Statoil Shuffles Corporate Structure

Statoil will change its organizational structure as a response to future business opportunities and challenges, and to support a continued strong development of the company.

The new organization will reflect the ongoing globalization of Statoil, leverage the position on the Norwegian Continental Shelf and simplify internal interfaces to support safe and efficient operations. The changes are planned to take effect from January 1, 2011.

During recent years Statoil has reinforced its leading position on the Norwegian Continental Shelf (NCS). A new offshore operating model was implemented last year, and important steps have been taken to further improve HSE and to industrialize and standardize operations in order to maximize resource utilization on the NCS. Statoil has in the same period grown its global footprint substantially. Today more than 25 percent of the daily production comes from Statoil's international portfolio. Statoil has also taken important steps to grow its portfolio within renewable energy.

"A broader and more global business portfolio is an important driver for the changes we make. The new corporate structure reinforces the execution of our global growth strategy and increases our efficiency through a simplified organizational structure. In parallel we adapt to a different future on a more mature NCS still providing rich opportunities for Statoil," said President and Chief Executive Officer Helge Lund.

"With a more diversified top management and important leadership positions established outside Norway we also accelerate development of a stronger internal leadership pipeline. That's important for the long term development of Statoil," Lund added.

It is three years since the merger between Statoil and Hydro's oil and gas activities. This enabled Statoil to realize close to NOK 10 billion in merger synergies and cost savings. The announced changes in the corporate structure are growth and development driven, and will not result in redundancies.

"In this three year period we have made good progress, and we have a solid foundation for a continued strong development of Statoil. Our strategy remains firm. We will take out the full potential of the Norwegian Continental Shelf, build international growth platforms and gradually strengthen our position within renewable energy. We have a competent organization and motivated people. With a strong resource base and a balanced portfolio we are ready to take on new challenges," said Helge Lund.

Statoil's new corporate organizational structure and Corporate Executive Committee (CEC) will besides president and Chief Executive Officer (CEO) Helge Lund, be as follows:

  • Development and Production Norway, EVP Øystein Michelsen, located in Stavanger
  • Development and Production International, EVP Peter Mellbye, located in Oslo
  • Development and Production North America, EVP Bill Maloney, located in Houston
  • Marketing, Processing and Renewable Energy, EVP Eldar Sætre, located in Stavanger
  • Technology, Projects and Drilling, EVP Margareth Øvrum, located in Stavanger
  • Exploration, EVP Tim Dodson, located in Oslo
  • Global Strategy and Business Development, EVP John Knight, located in London
  • Chief Financial Officer, EVP Torgrim Reitan, located in Stavanger
  • Chief of Staff, EVP Tove Stuhr Sjøblom, located in Stavanger

Rune Bjørnson, Jon Arnt Jacobsen, Gunnar Myrebøe and Helga Nes will from January 2011 leave their positions in the CEC. It is a wish and ambition both for the company and themselves that they continue in new roles in Statoil.

"The new team balances renewal with continuity, increases diversity and creates new opportunities for the next generation of leaders. At the same time I look forward to working with the colleagues leaving the CEC in new positions in Statoil," said Helge Lund.

Over the past few years Statoil has made significant investments in North America. Establishing Development and Production North America as a separate business area reflects the importance of the region, it moves top leadership closer to the operations and is a natural step to secure the investments and contribute to further growth. Together with Development and Production Norway and Development and Production International it covers our upstream activities.

The current business areas Manufacturing & Marketing, Natural Gas and the New Energy unit of the existing Technology and New Energy (TNE), will merge into a new business area for Marketing, Processing and Renewable Energy. This creates synergies in the operation of onshore plants and in the market related activities.

The new business area Technology, Projects and Drilling will combine the existing Technology unit of TNE with the Projects and Procurement business area, and the Drilling and Well unit in the existing Exploration and Production Norway (EPN). Joining these forces simplifies work processes and reduces the numbers of internal interfaces significantly.

Finally Exploration and Global Strategy and Business Development will constitute two new business areas driving core processes across the company. This underpins Statoil's growth ambition, and will contribute in the continued pursuit of value creation through both organic and inorganic moves in the further development of the company.

The current organizational structure and Corporate Executive Committee will remain in charge of operations and business development until the planned implementation 1 January 2011. In the months ahead, a project team under the leadership of the coming Chief of Staff Tove Stuhr Sjøblom will drive the process of detailing out the new organization in close cooperation with employee representatives.

Facts: new appointees to the CEC, planned to take effect January 1, 2011.


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