Shell announced a major reorganisation today, eliminating the gas and power division in the wake of the resignation of executive director Linda Cook announced yesterday. The restructuring comes with Peter Voser's promotion from finance director to chief executive on 1 July, the date on which the changes will become effective.
The major's upstream activities will now comprise two businesses, one covering North and South America, and one covering the rest of the world. Trading and alternative energy, excluding wind, will be part of an enlarged downstream division. A new Projects and Technology business unit will deal with project delivery upstream and downstream. Corporate functions will be spun out into the businesses or directors' offices.
The changes will increase accountability in the company and improve project delivery, Voser said. The modesty of Shell's production increase forecasts caused comment when it announced full-year results at the end of January.
Upstream Americas will be headed up by Marvin Odum, currently head of exploration and production in the Americas. Malcolm Brinded who, like Cook, had been in the running for the post of chief executive last year, will head up upstream activities in the rest of the world. Brinded currently heads global exploration and production but has no remit over LNG, power and oil sands. Mark Williams remains head of the expanded downstream business.
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