Santos to shed another 200 jobs

Santos will axe another 200 jobs in an attempt to save $100 million over three years while it battles sliding oil prices.

Troubled energy giant Santos is axing another 200 jobs in a $100 million cost-cutting drive designed to slash debt as it battles sliding oil prices.

The oil and energy producer says most of the jobs are Adelaide-based office roles and that the cuts are part of a strategic review led by executive chairman Peter Coates.

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.

"The job reductions are a part of a broader restructure of the eastern Australia business to make it a leaner, more agile organisation delivering lower cost oil and gas from the Cooper Basin," Santos said in a brief statement.

The job cuts are expected to deliver about $100 million in savings across the company's Cooper Basin activities during the next three years.

Santos in August announced a strategic review designed 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.

Chairman Peter Coates launched his review to address Santos's shrinking market value, which had wiped more than $10 billion from shareholders' investments in the company in less than a year.

As part of the strategic review announced by Mr Coates, Santos is considering asset sales.

It has also cut capital expenditure by 55 per cent and sliced 11 per cent off unit production costs.

The company announced 520 job cuts in November 2014 along with a freeze in executive pay after suffering a $935 million full year loss.

Santos has oil, gas and LNG assets across Australia, as well as in Papua New Guinea, Indonesia and Vietnam.

Its shares closed four cents lower at $5.93 on Monday.


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Source: AAP



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