Sherry Duhe, Santos' Finance Chief, resigns after one year in the role

Santos announced on Tuesday the resignation of CFO Sherry duhe, only one year after she assumed the position. The Australian gas producer is navigating a period of transition ahead of the start-up of its Barossa, and Pikka, projects.

Duhe was appointed as Santos' new CEO in September of last year, amid speculation about a possible leadership change.

Lachlan Harris, the current Deputy CFO of the company, has been appointed acting Finance Chief. Harris has experience in a variety of finance roles within the company.

Saul Kavonic is a senior analyst at MST Marquee and he said that the sudden departure of Santos without any explanation could be seen as a red flag in regards to its governance.

The resignation came as Santos was in its most acute financial position, ahead of the startup of Barossa & Pikka and after XRG walked out.

As of 0030 GMT, shares of Santos fell 0.4% to A$6.445.

Santos’ $4.5 billion Barossa Gas Project off Northwestern Australia and $3.1 billion Pikka Oil Project in Alaska, after an extensive investment cycle are close to their first production. They will contribute significantly to cash flow.

Analyst Kavonic noted that Duhe's exit leaves Santos with no clear succession plan. She was widely considered as a possible successor to Kevin Gallagher, should he decide to step down.

Gallagher's failure to takeover Santos in three separate attempts over the last seven years has fueled speculation about his future.

Gallagher stated last month that he does not plan to retire, and he expects the cash flow to significantly improve in the coming years after the launch of two new projects.

After months of negotiating over terms and valuation, a consortium led Abu Dhabi National Oil Company’s overseas unit XRG walked back from an offer of $18,7 billion for Santos a few weeks ago.

(source: Reuters)