ChevronTexaco Corp. announced Monday that it is reorganizing its lubricants business and other downstream operations in an effort to cut costs.
The company said the changes, scheduled to be completed by early next year, will generally shift downstream activities from a regional to a global structure. The companys lubes business – ChevronTexaco Global Lubricants – already has such a structure, created in 2001 after Chevrons merger with Texaco. A spokeswoman said yesterday that she did not know how the reorganization would affect the lubes business.
One thing is clear, however. The lubricantsbusiness has a new helmsman, Mark A. Nelson, who replaces S. Shariq Yosufzai as president of global lubricants. Nelson was formerly adviser to Executive Vice President for Global Downstream Patricia A. Woertz.Nelson now heads one of four divisions reporting to Woertz, the others being refining, supply and trading, and marketing. Yosufzai was appointed president of the global marketing division.
Officials said the reorganization should allow the company to streamline and make its downstream operations more profitable.
While we are seeing improved performance across our company, we must continue to strengthen our businesses to accomplish our objective of being the leader in total stockholder return, Chairman and Chief Executive Officer David J. O’Reilly said.
Spokeswoman Nicole Hodgson said the company has no plans to do away with any of its principal oil products brands – Chevron, Caltex and Texaco/Havoline. It has maintained them allsince the merger, using each as its primary offering in regions where they have been most popular.
We continue to believe in the future success of these three legacy brands, Hodgson said. Asked about plans for job cuts, she added, The majority of downstream employees will not be affected.
ChevronTexaco is the worlds fourth-largest multinational lubricant producer, ranking behind Royal Dutch/Shell, ExxonMobil and BP Castrol.