Royal Dutch Shell plc announces new senior management structure

Royal Dutch Shell plc (“Shell”) today announced a series of changes to senior management roles and responsibilities, aimed at sharper focus on operating performance and technology. The changes will be effective as of 1st July 2009.

Peter Voser, who takes over from Jeroen van der Veer as Chief Executive Officer on 1st July 2009 said “this new structure will increase accountability in the company, and improve Shell’s performance on delivering new projects and developing new technologies.”

He continued “these changes will increase our focus, accelerate our plans to reduce complexity, corporate overheads and costs, and result in faster decision-making and delivery.”

Shell’s Upstream activities are currently managed in three separate organizations – Exploration & Production, Gas & Power, and Oil Sands. Upstream will now consist of two businesses: Upstream Americas covering North and South America, and Upstream International covering the rest of the world. Marvin Odum, currently Shell’s Executive Vice President for EP Americas, will become Director for Upstream Americas. Malcolm Brinded, currently Shell’s Executive Director Exploration & Production, will become Executive Director of Upstream International.

There will also be changes in Downstream. In addition to the Refining, Marketing and Chemicals businesses, the Downstream portfolio will be expanded to include Trading and Alternative Energy activities in Shell, excluding Wind, which will be part of Upstream. Downstream will continue to be led by Mark Williams as Director.

A new business – Projects & Technology – will combine all of Shell’s major project delivery, technical services and technology capability covering both upstream and downstream. It will also oversee Shell’s safety and environment performance. Matthias Bichsel, who is currently Shell’s Executive Vice President for Exploration & Production Technology, will be the Director of this business.

Corporate functions will be refocused, with activities reallocated directly into the businesses, or consolidated into the portfolios of the Chief Financial Officer, Simon Henry, and the Human Resources Director (to be re-titled Chief Human Resources & Corporate Officer), Hugh Mitchell. Beat Hess continues as General Council, and completes the re-shaped Executive Committee.

Shell’s Chief Executive Jeroen van der Veer commented “we have made good progress on simplification and improving efficiency in recent years, but the competition is not standing still, and neither is Shell.”

Peter Voser continued “the industry, and Shell, faces considerable challenges, from high costs, volatile energy prices, and competition for new projects”.

He continued “we must build on our recent momentum, improve our operating performance and increase the pace of strategy execution, to raise our competitive position. The changes we have announced will have a major impact on the organization. We will speed up our decision-making, and increase both personal responsibility and personal accountability”.