The Oil Search Limited (ASX: OSH) share price closed 0.8% lower on the ASX yesterday after the Aussie resources company announced an organisational overhaul to the market.
What did Oil Search announce yesterday?
In its ASX announcement just prior to market close, Oil Search said it has recently completed an organisational redesign to support its next phase of growth.
The company is looking to advances towards front-end engineering and design (FEED) entry for major expansion projects in Papua New Guinea and Alaska.
The changes involved in the recent restructuring include the formation of two business units in Papua New Guinea and Alaska to give greater accountability and control to those regions.
Oil Search also announced that it had redesigned its centre to focus on providing governance, assurance and "driving value" through applied oil and gas technology.
The centre includes a new technology and value assurance (T&VA) group, which has been formed to strengthen the company's capabilities in opportunity maturation, project execution, safe and reliable operations and technology and innovation.
Oil Search has appointed two new executive vice presidents to augment its leadership team, while ex-BP manager John Kurz will join the company in a new role of Chief Operating Officer, PNG Business Unit.
What does this all mean for Oil Search?
The latest restructuring update comes hot on the heels of the company's Alaskan operations update, published on 28 June, in which the company exercised its Armstrong/GMT option for US$450 million to double its interested in several exploration leases.
The company also announced that it intends to undertake a formal divestment process for the sale of part of its Alaskan portfolio while entering into arrangements to align its ownership interests with Repsol across their shared Alaskan assets.
The Oil Search share price has been volatile throughout the first half of 2019 and remains marginally higher on its start-of-year valuation at $7.34 per share – well shy of its 52-week high of $9.27 set on 8 August 2018.
