Cairn founder steps aside for homegrown talent
CAIRN Energy’s founder Sir Bill Gammell said he would step back from the day-to-day running of the oil explorer to become non-executive chairman yesterday.
He succeeds Norman Murray, who after nine years as chairman and 12 on the board is leaving to concentrate on other positions, including at oilfield facilities firm Petrofac.
Sir Bill will hand the chief executive’s reins to Simon Thomson, Cairn’s legal and commercial director, who has spent 15 years at the company.
Sir Bill said Thomson had “played an instrumental role in accessing the opportunities that Greenland offers the company as well as in the delivery of value from Cairn’s interests in India”.
“Simon’s abilities are of outstanding value to Cairn and are properly recognised by this promotion,” Murray said.
It will be Sir Bill’s first opportunity to step back from operational management in 30 years. A former Scotland rugby player, he founded Cairn at the age of 27 in 1980, becoming its chief executive when it listed in 1988.
Under his leadership Cairn has bought and developed oil and gas assets in India, where its subsidiary is currently negotiating the sale of assets to Vedanta Resources. It has also moved deep into Greenland, despite opposition from campaigner Greenpeace.
Murray was instrumental in Cairn’s purchase of Shell’s 50 per cent stake in India’s Rajasthan oil field in 2002, for £4.7m. Since then oil production in the field has risen steadily to 4bn barrels per year and Vedanta is prepared to pay up to $9.6bn (£5.9bn) for the assets.
Sir Bill’s move up to chairman officially flouts the UK corporate governance code, but Cairn said it had consulted its major shareholders on the reshuffle.
“The board, led by the senior independent director, Iain McLaren, views Sir Bill as overwhelmingly the best choice for chairman,” said Murray, citing his experience as chairman of Cairn India among other advantages.
Murray’s own retirement is also significant in corporate governance terms, as nine years is a watershed under the code after which board members must be re-elected every year.
Cairn’s chief operating officer Malcolm Thoms and Philip Tracy, group engineering and operations director will also both to leave at the end of June. It has created a new role of managing director for Jann Brown, its current finance director, as she has taken on new responsibilities.
Dr Mike Watts will continue as deputy chief executive, it said.