(Reuters) – Schlumberger, the world’s largest oilfield services firm, will reshuffle top executives and operations in coming months to deal with this year’s historic decline in the oil industry, according to a memo to employees.
FILE PHOTO: The exterior of a Schlumberger Corporation building is pictured in West Houston January 16, 2015. REUTERS/Richard Carson
The changes will be implemented in phases and are designed to forge “a leaner, simplified and more responsive organization,” Chief Executive Olivier Le Peuch said in the memo dated on Wednesday and reviewed by Reuters.
A spokesman did not immediately reply to a request for comment.
The shakeup comes as oil prices have nearly halved this year to $33 a barrel as the COVID-19 pandemic slashed demand and oilfield spending. Schlumberger has cut hundreds of jobs, reduced executive pay by at least 20% and put some low-tech units up for sale.
As part of the restructuring, Schlumberger plans to consolidate its 17 product lines into four divisions to “align with our customer’s workflows,” the memo said. It also will create five “basins” groups over 30 geographic units, replacing what it had called GeoMarkets and sub-GeoMarkets teams.
Le Peuch, who took over last July, named two deputies to run the business and regional operations groups. The new top managers will be in place by July 1, he wrote.
Hinda Gharbi, the most senior woman at the company and its executive vice president over Reservoir and Infrastructure, will become Executive Vice President of Services and Equipment, heading the four product divisions.
Executive Vice President of Operations Khaled Al Mogharbel will become Executive Vice President of Geographies, heading the regional operations group and its sales and commercial teams.
Two executives close to prior CEO Paal Kibsgaard — Patrick Schorn, vice president of wells, and Jean-Francois Poupeau, vice president of corporate engagement — will leave the company, the memo said.
Finance chief Stephane Biguet and New Energy chief Ashok Belani will continue in those roles reporting to Le Peuch.
Reporting by Liz Hampton; editing by Richard Pullin