Santos Limited · ASX:STO

Santos — CLSA Investors' Forum 2013

42 slides from Santos's conference presentation, Sep 25, 2013

  1. Slide 1: 2013 CLSA Investors' Forum Presentation

    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: 25 S

  2. Slide 2: CLSA Investors' Forum, Hong Kong, September 2013

    For personal use only CLSA Investors’ Forum Hong Kong, September 2013

  3. Slide 3: Disclaimer & important notice

    Disclaimer & 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 range

  4. Slide 4: Santos – A leading energy company in Australia and Asia

    Santos – A leading energy company in Australia and Asia For personal use only  Australia’s largest domestic gas producer  2012 production 142,000 boe/d (75% gas/25% liquids) Bay of Bengal  Top-20 Australian Securities Phu Khanh Basin Exchange listed company  Market capitalisation Nam Con Son Bas

  5. Slide 5: Santos vision and strategy

    Santos vision and strategy For personal use only LNG markets Dual channel strategy LNG channel Domestic channel Strong Focused Australian Asian A leading base growth energy company in Australia and Asia A leading gas producer in high-growth markets 4

  6. Slide 6: Delivering 80-90 mmboe of production by 2020

    Delivering 80-90 mmboe of production by 2020 For personal use only Upside potential Aust: Cooper shale, Cooper tight gas, Zola, Winchester, Amadeus, McArthur LNG: PNG LNG expansion, Browse Asia: Vietnam, Indonesia CSG, AAL Likely sanction Aust: Narrabri LNG: Bonaparte LNG Sanctioned Sanctioned Aust:

  7. Slide 7: Santos portfolio transformation becoming a reality

    Santos portfolio transformation becoming a reality For personal use only  Clear growth outlook to 2016 and beyond  2H 2013 Fletcher Finucane, Cooper infill Production  2014 Dua, Peluang, PNG LNG growth  2015 GLNG  Revenues increasingly oil price linked  Clear evidence of rising domestic gas pr

  8. Slide 8: Building a transformational LNG portfolio

    For personal use only Train 1 propane condenser module in place on Curtis Island Building a transformational LNG portfolio

  9. Slide 9: New sources of supply will be required to meet robust global demand for LNG

    New sources of supply will be required to meet robust global demand for LNG For personal use only mtpa Global LNG demand and supply 500 Pacific Basin Demand 400 Atlantic Basin Demand ~40* trains Global Contracted Supply & Contract Rollovers 300 200 100 0 1 2000 2 2005 3 2010 20154 2020 5 2025 6 Sour

  10. Slide 10: US LNG exports are not expected to overwhelm the market

    US LNG exports are not expected to overwhelm the market For personal use only mtpa Global LNG demand vs US LNG supply in 2025 500 450 400 Contestable Market ~100 mmtpa 166 350 US LNG ~40-60 mmtpa 300 250 200 Contracted Supply & Contract Rollovers (ex 150 287 USA) 100 50 0 2025 US LNG Source: Wood Ma

  11. Slide 11: LNG Pricing: Henry Hub-linkage vs oil-linkage

    LNG Pricing: Henry Hub-linkage vs oil-linkage US$/mmBtu Oil-linked LNG For personal use only 20 at US$120/bbl 18 16 14 $3 12 $1 $3 Oil-linked LNG at 10 US$80/bbl 8 $6.50 6 4 2 0 2020 Forecast Liquefaction Other Shipping Traditional Priced LNG Source: Henry Hub 2020 forecast provided by PIRA; “Other”

  12. Slide 12: Santos' unique LNG Portfolio

    Santos’ unique LNG Portfolio Darwin LNG (Santos 11.5%) PNG LNG (Santos 13.5%) For personal use only Production since 2006 First LNG expected in 2H 2014 Operator: ConocoPhillips Operator: ExxonMobil GLNG (Santos 30%) Bonaparte LNG (Santos 40%) First LNG expected in 2015 Proposed floating LNG Operator

  13. Slide 13: Santos' LNG projects are fully contracted with major Asian buyers

    Santos’ LNG projects are fully contracted with major Asian buyers at oil-linked prices For personal use only 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 12

