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Shell‘s new CEO Wael Sawan is set to combine the oil and gas production and liquefied natural gas (LNG) divisions as part of a wider plan to further simplify the organisation and improve performance.

The move, which will see the merger of Shell’s Integrated Gas and Upstream businesses to form a new Integrated Gas and Upstream Directorate, is expected to result in ‘relatively limited’ job cuts, reported Reuters, citing a spokesperson.

The new Integrated Gas and Upstream Directorate will be led by current Upstream director Zoe Yujnovich.

As part of the internal restructuring, Shell also plans to combine its Downstream business with Renewables & Energy Solutions.

This will result in the formation of a new Downstream and Renewables Directorate, which will be led by current Downstream director Huibert Vigeveno.

Sawan said: “I’m making these changes as part of Shell’s natural, and continuous, evolution. Our core purpose is to provide energy to our customers, safely and profitably, while helping them, and us, to decarbonise.

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“I believe that fewer interfaces mean greater cooperation, discipline, and speed, enabling us to focus on strengthening performance across the businesses and generating strong returns for our investors.

“Shell is a great company and we’re changing to ensure we become a great investment too. Simplifying how the organisation works, in pursuit of higher performance, is critical to achieving that.”

The latest move is also expected to result in the reduction of Shell’s executive committee size to seven, from nine members, effective 1 July 2023.

In addition, Shell intends to discontinue its Strategy, Sustainability and Corporate Relations (SSCR) Directorate.