Santos Limited · ASX:STO
Santos — Investor Day (December 2013)
99 slides from Santos's investor day presentation, Dec 4, 2013
Slide 1: ASX cover letter: Santos 2013 Investor Seminar
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 For personal use only TO: ASX Market Announcements ASX Limited FROM: Company Secretary DATE: 4 De
Slide 2: 2013 Investor Seminar
2013 Investor Seminar For personal use only 4 December 2013
Slide 3: Disclaimer and important notice
Disclaimer and important notice For personal use only 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 rang
Slide 4: Welcome and introduction
Welcome and introduction For personal use only David Knox Managing Director and Chief Executive Officer Unloading GLNG piperack modules, Curtis Island
Slide 5: Delivering the strategy in 2013
Delivering the Strong LNG project delivery in 2013 positions Santos strategy in 2013 to achieve 80 to 90 mmboe of production by 2020 For personal use only AUSTRALIA LNG ASIA ! Fletcher Finucane first oil ! PNG LNG >90% complete ! Dua and Peluang on track for ahead of schedule and and on track for fi
Slide 6: Strong GLNG project delivery in 2013
Strong GLNG project GLNG is 72% complete and on track delivery in 2013 for first LNG in 2015 For personal use only ! Drilling ahead of plan ! Fairview wells continue to produce strongly ! Roma pilot well data supporting predicted capacity ! First new wells at Fairview and Roma connected and dewateri
Slide 7: Production guidance
Production guidance 2014 production 52-57 mmboe, growth driven by PNG LNG start-up. For personal use only 2013 production now expected to be approximately 51 mmboe Production 2014 guidance 52-57 mmboe mmboe ! New projects on line 60 60 ─ PNG LNG 2H 2014 58 52-57 56 ─ Peluang 1H 2014 54 ─ Dua mid-201
Slide 8: Safety performance
Safety performance Lost time injury frequency rate of 0.6 per million hours worked For personal use only Safety performance (employees and contractors) ! Fatality on Saxon CSG drilling Rate per million Work hours rig 185 on 23 June 2013 hours worked (million) 2 50 ─ Drilling operations immediately s
Slide 9: Principles of responsible operations
Principles of Increasing the confidence and trust of responsible operations the communities in which we operate For personal use only Operating safely Protecting the environment Treating people with respect Limiting our footprint Making a positive difference to communities 8 | 2013 INVESTOR SEMINAR
Slide 10: Today's agenda
2013 Investor Seminar Today’s agenda For personal use only Welcome and introduction David Knox Strategy and LNG markets Peter Cleary Business outlook Andrew Seaton GLNG upstream Trevor Brown GLNG downstream Rod Duke Q&A followed by morning tea Exploration Bill Ovenden Drilling and Completions Diana
Slide 11: Strategy and LNG markets
Strategy and LNG markets For personal use only Peter Cleary Vice President Strategy & Corporate Development PETRONAS Putri class LNG tanker
Slide 12: Our strategy
Our strategy Our vision is to be a leading energy company in Australia and Asia For personal use only AUSTRALIA LNG ASIA Growing our Delivering our Building a focused strong domestic transformational exploration-led base business LNG portfolio portfolio 11 | 2013 INVESTOR SEMINAR
Slide 13: Global LNG demand and supply outlook
Global LNG demand LNG continues to be a fast growing fuel and supply outlook For personal use only mtpa 600 500 400 290 160 mtpa mtpa 300 Other Pacific 200 Atlantic Qatar 100 Australia 0 2000 2005 2010 2015 2020 2025 2030 Source: Wood Mackenzie, LNG supply represents contracted volumes and potential
Slide 14: LNG demand forecasts frequently underestimate actual demand
LNG Demand Forecasts frequently underestimate actual LNG demand For personal use only mtpa 2012 contracted LNG by source ! LNG delivers energy security 100 ─ Buyers rely on the spot market or short term market to meet their LNG needs 80 Spot ─ Traditional buyers will continue to rely on LNG to deliv
Slide 15: Global LNG demand vs US LNG in 2025
Global LNG demand US LNG alone will not fill the gap vs US LNG in 2025 For personal use only mtpa ! Constraints on 500 US LNG exports ─ Buyer appetite for 400 diversity of supply Contestable ~100 mtpa 160 market ─ Not all US LNG projects will secure financing US LNG 300 ~40-60 mtpa ─ LNG plant const
