The Korea Gas Cooperation (KOGAS) said on July 26 that the company will streamline its structure soon to help boost the efficiency of overseas gas exploration, strengthen its technological prowess and increase sales.
The reorganization is intended to help strengthen “checks and balances” among its business units and introduce a “goal-oriented and performance-based management system,” according to the company.
The reorganization plan was unveiled three weeks after the former economics professor Lee Seung-hoon, who is known as a close aide to President Park Geun-hye, took office as the company’s president and CEO on July 2.
“The new structure will pave the way for KOGAS to become one of the major global energy companies,” Lee said after getting approval for the reorganization during the board of directors meeting on July 22, adding, “Our role should not be limited to gas importer, instead, be a major gas developer and a trend-setter in the global gas industry.”
Through the reorganization, the company’s divisions of overseas gas exploration and imports will be integrated, in particular. The integrated overseas business division will take control of the liquefied natural gas (LPG) plant business and LNG procurement, making it possible for it to mange all LNG-related activities. The division will also be supervised by the senior executive vice president who also controls financial affairs, meaning that the division will be able to have better coordination for financing when the company seeks large-scale gas exploration projects overseas.
The state-owned gas company had earlier announced that it would raise the self-supply rate to 25 percent by 2017 from 9 percent as of 2012. As of 2013, the company has been carrying out 28 exploration, liquefaction, and production projects in 17 countries around the world. The company’s first-quarter operating profits jumped 20 percent to 865.4 billion won ($739.4 million) from a year earlier.