Arrow Energy Pty Ltd, a 50-50 joint venture between Royal Dutch Shell plc and PetroChina Ltd., has cut around 250 jobs from the company's coal seam gas project in Queensland, Australia, according to local newspaper The Australian Monday.
Arrow Energy had "conducted a review of staffing levels as it manages costs ... (and) while the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition," a company spokesman told The Australian.
The job losses reportedly included several senior managers from a workforce which had previously stood at 1,200.
The job cuts were made amid concerns over the economic viability of the project's liquefied natural gas (LNG) plant near Gladstone, Queensland, with the development plan approved by the Federal Government in December.
Arrow Energy's proposed LNG plant is likely to encounter cost pressures on wages, services and infrastructure as it will be located near three other LNG projects, which are already under construction.
"The company remains focused on finding additional value and reducing overall costs. Arrow will continue to assess development options, including collaboration opportunities, as it looks to develop significant gas reserves," the company spokesman told the Australian daily.
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