Norwegian oil and gas giant Statoil has announced adjustments to the company’s structure and operating model.
Statoil recently said it will be laying off up to 1,500 employees by the end of 2016 in an effort to “standardise, simplify and increase efficiency across Statoil” .
According to Statoil, the aim is to become a more cost efficient and fit for the future organisation.
The changes support and are an integral part of the ongoing efficiency work through the STEP (Statoil Technical Efficiency Programme) and OE (Organisational efficiency) programmes.
The key changes include:
Statoil will increase its focus in Mid- and North-Norway by consolidating the operations in one business cluster, Operations North. The activities at the various office locations will continue like before, and the management team will be spread on 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 a long-term potential. By combining the expert communities in both regions, Statoil says the goal is to capture synergies, cost savings, and deepen its position for future business opportunities.
Technology, Projects and Drilling
A merge between today’s Technology, Projects and Drilling – Technology Excellence (TPD TEX) and TPD Research, development and innovation (TPD RDI) into a new Research and Technology unit (TPD R&T) which will integrate «end-to-end» technology development and implementation in Statoil and provide technical expertise and advice in selected areas. In addition, the project development process will be simplified. The current project organization will be merged with Field development in DPN/DPI and MMP and renamed Project Development (PRD) and take on full ownership to the totality of project development from DG1 to DG4.
COO
The Chief Operating officer role will further strengthen safe and efficient operations across Statoil. COO responsibilities will cover 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 will transfer to the COO organisation on August 1, 2015, Statoil said.
“We need to continue our efforts to increase efficiency and reduce costs. Our aim is to become a more cost efficient and fit for the future organisation. These changes will support this ambition by reducing organisational complexity, clarifying roles, utilising people resources more efficiently and strengthening line accountability. A pre-requisite is that we will continue to deliver safe and efficient operations, including high-quality support to our assets,” says Eldar Sætre , President and CEO of Statoil.
The changes will be fully detailed in the business areas between now and end of October. The new organisation (where there are structural changes) will be fully operational towards the end of the year.
“Being efficient today is about winning the competition and earning the right to grow and do exciting things tomorrow. This is about changing our work processes, strengthening the commercial intensity of our culture, and fully implementing STEP,” says COO Anders Opedal .