Transocean last night said its CEO and president of nearly five years Steven Newman is to stand down today (16 February).
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Newman. From Transocean's Beacon Mag. |
The international rig owner and operator, whose shares have plummeted, tracking oil prices, which halved between June last year and January, said his departure was a mutual decision.
Ian Strachan, Transocean's chairman, will serve as interim CEO until a permanent replacement is found.
"As chief executive, Steven has capably guided Transocean over the last five years, demonstrating outstanding leadership through what was unquestionably the most challenging period in its history," said Strachan. "In addition to leading Transocean through company- and industry-changing events following the Macondo well incident, Steven initiated essential changes that have and will continue to improve the company's fleet, operations, cost structure and long-term competitiveness."
Transocean will present its full year 2014 results on 25 February. Announcing its Q3 results, Transocean said that while it still views the long-term offshore drilling market as favorable, particularly for high-specification units, customers; decisions to delay various exploration and development programs, amid the low oil prices, means "executing drilling contracts for the global floater fleet to remain stagnant in the near to mid-term, resulting in excess capacity, lower dayrates and idle time for some rigs."
Fitch Ratings recently downgraded its outlook for Transocean to negative, saying a prolonged fall in oil prices could add to already existing oversupply of offshore oil rigs.
Strachan has served as a director of Transocean since 1999 and as Chairman of the Board since May 2013. Strachan started his career with Exxon Corporation, where he spent 16 years. He went on to serve as Rio Tinto plc's Chief Financial Officer for four years and ultimately the company's Deputy CEO from 1991 to 1995. He then served as CEO of BTR plc for three years beginning in 1996. Strachan received his BA in 1965 from Cambridge University, and a Master of Public Affairs in 1967 from the Woodrow Wilson School, Princeton University, and was a teaching fellow at Harvard University from 1969 to 1970.
Just last week, Transocean was in the Texas Supreme Court with BP involving the Macondo spill. The courts denied BP's claim to US$700 million in insurance carried by Transocean at the time of the spill and that BP was only covered for pollution on the water’s surface, not under it.
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