Oil and fuel firm Santos to chop 200 jobs

South Australian oil and fuel large Santos is reducing 200 jobs, blaming a delay in “development actions” for the cull.

The ASX-listed $25bn producer introduced the retrenchment on Wednesday, with most impacted roles centred within the firm’s Perth workplace.

“An in depth assessment of the WA, Northern Territory and East Timor enterprise unit was undertaken over latest months to make sure our workforce is aligned to the corporate’s technique and disciplined, low-cost working mannequin,” the corporate stated.

“With some late-life property nearing closure, there’s an rising near-term deal with capital-intensive decommissioning actions.

“New venture approvals are taking longer that means work applications are extra sequenced than prior to now and a few development actions have been delayed.

“Consequently, roughly 200 roles within the enterprise unit are surplus to our enterprise exercise plans together with contractors.

“The excess roles are primarily Perth-based with a small quantity based mostly in different places.”

The corporate’s huge portfolio consists of oil and fuel fields in South Australia’s Cooper Basin, WA, the Northern Territory and Papua New Guinea.

The corporate can also be pursuing quite a few development tasks, together with the $5.7bn Barossa fuel venture off Darwin within the Timor Sea, the $3bn Dorado offshore oil improvement in WA and the Pikka oil venture in Alaska’s North Slope.

However the firm has confronted complicated regulatory hurdles and authorized challenges to its proposed developments, together with a long-running courtroom battle over Barossa.

Tiwi Islands Elders took Santos to courtroom over considerations underwater pipelines for Barossa would impression cultural heritage.

The Federal Court docket dominated in Santos’ favour in January and the venture is now greater than 70 per cent full.

Santos stated it had not taken the choice to chop jobs “calmly”.

“Santos acknowledges that modifications like these are by no means straightforward for the individuals affected, together with their households, and we don’t make these choices calmly,” the corporate stated.

“Santos will assist impacted staff, together with by our Worker Help Program and an outplacement service offering profession transition assist.

“The corporate will proceed to optimise its workforce to make sure it has the best capabilities and is the best dimension to ship our enterprise plans safely, effectively and successfully.”

In its first quarter outcomes for 2024, Santos reported $2.1bn in gross sales income and 21.8 million barrels of oil equal.

Chief govt Kevin Gallagher stated the Barossa and Pikka developments would arrange the corporate for the following 10 to fifteen years.

“Barossa and Pikka are world-class tasks that can be transformative for Santos and set the corporate up with long-term, steady money flows for the following 10-15 years a minimum of,” he stated.

First fuel at Barossa is predicted within the third quarter of 2025 whereas first manufacturing at Pikka is scheduled for 2026.

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