Slide 16: US LNG pricing
US LNG pricing Portfolio players and trading houses dominate US LNG off-take with higher pricing For personal use only Sabine Pass LNG pricing - 2012 Portfolio player pricing terms for resale - 2013 US$/mmBtu US$/mmBtu 16 Spot 16 $14.6/mmBtu 14 $13.5/mmBtu 14 6.5 3 12 12 10 3 10 8 8 1 1.6 6 6 1.6 6-
Slide 17: Santos' unique LNG portfolio with growth opportunities
Santos’ unique Interests in four LNG projects LNG portfolio with growth opportunities For personal use only Operating Darwin LNG ! 11.5% equity ! 3.7 mtpa plant capacity ! Fully contracted to 2023 Under construction PNG LNG GLNG ! 13.5% equity ! 30% equity (operated) ! 6.9 mtpa plant capacity ! 7.8
Slide 18: Strong Australian base
Strong Australian base Santos has a significant infrastructure footprint that provides development optionality For personal use only Santos assets Northern LNG INFRASTRUCTURE: FPSO LNG Gas Processing / Load out facility Carnarvon Eastern Australia unconventional Central Australia Southern convention
Slide 19: Strong diverse portfolio
Strong diverse portfolio Delivering a balanced portfolio of 80-90 mmboe in 2020 For personal use only 2020 indicative production split Asia Australia Liquids LNG Gas Unconventional Conventional 18 | 2013 INVESTOR SEMINAR
Slide 20: Business outlook
Business outlook For personal use only Andrew Seaton Chief Financial Officer
Slide 21: Strong business outlook
Strong business outlook Operating cash flow is expected to double by 2016, providing the foundation for further growth and For personal use only increased shareholder returns Clear production growth outlook Growing margins Robust funding position provides the capacity to fund execution of strategy C
Slide 22: Production growth
Production growth Delivering 80-90 mmboe of production by 2020 from already captured opportunities For personal use only Santos production Upside potential mmboe Aust: Cooper shale, Cooper tight gas, Zola, 90 Winchester, Amadeus, McArthur LNG: PNG LNG expansion, Darwin expansion, Near-term Browse 80
Slide 23: Margin growth
Margin growth Growing margins from higher revenues and lower unit costs For personal use only Increasingly oil price-linked Growing revenue per barrel Oil price-linked 35% Other 70% 2012 2015 Santos average realised gas price Rising domestic gas prices ! EA gas prices >$8/GJ for $/GJ across Santos’
Slide 24: Capex guidance
Capex guidance 2013 is peak year for capex – guidance unchanged at $4 billion. For personal use only 2014 guidance $3.5 billion Capital expenditure ! 2014 guidance of $3.5 billion (excludes capitalised interest) (excluding capitalised interest) A$billion ─ GLNG $1.4 billion 4 3.5 ─ PNG LNG $0.3 bill
Slide 25: Strong funding position
Strong funding position $3.7 billion in balance sheet capacity to fund execution of business strategy and minimise financing risk. For personal use only Minimal debt maturities to 2016 Available liquidity Debt maturity profile A$billion A$million Notes mature in 2070, with Santos option to redeem in
Slide 26: GLNG upstream
GLNG upstream For personal use only Trevor Brown Vice President Queensland Drilling rig, Fairview field
Slide 27: Strong GLNG project delivery in 2013
Strong GLNG project GLNG is 72% complete and on track delivery in 2013 for first LNG in 2015 For personal use only ! Drilling ahead of plan ! Fairview wells continue to produce strongly ! Roma pilot well data supporting predicted capacity ! First new wells at Fairview and Roma connected and dewateri
Slide 28: GLNG project summary
GLNG project summary The GLNG project is 72% complete and on track for first LNG in 2015 For personal use only Rockhampton Curtis Island Location Queensland, Australia GLNG plant Gladstone Project Santos (30% and operator), PETRONAS, participants Total and KOGAS Rolleston Project § Upstream CSG fie
Slide 29: GLNG upstream
GLNG upstream On track to drill over 230 wells in 2013. Continued focus on field development optimisation For personal use only ! On track to drill over 230 wells in the GLNG acreage in 2013 ─ 224 wells drilled in the GLNG acreage year-to-date ─ Average 2013 drilling and completion costs of $1.35 mi
Slide 30: Fairview field development
