The job cuts announced on Monday are on top of the 565 Santos has cut since November 2014 in response to massive financial losses, falling oil prices and mounting debts.
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“About 200 jobs will go across the business unit as we simplify our organisation to increase accountability, remove complexity and reduce costs”, said Brett Woods, Santos head of operations in SA, NT and Victoria, in an email to staff.
The company is also considering a number of asset sales in a bid to salvage its balance sheet.
In a statement, Santos said the changes were “consistent with the objective of the company’s strategic review announced in August, to restore and maximise shareholder value”. The announcement coincided with Santos reporting an 82 per cent slide in first half profit to $37 million along with the departure of chief executive David Knox.
The oil and gas producer has a target of $180 million in savings across its supply chain by the end of 2015, as it reins in spending after oil prices fell sharply in the second half of 2014. The stock is still about 50 per cent down on 12 months ago. As part of the strategic review announced by Mr Coates, Santos is considering asset sales.
Santos is understood to have received a range of offers for different assets, with its stake in the Papua New Guinea liquefied natural gas project expected to have attracted most interest.
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Santos, which recently started producing at another LNG project, Gladstone LNG in Queensland, is due to report September quarter production on October 23.
