January 31, 2023: Shell is mixing its oil and gas production and liquefied raw gas (LNG) divisions as part of CEO Wael Sawan’s initial differences since the charging of the energy company in the initial month.
The new division combining Shell’s most profitable is being operated will be headed by current upstream director Zoe Yujnovich, Shell stated in a statement.
Sawan took office on January 1 following heading Shell’s integrated gas division, including Shell’s LNG and renewables agreements, with a vow to simplify and improve the firm’s operations.
Under the internal restructuring, the company said renewables operations would be combined with Shell’s oil refining and marketing operations, led by current downstream director Huibert Vigevano.
“Fewer interfaces mean cooperation, discipline and speed, enabling us to focus on strengthening performance all over the businesses and which generates strong returns for our investors,” Sawan stated.
Shell underwent a significant overhaul in the wake of the coronavirus pandemic in 2020, seeing then-CEO Ben van Beurden slashing over 10% of the firm’s workforce as part of his push to steer the company towards the energy changes.
The recent overhaul will see Shell decrease the size of its administrative committee to seven from nine members to “simplify the organisation further and improve performance”.
Shell’s strategy calls for cutting greenhouse gas emissions and building a sizeable low-carbon business.
On Tuesday, the organisation reports its 2022 full-year results.