Fairview field Fairview wells continue to produce strongly, with an development average gas capacity of 1.63 TJ/day per well For personal use only Fairview well performance as at 1 October 2013 ! 170 wells are connected with a current capacity of 278 TJ/day Optimum gas Optimum water capacity (TJ/day
Slide 31: Roma field development
Roma field development Roma pilot data supporting individual well capacity of 0.5 TJ/day. For personal use only First wells have been connected to new facilities Roma well performance as at 1 October 2013 ! 34 appraisal pilot wells in Optimum gas Optimum water Roma are now producing capacity (TJ/day
Slide 32: Fairview Hub 250 TJ/day capacity
Fairview Hub 4 Commissioning of the water processing facilities is 250 TJ/day capacity underway. All nodal compressors, gas turbine alternators, For personal use only switchrooms and control buildings are installed Nodal compressors and piperack, Fairview Hub 4 31 | 2013 INVESTOR SEMINAR
Slide 33: Fairview Hub 170 TJ/day capacity
Fairview Hub 5 Commissioning of the associated water amendment 170 TJ/day capacity facility (AWAF 3) has been completed For personal use only AWAF 3, Fairview Hub 5 32 | 2013 INVESTOR SEMINAR
Slide 34: Roma Hub
Roma Hub 2 First development wells have been connected 145 TJ/day capacity and dewatering has commenced For personal use only Scrubbers and hub compressor, Roma Hub 2 33 | 2013 INVESTOR SEMINAR
Slide 35: Upstream infrastructure
Upstream infrastructure APLNG collaboration agreement has been signed. CRWP loop and electrification projects underway For personal use only ! Collaboration agreements signed between the GLNG and APLNG projects in October Queensland 2013 for gas swaps and infrastructure connections ─ Reduces the nee
Slide 36: GLNG Upstream milestones
GLNG Upstream Significant milestones achieved in 2013. GLNG remains on track for first LNG in 2015 For personal use only Milestone Date Over 200 wells spudded in 2013 October 2013 Collaboration agreement signed with APLNG October 2013 First wells connected to Fairview Hub 4 and dewatering October 20
Slide 37: GLNG downstream
GLNG downstream For personal use only Rod Duke Vice President Downstream GLNG GLNG plant site, Curtis Island
Slide 38: Gas transmission pipeline
Gas transmission pipeline Remains on track for completion in Q2 2014, with pre-commissioning activities underway For personal use only ! 420-kilometre gas pipeline construction progressing well: ─ Clearing and grading is complete ─ Stringing is complete ─ Automatic welding is complete on the mainlan
Slide 39: Marine crossing tunnel
Marine crossing tunnel Over 3.7 kilometres of the 4.3 kilometre tunnel is complete, on track for Q1 2014 completion For personal use only Marine crossing tunnel Tunnel boring machine reception shaft, Curtis Island 38 | 2013 INVESTOR SEMINAR
Slide 40: LNG plant site
LNG plant site Significant construction progress over the past 12 months For personal use only GLNG plant site, Curtis Island October 2013 39 | 2013 INVESTOR SEMINAR
Slide 41: LNG plant modules
LNG plant modules Over half of the Train 1 modules have been shipped from the module yard to Curtis Island For personal use only ! 82 Train 1 modules required: ─ 47 modules shipped to site ─ 8 modules complete and ready for shipping ─ 27 modules under construction ! 29 Train 2 modules required: ─ 21
Slide 42: LNG trains
LNG trains Construction progressing well, with module installation underway For personal use only Train 1 site, Curtis Island October 2013 41 | 2013 INVESTOR SEMINAR
Slide 43: LNG tanks
LNG tanks Good construction progress with both roofs raised, concrete roof pours complete and work underway on For personal use only inner nickel steel tanks October 2013 Inside LNG Tank B LNG Tank B roof concreting LNG Tank B and A 42 | 2013 INVESTOR SEMINAR
Slide 44: LNG jetty
LNG jetty Installation of jetty modules, loading arms and marine flare complete. Dredging complete. For personal use only Pipe welding of trestle modules has commenced LNG jetty, Curtis Island October 2013 43 | 2013 INVESTOR SEMINAR
Slide 45: Commissioning and Operations
Commissioning and Teams recruited and commissioning plans in place Operations For personal use only ! Dedicated Bechtel commissioning management team for GLNG plant ! LNG plant commissioning team will include GLNG operators ! Experienced GLNG partner secondees working in key commissioning and start-
