Shell embarks on a performance improvement mission by merging business segments
UK-headquartered energy giant Shell has unveiled a simplified organisational structure and executive committee and directorate changes to enhance performance and position the firm for further growth.
Shell reported on Monday, 30 January 2023, that it was going to reduce the size of its executive committee (EC) from nine to seven members in “a decisive move designed to simplify the organisation further and improve performance as we deliver our Powering Progress strategy.”
These changes, which are expected to take effect on 1 July 2023, will see Shell’s Integrated Gas and Upstream businesses combined to form a new Integrated Gas and Upstream Directorate led by current Upstream Director, Zoe Yujnovich.
On the other hand, the Downstream business will be combined with Renewables & Energy Solutions to form a new Downstream and Renewables Directorate led by current Downstream Director, Huibert Vigeveno.
Wael Sawan, Shell’s Chief Executive Officer, remarked: “I’m making these changes as part of Shell’s natural, and continuous, evolution. Our core purpose is to provide energy to our customers, safely and profitably, while helping them, and us, to decarbonise.
“I believe that fewer interfaces mean greater cooperation, discipline and speed, enabling us to focus on strengthening performance across the businesses and generating strong returns for our investors.”
Moreover, the Strategy, Sustainability and Corporate Relations (SSCR) Directorate will be discontinued and its Director, Ed Daniels, will step down from the EC effective 1 July 2023, explained Shell while adding that Daniels will leave the company after that.
“We thank Ed for his distinguished service over more than 34 years and wish him well for the future,” said Shell in its statement.
Furthermore, Strategy will be brought together with New Business Development and, alongside Sustainability, will report directly to Sinead Gorman, Chief Financial Officer, “enabling more streamlined planning and better capital allocation decisions,” according to the oil major. In addition, Corporate Relations will report directly to Shell’s CEO.
“Shell is a great company and we’re changing to ensure we become a great investment too. Simplifying how the organisation works, in pursuit of higher performance, is critical to achieving that,” highlighted Sawan.
Regarding Shell’s other activities, it is worth noting that the oil major made a gas discovery recently in an exploration well in the North Sea, which was spudded using a Noble-owned rig.
A full well testing programme is underway to evaluate the commerciality of this prospect and update the geological model.