Impending job cuts hinted at major Western Downs gas company
SHELL QGC - one of the Western Downs’ largest employers - is poised for a potential major company restructure, as industry sources tip that job losses are coming to southwest Queensland’s workforce.
In July, the international energy company had to cut their long-term gas and oil price outlook after they suffered an $11 billion loss in writedowns, which mostly concerned their gas business with LNG.
A well-connected source within the resource sector, who has asked to remain anonymous, said there will be job cuts within the Western Downs.
When asked whether job cuts were on the horizon for workers on the Western Downs, a Shell QGC spokeswoman said the company is in the process of reviewing their organisational structure, “to ensure it continues to best meet the needs of QGC’s ongoing operations, noting the asset is no longer in the project phase of its development”.
“Transitions of this nature are not uncommon in the industry and will help maximise the competitiveness of Shell’s QGC business into the future,” she said.
“The uncertainty caused by the current macro conditions is expected to persist for some time, and financial resilience is fundamental to our ability to sustainably weather those pressures.”
The QGC spokeswoman said no decisions have been made yet.
“Anything that pre-empts the outcome of this process is simply speculation,” she said.
“Any decisions that impact people are not ones we take lightly, and we will be engaging closely with our workforce throughout this process to ensure people are supported through the transition.”
Despite the current downturn in the energy sector, Shell recently partnered with PetroChina, and Arrow Energy on a $10 billion coal seam gas project in the Surat Basin.
Set to commence in 2021, the project will see up to 600 wells drilled, and the creation of 800 jobs.