Slide 46: Downstream collaboration
Downstream collaboration QGC pipeline interconnection agreement signed; construction to commence in 2014. For personal use only Further areas for collaboration are being explored ! Agreement signed with QGC to interconnect both projects’ pipelines ! Allows for gas to flow from one project to the oth
Slide 47: GLNG downstream milestones
GLNG downstream Significant milestones achieved in 2013; GLNG remains on track for first LNG in 2015 For personal use only Milestone Date Marine crossing tunnelling commenced April 2013 First LNG tank roof raise completed June 2013 Second LNG tank roof raise completed September 2013 Dredging complet
Slide 48: Exploration
Exploration For personal use only Bill Ovenden Head of Exploration Crown-1ST1
Slide 49: Strong track record
Strong track record Santos’ exploration team has consistently delivered material resource additions For personal use only Pre-drill exploration 2C discovered 2P reserves 1P Finding costs, 2008-2012 opportunities resources USD/boe1 7.95 Phu Khanh basin Papuan Hides Asia Nam Con basin Wortel & deep Na
Slide 50: Exploration strategy
Exploration strategy The Santos exploration strategy delivers options to underpin long term organic growth For personal use only 2014 seismic acquisition Strengthen position in focus 2014 exploration drilling super basins Focus super basins Frontier basins Unconventional basins Targeted entry to fro
Slide 51: Carnarvon Basin
Carnarvon Basin Bianchi and Winchester discoveries build on recent success with further upside potential, proximal to For personal use only infrastructure PSTM Near Stack Pluto Reindeer Winchester Io Stag John Brookes Gorgon Spar Varanus Island Dampier Karratha Bianchi East Spar PSTM Far Stack Zola
Slide 52: Browse Basin
Browse Basin World class resources and prospect inventory. Lasseter prospect to be drilled in Q2 2014 For personal use only Poseidon Dufresne ! 2013 program discovery Crown discovery (P&A) Bassett West ─ Basset West-1 discovery discovery ─ Dufresne-1 P&A Proteus ─ Crown – integration of data discove
Slide 53: Browse Basin: Lasseter prospect
Browse Basin Lasseter is an exciting prospect in the heart of the Browse, with drilling planned for Q2 2014 For personal use only ! Santos is operator with 30% Lasseter equity interest, partners are Chevron and Inpex ! Multi target prospect in WA-274-P, with significant downdip extension into WA-281
Slide 54: PNG and West Papua exploration
PNG and West Papua Renewed focus on exploration in the Papuan Basin, exploration farm-in to four exploration licences in 2013, drilling For personal use only and seismic planned for 2014, Warim reactivated ! 2013 program West Papua ─ Farm-in to Talisman-operated Papua New Guinea Foreland acreage (su
Slide 55: Offshore South Australia
Offshore South Australia Gazettal capture of a 50% interest in EPP 43 in the offshore Ceduna Basin in October 2013 For personal use only Oil prone source rocks ! Access to a large from sea floor sampling frontier basin Ceduna ─ 16,600 km2 block with water depths from 200 to 3,000 metres ─ Santos hol
Slide 56: Australian shale
Australian shale Cooper and McArthur Basins have some key technical attributes comparable to successful US shale basins For personal use only Organic matter Hydrocarbon Mineralogy TOC wt% content Non-clay content McArthur Basin mmboe/km2 % Darwin Cooper Tennant Creek Mount Isa McArthur Alice Springs
Slide 57: McArthur Basin
McArthur Basin Large footprint in the heart of the McArthur Basin – unconventional oil and gas potential with scale For personal use only Beetaloo sub-‐basin 2D seismic example Santos EP-‐161 permit Kyalla Fm (Shale) Velkerri Fm (Shale) 5 KM 2013 MC92-‐104 MCSAN13-‐04 2D lines ! Material acreage
Slide 58: 2014 exploration schedule
2014 exploration schedule Delivers on our exploration strategy across super basins, frontier basins and unconventional basins For personal use only Santos Well Name Basin / Area Target Timing Interest % Manta-1 PNG Gas 30 Drilling South Sumatra CSG wells Sumatra CSG 60 H1 2014 Mt Kitty Amadeus Gas 1
Slide 59: Drilling and Completions
