By Scott Wright

SHELL was remaining tight-lipped last night on speculation that chief executive – and company veteran – Ben van Beurden is preparing to stand down next year.

The oil and gas major, which has been making record profits this year amid the surge in energy prices that has followed Russia’s assault on Ukraine, has whittled down its search for a successor to four internal candidates, it was reported yesterday.

Wael Sawan, the company’s head of integrated gas and renewables, and Huibert Vigeveno, director of downstream refining, are the two leading candidates, according to a report by Reuters. The report, which cited two company sources, also identified Sinead Gorman, Shell’s recently appointed finance chief, and Zoe Yujnovich, head of upstream, as possible candidates.

A spokeswoman for Shell said the company was not providing comment on the speculation.

Mr van Beurden, 64, has led Shell since 2014. He originally joined the company in 1983, after graduating with a masters degree in chemical engineering from Delft University of Technology in the Netherlands.

The start of his tenure as chief executive coincided with the onset of a protracted downturn in the North Sea following the collapse in oil prices between 2014 and 2016, which led Shell to slash jobs and significantly retrench its presence in the area. However, Shell has continually emphasised that it remains committed to the basin, with the company currently producing around 10 per cent of the UK’s oil and gas. In 2016, it acquired North Sea giant BG Group for $47 billion (£36bn) amid a shake-up in the area. Shell has responded to concerns over climate change under Mr van Beurden by setting a target to become a net-zero emissions energy business by 2050, though critics continue to argue it is not going far or fast enough to cut emissions.

More recently, Shell has come in for criticism for making vast profits from surging gas prices sparked by the war in Ukraine, which is resulting in huge rises in energy prices for UK households. In July, the company posted record second-quarter profits of $11.5bn, up from $9.1bn, and announced plans to return a further $6bn to shareholders through a buyback it expects to be completed by the time of its third-quarter results.

The latest increase in the consumer energy price cap announced by Ofgem last week will mean the typical UK household will pay £3,549 per year from October.

The UK Government responded to concerns about energy company profits in May with the introduction of a windfall tax, which was partially offset by tax incentives to ensure investment in the North Sea would continue to be attractive to firms.

Russ Mould, investment director at AJ Bell, said: “After yesterday’s (Thursday’s) surprise departure of Reckitt Benckiser chief executive Laxman Narasimhan, it looks as if another FTSE 100 company is poised for a change at the top as Shell’s Ben van Beurden is reportedly preparing to step down.

“A key feature of his near-decade at the helm has been a focus on natural gas, including the big acquisition of BG Group in 2016.

“Arguably this strategy has been vindicated by recent events which have revealed the importance of gas for energy security and as a way of transitioning from more polluting fuels to renewables.

“While there has been considerable volatility in the interim, ultimately since van Beurden took over at the beginning of 2014 he has delivered a total return to shareholders of 45.1%.

“Given this period encompassed an oil price crash very early in his tenure and a global pandemic, this is not too shabby. His successor faces a tough task though, with regulatory pressure likely to be a key theme. Internal appointments are rumoured to be in the running, befitting an organisation which has often looked inwards when planning a succession process.”

Shares in Shell closed down 2.3% at 2,324.5p.