Dear Colleagues,
The prolonged low oil and gas price environment has significantly eroded the profitability of our business. In response to these challenging market conditions, we have expanded Project Spring to evaluate and define low cost operating models and right-size our organization to fit our business outlook.
I will be the Decision Executive for this project with Brad Middleton as Endorser. Our Decision Review Board (DRB) governance consists of Stacey Olson, Boonchai Cowawintaweewat, Chatit Huayhongtong, Pahol Pao-In, Busaba Maphobphan and Artit Krichphiphat. Balaji Krishnamurthy will be leading the project. In Phase 1, the project team will include representatives and leaders from all major departments/functions. The Boston Consulting Group (BCG) will be assisting the team to evaluate data, identify opportunities and develop recommendations for the DRB.
The project held the Phase 1 kick-off DRB meeting last week, and as Decision Executive, I have endorsed the project frame. All departments/functions in Chevron Thailand are within scope, and will consider ongoing cost reduction and efficiency efforts within each department. We expect to complete Phase 1 work by the end of this month.
The objective of the project is to improve our profitability by sustainably reducing our cost structure. Even though our objective is clear, it is too early to identify any outcomes or recommendations from the project. Phase 1 work will allow us to further define opportunities and help determine appropriate goals for the project.
As we continue making progress and reach key milestones, we will keep you informed. For now, please click here to read some frequently asked questions regarding the project.
Pairoj Kaweeyanun