Drilling and Completions For personal use only Diana Hoff Vice President Technical and Engineering Roswell-2 horizontal shale well 30” Conductor 17-1/2” Surface hole 13-3/8” Surface casing +/-3800ft 12-1/4” Intermediate hole 9-5/8” Intermediate casing 8-1/2” Production hole KOP: +/-7,000ft 5-1/2” Pr
Slide 60: Drilling and completions
Drilling and completions On track to deliver over 330 wells for 2013 For personal use only ! 309 operated wells drilled year-to-date, including: ─ 224 GLNG wells ─ 68 Cooper Basin wells ─ All 8 South Sumatra CSG exploration wells completed with zero recordable EHS incidents and on budget ! Over 50 m
Slide 61: GLNG drilling and completions
GLNG drilling and Continued time and cost efficiencies achieved in 2013, completions with 224 wells drilled year-to-date For personal use only Average actual cost per GLNG ! Over 30% reduction in drilling and completion development well ($million) costs per well since FID in January 2011 2.5 ─ Avera
Slide 62: GLNG drilling and completions: minimal disturbance lease pads
GLNG drilling and Over 50 minimal disturbance lease pads have been completions delivered in 2013; driving down lease construction For personal use only costs and reducing our site footprint ! Lease construction costs have reduced by over 50% due to: ─ Reduction in field construction time from 14 day
Slide 63: Cowralli multi-well pad, Cooper Basin
Cowralli multi-well pad, Comprising 16 wells across two pads, Cooper Basin 10,500 foot s-curve drills and 5 frac stages per well For personal use only ! Longest step-out of 2,928 feet ! Record Polycrystalline Diamond Compact (PDC) drill bit run of 9,435 feet – saving 3 days Spider plot of Cowralli w
Slide 64: Cowralli multi-well pad, Cooper Basin
Cowralli multi-well pad, Multi-well pads deliver greater efficiency, lower costs Cooper Basin and a smaller environmental footprint For personal use only Number of frac stages per day Cowralli multi-well pad drilling completed in October 2013 with significant 7 time and cost efficiencies achieved: !
Slide 65: Cooper Basin horizontal shale program
Cooper Basin horizontal Roswell-2: Santos’ first horizontal REM shale well. shale program Continuing to define an optimal well and frac design For personal use only to deliver maximum rate and recovery at lowest cost 30” Conductor ! Roseneath formation shale target 17-1/2” Surface hole ─ 1,700ft lat
Slide 66: Eastern Australia Business Unit
Eastern Australia Business Unit For personal use only James Baulderstone Vice President Eastern Australia Drilling rig, Narrabri gas project
Slide 67: Eastern Australia market opportunity
Eastern Australia Santos ideally placed to leverage value market opportunity from its portfolio of resources and infrastructure For personal use only ! East coast gas demand to triple leading to higher prices Gas demand ! Santos responding by building gas capacity in the Cooper to driving meet 2015+
Slide 68: Eastern Australia gas market transformation
Eastern Australia gas Additional supply is required to meet increased market transformation demand and Santos well placed to benefit For personal use only Eastern Australia gas demand (PJ) ! Tripling of gas demand creating market tightness 2,500 ! Recent east coast gas contracts >$8/GJ 2,000 APLNG 1
Slide 69: Santos well placed to meet growing demand
Santos well placed to Cooper Basin legacy infrastructure and existing meet growing demand resource base provides great competitive advantages For personal use only ! Cooper Basin gas production capacity has Cooper raw gas capacity (mmscf/day) turned the corner after a decade of decline 700 ! Growing
Slide 70: Increasing Cooper Basin gas production
Increasing Cooper Basin Targeting three key areas during 2014 – 2016 gas production enabling cost efficiencies from increased scale For personal use only ! 2 rig, pad development focus Santos acreage Gas field Moomba ! High deliverability Oil field Gas pipeline Big Lake Oil pipeline ! ~70 wells Ball
Slide 71: Operational efficiencies unlocking value
Operational efficiencies Improved reliability, production optimisation and unlocking value drilling improvements leading to higher margins For personal use only Cooper gas downtime (%) Cooper gas production cost Cooper gas drilling program ($million, Santos net) (number of wells) 30 200 100 25 24 15
Slide 72: Cooper infrastructure expansion
