Santos Limited · ASX:STO
Santos — Investor Day (November 2012)
109 slides from Santos's investor day presentation, Nov 22, 2012
Slide 1: 2012 Investor Seminar
For personal use only Insert picture 2012 Investor Seminar 22 November 2012 1
Slide 2: 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
Slide 3: David Knox, Managing Director and CEO
For personal use only Insert picture Mutineer-Exeter, Carnarvon Basin, Western Australia David Knox Managing Director and CEO 3
Slide 4: Delivering 80-90 mmboe of production by 2020
Delivering 80-90 mmboe of production by 2020 For personal use only Production Upside potential Aust: Zola, Winchester, Hurricane, Sole, mmboe Pedirka Basin 90 LNG: PNG LNG T3, Browse, Caldita Barossa Asia: Vietnam, Indonesia CSG 80 Likely Likely sanction sanction Aust: Gunnedah 70 LNG: Bonaparte LNG
Slide 5: 2012 delivery
2012 delivery For personal use only Production growth Production up 10% to 38.9 mmboe to September Earnings growth Underlying first-half profit up 20% to $283 million Cashflow growth Operating first-half cashflow up 7% to $728 million Progress on major PNG LNG 70% complete projects GLNG 40
Slide 6: Safety performance
Safety performance A balanced focus on personnel and process safety For personal use only Personnel safety Process safety TRCFR performance Safety critical compliance long-term trend (employees and contractors) 99.9% 7 20 100% Total recordable case frequency rate 18 6 95% per million hours worked 16
Slide 7: Our people are the key to delivery
Our people are the key to delivery For personal use only 7
Slide 8: Today's agenda
Today‘s agenda For personal use only Introduction David Knox Funding and Guidance Andrew Seaton LNG Markets Peter Cleary GLNG Upstream Trevor Brown GLNG Downstream Mark Macfarlane Q&A followed by morning tea WA&NT Business Unit John Anderson Eastern Australia Business Unit James Baulderstone Asia Pa
Slide 9: Funding and Guidance
For personal use only Moomba 191, Cooper Basin, Australia Funding and Guidance Andrew Seaton Chief Financial Officer 9
Slide 10: Over $6 billion of funding capacity
Over $6 billion of funding capacity Balance sheet capacity to fund execution of business strategy For personal use only and minimise financing risk Available liquidity Debt maturity profile A$ billion A$ million 7 1,800 1.0 Notes mature in 6 2070, with option 0.6 1,500 to redeem in 2017 5 2.1 1,200
Slide 11: 2013-15 Sources and uses of funds
2013-15 Sources and uses of funds No requirement for additional funding under reasonable scenarios For personal use only 2013-15 Sources and uses of funds 2013-15 Sources and uses of funds at US$100/bbl oil A$ billion at US$75/bbl oil A$ billion 12 12 $2.9 billion Undrawn facilities Undrawn and cash
Slide 12: Strong operating cashflow
Strong operating cashflow Production and revenue growth, focus on cost control For personal use only Production growth from producing and sanctioned projects Increasing proportion of oil in project mix Strong - Chim Sao, Cooper oil, Stag performance revenue - Fletcher Finucane and Dua projects u
Slide 13: Production guidance
Production guidance 2013 guidance 53-57 mmboe For personal use only Production 2013 production influenced by: mmboe 60 53-57 Continued forecast strong 51-55 production from the base 50 47.2 business Chim Sáo on plateau 40 Start-up of Fletcher Finucane 30 in 2H 2013 (average 6,600 bbl/day net t
Slide 14: Capex guidance
Capex guidance 2013 guidance $4 billion For personal use only Capex (excludes capitalised interest) 2013 capex guidance drivers: $billion $4 billion Peak year for GLNG spend 4 $3.5 billion $3.1 billion PNG LNG includes project 3 cost review increase announced on 12 November 2 EABU includes Coo
Slide 15: LNG Markets
For personal use only LNG Markets Peter Cleary VP Strategy & Corporate Development 15
Slide 16: Santos vision and strategy
Santos vision and strategy For personal use only LNG markets Dual channel strategy LNG channel Domestic channel Strong Focused Australian Asian A leading base growth energy company in Australia and Asia A leading gas producer in high-growth markets 16
