CSG headache: The party is over

A downturn in global oil prices has coincided with transition from the construction phase of coal seam gas (CSG) production in the Surat Basin to the less labour-intensive operational and maintenance phases.

In a 'perfect storm' of market and operational conditions, hundreds of jobs have been shed by CSG companies and associated service industries.

Santos averaged a 3000-strong workforce during the construction phase but that figure has fallen to just 600 employees in recent weeks.

A spokesman for the company confirmed that number could fall again later in the year as the company continued with moves to reduce expenditure in the region.

"Santos GLNG is reducing its activity and workforce numbers in line with business operating requirements in a lower-oil-price environment," Santos Maranoa community team leader Jamie Miller said.

"Additionally, in the Maranoa region the construction of our pipeline, gas hubs and other major facilities is largely complete and our big capital investment spend in the region is coming to a close.

"We've been a part of the Maranoa region for more than 50 years, and will continue our operations for decades to come, in partnership with the community."

Santos staff were notified via email earlier this month that some workers would be offered redundancies as part of the workforce reduction.

Queensland Country Life understands members of the land access and community team were among some of the first staff to be axed.

Councillor Loughnan said he was very concerned about the ability of the local labour market to absorb the extra workers.

"A number of really good people have been made redundant and I'd urge local business owners to keep an eye out for those people because we'd really like to keep them in our community," he said.

"Many of them are specialists in fields that might not be in demand for another six to eight months so I think things are going to be pretty tight for a few months.

"There are a lot of people with skills in driving machinery that are now looking for work rather than being in state of competition and high wages.

"It's a very different market to what it was six months ago."

Cr Loughnan has also criticised a move by Santos management to force local staff to stay onsite in accommodation camps while rostered on for work.

The decision has angered many local workers who say staying onsite during their shifts would be detrimental to family life.

Cr Loughnan dismissed claims from Santos management that staff were aware that once the company moved to an operational phase, they would be required to stay in the camps.

"It's an appalling thing to do," he said.

"They never gave any indication that it was going to happen. Many of them took jobs in good faith that they would be able to come home at night.

"Certainly there are jobs were staff are required to be on site all the time but that doesn't mean all field staff need to be employed under those conditions."

Cr Loughnan believes the move to force workers into accommodation camps is merely an attempt by Santos to "balance their books".

"I think they over estimated how many beds they needed in these camps and suddenly the camp providers are telling them they have all these empty beds they are already paying for so they need to fill them up," he said.

In response to questions from Queensland Country Life about the requirements for field staff to stay onsite, Santos' Jamie Miller said the change would ensure the safe operation of Santos gas processing facilities.

"Employees are required on site 24 hours a day so they can be quickly mobilised if needed," he said.

"This means staying in on-site accommodation while on shift, which is standard right across the Australian gas industry."