01/04/2016 - 14:02

Santos reshapes for low price environment

01/04/2016 - 14:02

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Energy giant Santos has finalised a new executive team and corporate structure that centralises management in Adelaide, though it has a strong Western Australian flavour as five members of the executive committee have worked in Perth.

Santos reshapes for low price environment
Santos chief executive Kevin Gallagher.

Energy giant Santos has finalised a new executive team and corporate structure that centralises management in Adelaide, though it has a strong Western Australian flavour as five members of the executive committee have worked in Perth in recent years.

The new structure has been shaped by newly appointed chief executive Kevin Gallagher, who previously worked for Clough and Woodside Petroleum in Perth.

Santos confirmed earlier reports Azure Consulting director Angus Jaffray will move to Adelaide to take on the role of executive vice-president, strategy and corporate services, while former Woodside chief operating officer Vince Santostefano will take on the same job at Santos.

John Anderson, who was based in Perth as head of the company's WA and NT operations, before moving to Singapore in 2013, has been appointed executive vice-president commercial and business development.

He was replaced in Perth by Brett Woods, who has been appointed vice-president development, accountable for delivering projects, sustaining capital work programs and non-operated assets

Other members of the slimmed-down six-person team are Bill Ovenden, vice-president exploration, who will be accountable for developing and executing a targeted exploration strategy, and Andrew Seaton as chief financial officer.

Vice-president, corporate development, James Baulderstone and vice-president, Queensland, Trevor Brown have been removed from Santos’s executive team.

The company's top executive in Perth is currently Joe Ariyaratnam, who is general manager WA & NT and reports to Mr Anderson.

 

Mr Ariyaratnam took that role last year when Mr Woods was appointed vice-president eastern Australia.

The transition to the new model will take place over the next few months.

Mr Gallagher said the appointment of six new executives was a move to a new operating model focused on lifting productivity and driving shareholder value in a low oil price environment.

"The new asset-focused model would have strong technical capabilities in our primary business of exploration, development and production of oil and natural gas both onshore and offshore," he said.

"The new model involves a move away from geographic-based business units to an asset-focused model with strong technical capabilities in our primary business of exploration, development and production of oil and natural gas both onshore and offshore.

“Corporate functions will be consolidated to further reduce costs and improve effectiveness.

“We will manage our asset portfolio in a manner which delivers value to Santos shareholders."

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