With this year’s Australian Petroleum Production and Exploration Association (APPEA) Conference and Exhibition cancelled due to the COVID-19 pandemic, APPEA is continuing to share some aspects of the event online this week, including discussions with some key industry figures.
To kick things off, APPEA Chief Executive Andrew McConville had a virtual sit-down with Santos Managing Director and CEO and APPEA Chair Kevin Gallagher to discuss the current state of the oil and gas industry, including the oil price slump and the impact of coronavirus.
When asked about the way to combat job losses resulting from the current economic turbulence, Mr Gallagher said it was important to maintain activity levels where possible.
“It’s imperative that we focus on our operating models to run through the bottom of a cycle.
“If you can do that, I’m not saying you would be able to avoid…the job losses and supplier impacts, but you certainly should be able to minimise them,” said Mr Gallagher.
“One thing we’ve been very focused on here at Santos is maintaining our core sustaining activity levels through this.
“So far, we have been able to do that.
“We haven’t cut any of our drilling rigs in Queensland or in the Cooper Basin.
“We have cut a little bit of exploration activity but our core sustaining activity we have been able to maintain.”
Santos was among a number of prominent oil and gas companies who have been forced to cut jobs and reduce expenditure to ride out the current crisis, with some reports estimating the company had slashed 150 jobs.
But Mr Gallagher said the company had been able to retain its permanent employees.
“In the main, we have kept all of the jobs,” he said.
“We have had to let a few contractors go but no permanent employees.
“What would I say to other people?
“I think you’ve got to be strong, I think your employees deserve for you to be honest and frank with them.
“I think we have to think of different employment packages that keep more people in work.
“The companies that have maintained a good balance sheet, that are able to operate through this without going into a tailspin of decline across their assets, can come out of this very strong on the other side.”
APPEA will continue offering content from its conference and exhibition throughout the week.
For more information visit the APPEA website.
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