Energy giant Shell is talking with staff about job cuts and efficiency improvements as it assimilates the previously BG Group-owned QGC gas project.
Shell earlier flagged around 2,800 job cuts worldwide following its takeover of BG Group, and said the majority of the losses in Australia were expected to come from corporate head offices.
But it hasn’t disclosed exactly how many jobs will go in Australia.
“Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” Shell Australia spokesman Paul Zennaro said in a statement on Wednesday.
“A majority of employees impacted by the re-organisation will be from corporate head offices, and where possible they will be provided with redeployment opportunities.”
Shell Australia says the aim is to eliminate overlapping roles following the takeover.
“The company said last year that in a difficult commodity price environment the two businesses must be more competitive together than they were separately, and that reducing staff numbers in head office locations was a key part of bringing down costs,” Mr Zennaro said.
Mr Zennaro added that Shell maintains ambitious growth plans in Australia with its Prelude floating LNG (FLNG) project off north Western Australia and QGC’s Charlie coal seam gas expansion in Queensland.
Shell recently reported a 44 per cent fall in fourth-quarter earnings as the collapse in oil prices took its toll.
The result came days after Shell sealed the STG47 billion ($A95.65 billion) takeover of BG Group.
Oil is trading around $US46 a barrel, having fallen from above $US100 a barrel in September 2014.