(Alliance News) - Shell PLC on Monday said it will combine its Upstream division with its Integrated Gas arm, and its Downstream unit with its renewables offering, in one of Wael Sawan's first acts as chief executive.

Shell also said it will reduce the size of its executive committee to seven members from nine.

The new Integrated Gas & Upstream arm will be led by current Upstream Director Zoe Yujnovich. Downstream & Renewables will be fronted by current Downstream Director Huibert Vigeveno.

Its Strategy, Sustainability & Corporate Relations will be discontinued. Its current Director Ed Daniels will leave Shell's executive committee.

The changes, which come into effect on July 1, do not alter Shell's financial reporting segments. These will remain as Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables & Energy Solutions, and Corporate.

"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. I believe that fewer interfaces mean greater co-operation, discipline and speed, enabling us to focus on strengthening performance across the businesses and generating strong returns for our investors," new CEO Sawan said.

Shell in September said Sawan would replace Ben van Beurden as CEO. Sawan took office at the start of 2023.

Shell shares were 0.4% lower at 2,364.50 pence each in London on Monday morning.

By Eric Cunha, Alliance News news editor

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