Chevron starts staff cull

Chevron has started culling its 4000-strong WA workforce as the lengthy transition from builder of mega-LNG projects to long-term operator kicks in.

Chevron Australia managing director Roy Krzywosinski last month warned the workforce of the looming harsh reality of a greatly reduced operating workforce, and it is understood the first wave of job cuts occurred yesterday.

There has been no official confirmation on the quantum of the job cuts, which are in addition to work on the Chevron and Wheatstone developments coming to an end.

But it is understood the review by Chevron's Australian top brass into what and how many jobs are required for its long-term operating structure is continuing, and that there will be a steady flow of positions being made redundant over the next 12 to 18 months.

Compounding the operational review are weak oil and gas prices that have triggered industry-wide cost-cutting exercises.

"This is the natural evolution of our business as we ramp up to build major capital projects and ramp down to become an efficient operator," a Chevron spokeswoman said.

"As we transition the business over the next several years, we are undertaking a review to have the right skills and competencies in place to meet our future operations requirements. Chevron is going to be operating the Gorgon and Wheatstone projects for at least the next 40 years."

There has been industry speculation Chevron will end up cutting half its workforce by the time the $US29 billion Wheatstone LNG project reaches steady-state operations in 2017.

The more advanced $US54 billion Gorgon is preparing for its commissioning period, ahead of a target of sending off first cargoes of LNG from Barrow Island before the end of the year, which will spell the end for the 8000-strong construction workforce still involved in the construction.