Wael Sawan, Shell’s new CEO, unveiled plans to consolidate the UK energy group’s operations on Monday.
Shell is attempting to reinvent itself under the leadership of former renewables executive Sawan, who took over for Ben van Beurden at the start of the year.
Shell said in a statement that it intends to merge its oil and gas production unit with its liquefied natural gas division beginning in July.
Renewables will be combined with Shell’s oil refining and marketing operations.
The restructuring, which reduces Shell’s executive committee from nine to seven members, is “designed to simplify the organization further and improve performance,” according to a statement.
“I’m making these changes as part of Shell’s natural and continuous evolution,” Sawan explained, adding that they would aid the company’s focus on generating revenue.
The company announced a strategic review of its domestic energy division in the United Kingdom, Germany, and the Netherlands last week, citing difficult market conditions.
At the same time, Shell and its competitors have reaped huge profits from rising energy prices as a result of Russia’s invasion of Ukraine.
Shell stated earlier this month that windfall taxes imposed by the European Union and the United Kingdom as a result of the increase in profits would cost the company approximately $2 billion.
Shell will release its annual report on Thursday.
