Cairn announces a number of changes to the board

[LesCrozes]

Cairn Names Simon Thomson As CEO
Written by: Eurasia Review
June 16, 2011

Cairn announces a number of changes to the composition of its board of Directors all of which will be effective from 1 July 2011. Simon Thomson, the current Legal and Commercial Director of Cairn, will become CEO.

The Non-Executive Chairman, Norman Murray, will stand down from the board, as will Malcolm Thoms, Chief Operating Officer and Philip Tracy, Group Engineering and Operations Director. Sir Bill Gammell will step down as the current Chief Executive Officer (CEO) and he will take over as Non-Executive Chairman. Sir Bill will continue as Chairman of Cairn India and will retain overall responsibility for the current Vedanta transaction.

Dr Mike Watts will continue as Deputy Chief Executive. Jann Brown, in light of her widening responsibilities including Human Resources, Corporate Affairs and Company Secretarial in addition to her current role as Finance Director shall become Managing Director of the Company, reporting to the CEO.

Norman Murray, Chairman, said, “After twelve years on the Cairn board, nine as Chairman, it is now time to turn my attention and energy to new challenges including my role as Chairman of the board of Petrofac, the international oil and gas facilities service provider.”

Murray added, that “he board, led by the senior independent director, Iain McLaren, views Sir Bill as overwhelmingly the best choice for Chairman. His 30 years in the oil and gas industry coupled with his knowledge and understanding of operations in South Asia and his experience as Chairman of the publicly listed Cairn India are a unique resource for the company.”

“Simon’s abilities are of outstanding value to Cairn and are properly recognised by this promotion. Together with Dr Mike Watts and Jann Brown, Cairn has an exceptionally able and experienced team to lead the Group in the future to continue to offer investors significant growth potential,” Murray continued

According to Sir Bill Gammell, Chief Executive, “Norman Murray has contributed enormously to the growth of Cairn during this time and has provided me with constructive challenges, wise counsel and valuable guidance,” adding that “Simon has been with Cairn for 15 years and has played an instrumental role in accessing the opportunities that Greenland offers the company as well as in the delivery of value from Cairn’s interests in India. I’m delighted that he has agreed to lead the Company in the next stage of its development.”

“I look forward to taking on a new and different role as Chairman of the company and to working with the Board to support Simon and the executive management team. I will also continue as Chairman of Cairn India.

Simon Thomson, Legal and Commercial Director, said, “I am looking forward to leading Cairn as we continue to seek to create and deliver material value for shareholders. Cairn’s key strength of entrepreneurial exploration remains the focus of the Group offering investors significant growth potential in combination with underlying asset value and balance sheet strength.”

Simon was appointed Legal and Commercial Director of Cairn in 2006. His role includes being Head of Assets for the Group and chairman of the Risk Management Committee. He holds a LLB Honours from Aberdeen University and a Diploma in Legal Practice from Glasgow University. He joined Cairn in 1995 during the Bangladesh exploration programme and became Group Commercial Manager in 2000. Prior to his appointment as Legal and Commercial Director, he served on the Group Management Board (now the Chief Executive’s Committee) for six years. Elsewhere, Simon is a non-executive director of Graham’s The Family Dairy Limited and is also a director of the Winning Scotland Foundation.

[mgauthi4]

MUMBAI: The major top management reshuffle at the Edinburgh-based oil explorer Cairn Energy Plc. is unlikely to have a significant material impact upon its long-pending $9.6-billion deal with Vedanta Resources. However, this will change the composition of Cairn India's board leaving only two representatives from its parent firm from the earlier four.

Cairn Energy has announced that its chief executive Bill Gammell will step down from the board to become the non-executive chairman. He will, however, continue as chairman of Cairn India and will retain overall responsibility for the current Vedanta transaction, said Cairn Energy in a statement to the London Stock Exchange on Thursday.

Besides, Gammell, Jann Brown will be the only other representative of Cairn Energy in Cairn India's board to serve as non-executive director. She has been made the managing director at Cairn Energy from the position of finance director. Cairn India's board will miss Malcom Thomas, who has stepped down from the respective boards of Cairn India and Cairn Enrgy Plc. He was deputy chairman of Cairn India and was instrumental in transforming Cairn from a $10-million oil firm in 1990s to a $10 billion firm with world class producing assets now.

Cairn India's ED and COO Rick Bott has also stepped down from the board. However he will continue to be associated with the group in the capacity of ED and deputy CEO of Cairn Energy India Pty Ltd, a wholly owned subsidiary of Cairn India, the company said in statement to the stock exchanges.

Norman Murray, the non-executive chairman, will step down from the board paving the way for Gammell to step into his new role as chairman.

"The management reshuffle at Cairn Energy Plc will have no material impact on the Cairn India's operations. Its $10 billion deal with Vedanta awaiting government approval since last 10 months. It would be the key to stock performance going forward," said Parash Bothra, head of research at Ashika Stock broking.

Shares of Cairn India on Thursday closed at Rs 332.80 down 0.67% in weak Mumbai market while shares of its parent firm Cairn Energy Plc. were trading at 404.9 pence, down 1.46% at LSE on Thursday noon.