Santos Limited · ASX:STO

Santos — International Investor Conferences, March 2010

31 slides from Santos's conference presentation, Mar 4, 2010

  1. Slide 1: International Investor Presentation – Delivering Transformational Growth

    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: Company Announcements Office ASX Ltd FROM: Company Secretary DATE: 4 M

  2. Slide 2: Disclaimer & Important Notice

    For personal use only Investor Presentation Delivering Transformational Growth March 2010 1 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

  3. Slide 3: Santos Overview

    Santos Overview For personal use only Regional footprint of operations  One of Australia's leading upstream oil and gas companies and has been operating since Kyrgyz Republic 1954 Bangladesh Phu KhanhBasin Kutei Basin  Current production is: India Timor Sea & Timor Gap Nam Con Son Basin - ~600 MMs

  4. Slide 4: Delivering Transformational Growth

    Delivering Transformational Growth For personal use only Target Delivery 2009 production  54.4 mmboe in line with guidance Base Business 53 – 56 mmboe Next phase of projects  Oyong Phase 2 (Indonesia) – first gas delivered on schedule on schedule  Henry (Vic) – first gas 1H10  Kipper (Vic) – fir

  5. Slide 5: Production and sales grow to record levels

    Production and sales grow to record levels For personal use only Sanctioned projects drive production higher: 7% CAGR 2009-2012 Production and Sales (mmboe)  2009 production within 80 guidance range  2010 impacted by lower 70 Mereenie (contract expiry post Blacktip) & Bayu 60 Undan (35-day shutdow

  6. Slide 6: LNG is a key component of Santos' Growth Strategy

    LNG is a key component of Santos’ Growth Strategy For personal use only Strategy Bonaparte LNG Components  2mtpa FLNG PNG LNG  Santos 40% with carry to FID  Sanctioned Dec 2009  6.6mtpa two trains Deliver the  First LNG 2014 Darwin LNG Base Business  Production since 2006  Santos 13.5%  3.6m

  7. Slide 7: Continue to See Strong Long Term LNG Pricing

    Continue to See Strong Long Term LNG Pricing For personal use only Asian Term Prices $18 Late 2006  Recent contracts $16 2008-09 point to strong underlying demand Ex-ship LNG Price ($/MMBtu $14  Pricing reflects new Ex-Ship LNG Price ($/MMBtu) US$12.40/MMBtu $12 Oil Parity Mid 2006 supply-demand e

  8. Slide 8: The Project – Two Trains

    The Project – Two Trains For personal use only Upstream Pipeline LNG Plant Shipping Customers Fairview Arcadia Train 1 3.6mtpa FOB 1 Train: Roma 600 TJ/d CSG CSG LNG Portfolio 2 Trains: Gas 1,200 TJ/d Train 2 7.2mtpa FOB Storage 13 GLNG Milestones Achieved GLNG is progressing key milestones  Two tr

  9. Slide 9: GLNG Reserves and Resources

    GLNG Reserves and Resources For personal use only GLNG has dedicated reserves and resources in excess of 10 tcf GLNG Dedicated Areas (PJ)  2P reserves exceed requirement for first 12,000 10,931 train 10,000  95% uncontracted and available to project 8,000 6,772  Dedicated reserves & 6,000 resourc

  10. Slide 10: GLNG Downstream update

    GLNG Downstream update For personal use only  Curtis Island site - EIS application for 10mtpa capacity (3 trains)  Downstream FEED - Bechtel appointed - 2-train FEED 90% complete T5 T4 - Curtis Island geotechnical site survey work complete T1 T2 T3  Pipeline FEED - FEED 90% complete (GHD) - Pipel

  11. Slide 11: Ramp Gas Strategy

    Ramp Gas Strategy For personal use only Roma gas storage is integral to ramp gas management Roma Storage 600 Withdrawal Gas supply (TJ/d) Turndown &/or Portfolio Gas Sales Gas Production Roma Storage Injection Existing Domestic Contracts 0 2010 2014 and supports gas supply optimisation 19 PNG LNG, D

