Arrow project on shaky ground as Shell sells WA LNG stake

ARROW Energy has confirmed it has carried out a review of staffing levels but there's still no word on how many jobs will eventually be lost.

It's believed staff cuts have been underway for months as the company's owner Royal Dutch Shell tries to cut costs in Australia.

The Australian reports about 250 jobs are believed to have been cut on Monday.

The staff cuts come with the news Shell has sold its stake in the Wheatstone LNG project in Western Australia for $1.3bn.

The future of Arrow's proposed LNG plant on Gladstone's Curtis Island remains in doubt, with one Arrow staffer who was made redundant saying the project would not go ahead in its current form.

"(Senior management) are the only ones still pretending that LNG is still an option. Everyone else has already written it off," the staffer said.

The staffer said the best hope for the Arrow project would involve selling the gas from its position in the Surat Basin into the three more advanced LNG projects, and eventually revisiting a smaller LNG development based on the Bowen Basin gas reserves.

The Arrow LNG project had long been shaping as a key target of any spending cuts, with Shell and PetroChina yet to make a final investment decision on a project that was already facing cost pressures on several fronts.

Arrow on Monday confirmed it had carried out "a review of staffing levels as it manages costs".

Brisbane Times reports the statement came amid reports that managers in Arrow were travelling to regional centres in Moranbah and Dalby to kick off the job reductions.

Shell has signalled that it is considering several options for Arrow LNG, including a potential merger of the venture with one of the other projects in Queensland.

Last month a spokesman for Arrow Energy said the Gladstone project was not "schedule driven".

"Arrow is focused on building more value into the Arrow LNG project proposal," he said.

"As part of our drive to find more value and cost efficiencies in the current high cost environment, we need to be prudent about our current expenditure.

"Final investment, timing and collaboration are matters for Arrow's shareholders."

Topics:  arrow energy curtis island gas lng resources

Artist unveils her island home

JEAN Kane's backyard has a unique and elusive history; but next week she's prepared to unveil it to travellers from across the country and world.

Your chance to win

Learn More

Barry Gibb is coming to Bluesfest 2017

FANS: Barry Gibb talks to a fan next to a cardboard cutout of his young self.

Aged 70, Gibb has re-launched his solo music career with a new album

Tim Finn headlining at Airlie Beach Music Festival

Music veteran Tim Finn from New Zealand will headline the Airlie Beach Music Festival.

Tim Finn: "It's the kind of festival that artists love"

WHAT'S ON: Fashion show, family events and live entertainment

Runway 7 Model and Talent Agency Roche Bailey.

Everything you need to know about what you can do in the region.

In Flames are super 'proud' of new album

In Flames album to be released in November.  Photo Contributed

In Flames to release new album in November

Selma Blair blames flight outburst on 'psychotic blackout'

Selma Blair

"I am someone who should never drink, and I rarely do"

Bob Dylan acknowledges Nobel Prize win

Bob Dylan has finally acknowledged his Nobel Prize win

WATCH: Trailer for Jackman's final Wolverine film released

First trailer for the last Wolverine film with Hugh Jackman.

Thrilling trailer promises a dark, dystopian finale for Wolverine

CCTV footage surfaces of Kim Kardashian West's robbers

The blurry footage shows three men on bikes and two on foot

Cathriona White's mother claims to have Jim Carrey's results

Jim Carrey and late ex-girlfriend Cathriona White

SHE claims Carrey exposed White to herpes, chlamydia, Hepatitis A

Push to sell homes that flooded Gladstone's market

Suburban housing in Glenvale, Toowoomba, Friday, October 17, 2014. Photo Kevin Farmer / The Chronicle

URGENT push to cash-up first home buyers investing in Gladstone.

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.

Dusit Thani finance crisis 'just a small hiccup'

ON TRACK: Springfield Land Chairman, Maha Sinnathamby, Ipswich Mayor Paul Pisasale, Developer Richard Turner and Springfield Land Deputy Chairman, Bob Sharpless, at the recent resort sod turning ceremony.

Property developer says project remains firmly on track

Heavyweight enters real estate market

Des Besanko principal and director of Raine and Horne Springfield.

Major rebranding which has seen two big name brands merge