Dec 8 (Reuters) - Santos Ltd STO.AX :
* Santos announces new strategy
* Santos will target a US$1.5 billion reduction in net debt to less than US$3 billion by end of 2019
* Headcount has been reduced by more than 500 positions
* 2016 sales volumes are expected to be at top end of 81-83 mmboe guidance range
* Upstream unit production costs to be below US$9/boe (previous guidance range US$9-9.50/boe)
* Operating cash flow forecast to increase by US$300 million in 2017 for a US$10 per barrel oil price move above US$50 per barrel
* Capital expenditure and upstream unit production costs have been reduced by 53% and 17% respectively
* Reduced free cash flow breakeven oil price to US$39 per barrel, down from US$47 per barrel at start of year
* 2016 production is expected to be in top half of 60-62 mmboe guidance range
* Bruce Clement as vice president to run new standalone low- cost business comprising all non-core assets
* Business has been free cash flow positive for each of last seven months Source text for Eikon: Further company coverage: STO.AX