  12. Slide 12: Papua New Guinea LNG

    Papua New Guinea LNG For personal use only PNG LNG Project FID approval signals next step in LNG growth strategy  FID approved on 8 Dec 2009  3 SPAs executed, remaining one expected to be executed in early-2010  Financial Close 1Q 2010  First sales are targeted for 2014  Santos interest 13.5% 

  13. Slide 13: Bayu Undan / Darwin LNG

    Bayu Undan / Darwin LNG For personal use only  Santos’ first producing LNG asset  Santos interest 11.5%  Bayu Undan - producing ~1.1bcf raw gas per day (gross) - Approximately 103,000 bbl/d liquids (gross)  DLNG 3.5mpta plant - Turbine upgrade during 2010 statutory shutdown to increase to 3.6mtp

  14. Slide 14: Burnside Discovery

    Burnside Discovery For personal use only Exploration success Montara Legend Crux Santos acreage Argus Territory of Asmore & Oil field WA-274-P Cartier Islands Gas field WA-410-P Ichthys WA-274-P Poseidon WA-274-P North Concerto Cornea Echuca Prelude Shoals Torosa Ichthys Caswell Burnside WA-411-P Br

  15. Slide 15: Gas is an Underutilised Fuel for Power Generation in Australia

    Gas is an Underutilised Fuel for Power Generation in Australia For personal use only Power Generated from Natural Gas (%) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% M nd Au ny Th re a Ca ia Ca sia lia n a UK y NZ US Ge ea da ni al in pa o d a la ra na ay r or ap Ch It In rm Ko Ja ai st lif al ng Si Sour

  16. Slide 16: Santos' Unique Position Suits the Rapidly Developing Market

    Santos’ Unique Position Suits the Rapidly Developing Market For personal use only  In every producing basin  Infrastructure network in place  Arbitrage value across supply points  Facilitates ramp gas management Hub Potential hub Gas pipeline 29 Moomba Patricia Baleen plant Reports of the Cooper

  17. Slide 17: Create Supply – Cooper Infill, Beyond the 2P

    Create Supply – Cooper Infill, Beyond the 2P For personal use only Technically robust, multi tcf potential Rock Outcropping of Mesaverde River Deposits Spacing 10 acre 20 acre 40 acre 1986 2006 1999 Green = current Cooper spacing Land Sat Image - Jonah Field (USA) ~200ac 31 Reports of the Cooper’s D

  18. Slide 18: Gunnedah Basin – Next Major Play in Coal Seam Gas

    Gunnedah Basin – Next Major Play in Coal Seam Gas For personal use only Basin master position with >50 tcf prospective potential  ESG operated areas PPL 3 Wilga Park Power Station Narrabri New - Net 2P reserves 724 PJ PEL 434 PAL 2 South Wales PEL 238 Gunnedah - Net 2C resource 951 PJ PEL 1 Tamwort

  19. Slide 19: Western Australia Domestic Gas

    Western Australia Domestic Gas For personal use only Exposing Santos to WA resources boom Port Hedland Dampier Demand Onslow 3% Exmouth  No reliance upon wholesalers and 17% Sources of demand* retailers for channels to market Alumina 25% Electricity generation 25%  Material market (1,000Tj/d) 5% C

  20. Slide 20: Hub 1: Varanus Island

    Hub 1: Varanus Island For personal use only Focused NFE  John Brookes - Producing asset - 45% working interest John Brookes - New gas sales at higher prices Spar / - Field capacity +300TJ/d (gross); East Halyard Spar plant capacity ~230TJ/d (gross) - Opportunities to maximise production via spare p

  21. Slide 21: 2009 Full Year Results

    For personal use only 2009 Full Year Results 39 2009 Profits Impacted by Lower Product Prices 2009 Full Year Result Oil Price A$78.83 per bbl Production 54.4 mmboe Sales Revenue $2,181 million Underlying Net Profit After Tax $257 million Net Profit After Tax $434 million Operating Cash Flow $1,155 m

