Santos Limited · ASX:STO
Santos — SEAAOC 2014
16 slides from Santos's conference presentation, 2014
Slide 1: Asia and the northern Australia opportunity
Asia and the northern Australia opportunity John Anderson Vice President Asia Pacific, WA & NT PNG LNG, near Port Moresby
Slide 2: Disclaimer and important notice
Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. I t is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which
Slide 3: In the beginning… Santos has a proud history of oil & gas exploration
I n the beginning… Santos has a proud history of oil & gas exploration which started 60 years ago in Central Australia Norm Dixon, Delhi Camp Manager, at Gidgealpa-2 the site of the first hydrocarbon discovery in the Cooper Basin, February 1964 3 | SANTOS SEAAOC 2014
Slide 4: Santos Strategy: leading energy company in Australia and Asia
Santos Strategy Our vision is to be a leading energy company in Australia and Asia Growing our strong domestic base business Bay of Bengal Phu Khanh Nam Con Son West Natuna Delivering our South Sumatra Papuan transformational LNG East Java portfolio Bonaparte Timor Sea Browse McArthur Carnarvon Amad
Slide 5: Gas and LNG demand growth
Gas and LNG demand Asia’s appetite for gas grows with LNG meeting over growth half of gas demand by 2030 LNG I ndigenous/ Pipeline x% Gas CAGR 2005-30 tcf North America OECD Europe Asia Pacific 40 40 40 1.3% 30 30 30 4.1% 0.5% 20 20 20 Contracted LNG Local production + pipeline imports 10 10 10 0 0
Slide 6: Strong Asian demand for LNG
Strong Asian demand for Large opportunity exists for new projects to supply LNG into the Asian market Asian LNG supply and demand mtpa Asia leads global LNG demand with LNG forecast to meet over 50% of 450 Asia’s gas needs 400 − Asian LNG demand grows at CAGR of 5.5% 350 − By 2030, over 71% of globa
Slide 7: Asia Pacific LNG demand
Asia Pacific LNG demand Pacific basin LNG demand estimates: multiple upward revisions mtpa 350 Nov 2013 Nov 2012 300 Nov 2011 Nov 2010 250 Nov 2009 200 150 100 50 0 2000 2005 2010 2015 2020 2025 Source: Wood Mackenzie 7 |
Slide 8: China's gas consumption
China’s gas consumption Security of supply increasingly important as China’s gas imports increase to meet rapid demand growth % CAGR 2010-30 China’s Gas Demand China’s Gas I mports (2010-2030) tcf (2010-2030) tcf 9% 21 15% 8 4 1 2010 2030 2010 2030 Source: Wood Mackenzie 8 | SANTOS SEAAOC 2014
Slide 9: Chinese LNG estimates
Chinese LNG estimates China to become world’s second largest LNG buyer by 2017 LNG supply/ demand estimates 100 LNG Demand by Country Contracted China LNG Supply Source: Wood Mackenzie, Contracted LNG represents supply volumes from operating, under construction and planned projects Uncontracted mtpa
Slide 10: Australian LNG costs
Australian LNG costs Cost pressures should abate from 2015 onwards LNG plant CAPEX for already 24 sanctioned Australian LNG projects (US$b) US$17b 7 2011 2012 2013 2014 2015 2016 2017 Source: Wood Mackenzie, May 2014 10 | SANTOS SEAAOC 2014
Slide 11: Santos' strong resource position, existing and under development
Santos’ strong resource On the road to becoming a significant exporter of LNG position, existing and under development Darwin LNG First LNG in 2006, over 400 cargoes delivered PNG LNG First LNG cargo May 2014 GLNG First LNG in 2015 11 | SANTOS SEAAOC 2014
Slide 12: Northern Australia: A Growth Opportunity
Northern Australia A Growth Opportunity Barossa-Caldita Three well appraisal campaign underway with first well completed and next well to spud in 4Q 14 Bayu Undan Phase 3 offshore expansion programme underway with drilling to commence in 4Q 14 Darw in LNG Continues excellent performance with major s
Slide 13: Asia Pacific Business Unit: Fourth largest Independent Oil Company in Asia
Asia Pacific Business Unit Fourth largest I ndependent Oil Company in Asia 60 50 2014 Entitlement production ( mmboe) 40 30 20 10 0 Murphy Talisman Hess Santos Premier Husky Oil Search Mubadala Niko SOCO Anadarko Noble Kris Energy Source: Wood Mackenzie 13 |
Slide 14: Asia Pacific Business Unit overview
Asia Pacific Business Unit An overview of production and exploration activities across Asia Pacific SS- 11 ( Bangladesh) Block 123 ( Vietnam) Seismic campaign in 2015 Exploration drilling likely in 2016 Block 12W ( Vietnam) Producing Chim Sao field Successful tie-back of Dua oil field in July 20
Slide 15: PNG LNG potential expansion
PNG LNG potential Existing infrastructure can support potential future expansion expansion LNG production began ahead of schedule from the first LNG train in April and second train in May Multiple options for potential expansion: Hides 3P potential within base project Hides Deep (Santos 24% ) Explor
Slide 16: Thank you
Asia and the northern Australia opportunity Thank you Jack Bates, Lasseter, Browse Basin