The Tyumen Oil Company (TNK) is shifting to a new management model by restructuring into business units, the company's press service reported. Executive Director and Deputy Chairman of the Executive Board of TNK German Khan was quoted as saying the company is following the path of establishing a number of separate entities and companies whose management teams will have broad authority. The major functions of the corporate center will be developing and determining the goals and tasks of the company's further development and controlling their implementation. The business units are expected to be established in Nizhnevartovsk, Orenburg and Nyagan.
The final transition to the new management model is expected to be completed by 2004. According to the company spokesman, the shift to the new business model should streamline the management process and make the company more dynamic in its development as well as boost its market capitalization. The enhanced responsibility of the company management, refocusing managers' mentality and introducing new management approaches will allow for achieving a qualitatively new level of operation of TNK's oil-producing subsidiaries. At the same time, the TNK Executive Director stressed that the company was not planning to cut jobs. The reorganization will only take place in the company's management tiers.