Consolidates

Marathon Oil’s new President Clarence Cazalot yesterday followedthrough on consolidation plans announced earlier this summer. Hesaid the company will consolidate parts of its U.S. upstreamorganization, resulting in an initial staff reduction of about 200jobs. The changes are expected to save the company about $75million/year. Marathon’s stock fell 75 cents yesterday to $28.19.

San Diego-based Sempra Energy last week outlined its plans toconsolidate, but not legally merge, operations of its distributionutilities, which combined form the largest utility in terms ofmeters (6.1 million) in the nation. Southern California Gas Co. andSan Diego Gas and Electric Co. will continue to exist, according toSempra spokesman Doug Kline.

Clarifying its intentions, San Diego-based Sempra Energy yesterdayoutlined its plans to consolidate, but not legally merge, operationsof its distribution utilities, which combined form the largest utilityin terms of meters (6.1 million) in the nation. Southern CaliforniaGas Co. and San Diego Gas and Electric Co. will continue to exist,according to Sempra’s spokesperson Doug Kline. (See Daily GPI, March 21)

Cinergy Corp. has moved to integrate its purchase of ProducersEnergy Marketing, LLC (ProEnergy) with its own commodity marketingoperation, cutting some ProEnergy executives and planning theintegration of its smaller Houston office into the larger ProEnergyfacilities in Houston.