Oil refinery in Australia
An oil refinery is pictured in the southern Sydney suburb of Kurnell, July 16, 2014. Picture taken July 16, 2014. Reuters

Santos Limited recently announced the completion of its strategic review on top of a new chief executive officer appointment. The completed review reveals around $3.5 billion in capital initiatives to address the struggling balance sheet of the gas company.

Kevin Gallagher -- present CEO of engineering services group, Clough Limited (Clough) -- will be stepping up at Santos as the new managing director and CEO. According to the company's official statement, Gallagher will start with his new position around early 2016. His duties will commence depending on the agreed release date with Clough.

“Kevin has nearly 25 years’ experience in managing oil and gas operations in Australia, the USA and North and West Africa,” said Peter Coates, Santos executive chairman. The executive also expressed his delight on the appointment of Gallagher.

“Kevin will bring fresh insight and a proven track record of achievement for shareholders from a career that spans international oil experience with Mobil, the Woodside operated North West Shelf LNG venture and most recently, as CEO of Clough since 2011,” Coates added.

Coates said that Gallagher has a list of achievements under Clough including driving the company's strong financial performance. This is in light of increasing pressure and challenges to industry service providers.

For the company's strategic review, Santos is poised to offer its 35 per cent interest in the Kipper Gas field to Mitsui. This accounts for around $520 million. he company will also put around $500 million private placement in a Chinese private equity firm at 15 per cent placement.

“The review has shown that we can further streamline the business and enhance financial discipline and the Board is absolutely committed to pursuing those opportunities,” Coates said on the recent review.

Lastly, Santos will also see $2.5 billion Entitlement Offer. All in all, the company posted $37 million in net profit for the 2015 fiscal year.

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