A major reorganisation that will affect the three affiliates of the Royal Dutch Shell is to be announce soon. THISDAY learnt that the exercise will see Shell Development Company Limited (SPDC), Shell Exploration and Production Africa Limited (SEPA) and Shell Nigeria Exploration and Production Company Limited (SNEPCO) function as separate entities.
Confirming the planned changes in a statement yesterday, the oil giant said, it is aimed at increasing efficiency as well as save cost. Shell said the planned retructuring has been conveyed to its staff and numerous stakeholders.
It added that “the intent is to improve efficiency and reduce costs, taking advantage of synergies between companies and eliminating duplication, under a project called ‘One Shell”. “Under One Shell, there will, for example, be one Production organisation, one Development organisation, one Projects organisation, in addition to the sharing of support services” the company said.
Commenting on the intending changes, Basil Omiyi, the Country Chairman and Managing Director s aid: “We are operating in an extremely difficult environment where levels of production have been severely curtailed by the security situation for some time, where there is significant upward pressure on costs and where funding issues are having an impact on our operations.
Underthese circumstances we must take action in order toreduce costs, increase efficiencies and maintain arobust upstream business in the interests of bothShell, our partners and Nigeria in general.””SEPA, SPDC and SNEPCO will continue to discharge allof their respective corporate and contractualobligations as fully functioning separate legalentities. Management of the business affairs of thecompanies will remain vested in their respectiveBoards. “Shell remains committed to Nigerianization at alllevels. Details of the reorganization are yet to befinalized and will be discussed with partners and allrelevant stakeholders, including staff and unions,before final decisions and official announcements aremade”he said.
Source: This Day