Santos has announced a sweeping strategic review after managing director David Knox agreed to step down from the oil and gas producer following a protracted decline in investor support and an 82 per cent plunge in first-half profit.
Santos said the strategic review would consider spinning-off some of its assets.
The review was announced on the same day Santos said its half-year profit had fallen to $37 million from $206 million for the prior corresponding period due to tumbling oil prices.
It said Mr Knox would step down after seven years in the job and once a successor was found.
Chairman Peter Coates will shift to the role of executive chairman to lead the strategic review, with the assistance of Deutsche Bank and Lazard as advisers to the board.
In a statement, the company said the review was prompted by continuing pressure on its share price, down more than 30 per cent over the past year, and approaches by other parties concerning various assets.
"After seven years as CEO and with the commencement of production at the company's GLNG project (in Queensland) now imminent, the board and David have agreed that it is an appropriate time to institute a succession of leadership," Mr Coates said in the statement.
"Until he steps down as CEO, David will remain in his role, responsible to the board for all of the company's operations and projects.
"At the same time, the board is determined to address the impact of the fall in global oil prices on the company's share price relative to other oil and gas companies.
"We are undertaking a thorough strategic review of all options to restore and maximise shareholder value in the face of the continuing pressures on oil prices, globally."
Part of that process will be talking to those parties interested in taking up Santos assets, Mr Coates said.
“We will be talking with the parties who have approached us to date with interest in various assets and other strategic initiatives and with this announcement there may well be new expressions of interest received," he said.
“No options will be ruled out from consideration, but neither is any particular option a preferred course at this time.”
The Santos board would not make further comment on the review until its completion.
Santos shares had dropped 40 cents, or 7.13 per cent, to $5.21 in early trade.