Slide 17: Santos has equity in fully contracted LNG projects
Santos has equity in 3 fully contracted LNG projects For personal use only DLNG PNG LNG GLNG Contracted to Contracted to Contracted to 2023 2034 2035 3.3 mtpa Santos share of long-term, oil-linked contracts in place 17
Slide 18: LNG Pricing: Henry Hub-linkage vs oil-linkage
LNG Pricing: Henry Hub-linkage vs oil-linkage US$/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 $6.50 6 4 2 0 2020 Forecast Liquefaction Other Shipping Traditional Priced LNG Source: Henry Hub 2020 forecast provided by PIRA; ―Other‖
Slide 19: New sources of supply will be required to meet robust global demand for LNG
New sources of supply will be required to meet robust global demand for LNG For personal use only Contestable Market ~50 mtpa ~180 mtpa Global LNG Demand New trains required to (mtpa) ~12 ~45 meet anticipated demand1 500 400 300 200 100 0 2000 2005 2010 2015 2020 2025 Pacific Basin Demand Atlantic B
Slide 20: US LNG exports are not expected to overwhelm the market
US LNG exports are not expected to overwhelm the market Asia Pacific LNG Supply/Demand For personal use only mtpa 350 300 Contestable ~140 250 Market mtpa 200 US LNG Contracted 30-40 mtpa 150 Sabine Pass 100 Contracted LNG Supply 50 0 2020 2025 20 Source: Wood Mackenzie and Santos analysis
Slide 21: New regions of supply are emerging
New regions of supply are emerging For personal use only Norway 1 Russia 4 1 Greenfield Canada 3 Brownfield North Africa United States 5 Other Middle East 1 1 12 Qatar 1 5 West Africa 7 2 3 2 6 5 Greenfield Malaysia 3 Indonesia East Africa 3 PNG 1 . 2 South America 3 3 12 1 1 Australia Number of Ope
Slide 22: Australian LNG must address cost inflation
Australian LNG must address cost inflation New Australian LNG projects are 80% more capital intensive than For personal use only operating Australian LNG projects Capex intensity (including upstream) US$m/mtpa 3,500 $3,016 3,000 $2,693 2,500 +80% 2,000 $1,680 Cost 1,500 inflation $1,212 Regulatory m
Slide 23: Santos' LNG customers & partners
Santos‘ LNG customers & partners For personal use only PNG LNG Bonaparte LNG Darwin LNG GLNG 23
Slide 24: GLNG Upstream
For personal use only GLNG Upstream Trevor Brown VP Queensland 24
Slide 25: GLNG Upstream overview
GLNG Upstream overview Strong acreage position For personal use only Fairview, Roma, Arcadia, Scotia GLNG project areas 670 landowner agreements with 300 landowners in place Arcadia Area 34,000 hectares of land owned - Used for key development activities and environmental offsets Fairview Area
Slide 26: Compression capacity and gas purchases
Compression capacity and gas purchases Investment in upstream facilities provides 890 TJ/day of compression For personal use only capacity by end 2015; gas purchases to date provide a further 265 TJ/day GLNG net share compression capacity at the end of 2015 and gas purchases TJ/day Compression capac
Slide 27: Fairview: world-class CSG asset
Fairview: world-class CSG asset Fairview field is amongst the world‘s best in terms of reservoir properties For personal use only Fairview - Depth vs Permeability 10000.00 DST Fairview -SG production P10 SG60 P90 1000.00 Expon. (P1) Expon. (DST_ed) Expon. (P10) P10 Expon. (P90) 100.00 Permeability (
Slide 28: Fairview
Fairview Efficient de-watering and strong gas rates For personal use only F001 F118 F176 28
Slide 29: Fairview production performance
Fairview production performance Average flow rate 1.4 TJ/day per well For personal use only Development wells drilled - 290 Currently producing - 159 Current capacity - 220 TJ/day Average gas rate building - 1.0 TJ/d (2010) > 1.3 (2011) > 1.4 (2012) Fairview well performance as of 1 November
Slide 30: Roma: on trend with other CSG fields
Roma: on trend with other CSG fields Santos has a long history operating in the Roma area For personal use only Conventional gas >50 years Surat Basin Coal - Gas Content Fairway CSG pilots >8 years Geological trends are well understood − gas content − thickness − permeability On trend with A
Slide 31: Roma geology well understood
