CHEVRON RESTRUCTURES NON-U.S. OPERATIONS

Jan. 8, 1990
Chevron Corp. has made further restructuring moves, this time focusing on non-U.S. operations. Effective Jan. 1 were the latest measures in a 2 year series of restructuring efforts aimed at sharpening strategies and enhancing business opportunities. Internal studies found the company needed to better integrate and coordinate international strategies. In the latest action, Chevron decentralized its foreign operations staff by moving key staff members into regional line organizations.

Chevron Corp. has made further restructuring moves, this time focusing on non-U.S. operations.

Effective Jan. 1 were the latest measures in a 2 year series of restructuring efforts aimed at sharpening strategies and enhancing business opportunities.

Internal studies found the company needed to better integrate and coordinate international strategies.

DECENTRALIZATION

In the latest action, Chevron decentralized its foreign operations staff by moving key staff members into regional line organizations.

It formed regional strategy teams headed by key managers to ensure that Chevron businesses in the same region work closer together to identify and pursue opportunities.

Target areas include Asia-Pacific, Europe, and Latin America.

In addition, Chevron shifted support for its Indonesian oil and gas operations to Chevron Overseas Petroleum Inc. from the foreign operations staff.

It also reassigned foreign operations staff support for other Chevron interests such as its 50% interest in Caltex Petroleum Corp.

Chevron transferred its corporate logistics and trading planning staff to Chevron International Oil Co., its international marketing, supply, and trading unit.

The effect on manpower will be slight, the company reports.

Chevron does business in 98 countries in oil and gas production, refining, marketing, chemicals, shipping, trading, and technology licensing.

The company's international businesses account for about 40% of profits.

PREVIOUS RESTRUCTURING

Other Chevron restructuring moves the past 2 years include:

  • Acquiring Tenneco Inc.'s Gulf of Mexico gas properties for $2.5 billion.

  • Reorganizing its U.S. exploration and production operations.

  • Accelerating a program to sell marginal oil and gas properties.

  • Restructuring its U.S. fuels marketing organization.

  • Streamlining its Port Arthur, Tex., refinery.

  • Investing $1 billion to upgrade its North American service station networks and acquiring a U.K. company to expand its retail marketing presence there.

  • Closing its Ortho Research Center in Richmond, Calif.

  • Merging its internal research groups Chevron Research Co. and Engineering Technology Department.

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