Chief Executive, Sam Laidlaw, outlined his strategy for the group going forward. Having completed his strategic review, he announced that in order to move the business forward and create consistent value for investors, several actions were being progressed. The company is seeking to:
- Create a much stronger culture of performance, setting challenging but achievable targets;
- Re-balance its reserves growth model, maintaining a focused high impact exploration program at lower cost supplemented with exploitation, field rehabilitation projects and targeted acquisitions;
- Maximize the value of its existing portfolio by extracting the upside, whether technical or commercial, from its high quality assets;
- Reshape the portfolio moving forward: increase the presence in low-cost areas, leverage the exposure to gas, and balance the spread of risk and return across the business;
- Restructure the organization along more entrepreneurial lines - move key skills closer to the opportunities, and strengthen accountabilities;
- Deliver, so that the companyís current performance and future potential translate over time into improved equity ratings and total shareholder returns.
Mr. Laidlaw also announced that the group had already taken several steps to take the business forward. These include:
- The purchase of Odebrecht's Brazilian E&P assets for $153 million, bringing Enterprise's stake in Enterpriseís key operated asset Bijupira-Salema up to 80 percent and adding three blocks to the groupís exploration portfolio in the country;
- The acquisition of CNRIís interest in the Pierce field to increase Enterpriseís equity in this important operated UK North Sea asset to 92.52 percent. The group also announced plans for a redevelopment of the field utilizing water injection to significantly increase recovery rates;
- The acquisition of further shares in KMOC to bring the groupís interest in the company, subject to certain pre-emptive rights, up to 46.1 per cent;
- A gas marketing alliance with Innogy plc covering North West Europe.
Commenting on the announcement, Sir Graham Hearne, Chairman, said: "On the financial front Enterprise delivered a strong performance in 2001, recording the second largest post-tax profits in our history. And on the operational front we were able to make progress on all our operated developments. Accordingly, I see a very promising future for Enterprise as an independent. We must set ourselves challenging targets and demonstrate to investors that we can deliver against those targets, and that our particular skills and assets can add value right across the portfolio. I am confident that Sam Laidlaw and his team are equal to the task."
Sam Laidlaw, Chief Executive, added: "I have no doubt that I have inherited a portfolio containing high quality assets, significant exploration potential and good people, and I have every confidence that Enterprise can generate a competitive total shareholder return in a tough marketplace. It is my clear intention that Enterprise will provide a faster growth prospectus than the integrated oil majors, and will do so by remaining a pure E&P player. Our emphasis will be to deliver growth in value terms, not just production volumes. And we are committed to delivering results, which will be reflected in the performance-driven culture within Enterprise that I have begun to establish."