Santos Limited · ASX:STO
Santos — Macquarie Australia Conference 2013
23 slides from Santos's conference presentation, May 1, 2013
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference 1 May 2013 1 1
Slide 2: Disclaimer & important notice
Disclaimer & important notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which cou
Slide 3: A compelling investment opportunity
A compelling investment opportunity Production growth 6% annual compound production growth to 2020 Rising Australian domestic gas prices Earnings growth 3.4mtpa long-term oil-linked LNG export contracts Major projects on PNG LNG over 80% complete, first LNG in 2014 track GLNG over 50% comp
Slide 4: Delivering 80-90 mmboe of production by 2020
Delivering 80-90 mmboe of production by 2020 6% CAGR production growth 2011-2020 Upside potential Aust: Cooper shale, Cooper tight gas, Zola, Winchester, Amadeus, McArthur mmboe LNG: PNG LNG T3, Browse, Caldita Barossa 90 Asia: Vietnam, Indonesia CSG 80 Likely Likely sanction sanction Aust: Gunnedah
Slide 5: Fletcher Finucane first oil ahead of schedule
Fletcher Finucane first oil ahead of schedule Project is over 90% complete; pre-commissioning to commence in May Santos 44% and operator Three-well subsea tieback to Mutineer- Exeter FPSO All development wells drilled and completed Installation work well advanced Forecast average gross pro
Slide 6: Santos' LNG growth pipeline
Santos’ LNG growth pipeline Upside Likely Sanctioned Producing potential sanction PNG LNG Bonaparte LNG PNG LNG Darwin LNG expansion Santos 40% Santos 13.5% Santos 11.5% Darwin LNG equity equity equity Floating LNG First LNG on track Produced over Browse Basin project in the for 2014 300
Slide 7: Santos' LNG projects are fully contracted
Santos’ LNG projects are fully contracted with major Asian buyers at oil-linked prices DLNG PNG LNG GLNG Contracted to Contracted to Contracted to 2023 2034 2035 3.4 mtpa Santos share of long-term, oil-linked contracts in place 7
Slide 8: GLNG on track for first LNG in 2015
GLNG on track for first LNG in 2015 Project is over 50% complete Santos 30% and operator Recent milestones include: − First four LNG plant modules shipped from the module yard in Batangas − Train 1 refrigeration compressors, cold boxes and CO2 absorber installed − Tunnelling commenced under the
Slide 9: CSG drilling: driving down well costs
9 wells completion rigs 200 wells in 2013 drilling rigs and four − 40% reduction in drilling Current rig fleet of eight Expect to drill more than cost for Fairview deviated 2012 were deviated wells − >30% reduction in drilling Delivering lower well costs: Over 80% of wells drilled in cost fo
Slide 10: Upstream construction
Upstream construction 10 Fairview Hub 4
Slide 11: Gas transmission pipeline
Gas transmission pipeline 420 kilometre pipeline on track for Q2 2014 completion 420 kilometre 42” pipeline All pipeline manufactured and landed in Queensland Mainland section: − 210 kilometres of the right-of-way has been cleared and graded Mainland pipeline − 165 kilometres of pipeline strun
Slide 12: Curtis Island
Curtis Island 12 28 March 2013
Slide 13: Downstream construction
Downstream construction LNG tanks Loading modules for shipping, Batangas 13 LNG train 1 LNG jetty
Slide 14: PNG LNG on track for first LNG in 2014
PNG LNG on track for first LNG in 2014 Project is over 80% complete Santos 13.5%, ExxonMobil 33.2% and operator Recent milestones include: − Komo nearing completion ahead of first cargo flights in May 2013 − Major foundations at Hides Gas Conditioning Plant are complete with piping and cable ins
Slide 15: Hides gas conditioning plant
Hides gas conditioning plant 15 March 2013
Slide 16: LNG plant construction well advanced
LNG plant construction well advanced LNG plant site LNG tanks 16 LNG trains 1 & 2 LNG jetty
Slide 17: PNG LNG potential expansion
PNG LNG potential expansion Existing infrastructure can support potential future expansion Potential areas for expansion are being assessed - Hides development drilling underway Plans are being developed to drill Hides Deep in 2014 (Santos 24% equity) - Optimal access to project infrastructure 1
Slide 18: Browse: Crown success unlocks material play
Browse: Crown success unlocks material play Significant gas discovery at Crown, Bassett West drilling ahead Crown gas discovery Dufresne Bassett West (Santos 30% and operator) Argus WA-274-P - 61 metres of net pay in WA-408-P Prelude LNG Jurassic-aged Montara, WA-410-P Project Plover and Malita sa
Slide 19: Cooper Basin unconventional
Cooper Basin unconventional Exploration continues on the basin centred gas play and the REM shale play Basin centred gas play - Gaschnitz-1 successfully cased and suspended; gas bearing throughout the entire 1,000 metre Permian section - Van Der Waals-1 vertical well spudded in early April REM s
Slide 20: A compelling investment opportunity
A compelling investment opportunity Production growth 6% annual compound production growth to 2020 Rising Australian domestic gas prices Earnings growth 3.4mtpa long-term oil-linked LNG export contracts Major projects on PNG LNG over 80% complete, first LNG in 2014 track GLNG over 50% comp
Slide 21: Macquarie Australia Conference
Macquarie Australia Conference 1 May 2013 21 21
Slide 22: 2013 exploration schedule
2013 exploration schedule Well name Basin / area Target Santos Interest Timing % Bassett West-1 Browse Gas 30 Drilling Winchester-1 Carnarvon Gas 75 Drilling Dufresne-1 Browse Gas 30 Q2 – Q3 Cooper unconventional Cooper Gas 66.6 Q1 – Q3 Cooper NFE Cooper Gas Various Q3 – Q4 NSW CSG Gunnedah CSG Vari
Slide 23: Contact information
Contact information Head office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Level 10, Santos Centre Adelaide, South Australia 5000 Direct: + 61 8 8116 5314 GPO Box 2455 Email: andrew.nairn@santos.com Adelaide, South Australia 5001 Telephone