London's International Petroleum Exchange has appointed a new chairman as the first step of regrouping after key board members resigned.
Former Chairman Lord Fraser of Carmyllie and former Chief Executive Lynton Jones handed in their notices after IPE members voted against a plan to restructure the organization (OGJ, Aug. 9, 1999, p. 26).
The new chairman is Sir Bob Reid, chairman and chief executive of Shell U.K. Ltd. during 1985-90 and chairman of British-Borneo Oil & Gas plc since 1995.
Lord Fraser said, "after the events of the past weeks, the exchange needs a period of reflection during which to consider its future strategy. The exchange is in a good position from which to build: it is profitable, well run, and enjoying record levels of business."
Reid's first task is expected to be to find a new chief executive, and discussions were expected to begin before the end of the month. After that, the restructuring issue is likely to be revived.
An IPE official told OGJ that two thirds of its members voted in favor of change and that the issues behind the need for change have not gone away.
The board resigned over failure to gain approval for a plan to "demutualize" the IPE and sell of 70% of the interest in its ownership to commercial companies.
The official said that the New York Mercantile Exchange is still interested in a merger, while the new board may propose turning the IPE into a commercial company by inviting private ownership by outside companies: "I'm sure the board will look at a number of new approaches."