  14. Slide 14: PNG LNG is over 90% complete and on track for first LNG

    PNG LNG is over 90% complete and on track for first LNG in 2H 2014 Project PNG LNG For personal use only Location Papua New Guinea Project Santos 13.5%, ExxonMobil 33.2% and participants operator, Oil Search, Nippon Oil, State of PNG Project scope  Upstream gas & condensate fields  Gas transmissio

  15. Slide 15: Construction at Hides is progressing to plan

    Construction at Hides is progressing to plan For personal use only Hides Gas 14 Conditioning Plant

  16. Slide 16: Commissioning underway at the PNG LNG plant

    Commissioning underway at the PNG LNG plant For personal use only LNG plant 15 site, Caution Bay

  17. Slide 17: PNG LNG expansion

    PNG LNG expansion For personal use only  Potential areas for expansion are being assessed - Hides development drilling underway  Plans are being developed to drill Hides Deep in 2015 (Santos 24% equity) - Optimal access to project infrastructure 16

  18. Slide 18: GLNG is over 60% complete and on track for first LNG in 2015

    GLNG is over 60% complete and on track for first LNG in 2015 Project GLNG For personal use only Location Queensland, Australia Project Santos 30% and operator, participants PETRONAS, Total and KOGAS Project scope  Upstream gas fields Arcadia Area  420-km pipeline  2-train LNG plant LNG plant 7.8

  19. Slide 19: GLNG - CSG drilling

    GLNG - CSG drilling For personal use only  Nine drilling rigs and four completion rigs  Drilled 119 wells in the first half of 2013, on target to drill over 200 wells by year end  Average 2013 drilling and completion costs of $1.4 million per development well − Average drilling cost of $1.1 milli

  20. Slide 20: GLNG - Upstream construction

    For personal use only GLNG - Upstream construction Fairview 19 Hub 4

  21. Slide 21: GLNG – Gas transmission pipeline on track for completion in 2Q 2014

    GLNG – Gas transmission pipeline on track for completion in 2Q 2014 For personal use only  Construction of 420-kilometre pipeline well underway − All private landholder approvals have been obtained − Clearing and grading over 90% complete − Stringing is over 80% complete − Over 70% of the total pip

  22. Slide 22: GLNG – significant downstream progress

    GLNG – significant downstream progress For personal use only LNG jetty LNG tanks LNG Train211 Unloading at the MOF

  23. Slide 23: Darwin LNG/Bayu-Undan – continued strong production and cashflow

    Darwin LNG/Bayu-Undan – continued strong production and cashflow For personal use only  Santos 11.5%, ConocoPhilips operator  Capacity 3.7mpta, LNG production since 2006  Track record of reliable delivery (more than 350 cargoes)  Land available for Darwin LNG expansion, government approval in pl

  24. Slide 24: Bonaparte LNG – proposed floating LNG

    Bonaparte LNG – proposed floating LNG For personal use only  Santos (40%) and GDF SUEZ (60%, Operator)  Development of Petrel, Tern and Frigate fields located 250km west of Darwin in the Timor Sea  Floating LNG technology, producing 2.4 mtpa  Federal Government Environmental Approval received in

  25. Slide 25: BLNG – targeting a final investment decision in 2015

    BLNG – targeting a final investment decision in 2015 For personal use only 24

  26. Slide 26: Leading Australian domestic producer

    For personal use only Devil Creek gas plant, Western Australia Leading Australian domestic producer

  27. Slide 27: Unprecedented growth in Eastern Australia gas market is increasing gas prices

    Unprecedented growth in Eastern Australia gas market is increasing gas prices and unlocking more resources For personal use only Eastern Australia gas supply costs (ex-field) $/GJ $16 $14 Contracted Uncontracted LRMC (Real $2012-13) $12 $10 $8 Santos price range of $6-$9/GJ $6 $4 $2 $0 0 50,000 100,

  28. Slide 28: Unconventional acreage footprint

    Unconventional acreage footprint Since 2009 Santos has increased its unconventional acreage For personal use only footprint onshore Australia four-fold to 231,000km2 (57m acres) McArthur Basin Cooper Basin  Liquids-rich shale  Success with play Moomba-191  Seismic program  9-well exploration sch

