Chevron Corp (CVX.N) will consolidate its exploration and production and refining units under a single executive, it said on Thursday, as the company sharpens its focus on U.S. oil and gas production and cost-efficiency.
Chevron’s decision to raise its U.S. output has been reinforced by global sanctions against Russian oil, following the Ukraine invasion in February. The consolidation comes after a streamlining two years ago that would cut about 10% of its workforce.
The second-largest U.S. oil producer has pledged to add 15% this year to its output in the top U.S. shale basin, which supplies about 23% of its global production.
The combined upstream, midstream, and downstream business segments will report to a new executive vice president, Nigel Hearne, effective Oct. 1.
Hearne will run the Oil, Products & Gas business, Chevron said. He previously was president of Europe, Asia, and Pacific production.
The company is also consolidating upstream operations into two regions – Americas Exploration & Production and International Exploration & Production. Americas will be run by Bruce Niemeyer and International by Clay Neff, it said.
Jobs affected are mainly at the senior executive level, a spokesperson said.
The reorganization will “bring strategy, policy and business development into tighter alignment as we focus on leveraging our strengths to deliver lower carbon energy to a growing world,” Chief Executive Michael Wirth said in a statement.
Chevron’s U.S. oil and gas production rose 10% in the first quarter over a year earlier, while international output fell 8%. The company pumped 3.06 million barrels of oil and gas per day (boepd) in the first quarter.
Production in the Permian, the largest U.S. shale basin, grew to a record 692,000 boepd. It recently lifted its full-year Permian guidance by 15% over 2021 to between 700,000 and 750,000 boepd.
Wirth recently said Chevron was looking for U.S. acquisitions to enhance its natural gas and liquid natural gas (LNG) operations.