Azernews.Az

STOCKHOLM – Norwegian energy firm Statoil ASA (STO) said Thursday it will change its organizational structure and reshuffle senior executives, including replacing its chief financial officer, to better prepare for future challenges and opportunities.

The moves, which will take effect from Jan. 1 2011, signal the growing importance of Statoil's operations outside Norway and its move into renewable energy, said analysts.

Statoil's President and Chief Executive Helge Lund said: "The new corporate structure reinforces the execution of our global growth strategy and increases our efficiency through a simplified organizational structure. In parallel we adapt to a different future on a more mature Norwegian Continental Shelf still providing rich opportunities for Statoil."

The focus of the changes is "growth and development" rather than cost cutting, and there will be no redundancies, the company said.

The most notable structural change is the set up of a new Development and Production unit for North America, the first time that region has been a separate business area.

Statoil has recently made big investments in areas suitable for the production of shale gas in the U.S. In March it signed an agreement with Chesapeake Energy Corp. (CHK) to add approximately 59,000 net acres to Statoil's current 600,000 net acre positions in the Marcellus Shale in the northeast of the U.S.

This new North American unit, as well as the appointment of Bill Maloney who will be based in Houston, highlights growth as the company increases its international exposure, said Arctic Securities analyst Trond Omdal.

Maloney's experience as senior vice president for global exploration in Statoil, as well as various positions within Texaco and Royal Dutch Shell (RDSA), make him a "very valuable contributor," Omdal added.

The highest-profile personnel change is the departure of current Chief Financial Officer, Eldar Saetre, to become head of Marketing, Processing and Renewable Energy. Replacing him is Torgrim Reitan, currently senior vice president in charge of Trading and Operations in Natural Gas.

"Statoil's increasing focus on renewables is underpinned by the move" of Saetre to the new division, said ING analyst Jason Kenney.

Overall, Statoil has the right idea in the restructuring, Kenney said. "It has been three years since the merger with Norsk Hydro and...more is needed to be done to simplify, industrialize and standardize," he said.

The changes are "not a big driver in the short term, but they make a lot of sense. They place an emphasis on growth," Omdal said.

Current members of the Corporate Executive Committee, Rune Bjornson, Jon Arnt Jacobsen, Gunnar Myreboe and Helga Nes, will leave their positions. "It is a wish and ambition both for the company and themselves that they continue in new roles in Statoil," the company said in a statement.

Incoming chief of staff Tove Stuhr Sjoblom will lead a project team over the coming months to facilitate the process of detailing out the new organization in cooperation with employee representatives.

Tim Dodson, currently senior vice president for Global Exploration, is named executive vice president for Exploration. John Knight, senior vice president for Business Development and Strategy and Global Unconventional Gas, will become executive vice president for Global Strategy and Business Development.

At 1348 GMT, shares in Statoil traded 0.3% or NOK0.40 higher at NOK124.80.