Oil and gas mining company Santos has announced 200 jobs will be cut in South Australia.

The company announced in its half yearly report that it had progressively cut 565 employees nationwide over the past year, with 200 of those positions in SA, while another 1,000 contractor positions were also shed.

The latest cuts are in addition to those detailed in the report and will mainly affect Adelaide-based office roles.

About 1,400 employees will remain employed by Santos in SA following the latest cuts.

In a statement, Santos said the changes were "consistent with the objective of the company's strategic review announced in August, to restore and maximise shareholder value".

"The job reductions together with additional initiatives to simplify the business will deliver approximately $100 million in cost savings across the company's Cooper Basin activities over the next three years."

Santos said the job reductions were part of a "broader restructure of the Eastern Australia business to make it a leaner, more agile organisation delivering lower cost oil and gas from the Cooper Basin".

It referred to its half yearly report, which stated Santos had achieved a 55 per cent reduction in capital expenditure and 11 per cent reduction in unit production costs.

SA Chamber of Mines and Energy chief executive Jason Kuchel said the reductions were a "part of what oil and gas need to go through" to improve productivity and remain competitive.

"For everybody in the resources sector, [falling] commodity prices have driven a need to improve productivity wherever possible, and I think companies like Santos can be productive and can be profitable at the current oil prices," he said.

"Unfortunately, it does mean going through pain to achieve that."

SA 'not immune' to commodity fall

SA Mineral Resources and Energy Minister Tom Koutsantonis said commodity prices had "fallen dramatically" worldwide and companies were moving to remain sustainable ahead of the "inevitable upswing".

He said SA was not immune and recognised that there were "further hurdles to overcome during this transition".

"Today, our thoughts are with the affected workers," Mr Koutsantonis said.

"While the challenges facing the industry are well known, it does not soften the blow of today's announcement."

Mr Koutsantonis said the Government would stand "shoulder to shoulder with the sector in the good times and the bad".

"Santos is doing all it can to remain a viable multinational, headquartered here in South Australia," he said.