Santos Limited · ASX:STO

Santos — Citi Australia Conference 2013

31 slides from Santos's conference presentation, Oct 29, 2013

1. Slide 1: Citi Australia Conference

   For personal use only Citi Australia Conference 29-30 October 2013

2. Slide 2: 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

3. Slide 3: 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

4. Slide 4: 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

5. Slide 5: Delivering 80-90 mmboe of production by 2020 from already captured opportunities

   Delivering 80-90 mmboe of production by 2020 from already captured opportunities 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: Bonap

6. Slide 6: Santos portfolio transformation becoming a reality

   Santos portfolio transformation becoming a reality For personal use only  Clear growth outlook to 2016 and beyond Production  2014 Dua, Peluang, PNG LNG growth  2015 GLNG  Revenues increasingly oil price linked Margin  Clear evidence of rising Australian domestic growth gas prices  Benefits of

7. Slide 7: Unprecedented growth in Eastern Australia gas market driven by LNG exports

   Unprecedented growth in Eastern Australia gas market is driven by LNG exports For personal use only Eastern Australia gas demand PJ/a 3,000 3 fold demand growth from today 2,500 Proposed LNG 2,000 1,500 Sanctioned LNG 1,000 500 Domestic gas 0 2013 2015 2017 2019 2021 2023 2025 Retail and C&I Power g

8. Slide 8: Santos is uniquely placed with upstream assets in each major gas basin

   Santos is uniquely placed with upstream assets in each major gas producing basin For personal use only  Santos has over 10 TCF of gas reserves and resources in Eastern Australia  Strong infrastructure position is a clear commercial advantage − Owner and operator of all major existing infrastructur

9. Slide 9: Santos' LNG Portfolio – interests in four projects

   Santos’ LNG Portfolio – interests in four projects 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

10. Slide 10: 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 2000 1 2005 2 2010 3 2015 4 2020 5 2025 6 Sourc

11. Slide 11: US LNG exports are not expected to overwhelm the market

    US LNG exports are not expected to overwhelm the market For personal use only Global LNG demand vs US LNG supply in 2025 mtpa 500 400 ~100 mtpa Contestable 166 Market US LNG 300 ~40-60 mtpa 200 Contracted supply and contract 287 rollovers (excluding USA) 100 0 2025 US LNG Source: Wood Mackenzie, Con

12. Slide 12: 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 Darwin LNG PNG LNG GLNG Contracted to 2023 Contracted to 2034 Contracted to 2035 3.4 mtpa Santos share of long-term, oil-linked contracts in place 12

13. Slide 13: PNG LNG is over 90% complete and on track for first LNG in 2H 2014

    PNG LNG is over 90% complete and on track for first LNG in the second half of 2014 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

14. Slide 14: Construction at Hides is progressing to plan

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

15. Slide 15: Commissioning underway at the PNG LNG plant; future expansion potential

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

16. Slide 16: GLNG is over 65% complete and on track for first LNG in 2015

    GLNG is over 65% complete and on track for first LNG in 2015 For personal use only Location Queensland, Australia Project Santos 30% and operator, participants PETRONAS, Total and KOGAS Project scope  Upstream CSG fields Arcadia Area  420-km pipeline  2-train LNG plant LNG plant 7.8 mtpa of LNG;

17. Slide 17: GLNG - CSG drilling

    GLNG - CSG drilling For personal use only  Nine drilling rigs and four completion rigs  200th well for 2013 spudded in early October  Average 2013 drilling and completion costs of $1.4 million per development well − Average drilling cost of $1.1 million − Average completion cost of $0.3 million 

18. Slide 18: GLNG - Upstream construction well progressed at Fairview and Roma

    GLNG - Upstream construction well progressed at Fairview and Roma For personal use only Fairview 18 Hub 4

19. Slide 19: 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  420 kilometres of 42" pipe  Clearing and grading complete  Over 95% welded  Over 70% buried Pipeline19stringing

20. Slide 20: Significant progress at the GLNG plant site, Curtis Island

    Significant progress at the GLNG plant site, Curtis Island For personal use only Curtis Island, 20 Queensland

21. Slide 21: GLNG – both tank roofs raised and LNG module installation underway

    GLNG – both tank roofs raised and LNG module installation underway For personal use only LNG jetty LNG tanks LNG Trains21 1 and 2 Train 1 propane condenser module

22. Slide 22: Bonaparte LNG – proposed floating LNG in concept definition stage

    Bonaparte LNG – proposed floating LNG currently in concept definition stage 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 Governm

23. Slide 23: Material exploration program underway in key basins

    Material exploration program underway in key basins For personal use only Nam Con Son Hon Khoai-1 Cooper Browse Basin unconventional 2012 Crown discovery REM shale Bassett West discovery Nappamerri Trough Dufresne-1 drilling ahead Carnarvon Basin Winchester discovery Bianchi discovery 23

24. Slide 24: Browse Basin – Crown and Bassett West successes; Dufresne drilling ahead

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

25. Slide 25: Carnarvon Basin - Bianchi and Winchester discoveries

    Carnarvon Basin - Bianchi and Winchester discoveries adjacent to key infrastructure Winchester discovery For personal use only Bianchi gas discovery  Santos 24.75%  112 metres of net stacked gas pay in Triassic formations  Adding materiality to existing discoveries on block, including Zola  Mult

26. Slide 26: Cooper unconventional – close to existing infrastructure

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

27. Slide 27: Reference slides

    For personal use only PNG LNG jetty Reference slides

28. Slide 28: 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

29. Slide 29: $4.8 billion of liquidity provides capacity to fund 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

30. Slide 30: 2013 guidance

    2013 guidance For personal use only Item 2013 guidance Production (mmboe)1 52-55 Production costs ($million)2 670-690 DD&A expense ($/boe) 16.50 Royalty related taxation expense3 50 ($million after tax) Capital expenditure (including $4 billion exploration & evaluation)4 1 Production is expected to

31. Slide 31: 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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