Shell has turned to the head of its gas and renewables business to drive its transition to a greener future, picking Wael Sawan to replace Ben van Beurden as chief executive.
Sawan’s appointment comes at a pivotal time for the oil giant, which is aiming to reduce emissions to net zero by 2050 and moving away from fossil fuels even as Europe looks to traditional power to survive a growing energy crisis.
Lebanese-Canadian Sawan, 48, was seen as the front-runner to replace van Beurden, who is stepping down at the end of the year after nearly a decade at the helm and 40 years at the company.
During his tenure, van Beurden oversaw Shell’s biggest acquisition in decades and steered the company through two major downturns and a crucial move to cut greenhouse emissions – a task that will only grow in importance for his successor.
Sawan previously headed Shell’s oil and gas production business and now oversees its growth in low carbon energies as well as its giant integrated gas business.
Credit Suisse analysts said he was well known to investors and expected his appointment to have limited impact on Shell’s strategy. Credit Suisse Asset Management is a top five shareholder in Shell.
Dutchman van Beurden, who joined Shell in 1983 and became CEO in January 2014, will stay on as adviser to the board and leave the company at the end of June next year.
The 64-year-old has been focused recently on the relocation of Shell’s headquarters from The Hague to London at the start of 2022 as well as the energy crisis that has gripped the world in the wake of Russia’s invasion of Ukraine in February.
