Santos CFO Sherry Duhe makes abrupt exit from oil and gas producer
The exit of Santos’ CFO after little more than a year in the role comes just weeks after a $30bn deal with Abu Dhabi’s oil and gas company collapsed.
Santos chief financial officer Sherry Duhe has resigned after little more than a year in the role, adding to the upheaval inside one of Australia’s largest oil and gas producers following the collapse of a $30bn takeover by Abu Dhabi’s ADNOC and renewed regulatory pressure from Canberra.
Ms Duhe, widely viewed as a potential successor to chief executive Kevin Gallagher, would depart to “pursue other interests”, the company announced on Tuesday. She will be replaced on an acting basis by deputy CFO and treasurer Lachlan Harris, a 15-year Santos veteran.
Ms Duhe joined Santos in October 2024 after serving as interim chief executive of Newcrest Mining and senior positions at Woodside Energy, including CFO. Her appointment had been perceived by analysts as a signal that Santos was preparing for eventual leadership transition after almost a decade under Mr Gallagher’s stewardship.
Mr Gallagher has repeatedly insisted he intends to remain in the role for years to come, leaving limited scope for would-be successors to advance. But the sudden resignation of a senior executive who had been tipped as part of the succession plan has sharpened investor concerns over governance and continuity at the Adelaide-based producer.
Energy analyst Saul Kavonic said Ms Duhe’s departure was likely to unsettle shareholders already anxious about the company’s direction after the collapse of the ADNOC deal.
“Ms Duhe was being touted as the CEO succession plan at Santos. Her sudden departure only a year into the job (with no meaningful explanation) can be seen as another red flag regarding Santos’ governance,” Mr Kavonic said.
“It is the board’s job to ensure CEO succession candidates are retained, and this is now the second failure in as many years on that front.”
Santos has faced a steady drain of senior talent in recent years. In 2024, long-serving executive Brett Woods left to become chief executive of Seven Group-backed Beach Energy, while Jane Norman departed the previous year to take the top job at Cooper Energy. Several other exits have eroded the ranks of potential internal successors.
The company has long insisted that movement reflects the strength and depth of its leadership bench.
Mr Gallagher, who has led Santos since 2016, thanked Ms Duhe for her “significant contribution” to the business, citing her leadership in driving cost reductions and operational improvements.
Mr Harris, who joined Santos from KPMG in 2010, will take on the CFO role on an interim basis while the company searches for a permanent replacement. He has previously acted in the position and held senior finance and risk roles across the business.
The leadership reshuffle comes as Santos faces mounting investor pressure to lift its share price and restore confidence after the failed merger. Mr Gallagher has highlighted two new projects expected to significantly expand production, but the company remains under intense domestic scrutiny over its gas exports and environmental strategy.
The Albanese government is also preparing a fresh review of east coast gas policy that could directly affect Santos’ commercial flexibility. The Australian has reported that Labor is considering new restrictions on producers using gas purchased from the domestic market to meet export contracts through the Gladstone LNG facility.
If implemented, the policy would force Santos either to expand its exploration program or buy production credits from Queensland’s other LNG exporters to maintain its contracted export volumes.
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