Santos to significantly reduce workforce

SANTOS is making plans to launch a redundancy wave and separately downsize its contractor workforce due to the oil price tumble.
Santos to significantly reduce workforce Santos to significantly reduce workforce Santos to significantly reduce workforce Santos to significantly reduce workforce Santos to significantly reduce workforce

The Australian oil and gas producer is yet to provide any number on the planned job cuts but has confirmed that cutback plans are underway following initial press reports.

"In December last year we announced a 25% reduction in capital expenditure for 2015 and also flagged a review of our operational expenditure," a Santos spokesman said.

"As part of this process, we are now focusing on pursuing all efficiency and productivity options and setting how the business will operate in this new, low oil price environment, including reducing our contractor workforce and implementing redundancies."

He said the amount of redundancies will be determined through this "productivity and efficiency process".

"Despite the current volatility in the oil price, Santos remains committed to the development of the Cooper Basin, with a view to unlocking its full potential," the spokesman said.

While the spokesman did not comment on the timeframes for this review to ENP, the workforce has reason to be anxious.

"In an email to about 3500 staff yesterday , it is understood chief executive David Knox said the level of redundancies would be ‘significant'," The Australian reported.

Yesterday the Australian Workers Union told the ABC that Santos workers were informed by email that job cuts were planned "with no indication of how many or where they would be cut."

Santos has committed to exploration activities in Papua New Guinea, holding permits for the Gulf of Papua PRL 38 and Forelands PPL 261, PPL 269, PPL 426 and PPL 287.

The company has a 13.5% interest in the PNG LNG project and drilling is underway at The Hides Deep exploration well, following spudding in October last year.

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