"The savings initiatives, some of which have been implemented, include improving and simplifying business processes, an organisational restructure, and new approaches to working," said the director of Woodside's Profitability Enhancement Program, Jack Hamilton

Over the three years of the program about $60 million of the savings will be Woodside's share. The balance of the $250 million will flow back to joint venturers as savings to them through cost-sharing arrangements.

In addition to savings in operating expenditure, a further $300 million in savings in capital and exploration costs have been identified over the next three to four years. These savings will be achieved through improved delivery of currently planned project development and exploration activity. Between $120 million and $135 million of this will flow directly to Woodside.

Hamilton said savings have been identified ranging from 10-40% across different areas of the company's activities, including improved approaches to strategic procurement, drilling and internal processes such as human resource management.

The down side of the plan is that about 300 jobs from current activities will be lost over the next two years through natural attrition, redundancies and re-deployment.