New Shell CEO restructures British energy group

New chief executive of Shell, Wael Sawan, unveiled Monday plans to consolidate the UK energy group’s operations.

Shell is looking to reinvent itself under former renewables boss Sawan, who replaced Ben van Beurden in the top seat at the start of the year.

It plans from July to combine its unit housing oil and gas production with the division for liquified natural gas, Shell said in a statement.

Renewables will merge with Shell’s oil refining and marketing business.

The overhaul, cutting Shell’s executive committee to seven from nine members, is “designed to simplify the organisation further and improve performance”, the statement said.

“I’m making these changes as part of Shell’s natural and continuous evolution,” said Sawan, adding they would help the company’s focus on generating “strong returns” for investors.

The firm last week launched a strategic review of its domestic energy arm in Britain, Germany and the Netherlands, citing tough conditions.

At the same time, Shell and its rivals have profited hugely from soaring energy prices following the invasion of Ukraine by key oil and gas producer Russia.

Shell stated earlier this month that windfall taxes imposed by the European Union and UK following the surge in profits would cost the group about $2 billion.

Shell unveils its annual results on Thursday. — Agence France-Presse

IMF calls for carbon pricing to aide energy transition

Carbon pricing will be needed to help finance the global transition to renewable energy, the International Monetary Fund’s second-most senior official said Wednesday, warning against escalating the use of “green” subsidies.