Roma geology well understood Roma field is comparable to other CSG fields on the Surat Fairway For personal use only NET COAL GAS CONTENT COAL DEPTH PERMEABILITY PRODUCTION Core holes Corehole Wells Image logs >100 wells providing Development wells Desorption data Seismic DST data dynamic data & Pil
Slide 32: Roma pilot data
Roma pilot data Early pilot production is confirming good gas flow potential For personal use only Initial Pilot Locations Water Gas 14 multi-well pilots in NE where 1st phase development is underway 9 additional pilots to be added in west & centre 2013-14 Data used to calibrate gas & water ty
Slide 33: Drilling and Completions
For personal use only Insert picture Manny Sessink General Manager Drilling and Completions
Slide 34: Drilling: rigs and wells
Drilling: rigs and wells Drilling capacity secured to meet forecast well requirements For personal use only Current rig fleet of eight drilling rigs and four completion rigs - Commissioned two new drilling rigs in third quarter 2012 - Commissioning eighth drilling rig and fourth completion rig R
Slide 35: Drilling: cost efficiencies
35 For personal use only of: in 2012 and time core designs drilling approach, well types to a few has led to a factory Significant time and cost increasing operational to be achieved as a result performance both cost efficiencies are continuing Defined groups of wells Significant reduction in 1,
Slide 36: Roma and Fairview development
Roma and Fairview development For personal use only Arcadia Area GTP Acceleration Fairview Area HCS-5 CS2 QGP CS3 PCS HCS-4 CRWP Roma Area RUGS Existing facilities HCS-2 Acceleration Sanctioned at FID Wallumbilla Acceleration HCS: hub compressor station QGP: Queensland Gas Pipeline PCS: pipeline com
Slide 37: Fairview surface facilities
Fairview surface facilities For personal use only 420 TJ/day gross compression Arcadia Area Acceleration Scope: capacity sanctioned at FID, in addition Total wells ~70 to 140 TJ/d existing gross capacity GTP Additional ~70 wells from acceleration projects Acceleration Fairview Area HCS-5 Two H
Slide 38: Fairview Hub
Fairview Hub 4 For personal use only HCS-4: 250 TJ/day gross capacity Combined gas processing, compression and water treatment Hub construction underway - Overall construction 15% complete - Bulk earthworks >75% complete, piling >40% complete - First foundation concrete pours in September for
Slide 39: Fairview Hub
Fairview Hub 4 For personal use only 35ML pond construction of spillway, Commencement of driven piles for NCS compressors transfer pump sump in background 39 Multi Media Filtration concrete pour – Water Desalination
Slide 40: Fairview Hub
Fairview Hub 5 For personal use only HCS-5:170 TJ/d gross capacity Combined gas processing, compression and water treatment Hub construction underway - Bulk earthworks commenced, cut and fill >80% completed - Underground pipeline installation underway - Hub access road constructed - Overhead p
Slide 41: Roma surface facilities
Roma surface facilities For personal use only Arcadia Area 145 TJ/d compression capacity sanctioned at FID, including 75 TJ/d GTP Acceleration RUGS injection / withdrawal capacity Fairview Area HCS-5 Additional ~250 wells and 280 TJ/d QGP CS2 CS3 compression from acceleration PCS HCS-4 projects
Slide 42: Roma Hub
Roma Hub 2 For personal use only HCS-2: 145 TJ/d capacity (including RUGS injection / withdrawal) Combined gas processing, compression and water treatment Hub construction underway - Overall Construction 10% complete - Bulk earthworks >85% complete - Underground pipeline installation Roma Hub
Slide 43: Brisbane Operations Centre
Brisbane Operations Centre For personal use only O&M Philosophy - centralised control, high level of automation, smaller hubs, minimise driving - Minimise ongoing disturbance to land holders and community - Reduce operational costs - Consistent performance 24/7 monitoring and operations of all u
Slide 44: On track for first LNG in 2015
