Santos Limited · ASX:STO
Santos — Corporate Update (November 2019)
40 slides from Santos's corporate update, Nov 12, 2019
Slide 1: Western Australia & Northern Territory site visit
Western Australia & Northern Territory site visit 10-12 November 2019
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. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which c
Slide 3: Western Australia & Northern Territory site visit 10-12 November 2019
Western Australia & Northern Territory site visit 10 – 12 November 2019 Sunday, 10 November 2019 Management dinner Perth, Western Australia Monday, 11 November 2019 Varanus Island site tour Carnarvon Basin, offshore Western Australia Tuesday, 12 November 2019 Darwin LNG site tour Point Wickham, Nort
Slide 4: Santos profile
Santos profile (ASX: STO, US ADR: SSLZY) Santos’ purpose is to provide sustainable returns for our shareholders by supplying reliable, affordable and cleaner energy to improve the lives of people in Australia and Asia DIVERSIFIED AND BALANCED MARKET PORTFOLIO CAPITALISATION 5 core long-life natural
Slide 5: Santos Offshore Division – WA and NT
Santos Offshore Division – WA and NT High quality portfolio of operated production and near field development and exploration assets Strong operating performance + Integrated operations across Varanus Island, Devil Creek and Macedon domestic gas hubs + High margin with premium to Brent oil productio
Slide 6: Santos Offshore Division – WA and NT
Santos Offshore Division – WA and NT Production profile and growth opportunities supported by strong offshore operating expertise and capabilities 2018 2P reserves 2019 Q3 YTD Production + The acquisitions of Quadrant Energy and mmboe mmboe ConocoPhillips’ northern Australia interests1 are fully ali
Slide 7: Offshore Division leadership
Offshore Division leadership Brett Darley Joe Ariyaratnam EVP – Offshore GM – Offshore Development Quadrant, Apache, Woodside, Santos BP Ian Grant Calan McIntyre VP – Offshore Production Operations GM Offshore Exploration Quadrant, Apache Total, BHP Anthony Smith Graham Weaver GM – Oil Assets GM Com
Slide 8: Offshore Division safety and environment
Offshore Division safety and environment Santos is committed to being the safest oil and gas operator in Australia and preventing harm to people and the environment Offshore lost time injury frequency rate (LTIFR)1 + Implementation of Santos’ safety strategy is focused on Rate per million hours work
Slide 9: Low carbon emission initiatives
Low carbon emission initiatives Advancing projects and opportunities to reduce carbon footprint for existing and future operations Devil Creek power project Darwin LNG battery bank West Arnhem fire abatement (DLNG) + Replacing existing power + Battery project to reduce power + Project established 20
Slide 10: Western Australia
Western Australia Santos
Slide 11: Western Australia
Western Australia Material production infrastructure hubs with further development opportunities Varanus Island Devil Creek Macedon Van Gogh Pyrenees Santos 100% Santos 100% Santos 28.6% Santos 52.5% Santos 28.6% Ownership (Operator) (Operator) (Operator – BHP) (Operator) (Operator – BHP) + Ningaloo
Slide 12: Western Australia domestic gas market
Western Australia domestic gas market Santos holds a strong position in Western Australia and is the leading supplier to the domestic market1 + 107.3PJ of sales gas supplied to the WA market 2019 Q3 YTD + Strong domestic market outlook with resilient demand from large industrial customers + Integrat
Slide 13: Gas infrastructure and tieback development
Gas infrastructure and tieback development Value delivered from integrated gas business with opportunities for further development and new markets + Maximising utilisation of combined infrastructure across Varanus Island, Devil Creek and Macedon + Majority of gas contracted under CPI-linked medium t
Slide 14: Varanus Island tour overview
Varanus Island tour overview + Operational since 1986 (Harriet oil production) + 3 trains with nameplate capacity of 390 TJ/d + Supplied 23% of WA domestic gas market 2019 YTD + Integrated operations with other Santos operated gas facilities + Opportunity for low pressure reserves development and fu
