Erin CEO Segun Omidele leaves abruptly

  • Signs for push-out forces
  • After less than one year on the job
  • Praise and thanks for Omidele
  • Jean-Michel Malek taking over in the interim
  • Search for a successor

(management-change.com) — Houston, Texas, February 22, 2017 — Segun Omidele, chief executive of Erin, leaves. It is an abrupt change. As announced by Erin Energy Corporation in a news release on Wednesday, February 22, 2017, Babatunde (Segun) Omidele leaves the post as Chief Executive Officer at the oil and gas exploration and production company in a surprising move after less than one year on the job, effective immediately.

No company wants a CEO to flame out in the first year.

Erin will undertake a search for a successor.

Omidele’s duties are taken over in the interim by Jean-Michel Malek, most recently Senior Vice President, General Counsel, and Secretary at Erin Energy Corporation.

No reason given

In the announcement, Erin did not explicitly explain the obviously compelling reason for Omidele’s sudden move, leaving room for speculation.

Alarm signal

Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the position abruptly and without comprehensible reasons being given.

“Resigned”

Erin said: “Segun Omidele has resigned as Chief Executive Officer and as a member of the Board, effective February 22, 2017.”

Precise information about the future plans of Omidele was not immediately available.

Share price rise since November 2016

The change follows a rise in the share price of Erin Energy Corporation since November 2016.

Chaired by John Hofmeister

Erin Energy Corporation is chaired by John Hofmeister.

The former president of Shell Oil Company and veteran of multiple industries for over 35 years, Hofmeister has held key leadership positions at General Electric, Nortel and AlliedSignal (now Honeywell International).

On the job as CEO since 2016

Omidele has been the Chief Executive Officer of Erin Energy Corporation since May 25, 2016.

Omidele served in various positions with the Company commencing in September 2011 and was Chief Operating Officer from September 2015 until his appointment as CEO in May 2016.

Segun Omidele joined the company in 2011, as the Senior Vice President for Business Development and New Ventures; and became the Senior Vice President for Exploration and Production in 2012.

Omidele led the transformation of the company from a non-operator to a full operator that delivered exploration and development campaigns in both deep water and onshore.

He drove the company’s asset management strategy which resulted in a balanced portfolio that consists of near term production, mid-term development and long term high impact exploration projects in both deep and shallow water as well as onshore.

He was appointed the Chief Operating Officer of the company in September 2015.

Omidele has 36 years of experience in oil and gas industry.

Prior to joining Erin Energy, from 2008 to 2011, he was Senior Vice President for Exploration and Production for Allied Energy Corporation in Houston, a privately owned oil and gas exploration and production company with assets in Africa.

He also served as the Managing Director of Allied Energy Plc, a subsidiary of Allied Energy Corporation.

Prior to joining Allied Energy Corporation, Omidele worked for 28 years with Shell companies in Nigeria, UK and USA and left the services of Shell as the Resource Volume Manager for Shell in Africa.

He held numerous technical and leadership positions in various Shell locations, including Senior Reservoir Engineer in Shell Exploration and Production Company London; Head Bonga Appraisal in Shell Nigerian Exploration and Production Company, Lagos, Nigeria; Senior Staff Reservoir/Production Engineer in Shell Deepwater Production, New Orleans, USA and Team Leader Deepwater development at Shell Deepwater Services in Houston, USA.

Omidele has highly diverse experience in all aspects of oil and gas industry and has served in various senior technical and executive leadership positions with engineering, financial and operational responsibilities.

Omidele holds a Bachelor’s degree in Petroleum Engineering from University of Ibadan, Nigeria and a Masters in Petroleum Engineering from the University of Houston, USA.

He is also a graduate of the Advanced Management Program of Harvard Business School.

He is a member of the Society of Petroleum Engineers.

“Omidele’s resignation was accepted by the Board of Directors, with his departure from the company expected in the coming weeks while he assists in the orderly transition of his duties and responsibilities to the Interim Chief Executive Officer,” Erin said.

Unexpected

As a general rule, when a top manager announces to step aside with no permanent successor available, it is a signal that the move was unexpected and too early.

Generally speaking, potential causes for an unexpected change can be, among others, disagreement or dispute and surprising new career opportunities.

Signs for push-out forces

It is not completely certain what forces eventually triggered Segun Omidele’s move.

The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.

Read the full story in the management-change.com report 09.2017 ($).