Cooper infrastructure Stage 1 infrastructure upgrades on track to meet expansion production growth targets - taking Moomba average For personal use only processing capacity to ~420 TJ/day sales gas ! Site works commenced for ~22,000 HP compression at 3 key Infield satellites, with Big Lake due for c
Slide 73: Narrabri Gas Project progressed during 2013
Narrabri Gas Project Strong Narrabri stakeholder support progressed during 2013 enabling recommencement of activity For personal use only Leewood water treatment plant Appraisal program ! Largely completed remediation of legacy issues ! 16 well appraisal program now underway and rehabilitation progr
Slide 74: Narrabri Gas Project go forward
Narrabri Gas Project 2014 program aiming to be in a position go forward to deliver first gas in 2017 For personal use only ! Landholder agreements and local investment Community ! Job creation peaking at 1,200 ! Attractive community compensation package ! 200 TJ/day field development Upstream ! Mini
Slide 75: Cooper Basin unconventional opportunity
Cooper Basin Market demand accelerating the commercialisation unconventional of three potential multi tcf plays in the Basin For personal use only opportunity Santos Exploration permit Basin Centred Gas Santos Production licence Shale Gas Play ! Regionally extensive Gas field Deep Coal Play BCG over
Slide 76: Cooper unconventional results and 2014 program
Cooper unconventional Important milestones have been met during 2013, results and 2014 program designed around key learnings For personal use only Play Program milestones Progress 2013 program achievements Drill Gaschnitz-1 ! Proven play with large resource, +1,000 Drill Van der Waals-1 Basin metre
Slide 77: High value Cooper oil business
High value Cooper oil Maximising production and margin business For personal use only Cooper Basin crude oil sales ! 100% reserve replacement for three consecutive years mmbbl ! Netback >$70 per barrel 10 ! ~16 million 2P undeveloped reserve dominated by five key fields (Cuisinier, Charo, Zeus, 8 Ip
Slide 78: Eastern Australia 2015 transformation
Eastern Australia Santos positioned to capitalise 2015 transformation on strong market demand For personal use only ! Recent contracts signed at ~$8/GJ New gas supply ! Cooper gas and Narrabri Gas Project well positioned to supply sources into this market critical ! Existing infrastructure positions
Slide 79: Asia Pacific
Asia Pacific For personal use only Martyn Eames Vice President Asia Pacific PNG LNG plant site, near Port Moresby
Slide 80: Strategic importance of Asian business
Strategic importance Building a high-margin business in Asia of Asian business with a focus on three core countries For personal use only Our position Unlocking scale in 2013 ! Foundation owner in ! PNG LNG over 90% complete and on PNG PNG LNG project track for first LNG in 2H 2014 ! Growing explora
Slide 81: PNG LNG project
PNG LNG project Over 90% complete and on track for first LNG in 2H 2014 For personal use only Location Papua New Guinea Project Santos 13.5%, participants ExxonMobil, Oil Search, NPCP, JX Nippon, MRDC, Petromin PNG Project scope ! Upstream gas and condensate fields ! Gas transmission pipeline ! 2-tr
Slide 82: PNG LNG project milestones
PNG LNG project Significant milestones achieved in 2013, with commissioning activities well underway For personal use only Hides Gas Conditioning Plant 81 | 2013 INVESTOR SEMINAR
Slide 83: PNG LNG potential expansion
PNG LNG potential Existing infrastructure can support potential future expansion expansion. As an owner of the foundation project For personal use only infrastructure, Santos is well placed Multiple options for potential expansion of foundation 2-train project ! Hides 3P potential within base projec
Slide 84: Indonesian domestic gas
Indonesian domestic gas Strong base business in East Java underpinned by rising prices For personal use only ! 13% of Santos’ current gas production is from Oyong, Wortel and Maleo ─ Weighted gas price has doubled to ~US$5/mmbtu ! Peluang gas project is over 45% complete and on track for first gas i
Slide 85: Indonesia oil
