Australia’s second-largest gas producer, Santos, is slashing 10% of its headcount, around 400 jobs from its 4,000-strong workforce, as major projects wind down and cost-cutting kicks in. The downsizing targets short-term staff and contractors following the Barossa gas field startup in September 2025 and the Pikka oil first flow in Alaska this quarter. “As these major growth projects come to an end and become a part of the base business, and as we deliver on our cost savings objectives, we are targeting a headcount reduction of around 10%, rightsizing the business,” said Kevin Gallagher, Santos CEO. Analysts at Jarden see the cuts as a positive for lower opex forecasts, even as environmentalists contest LNG’s transition credentials. Full-year attributable net profit tanked a third to $818m, or underlying profit down 25% to $898m, hit by 14% lower oil prices and 10% cheaper LNG. Sales revenue dropped 8% to $4.9bn, despite production holding firm. This initially caused shares to dip 3.8%. “Asia remains at the centre of LNG demand growth, with consumption forecast to expand strongly through to 2050,” Gallagher told investors. “It is the only scalable, dispatchable fuel capable of supporting renewables while maintaining grid stability.” Santos’ high-heating-value LNG, which is around 75% of its portfolio, targets energy security in Japan and South Korea as a coal alternative. Output guidance holds at 101-111m boe for 2026, with unit costs of $6.95-7.45 per boe. Barossa and Darwin LNG delivered first cargoes early 2026 on time and on budget, while Moomba CCS phase 1 hit the 2030 emissions cut target five years early. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1_95_0_1_2'); }); TagsAustralia