:

This document describes a protocol using part of Oakley and part of SKEME in conjunction with ISAKMP to obtain authenticated keying material for use with ISAKMP, and for other security associations such as AH and ESP for the IETF IPsec DOI.

As to your question what OAKLEY stands for: The author, Hilarie Orman, originally wrote it as Oakley in her first draft, which indicates that it might not have been an acronym. Instead the protocol was apparently named after Annie Oakley, which she explained as follows (responding to someone from China asking the same question):

Orman-Authenticated-Key-Exchange = OAKE Pronounced as "Oak-E" it sounds like a derogatory regional term in the USA. That was not acceptable, so it had to change slightly.

Therefore, it became "Oakley" as in "Annie Oakley" the name of a female rodeo performer in the early American West. Because I am a woman, and because Annie Oakley was a woman renowned for her excellence in activities that were usually done by men, and because the IETF is mostly men, I thought that the name was an amusing.

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