Indonesia oil Acquisition of a 50% operated interest in Ande Ande Lumut oil field, with Indonesian government approvals For personal use only received in November 2013 Vietnam Santos acreage ! Leverage Santos’ core skills in Indonesia Gas field and in offshore, shallow water Oil field Gas pipeline d
Slide 86: Vietnam oil
Vietnam oil Building our high-margin oil business with Dua development over 65% complete For personal use only Vietnam Ho Chi Minh City ! Chim Sáo Santos acreage Gas field ─ Full oil and gas production resumed following repair of Oil field Gas pipeline damaged gas export pipeline Oil pipeline ─ Gros
Slide 87: Asia Pacific Business Unit
Asia Pacific Business Unit Building a high-margin business in Asia with a focus on three core countries For personal use only Asia Pacific EBITDAX (excluding asset sales) $million PNG 400 197 300 70% EBITDAX margin Indonesia 200 175 170 110 100 Vietnam 47 0 2011 2012 2013 1H 2H 86 | 2013 INVESTOR SE
Slide 88: Western Australia and Northern Territory
Western Australia and Northern Territory For personal use only John Anderson Vice President WA & NT Fletcher Finucane oil project
Slide 89: WA & NT Business Unit
WA & NT Business Unit Three business themes delivering high margins with significant growth options For personal use only ! Deliver new high margin oil opportunities Carnarvon oil ! Build inventory of near-infrastructure oil opportunities ! Leverage legacy gas contract roll-off Domestic and delays t
Slide 90: Carnarvon oil
Carnarvon oil Fletcher Finucane adds to high margin oil production. Building incremental oil opportunities For personal use only Target Delivery First oil by 2H 2013 Ahead of schedule Fletcher Finucane $490 million gross capex Under budget by $20 million Average 15,000 bbls/day Expected average for
Slide 91: Carnarvon domestic gas
Carnarvon domestic gas Santos is the third-largest domestic gas supplier in Western Australia with further margin potential For personal use only Santos position ! In two of four gas hubs (at uniform equity level of 45%) A market leader ! Large uncontracted reserves ! High quality customer base ! Sa
Slide 92: Focused Carnarvon Basin gas exploration
Focused Carnarvon Basin Bianchi and Winchester discoveries located near gas exploration key infrastructure. Davis-1 well targeting additional For personal use only resource additions Bianchi - material extension to Zola, allowing Winchester - strategically located near multiple aggregation of resour
Slide 93: Bayu-Undan / Darwin LNG
Bayu-Undan / Darwin LNG Strong production in 2013. Progress on Phase 3 drilling program. Multiple feed gas options For personal use only for backfill and expansion emerging ! Maintain high margin asset Site for new ─ FID on Phase 3 offshore LNG trains drilling program Site for LNG tanks and laydown
Slide 94: Browse Basin
Browse Basin Material resource build to support multiple commercialisation options including collaboration with For personal use only adjacent resource owners for brownfield expansion ! Significant resource build Grand prospect Bassett West across the basin Dufresne-1 discovery P&A ─ Increase in Cro
Slide 95: Caldita Barossa appraisal program
Caldita Barossa Concept evaluation completed for three well carried appraisal program commencing Q1 2014 For personal use only ! Partnership with ConocoPhillips and SK E&S with joint venture funding of up to US$520 million in appraisal drilling, pre-FEED, FEED and milestone payments ! Concept evalua
Slide 96: Bonaparte LNG
Bonaparte LNG Competitive concept definition has been completed with consortia FEED bids under evaluation. For personal use only FEED targeted for 1H 2014 ! Development of Petrel, Tern and Frigate fields, located 250km west of Darwin ! Floating LNG capacity target 2.4mtpa ! Federal Government Enviro
Slide 97: WA & NT Business Unit EBITDAX
WA & NT Business Unit Three business themes delivering high margins For personal use only WA & NT EBITDAX (excluding asset sales) $million Carnarvon 1000 oil 800 423 423 70% 600 EBITDAX Domestic margin gas 400 368 369 384 200 Northern LNG 0 2011 2012 2013 1H 2H 96 | 2013 INVESTOR SEMINAR
Slide 98: 2013 Investor Seminar
2013 Investor Seminar For personal use only 4 December 2013
Slide 99: Contact information
2013 Investor Seminar Contact information For personal use only Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairn@santos.com GPO Box 2455 Andrew Hay Adelaide,