Japan's Mitsui & Co looks set to expand into a fully fledged operator in the Australian oil and gas sector when it seals its targeted $602 million takeover of AWE, with some expecting the deal to lead to further acquisitions.

But the trading giant, which already has an Australian oil and gas business, has signalled that job cuts may be on the cards at AWE, saying in its bidder's statement it would carry out a "thorough and broad-based" strategic review of AWE's assets and personnel if its agreed 95¢ a share cash offer is successful.