On track for first LNG in 2015 For personal use only Milestone Date Long lead procurement commenced Q1 2011 First access to site Q2 2011 Commenced hub compressor stations Q1 2012 Roma water production system mechanical Q4 2013 completion Compressor station mechanical completion Q4 2013 44
Slide 45: GLNG Downstream
For personal use only GLNG Downstream Mark Macfarlane VP GLNG OPL 45
Slide 46: Pipeline, Plant and Port
Pipeline, Plant and Port For personal use only BOWEN BASIN Rockhampton Gladstone CURTIS SPRINGSURE ISLAND Caliope Oombabeer Biloela ROLLESTON Banana Bauhinia Moura Bundaberg ARCADIA VALLEY Maryborough TAROOM INJUNE 0 100 WANDOAN WALLUMBILLA Kilometres ROMA SURAT Brisbane 46 BASIN
Slide 47: Gas transmission pipeline
Gas transmission pipeline For personal use only 420 km of 42" pipe 35,000 joints All pipe manufactured and shipped Peak workforce of 1,300 on pipeline by April 2013 Pipeline completion Q2 2014 100-km 47 of the mainland pipeline right of way has been cleared and graded as at November 2012
Slide 48: Pipeline strung along right of way
70 km of pipeline strung along right of way For personal use only Clearing and grading Pipe unloading Pipe stringing 48 Beveling
Slide 49: 1,000 joints have been welded
1,000 joints have been welded For personal use only Welding preparation Welding Welded 49 pipe on right of way
Slide 50: Pipeline marine crossing
Pipeline marine crossing For personal use only 50
Slide 51: Pipeline marine crossing
Pipeline marine crossing For personal use only 51
Slide 52: Marine crossing – installation sequence
Marine crossing – installation sequence For personal use only 52
Slide 53: Curtis Island – May 2011
Curtis Island – May 2011 For personal use only 53
Slide 54: Curtis Island – December 2011
Curtis Island – December 2011 For personal use only 54
Slide 55: Curtis Island – October 2012
Curtis Island – October 2012 For personal use only 55
Slide 56: Curtis Island October 2012
Curtis Island For personal use only 31 October 56 2012
Slide 57: 1,344 room accommodation complete
1,344 room accommodation complete Capacity for future staged expansion to 2,208 rooms For personal use only Curtis Island site workforce peaks at 2,050 in Q2 2014 31 October 57 2012
Slide 58: Material offloading facility
Material offloading facility For personal use only 31 October 58 2012
Slide 59: LNG Train
LNG Train 1 For personal use only 31 October 59 2012
Slide 60: LNG Tanks
LNG Tanks For personal use only 31 October 60 2012
Slide 61: LNG Tank B
LNG Tank B For personal use only 31 October 61 2012
Slide 62: Module yard, Batangas
Module yard, Batangas For personal use only Fin fans Propane condenser steelwork Placement 62 of pipework onto LNG jetty modules
Slide 63: On track for first LNG in 2015
On track for first LNG in 2015 For personal use only Milestone Date First Curtis Island works May 2011 First permanent structural concrete for February 2012 Train 1 propane refrigeration compressors First concrete LNG tanks – LNG Tank B July 2012 First module arrives Q1 2013 Pipeline completion Q2 2
Slide 64: Western Australia & Northern Territory Business Unit
For personal use only Fletcher 5 clean-up, Carnarvon Basin Western Australia & Northern Territory Business Unit John Anderson VP Western Australia & Northern Territory 64
Slide 65: WA&NT – delivery today/growth for tomorrow
WA&NT – delivery today/growth for tomorrow For personal use only Highest ever production from Carnarvon Basin, driven by Reindeer and Spar Domestic Winchester and Zola to be drilled in Gas 2013, success will offer multiple growth options Fletcher Finucane development on Carnarvon budget, on sc
Slide 66: Record Carnarvon gas production
Record Carnarvon gas production Gas production up 50% in 2012 to highest ever of 49.5 For personal use only PJ to end Q3 Santos Carnarvon gas production PJ/Qtr Varanus Island 18 15 Strong production from John Brookes and Halyard well 12 Considering follow-on projects 9 − Spar 2 tie-back project
Slide 67: Zola and Winchester: early 2013
Zola and Winchester: early 2013 Winchester Winchester For personal use only Santos 75% and operator WA-323-P Exploration drilling Q1 2013 Ensco 109 jack-up John Brookes Shallow water (60-80m) Material prospect with potential high Varanus Island Indian Spar liquids WA-13-L Ocean On succes
