Shell Malaysia is reorganizing its upstream division by shedding 1,300 positions over the next two years, the company said in a news release Sept. 29.

The Royal Dutch Shell unit has a total workforce of about 6,500 staff.

The reorganization program aims to improve efficiency and removing complexity to become a more agile and competitive company.

“We are strengthening our organization by prioritizing productivity and efficiency, without compromising on safety and reliability,” said Iain Lo, chairman of Shell Malaysia. “We will emerge from this process as a more nimble, resilient and competitive player in the Malaysian oil and gas industry.”

Malaysia is one of the few countries in the Shell Group where all the major lines of Shell’s business, from the upstream to the downstream as well as business services, are present, according to the release.

Shell Malaysia’s Gumusut-Kakap platform is the company’s first deepwater floating production system in Malaysia. Shell has also recently marked a milestone in the construction of a tension-leg platform for its second deepwater venture, the Malikai oil field, 100 km offshore Sabah. Shell Malaysia is a leading explorer in the country, having invested an average of US$100 million per year over the last six years and having made 11 discoveries (including discoveries in blocks where Shell is a partner) in the past 24 months, the release said.