ChevronTexaco to Alter Refining, Marketing Units
In its first major executive shuffle since its 2001 merger, ChevronTexaco Corp. on Monday said it would reorganize its worldwide refining and marketing businesses to lower costs and improve the efficiency and financial performance of its “downstream” operations.
San Ramon, Calif.-based ChevronTexaco said it would abandon its practice of organizing refining and marketing units by geography and instead create four worldwide operating divisions that would each focus on certain functions.
The changes, to be completed by early 2004, will affect the oil company’s downstream businesses, which refine oil to make gasoline and other products; buy and sell oil and gasoline in bulk; and supply gasoline and lubricants to retail gas stations and commercial customers.
“While we are seeing improved performance across our company, we must continue to strengthen our businesses,” said ChevronTexaco Chairman and Chief Executive David J. O’Reilly. He added that the new or- ganization would “enable us to achieve the additional improvements needed to build a truly competitive refining and marketing business.”
Under the reorganization plan, Jeet S. Bindra, managing director and chief executive of Caltex Australia Ltd., will become president of Global Refining; Michael K. Wirth, acting president of Asia/Middle East/Africa Products, will become president of Global Supply and Trading; S. Shariq Yosufzai will move to president of Global Marketing from president of Global Lubricants; and Mark Nelson will shift to president of Global Lubricants from his position as advisor to an executive vice president.
The new presidents will serve under Patricia A. Woertz, who was named executive vice president of Global Downstream in late 2001.
In addition, four high-ranking executives will retire from ChevronTexaco by early 2004 in connection with the reorganization, the company said. Those retiring are Jim R. Hawn, president of Europe/West Africa Products; J. Carey McHugh, president of Latin America Products; Jock D. McKenzie, president of Asia/Middle East/Africa Products; and C. Michael Bandy, president of Global Trading, Fuel and Marine Marketing.
Chevron Corp. and Texaco Inc. completed their merger Oct. 9, 2001.
Since then, the company has created a unit to focus on natural gas and another for business development, spokeswoman Nicole Hodgson said.