Slide 15: Gas supply development
Gas supply development Varanus Island compression project develops low pressure reserves in John Brookes, followed by tranches of subsea tieback to existing infrastructure Varanus Island compression project + Installation of inlet compression on the island to maintain offshore deliverability and rec
Slide 16: Oil production
Oil production Steady production from oil production FPSO hubs + Successful first phase of Van Gogh infill development delivered under budget with production exceeding expectations + Second phase of infill drilling currently being planned + Steady production from Pyrenees with high uptime and furthe
Slide 17: Dorado appraisal
Dorado appraisal Successful appraisal drilling program with safe and efficient operational performance and excellent results supporting development Dorado gross 2C resource + Excellent results from 2019 Dorado-2 & 3 appraisal wells with high Gross 2C gas 310 mmboe quality reservoirs and fluids encou
Slide 18: Bedout sub-basin exploration potential
Bedout sub-basin exploration potential Controlling position around the world-class Dorado discovery + Dorado discovery proves a world class liquids-rich petroleum system with high quality reservoirs + Sparsely explored permits contain multiple play types, some of which remain untested + Focus on ext
Slide 19: Significant recent WA exploration successes
Significant recent WA exploration successes Building on a long-term track record of exploration success Well Year Basin Result Major oil & liquids-rich gas Dorado-1 2018 Bedout discovery High value near-field gas Spartan-1 2016 Carnarvon discovery close to VI production infrastructure Play-opening l
Slide 20: Northern Australia
Northern Australia Santos
Slide 21: Northern Australia
Northern Australia Material offshore and onshore acreage to pursue backfill and expansion of Darwin LNG and domestic gas opportunities Bayu Undan & DLNG Barossa Petrel-Tern-Frigate Browse Basin Crown- Petrel Tern-Frigate Greater Lasseter Santos 68.4%1 Santos 62.5%1 Poseidon1 Santos 40.25% Santos 100
Slide 22: Bayu Undan and Darwin LNG production hubs
Bayu Undan and Darwin LNG production hubs Reliable LNG production performance from Darwin LNG and liquids production from Bayu Undan + Reliable performance and safety record with high availability – no scheduled cargo missed since start up in 2006 + Over 700 LNG cargoes delivered to date + Liquids p
Slide 23: Acquisition of ConocoPhillips' interests in Northern Australia
Acquisition of ConocoPhillips’ interests in Northern Australia Brownfield growth building on existing infrastructure positions Strategically + Fully aligned with Santos’ growth strategy to build on existing infrastructure positions around our core business aligned acquisition + Builds offshore opera
Slide 24: Strategically located LNG hub
Strategically located LNG hub Northern Australia has the potential to become a major LNG hub for the long term, supported by Santos’ world class regional onshore and offshore gas resources and proximity to Asia Creation of a major LNG hub strategically located to key LNG end DLNG expansion supported
Slide 25: Advancing partner alignment
Advancing partner alignment Santos is prepared to sell-down to 40-50% interest in Barossa and DLNG to increase partner alignment. SK E&S has signed an LOI to acquire 25% interest in Bayu-Undan and DLNG Current Pro-forma Bayu/ Bayu/ + Acquisition advances partner alignment at Partner DLNG Barossa Ope
Slide 26: Barossa development
Barossa development Barossa project advancing towards FID with a number of material contracts awarded and progressing negotiations with the Darwin LNG JV for the supply of backfill gas + Field development plan includes 9 subsea wells to be drilled in 2 phases, 6 in initial phase, offshore condensate
Slide 27: Darwin LNG site map
Darwin LNG site map + Commenced operations in 2006 + Over 700 cargoes delivered + Nameplate Capacity: 3.7 mpta + Planning approval for footprint up to 10 mtpa + Emergency gas supply for NT domestic market Western Australia & Northern Territory Site Visit 2019 27
