Statoil will make adjustments to the company’s structure and operating model to become a more “cost- efficient and fit-for-the-future” organization, it reports. The changes are part of the ongoing Statoil Technical Efficiency Program (STEP) and Organizational Efficiency (OE) programs.
Key changes include changes to its development and production in Norway. Statoil will increase its focus in mid and northern Norway by consolidating the operations in one business cluster, named Operations North. The activities at the various office locations will continue, and the management team will be spread amongst the respective locations. The Norwegian Sea and the Barents Sea are two of Statoil’s core regions, with considerable activities and large frontier areas with long-term potential. By combining the expert communities in both regions, the goal is to capture synergies and cost savings, and its position for future business opportunities.
Another key change will be for its Technology, Projects and Drilling (TPD) division. A merger between today’s Technical Excellence (TPD TEX) and Research, Development and Innovation (TPD RDI) divisions into a new Research and Technology unit (TPD R&T) will integrate end-to-end technology development and implementation in Statoil and provide technical expertise and advice in selected areas.
Also, Statoil’s project development process will be simplified. The current project organization will be merged with the Field Development in Development and Production Norway (DPN), Development and Production International (DPI) and Marketing, Midstream and Processing (MMP). The division will be renamed Project Development (PRD). This unit will take on full ownership to the totality of project development.
Another key change will be the chief operating officer’s role, which will further strengthened to ensure safe and efficient operations across Statoil. The COO responsibilities will include safety and security, analysis of operational efficiency, operational improvement projects, management system and operational efficiency. To fully integrate and further strengthen its work with safe and efficient operations also at the corporate level, Corporate Safety and Security (CS&S) will transfer to the COO organization on 1 August.
"We need to continue our efforts to increase efficiency and reduce costs,” says Eldar Sætre, president and CEO of Statoil. “Our aim is to become a more cost-efficient and fit-for-the future organization. These changes will support this ambition by reducing organizational complexity, clarifying roles, utilizing people resources more efficiently and strengthening line accountability. A prerequisite is that we will continue to deliver safe and efficient operations, including high-quality support to our assets."
According to Statoil, the changes will be fully detailed in the business areas between now and end of October. The new organization (where there are structural changes) will be fully operational by yearend.
"Being efficient today is about winning the competition and earning the right to grow and do exciting things tomorrow,” says COO Anders Opedal. “This is about changing our work processes, strengthening the commercial intensity of our culture, and fully implementing STEP."
Image: Eldar Saetre, president and CEO of Statoil / Statoil
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