The oil price collapse hit Santos at a time when its balance sheet was at maximum stretch and the ramifications have been transformational. A strategic review was completed in November 2015 and CEO David Knox was replaced by Kevin Gallagher in February 2016. Amongst actions to increase liquidity a key component relevant to exploration was for future strategy to be driven by improved return on capital performance. The exploration team has been downsized and restructured and the 2016 exploration budget is down 60% year on year. As a result Santos' E&A activity for 2016 has been focused on less expensive onshore and shallow water targets in Australia Indonesia and Papua New Guinea.