Slide 68: Carnarvon Oil: Fletcher Finucane
Carnarvon Oil: Fletcher Finucane Project is over 65% complete and on schedule for first oil For personal use only in 2H 2013 3 well, subsea tieback to Mutineer Exeter FPSO - FPSO will undergo dry dock during Q1 2013 Average gross production rate of 15,000bbl/day in the first 12 months Fletcher
Slide 69: Darwin LNG/Bayu-Undan
Darwin LNG/Bayu-Undan Continued strong production and cashflow… For personal use only Successfully completed shutdowns in 2012 - Improved operability and reliability - 5% increase in gross gas production Q3 2012 v Q3 2011 taking advantage of previous system enhancements Land available for Darwin
Slide 70: Northern Australia: key part of Santos' future
Northern Australia: key part of Santos‘ future Caldita Barossa unlocked in June 2012 with SK E&S farmin for up to For personal use only US$520 million; BLNG environmental approval achieved Caldita Barossa (Santos 25%) New Asian partner and Korean energy major, SK E&S SK E&S will fund up to US$52
Slide 71: Browse: Crown success unlocks material play
Browse: Crown success unlocks material play Crown discovery located in close proximity to existing and proposed For personal use only LNG projects; Santos farmin to adjacent permit WA-408-P Significant gas discovery at Dufresne Bassett West Crown-1 Argus − Well-positioned in close WA-274-P proximi
Slide 72: Crown-1 gas-condensate discovery
Crown-1 gas-condensate discovery Preliminary contingent recoverable resource estimate 0.5-5 TCF For personal use only Large, simple Jurassic fault block structure Wireline logging: Crown to Treasury Seismic Transect - 61 metres net gas pay in Jurassic-aged Montara, Plover and Malita sandstones C
Slide 73: Browse Basin – exploration follow-up
Browse Basin – exploration follow-up The Browse inventory presents material exploration running room for Santos… For personal use only Dufresne Prospect ―D‖ Bassett West Prospect Prospect Astrolabe Prospect Grande Prospect WA-274P Crown 0.5 – 5 TCF Lasseter Prospect Treasury-1 Proposed Luxor Conting
Slide 74: Winchester – Carnarvon Basin
Winchester – Carnarvon Basin Echo/Yodel Goodwyn Dockrell For personal use only Winchester-1 Parker-1 Sculptor Rankin Wilcox-2 Pemberton Dixon Wilcox-1 Wheatstone Iago Parker-1, 1979, TD 4737, Abandoned without evaluation due to operational difficulties Wilcox Winchester Proposed Well Location Winche
Slide 75: WA&NT – delivery today/growth for tomorrow
WA&NT – delivery today/growth for tomorrow Proven track record of delivery while generating future For personal use only growth opportunities EBITDAX margin 75% WA&NT EBITDAX (excluding asset sales) Crown success $million Carnarvon gas production 2012 up 50% 800 Delivery Caldita Barossa unlo
Slide 76: Eastern Australia Business Unit
For personal use only Tindilpie 6-well pad during fracture stimulation "SIMOPS", July 2012 Eastern Australia Business Unit James Baulderstone VP Eastern Australia 76
Slide 77: Key 2012 Delivery
Key 2012 Delivery Santos 2011 reserves booking of 330 PJ/68 mmboe, highest booking For personal use only since 1997 Cooper Gas Significant progress towards U.S. style gas development with first 6 well transition on track pad online which will produce 15 mmscf/day Moomba infrastructure upgrade
Slide 78: EABU Key Themes
EABU Key Themes For personal use only 1. Cooper Gas transition 2. Delivering Cooper Oil 3. Central Australia unconventional resources 4. NSW program 78
Slide 79: EABU positioned to capture new market opportunities
EABU positioned to capture new market opportunities For personal use only Unlocking Santos‘ extensive Step-change in gas demand Increased gas prices Eastern Australia resources Eastern Australia gas demand Eastern Australia gas Santos‘ Eastern Australia supply costs (ex-field)1 Resource Footprint $/
Slide 80: Cooper Gas transitioning
Cooper Gas transitioning Higher volume, lower cost business through… For personal use only Upstream Infill Development Multi-well pad drilling technology – 4 rigs by 2014 SIMOPS approach to drilling, completions Enabled through multi-well pad drilling technology and SIMOPS and connections 75 30%
