1. Orientate and move organization closer to markets
2. Decentralize and speed up decision-making process
3. Establish direct responsibility for managers to earnings
4. Increase efficiency and reduce weight of corporate areas
The new organization emphasizes the company's major managerial priorities: the business areas of Exploration, Production and LNG (Upstream), and those of Refining, Marketing, Chemicals and LPG (Downstream), as well as its leading position in Latin America, where 50% of Repsol YPF´s assets are concentrated. In particular, the company will strengthen its management and institutional presence in Argentina, given the special relevance that country has for Repsol YPF.
Therefore, the new organigram creates three large Strategic Business Areas, directed by professionals who have many years of experience inside the company, and who will be completely responsible with respect to earnings. At the same time, the Corporate Center of the company will be streamlined.
Strategic Business Areas:
1. Executive Director for Corporate Division of Argentina, Brazil and Bolivia, Enrique Locutura, who until recently was Gas Natural's Chief Executive Officer, will be responsible for the integrated chain of value (exploration, production, refining, logistics, marketing and chemicals) in the said countries. Locutura will, besides being the maximum person responsible for the earnings of the mentioned geographical region, assume the institutional representation of Repsol YPF in Argentina.
The creation of this division, which will have five business areas, as well as the support functions necessary to realize an integral management, reflects the importance of this geographical area for Repsol YPF.
2. Executive Director for Corporate Division of Upstream, Nemesio Fernández-Cuesta, will lead the division that will be the principal vector of growth for the company in the upcoming Strategic Plan. He will have direct responsibility for the businesses of exploration and production (except for Argentina, Brazil and Bolivia), as well as those of midstream and marketing of LNG on a worldwide scale.
The regional managing of the operations for this division will be realized via the areas of Spain and North Africa, USA-Mexico, Caribbean, Pacific and Rest of the World.
3. Executive Director for Corporate Division of Downstream, Pedro Fernández Frial, will manage the business portfolios of refining, marketing and chemicals in Europe and the rest of the world, as well as the worldwide activities of LPG, trading and transport.
This division will have six business areas: Refining Spain, Marketing Europe, Refining and Marketing Rest of World (Peru, Ecuador and Chile), Chemicals Europe and Rest of World, LPG Worldwide, and Transport and Trading Worldwide.
The new organization of Repsol YPF, which simplifies the company's old corporate structure, transfers to the business areas the functions and resources linked to planning and budgets, and has five divisions:
Committees and Management Change
The new organization simplifies and streamlines the structure of the company's committees, reduces collective decision-making, and favors that of taking direct responsibilities. The new organigram, which is more agile and orientated to the market, reduces the number of committees to four. These committees will be presided over by Antonio Brufau and will meet alternatively in Spain and Argentina.
In this new organizational structure, an Office of Management Change will be created and which will have the purpose of activating principals of efficiency and responsibility throughout the entire organization. This Office, under the Corporate Division of Human Resources, will periodically report to the Executive Committee on the progress with respect to this process.
Strengthen functions of Board of Directors
In line with the best corporate governance practices, Repsol YPF will strengthen the controls of Repsol YPF's Board of Directors. The Company's Chairman and Chief Executive Officer, Antonio Brufau, has proposed that the Auditing Committee and the Control of the Board of Directors will receive complete and independent information with respect to the areas of Auditing, Control of Reserves and Security and Environment. With these measures, Repsol YPF will be in the vanguard of the world's largest energy companies in its application of good corporate governance practices.
Repsol YPF and CLH
Repsol YPF will propose in the next meeting of Compañia Logistica de Hidrocarburos´ (CLH) board of directors that Ramón Blanco Balín be named as Chairman and Chief Executive Officer of that company. Until recently, Ramón Blanco was Repsol YPF's chief operating officer.
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