  29. Slide 29: Cooper unconventional

    Cooper unconventional For personal use only REM shale play  Moomba-191 currently flowing at 2 mmscf/day Gaschnitz discovery  Three follow-up vertical/horizontal pairs to further appraise the play Basin Centred Gas play  Gaschnitz-1 well confirmed a continuous gas accumulation in the Nappamerri Tr

  30. Slide 30: Fletcher Finucane project has already produced over 1.5 million barrels of oil

    Fletcher Finucane project has already produced over 1.5 million barrels of oil since 20 May 2013 For personal use only  First oil delivered ahead of schedule and only 16 months after the project was sanctioned  Final cost of $470 million, 4% under budget  Forecast average gross production rate of

  31. Slide 31: Browse Basin – Crown and Bassett West successes unlock material play

    Browse Basin – Crown and Bassett West successes unlock material play; Dufresne drilling ahead For personal use only Grande Dufresne-1 Bassett West  Crown gas–condensate prospect discovery discovery (Santos 30%) - 61 metres net gas pay in Jurassic-aged Montara, Plover and Malita sandstones  Bassett

  32. Slide 32: Carnarvon Basin - Winchester and Bianchi discoveries

    Carnarvon Basin - Winchester and Bianchi discoveries adjacent to key infrastructure Winchester discovery For personal use only Winchester gas discovery  Santos 75% and operator  58 metres of net gas pay in the Jurassic Angel and Triassic Mungaroo formations with excellent reservoir quality  Multi

  33. Slide 33: Focused growth in Asia

    For personal use only Insert picture Focused growth in Asia

  34. Slide 34: Focus on three core countries; Indonesia, Vietnam and PNG

    Focus on three core countries; Indonesia, Vietnam and PNG For personal use only  Three offshore assets in East Java Sea, comprising 10% of Santos’ 2012 production  Peluang gas project over 20% complete; on Indonesia track for first gas in 1H 2014  Acquisition of a 50% interest and operatorship in

  35. Slide 35: Dua is over 55% complete and on track for first oil

    Dua is over 55% complete and on track for first oil in first half of 2014 For personal use only  Santos 31.875%, Premier Oil operator  Located 17km north-east of Chim Sáo  Three-well subsea tie-back to Chim Sáo FPSO  Fabrication of equipment packages to be installed on the FPSO complete  Develo

  36. Slide 36: Peluang is 22% complete and on track for first gas

    Peluang is 22% complete and on track for first gas in first half of 2014 For personal use only  Santos 67.5% and operator  Located in the Maleo gas field, offshore East Java in Indonesia  One-well tieback to the existing facilities at Maleo  Procurement for long-lead items has been completed  F

  37. Slide 37: Reference slides

    For personal use only PNG LNG jetty Reference slides

  38. Slide 38: First half net profit up 3%

    First half net profit up 3% 2013 Half-year result For personal use only Change on 2012 first half Production 24.5 mmboe -4% Sales revenue $1,510 million 1% EBITDAX $844 million -4% Net profit after tax $271 million 3% Underlying net profit $251 million -11% Operating cashflow $629 million -13% Inter

  39. Slide 39: $4.8 billion of liquidity provides the capacity to fund the execution of our strategy

    $4.8 billion of liquidity provides the capacity to fund the execution of our strategy For personal use only Available liquidity Debt maturity profile A$ billion A$ million 6 2,000 Notes mature in 0.6 2070, with Santos 0.4 option to redeem in 1,500 2017 4 2.2 1,000 2 1.6 500 0 0 Cash Undrawn Undrawn

  40. Slide 40: 2013 guidance

    2013 guidance For personal use only Item 2013 guidance Production (mmboe) 52-55 Production costs ($million)1 670-690 DD&A expense ($/boe) 16.50 Royalty related taxation expense2 50 ($million after tax) Capital expenditure (including $4 billion exploration & evaluation)3 1 Including the impact AASB 1

  41. Slide 41: 2013 exploration schedule

    2013 exploration schedule For personal use only Well name Basin / area Target Santos Interest Timing / result % Bassett West-1 Browse Gas 30 Gas discovery Bianchi-1 Carnarvon Gas 24.75 Gas discovery Winchester-1 Carnarvon Gas 75 Gas discovery Dufresne-1 Browse Gas 30 Drilling Cooper unconventional C

  42. Slide 42: Contact information

    Contact information For personal use only 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 Au

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