  22. Slide 22: Production Cost, Cost of Sales Lower

    Production Cost, Cost of Sales Lower For personal use only Production Cost Total Cost of Sales $m $m 600 1600 $9.99/ boe $9.78/ $25.50/ $23.67/ 550 boe boe boe 1400 Gas 500 Purchases 450 1200 Cost of 400 produced 1000 gas 1 350 300 800 2008 2009 2008 2009 1 Includes production cost, tariffs, tolls a

  23. Slide 23: $5 Billion of Funding Capacity

    $5 Billion of Funding Capacity For personal use only $m 31 December 2009 Cash & term deposits 2,240 Undrawn, committed corporate lines 700 Undrawn, committed project line* 2,117 Cash & committed debt lines 5,057 * Converted at year end exchange rate 43 Reserves Growth and Resource Conversion Commerc

  24. Slide 24: Indonesia: Madura Offshore PSC

    For personal use only Reference Slides Delivering Transformational Growth March 2010 45 Indonesia: Madura Offshore PSC Maleo performing beyond expectation; incremental growth from Peluang  Maleo - Production start-up 29 Sept. Peluang-1 2006 Maleo Madura Island - Gross gas production Surabaya ~ 110

  25. Slide 25: Indonesia: Sampang PSC

    Indonesia: Sampang PSC For personal use only Oyong Phase 2 delivered on time; incremental growth from Wortel  Oyong Phase 1 (oil) - Production performance above Java Sea expectation at ~ 3600 bbl/day (gross) Wortel Oyong  Oyong Phase 2 (oil and gas) Madura Island - 2.6 million manhours without a S

  26. Slide 26: Bay of Bengal

    Bay of Bengal For personal use only Potential for medium term exploitation business in Bangladesh and long term business in India  Bangladesh India - Chittagong gas market significantly undersupplied Bangladesh Sangu India - Sangu well optimisation is extending Block 16 field life Burma - Free mark

  27. Slide 27: 2010 Forward Exploration Drilling Schedule

    2010 Forward Exploration Drilling Schedule For personal use only Gross Unrisked, Upside Resource Santos Well Name/ Potential (mmboe) Interest CSG Program Basin / Area Target 0 – 50 50 - 100 100 - 500 % Timing PEL 433 (1CH) Gunnedah Gas CSG √ 48.0 Q1 PEL 434 (2CH) Gunnedah Gas CSG √ 48.0 Q1 ATP 631P

  28. Slide 28: Production on Guidance

    Production on Guidance For personal use only New Natural production  Production from decline and Asset and field continuing sales downtime productivity operations grows mmboe 54.4 (0.8) 53.6 (3.1) 3.9 54.4 0.8 mmboe 60  Natural decline and 50 effect of downtime 40 events offset by new production 3

  29. Slide 29: DD&A Declines by $50 million

    DD&A Declines by $50 million For personal use only Rate Volume  Additional reserve $m 662 57 (7) 612 700 bookings in Cooper and Indonesia drive lower 600 depletion rate 500 400  Slight increase in 300 depreciation on GLNG facilities 200 100 0 2008 2009 $12.17/boe $11.25/boe 55 Significant Items (a

  30. Slide 30: 2010 Guidance

    2010 Guidance For personal use only Item 2010 Guidance Production (mmboe) 51 – 54 Production costs ($m) 540 - 560 DD&A expense ($/boe) 11.70 Royalty related taxation expense1 90 to 110 ($m after tax) Capital expenditure (including 2,800 exploration & evaluation)2 ($m) 1 Royalty related taxation expe

  31. Slide 31: Contact Information

    Contact Information For personal use only Head office Andrew Nairn Adelaide Group Executive Investor Relations Ground Floor, Santos Centre Level 10, Santos Centre 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Facsimile: +61 8 8116 5131 GPO Box 2455 Email: andrew.nairn@sa

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