Slide 81: Transforming development and production delivery
Transforming development and production delivery ‗Factory style‘ field development and production cost reductions… For personal use only 10 Ave. cost per well ($2012M) 25+% drilling cost Developing pad drilling and SIMOPS capabilities reductions by 2015 Tindilpie 6 well pad on-line from October 20
Slide 82: Cooper Infrastructure Expansion Program
Cooper Infrastructure Expansion Program Flexible ‗Phase 1‘ to match field development pace comprising… For personal use only Cooper Infrastructure Expansion Program Phased Field Compressor Station Expansions Big Lake (7,200hp) Daralingie (3,200hp) Moomba North (7,200hp) Gidgealpa (14,400hp)
Slide 83: EABU Key Themes
EABU Key Themes For personal use only 1. Cooper Gas transition 2. Delivering Cooper Oil 3. Central Australia unconventional resources 4. NSW program 83
Slide 84: 2012 Cooper Oil Delivery
2012 Cooper Oil Delivery Refined Cooper Basin Oil strategy delivering with best production For personal use only year since 2009 Sustained production growth… Creation of a dedicated Oil Asset Team in 2011 3 Production (Mmboe) delivering results Greater than 100% reserve replacement underpins 2 s
Slide 85: EABU Key Themes
EABU Key Themes For personal use only 1. Cooper Gas transition 2. Delivering Cooper Oil 3. Central Australia unconventional resources 4. NSW program 85
Slide 86: Commercialising world class unconventional resources across Central Australia
Commercialising world class unconventional resources across Central Capturing Australia unconventional reservoir opportunities For personal use only Substantial unconventional contingent and prospective Substantial resources across the Central Australian Basins(1) Amadeus/ resources U.S. technol
Slide 87: Australia's first shale gas reserve booking
Australia‘s first shale gas reserve booking Moomba 191 is an extraordinary result… For personal use only Dedicated shale well commissioned on Santos EUR Estimates YE 12 28 September 2012 Bcf 1P 2P 3P Initial flow rate >3 mmscf/d Accessed OGIP 2 4 9 First month average flow rate of Ultimate Rec
Slide 88: Comprehensive Cooper Basin unconventional program
Comprehensive Cooper Basin unconventional program targeting our most prospective play types Prioritising two significant resource plays… For personal use only Moomba REM Shale Combination of vertical and horizontal wells to optimise well and frac design Horizonal wells will be drilled with diffe
Slide 89: Central Australia's further unconventional potential
Central Australia‘s further unconventional potential Mereenie and North Mereenie For personal use only Northern Territory unconventional reservoir potential Alice Springs Significant unconventional recoverable Nth Mereenie Block prospective resource Mereenie Core acquisition and fracture stimula
Slide 90: EABU Key Themes
EABU Key Themes For personal use only 1. Cooper Gas transition 2. Delivering Cooper Oil 3. Central Australia unconventional resources 4. NSW program 90
Slide 91: A robust investment opportunity
A robust investment opportunity Represents East Australia‘s largest onshore uncontracted 2P volumes… For personal use only Queensland Reserves and resource(1): Goondiwindi PEL 6 1,427 PJ 2P PEL Moree 427 PEL 428 New South Wales Acquired interest PEL Narrabri PEL 434 238 Gunnedah 3,531 PJ 2C in 2
Slide 92: 2012 progress enables forward program
2012 progress enables forward program Strong progress from legacy issue management to development planning… For personal use only before after Legacy issues dealt with in 2012 Legacy integrity issues being resolved Government policy enacted enabling license extension and development Community
Slide 93: Focussed development plan
Focussed development plan Two phase project1 based initially around the mature Narrabri asset… For personal use only Commercialise 1,500 to 2,500 PJ resource Early gas sold into Wilga Park Power Station Bohena Phase 1 and/or domestic market via CRP Tintsfield Production ramping from 2017 to re
