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UPDATE 1-Shell to shutter key unit after U.S. boss steps down

Wed, 24th Feb 2016 17:20

* Marvin Odum steps down after 34 years with Shell

* Shell to close unconventional resources division (Adds background on scrapped projects)

By Ron Bousso

Feb 24 (Reuters) - Marvin Odum is stepping down as head ofRoyal Dutch Shell's U.S. operations by mutualagreement, said the Anglo-Dutch oil company, which alsoannounced plans to scrap a major division after abandoning twobig North American projects.

Following Odum's departure at the end of March, Shell willabolish its unconventional resources division, which he alsoheaded, the company said in a statement on Wednesday.

The decision to shutter the division marks a rapid changewithin Shell's organization. In November, it announced a majorrestructuring of its oil and gas production, or upstream,business starting this past January as part of the integrationof BG Group, which Shell acquired earlier this month. Under thenew structure, unconventional resources was set to be one ofthree upstream divisions.

Shell's unconventional Athabasca Oil Sands Project and theScotford Upgrader in Canada will now join the global downstreamorganization under John Abbott. The U.S. Shale Resourcesbusiness will join the global upstream organization under AndyBrown.

The company said the decision would simplify its structure.

Bruce Culpepper, executive vice president HR forunconventional resources and regional coordination, will replaceOdum as chairman of U.S. operations.

Odum, who was born in 1958, plans to pursue otheropportunities after 34 years with Shell, a company spokesmansaid.

Odum's departure comes months after Shell ceased itscontroversial exploration in Alaska's Arctic Sea and suspendedthe 80,000-barrel-per-day Carmon Creek thermal oil sands projectin Alberta, Canada.

"Marvin has had a long and distinguished Shell career, andI'm grateful to him for the central role he's played in thecompany's success," Chief Executive Officer Ben van Beurdensaid. (Reporting by Ron Bousso; Editing by Lisa Von Ahn)

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