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Santos confirms staff cuts as low oil price bites

Santos confirms staff cuts as low oil price bites

Photo by Bloomberg

3rd February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Australian oil and gas major Santos, which is already cutting back on capital spending, has now confirmed that it would reduce its staff numbers across its operations, in response to the oil price decline.

“In December last year, we announced a 25% reduction in capital expenditure for 2015 and also flagged a review of our operational expenditure (capex),” a spokesperson told Mining Weekly Online on Tuesday.

MD and CEO David Knox reported in December that Santos would lower its capex from $2.7-billion to $2-billion, while growth and sustaining capital for the 2015 year were estimated at $1.4-billion and $600-million respectively.

The spokesperson explained that as part of lowering the group’s costs, Santos was pursuing all efficiency and productivity options to help the business operate in the low oil price environment. These options include reducing its contractor workforce and implementing redundancies.

“The level of redundancies will be determined through this productivity and efficiency process,” the spokesperson said.

Oil prices have dropped more than 50% since June last year.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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