Slide 94: Eastern Australia – leveraging the past to capture the future
Eastern Australia – leveraging the past to capture the future For personal use only Transitioning to a new low cost EA EBITDAX Cooper regime, leveraging existing $million (excluding asset sales) Basin infrastructure, resource base 800 and rapidly growing market 700 Utilising learnings from the 600 U
Slide 95: Asia Pacific Business Unit
For personal use only Insert picture Asia Pacific Business Unit Martyn Eames VP Asia Pacific
Slide 96: Asia Pacific – delivery in 2012
Asia Pacific – delivery in 2012 Focus on three core countries; Indonesia, Vietnam and PNG For personal use only Wortel delivered in January 2012 on budget Indonesia Farm in to additional South Sumatra CSG licences Chim Sáo producing > 25,000 bbls/day Vietnam Dua oil project sanctioned, first
Slide 97: Indonesia – established business
Indonesia – established business Strong base business in East Java with increased margins For personal use only and incremental growth Indonesia Wortel gas project delivered in Net entitlement production mmboe January 2012 on budget 8 − Oyong/Wortel combined gross production 7 90 mmscf/d gas and 2
Slide 98: Indonesia - unconventional growth
Indonesia - unconventional growth Farm-in to two additional CSG licences in 2012; South For personal use only Sumatra CSG drilling program to commence in 1H 2013 Leverages Santos‘ CSG experience in Australia and operating experience in Ogan Komering Indonesia II Belida Licences located close to
Slide 99: Vietnam - high margin oil business
Vietnam - high margin oil business Chim Sáo on plateau; Dua on track for first oil in 1H 2014 For personal use only Chim Sáo (Santos 31.875%) Gross average daily Chim Sáo oil production Gross oil production rate bbl/day >25,000 bbl/day for last seven months Cargoes achieving premium to 25,000 Da
Slide 100: Vietnam - significant exploration upside
Vietnam - significant exploration upside Active exploration program underway in the Nam Con Son For personal use only and Phu Kanh basins S Arbitrary Line Hon Khoai N Block 13/03 (Santos 65%, operator) >1,000km2 3D seismic acquired in 2Q 2012 Hon Khoai well planned for 2H 2013 Top Reservoir Wa
Slide 101: PNG LNG on track for first LNG in 2014
PNG LNG on track for first LNG in 2014 Capacity increased to 6.9 mtpa; gross capital cost estimate increased For personal use only to US$19 billion due to FX impacts and logistics challenges Project is 70% complete - Drilling underway on the first two production wells - Mobilisation of second dril
Slide 102: PNG LNG – Potential expansion
PNG LNG – Potential expansion Existing infrastructure can support potential future For personal use only expansion Potential areas for expansion are being Train 3 Location assessed - Hides development drilling underway Plans are being developed to drill Hides Deep in 2014 (Santos 24% equity) - O
Slide 103: PNG LNG — upstream progress
PNG LNG — upstream progress For personal use only 103
Slide 104: PNG LNG — LNG plant site
PNG LNG — LNG plant site For personal use only 104
Slide 105: Asia Pacific – growth and margin expansion
Asia Pacific – growth and margin expansion Strong track record and material growth For personal use only Asia Pacific EBITDAX (excluding asset sales) Wortel delivered $million 2012 Chim Sáo on plateau 200 Delivery 1H EBITDAX up 270% EBITDAX margin 78% 150 Peluang FID in early 110 100 2013
Slide 106: Wrap-up
For personal use only Insert picture Mutineer-Exeter, Carnarvon Basin, Western Australia Wrap-up David Knox Managing Director and CEO 106
Slide 107: 2012 Investor Seminar
For personal use only Insert picture 2012 Investor Seminar 22 November 2012 107
Slide 108: 2013 exploration schedule
2013 exploration schedule For personal use only Well name Basin / area Target Santos Interest Timing % Winchester-1 Carnarvon Gas 75 Q1 Dufresne-1 Browse Gas 30 Q1 Cooper Unconventional – 5 well program Cooper Gas 66.6 Q1 – Q3 Cooper NFE – 4 well program Cooper Gas Various Q1 – Q4 NSW CSG – 4 well p
Slide 109: 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