Santos Ltd. will make further head-count reductions in its Eastern Australia business as part of its ongoing drive to cut costs across the company in the current period of low oil prices. Approximately 200 jobs, mainly Adelaide-based office roles, will be eliminated.
The organizational changes are consistent with the objective of the company’s strategic review announced in August, to restore and maximize shareholder value. The job reductions, together with additional initiatives to simplify the business, will deliver approximately $100 million in cost savings across the company’s Cooper Basin activities over the next three years.
These savings are in addition to the removal of 565 positions across the company, a 55% reduction in capital expenditure, and an 11% reduction in unit production costs, which were announced in the company’s first-half results release on Aug. 21.