What structural changes is Santos implementing to cut costs, and how are its Australian and Papua New Guinean operations being reorganized?

Santos is restructuring its oil and gas business by consolidating its Australian and Papua New Guinean assets under four regional business units instead of maintaining separate individual management teams. This change, confirmed by an internal email from Chief Operating Officer Brett Darley for Australia and PNG upstream oil and gas, aims to improve efficiency, productivity, discipline, and innovation. The reorganization reflects a strategic shift from a multiyear phase of production growth toward enhancing profitability across existing operations, as stated in Darley’s email. The Alaska business unit remains unaffected by these changes.

Why is Santos undertaking this cost-cutting restructuring, and what external pressures prompted it?

Santos is undertaking the restructuring in response to sustained pressure to increase shareholder returns following a series of unsuccessful takeover bids — including a failed sale attempt to a consortium led by Abu Dhabi National Oil Co. last year — and investor criticism of stagnant growth, declining green capital expenditures, and limited new energy project development. CEO Kevin Gallagher has faced scrutiny over his remuneration amid a reported profit slump in February, prompting Santos to launch a review of its Australian operations and implement workforce reductions. Shareholders, including Australian pension fund HESTA, have publicly raised concerns about the company’s strategic direction and financial performance, further accelerating the push for operational streamlining.

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Australian Gas Exporter Santos Streamlines Business to Cut Costs

Apr 22, 2026

Santos Ltd. is restructuring its Australian and PNG oil and gas operations into four regional units to cut costs and improve profitability following a profit slump and failed takeover attempts. The shift focuses on efficiency and shareholder returns rather than new production growth.

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