Chief executive leaves Australian oil company with immediate effect - Upstream Online

Chief executive leaves Australian oil company with immediate effect | Upstream Online

Carnarvon Energy’s chief executive Adrian Cook is stepping down with immediate effect, as part of a strategic move that the Australian company said reflects its change from explorer to producer.

Stepping into Cook’s shoes is the current chief operating officer Philip Huizenga, with the roles of COO and chief executive now being merged.

“This change has been planned for some time and reflects Carnarvon’s progression from explorer to producer,” the company on Monday confirmed.

Carnarvon added that, following discussions with its two largest shareholders, Nero Resource Fund and Collins St Asset Management, Russell Delroy and William Barker had been appointed as non-executive directors of Carnarvon with immediate effect. In connection with these appointments, Cook and Carnarvon non-executive director Debra Bakker, have agreed to retire from the board.

Following the appointment of Delroy and Barker, Carnarvon’s reconstituted board intends to implement several strategic initiatives including preserving the existing balance sheet strength to protect the company’s ability to fund its share of Santos’ proposed Dorado field development offshore Australia.

Another key aim is to significantly reduce Carnarvon’s corporate and administrative cost base following a comprehensive review and to maximise value from the existing asset base.

The Australian independent will also explore opportunities to realise value through a corporate sale or asset divestment, while working with its joint venture partners to seek to accelerate drilling of the highest priority targets in the Bedout sub-basin.

“These strategic priorities are focused on restoring and growing shareholder value,” Carnarvon said.

Meanwhile, Carnarvon’s chair Bill Foster and non-executive director Gavin Ryan will remain on the board, although both of these individuals intend to retire prior to, or at, the company’s 2024 Annual General Meeting.

The reconstituted board will continue the search process to identify and appoint new, high calibre individuals to replace Foster and Ryan, in accordance with the previously announced board succession process. It is the current intention that potential replacements would be identified before the end of March next year.

“I thank Adrian for his dedicated service to Carnarvon over the last 12 years, and Debra for her contribution to the Carnarvon Board over the last three years, in particular with regard to her close involvement with the Dorado financing arrangements. Adrian has been instrumental in Carnarvon’s journey from an onshore explorer and producer in Thailand, to a founding partner in the Dorado field, the largest offshore oil discovery in Australia in the last 30 years,” said Foster.

“With the further discovery of the Pavo field in 2022, Carnarvon is in the enviable position of holding an interest in the largest undeveloped oil and condensate resource offshore Australia, as well as the country’s most prospective exploration acreage in the form of the Bedout sub-basin. We continue to work hard with our joint venture partners, Santos and CPC Corporation, Taiwan, to ensure the Dorado Phase 1 liquids development is FID (financial investment decision) ready in 2024, and our focus remains firmly on unlocking the significant value that development of Dorado and Pavo will realise for shareholders.”

Barker is founder and executive director of Western Gas — developer of the proposed Equus gas project in Western Australia — while Delroy is founder and managing director of Nero.