Shell's Arrow Energy to slash hundreds of jobs Royal Dutch Shell's Arrow Energy coal seam gas venture in Queensland is set to cut potentially hundreds of jobs as speculation mounts that the proposed LNG project will be a casualty of reined-in spending by the oil major. One source said up to 600 jobs would go, representing half of the workforce. Another put the figure at 400 jobs out of the 1200 employed at the venture, which is half-owned by PetroChina. Arrow on Monday confirmed it has carried out "a review of staffing levels as it manages costs." It said it "remains focused on finding additional value and reducing overall costs." A spokesman wouldn't give the numbers of jobs to be lost. The statement comes amid media reports that managers in Arrow were travelling to regional centres in Moranbah and Dalby to kick off the job reductions. Arrow produces coal seam gas for sale to businesses in Queensland and has also been working on a potential $20 billion-plus LNG project. However, work on the project has slowed amid a glut of LNG construction in Queensland, involving three similar projects already being built on Curtis Island in Gladstone. 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. Arrow said on Monday it "will continue to assess development options, including collaboration opportunities, as it looks to develop significant gas reserves." The venture has received most of its environmental approvals to proceed with a massive standalone LNG project, including clearances received in the weeks leading up to the Christmas holiday. However, confidence on a project going ahead has been low due to difficulties Arrow has met with local landholders and community groups, as well as surging costs throughout the industry. "We have not ruled out any development options," Arrow said. Shell's shock profit warning last Friday had already heightened speculation that the Arrow LNG project won't go ahead, and confirmed expectations that the oil giant's stake in Woodside Petroleum and its Australian refinery business will be sold.