Shell will combine its oil and gas production and liquefied natural gas (LNG) divisions as part of broader changes under new CEO Wael Sawan, in a move the company has said could result in some job cuts.
The new division, which combines Shell’s most profitable operations, will be headed by current upstream director Zoe Yujnovich, the company said in a statement on Monday (30).
Sawan took over on January 1 after leading Shell’s integrated gas business, which included the group’s LNG and renewables businesses, with a promise to streamline and improve the company’s operations.
Under the internal restructuring, renewables operations will be combined with Shell’s oil refining and marketing operations, led by current downstream director Huibert Vigeveno, the company said.
The reform will reduce the size of Shell’s executive committee from nine members to seven in an effort to “further streamline the organization and improve performance”.
The changes could result in “relatively limited” job cuts across the company, a spokesperson said.
Shell last underwent a major restructuring after the coronavirus pandemic in 2020, when then-CEO Ben van Beurden cut more than 10% of the company’s workforce as part of his push to steer the company towards an energy transition. .
“Fewer interfaces mean greater cooperation, discipline and speed, allowing us to focus on strengthening performance across all businesses and generating strong returns for our investors,” Sawan said in the statement.
The changes will take effect on July 1st.
Shell’s strategy calls for cutting its greenhouse gas emissions and building a big low-carbon business.
The company releases its full-year 2022 results on Thursday.
Source: CNN Brasil
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