Slide 28: Strategically aligned growth
Strategically aligned growth Domestic gas and LNG export opportunities supported by discovered resource base and onshore exploration and appraisal program Darwin LNG potential expansion footprint + Opportunities to create value through strategic partnerships to bring discovered resources to market,
Slide 29: Appendix
Appendix Santos
Slide 30: Varanus Island and associated gas fields
Varanus Island and associated gas fields Santos operated 100% + Varanus Island facilities + Nameplate capacity 390 TJ/day + Two low temperature separation gas plants (3 trains) + CO2 remove plant (2 trains) + Two 39,750kL crude oil storage tanks + Crude oil export pipeline and marine load-out termin
Slide 31: Devil Creek and Reindeer gas field
Devil Creek and Reindeer gas field Santos operated 100% + Devil Creek facilities + Nameplate capacity: 220 TJ/day + Includes Reindeer gas field and wellhead platform, and 3 x production wells (103km offshore) + Raw gas pipeline, gas plant and sales export pipeline + All produced gas flows to Dampier
Slide 32: Macedon and associated gas field
Macedon and associated gas field BHP operated 71.43% / Santos 28.57% + Macedon facilities + Nameplate capacity 220 TJ/day + Four subsea wells + Subsea pipeline and umbilical to bring gas to shore + 15km wet gas pipeline from shore to plant + Single train gas treatment and compression plant + 67 km g
Slide 33: Ningaloo Vision and associated oil fields
Ningaloo Vision and associated oil fields Santos operated 52.5% / INPEX 47.5% + Facilities + Storage capacity: 540,000 bbls + Processing capacity + Oil: 63,000 bbl/d + Water injection: 140,000 bbl/d + Gas lift/injection: 80,000 Mcf/d + Double-sided tanker with internal turret mooring system + Water
Slide 34: Pyrenees and associated oil fields
Pyrenees and associated oil fields BHP operated 71.43%1 / Santos 28.57% + Facilities + Storage capacity: 850,000 bbls + Processing capacity: + Oil: 96,000 bbl/day + Water injection: 110,000 bbl/day + Gas lift/injection: 60,000 Mcf/day + FPSO owned by JV and operated under contract by MODEC + Water d
Slide 35: Darwin LNG overview
Darwin LNG overview Darwin LNG is a world-class LNG facility (Santos operated 68.4%)1 + Darwin LNG is a 3.7 mtpa LNG facility located in Wickham Point in the city of Darwin, Northern Territory + Joint venture partners include: INPEX (11.4%), Eni (11.0%), JERA (6.1%) and Tokyo Gas (3.1%) + The plant
Slide 36: Bayu-Undan overview
Bayu-Undan overview Bayu-Undan is a mature gas-liquids project (Santos operated 68.4%)1 + Capacity 600 mmscf/d + Gas-condensate field in Timor Sea + Timor-Leste Treaty Transition contains stabilisation of tax and regulatory regimes + Developed by lean gas recycling with condensate and LPG extraction
Slide 37: Greater Poseidon overview
Greater Poseidon overview 40% operated position in a series of gas fields in the Browse Basin, 950km from Darwin1 + 40% Santos (operator)1, 40% Origin, 20% PetroChina + Pro-forma 2018 year-end 2C resource of 410 mmboe (gross), 164 mmboe (net) + 8 wells drilled in 2 campaigns in WA-315-P and WA-398-P
Slide 38: Disclaimer and important notice
Disclaimer and important notice Cautionary statement regarding reserve and resource estimates 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 reason
Slide 39: Disclaimer and important notice
Disclaimer and important notice Cautionary statement regarding Dorado contingent resources estimates Dorado is located in WA-437-P in which Santos is operator and holds an 80% interest. Dorado-1 confirmed the basis of the discovery by demonstrating the existence of a significant quantity of potentia
Slide 40: Disclaimer and important notice
Disclaimer and important notice Notes on reserves and resources statements – Barossa The estimates of petroleum reserves and contingent resources in the presentation are based on and fairly represent information and supporting documentation prepared by, or under the supervision of Mr Ian Pedler who