Knox, who has been in the role for seven years, has agreed with the board that it is now time for a leadership succession, Coates said today.
Santos also announced its chairman Peter Coates will shift to the role of executive chairman to lead the strategic review.
Santos is considering spinning off assets after its half-year profit tumbled 82 per cent.
The company said that, in light of “continuing pressure” on its share price – which is at a 12-year low and close to its lowest price this century – and approaches from other parties about purchasing some of its assets, Santos will undertake a strategic review.
Underlying net profit slumped to A$32 million ($23 million)for the six months to June from A$258 million a year earlier, hit by sliding oil prices and a rise in exploration spending.
The plunge in oil prices has put pressure on Santos as the company prepares to start its $18.5 billion liquefied natural gas project in Queensland state.
“At the same time, the board is determined to address the impact of the fall in global oil prices on the company’s share price relative to other oil and gas companies”, Mr Coates said.
Santos would not be taking “any short cuts” however to restore its profitablity – and share price.
“We have been and continue to take appropriate steps to reduce costs further”, CEO David Knox said. “We are also working with our suppliers and contractors towards that end”, said the company’s chief executive David Knox in a statement.
He said no option would be ruled out and that the Santos board would not make further comment on the review until its completion.
It also reiterated it is “considering asset divestments as part of its ongoing portfolio management, provided fair long-term value can be realised”.
In a statement released this morning, Coates paid tribute to Knox for his “leadership in the transformation of Santos from a domestic market focused business to be positioned as a key energy partner to the Asian region”.
First-half sales slipped 15 per cent to $1.63 billion, despite production rising 13 per cent compared to a year ago to 28.3 million barrels of oil equivalent.