Royal Dutch Shell Group .com (Nigeria): Shell Undergoes Major Re-organisation To expand gas supply to NLNG: “Oil giant, Shell Petroleum Development Company (SPDC) has commenced the long-awaited re-organisation, from which the company said, would emerge a new structure from January 1, 2005.” ( 25 Dec 04


By Mike Oduniyi, 12.25.2004


Oil giant, Shell Petroleum Development Company (SPDC) has commenced the long-awaited re-organisation, from which the company said, would emerge a new structure from January 1, 2005.


Shell, Nigeria's biggest oil and gas producer has also began the expansion of its Bonny Non-Associated Gas (BNAG) plant, in Rivers State, aimed at increasing gas supply to Nigeria LNG Limited (NLNG) plant's Train four.


A statement issued by the company yesterday and signed by its External Relations Director, Mr. Prescious Omuku, Shell said the re-organisation, which began nearly a year ago and also saw the emergence of the first Nigerian Shell Managing Director, was "aimed at increasing efficiency and reducing cost."


As part of the cost saving measures, the company's headquarters would effectively be relocated from Lagos to Port Harcourt next January. "The aim is to become the least cost operator in Nigeria," said Omuku.


Shell confirmed that already, some staff have been retrenched, while new appointments were being made.


Although, the exact number number of workers laid off were not disclosed, the company said the exercise was a continous process that would end this month.


Petroleum and Natural Gas Senior Staff Association (PENGASSAN), Shell Branch has been up in arms against the Shell management over the retrenchment plan. The union put rthe total number of staff to be laid at some 1,000.


According to Omuku, the company held sustained and wideranging consultation with atl categories of staff and other key stakeholders.


"Due care has been taken to ensure that the rights of employees and the obligations of the company are fully maintained and respected all through," he stated, adding that those relieved had already been paid their entitlements.


"This phase is a milestone in the company's Securing our Future (SOFU) programme, which key features include an Integrated Business Systems project, a Structural Cost Review, and an Operating Model Review.


"Other aspects of the programme's implementation involve the adoption of a more efficient organisational structure as well as streamlined business processes. These would eliminate resource fragmentation and place the company firmly on the path of sustained growth.


Among its numerous benefits, the programme will enable SPDC reduce its operating costs, and thus free additional funds for investment in capital projects especially asset integfity which will help the company to achieve its projected production aspirations," Omuku said.


Also under the restructuring, the headquarters of Shell Exploration and Production (EP) Africa Region will relocate from The Hague in Holland to Lagos.


Already a Nigerian has been appointed to join the EP Africa team. He is Mr. Femi Adesanya, Human Resources Director.


Shell currently produces a little over one million barrels of oil per day (bpd) in joint venture partnership with the Nigerian National Petroleum Corporation (NNPC).


The company, which is also the technical adviser to the Nigeria LNG project, has begun the expansion of its gas plant in Bonny, to raise capacity to 450 million standard cubic feet per day from 300 million.


The gas will feed the Train four of the Bonny LNG plant scheduled to come on stream June next year.

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