Troubled energy service company Sovereign Oilfield Group announced the appointment of a new chief executive yesterday.
It said John Strachan, 60, a former senior police officer in Hong Kong, had filled the vacancy created by the departure of Graham Burgess at the start of the month.
Aberdeen-based Sovereign added it had also appointed Gary Robertson, 51, as a director, with both men starting their new duties immediately.
The boardroom changes are the latest twist in a turbulent year for the group, which was formed in October 2003 by Mr Burgess and Peter Felter.
Sovereign also said yesterday it was continuing discussions with its lending consortium to renegotiate loan terms, adding: “A further update will be provided in due course.”
Mr Strachan is said to have more than 20 years’ experience in areas such as acquisitions, disposals and project development. Sovereign added: “He has also acted on a number of successful oil and gas transactions internationally.”
The new chief’s CV shows 16 years in the Hong Kong police and most recently a consultancy role for UK-based United Energy Group.
Mr Strachan said Sovereign faced challenging times but he was ready to work with the group to tackle the issues head on. He added: “We are taking a different approach to that of the previous board.
“The objective is to stabilise the group and secure the future of our workforce.”
Mr Robinson has been overseeing sales and marketing activity for Sovereign subsidiaries Maxwell Downhole Technology, in Aberdeen and Serco, in Pau, France.
He started in the oil industry with Santa Fe Drilling before moving to NL Industries, with whom he held management positions in north Africa and Europe, and then a London-based oil commodity financial service company.
In another boardroom change, Sovereign said Stuart Pearson had resigned as a non-executive director.
Last month, Sovereign said it had breached a second-quarter banking covenant and reopened talks with lenders but just a week later it said interim financial support had been agreed.
Sovereign struck an agreement with its lenders earlier this year to freeze all outstanding defaults and debt repayments until May 31, 2010.
The group has sold some of its subsidiaries during the past 18 months, in line with a strategy to focus on fabrication. Disposals include Diamant Drilling Services, Vertec Engineering, the offshore-cabin rental business of Labtech, Prodrill Engineering, four properties and some of the assets of oilfield fishing and repair subsidiary, Sovereign Fishing and Remedial Services.
In total, £13million was raised from these deals, which the firm said had been used to reduce debt facilities with its lenders.