Slide 1: GLNG Investor Tour Presentation (ASX cover note)
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 Limited FROM: Company Secretary DATE:
Slide 2: GLNG Investor Tour
For personal use only GLNG Investor Tour 3-4 November 2011 1
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 industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by
Slide 4: Project Overview
Project Overview For personal use only First LNG expected in 2015 on schedule Development of CSG resources in the Bowen and Surat Basins FID Jan 2011 Arcadia Area US$16 billion project 5,000 jobs in construction Queensland and 1,000 1 000 jobs in production 420km pipeline and 7.8mtpa Fairv
Slide 5: Strong Partnership / Contractors
Strong Partnership / Contractors For personal use only Project partners have industry leading expertise providing end to end supply chain coverage… Predominantly fixed price EPC contracting strategy with world-class contractors … GLNG leveraging strength of partnerships 4
Slide 6: Experienced Leadership Team
Experienced Leadership Team For personal use only Experience: 25 years Oil & Gas experience. President GLNG Held position of Vice President Mark Macfarlane Eastern Australia l for f Santos GLNG Project GM GM External GM Human GM Marketing Director GM Upstream GM Business GM Legal Program Director Pl
Slide 7: Project Progress
Project Progress For personal use only First LNG expected in 2015 on schedule Component p Highlights g g Upstream ~520 landholder agreements in place All cultural heritage clearances obtained >500 Fluor personnel working on project 383 total wells ells drilled d illed in the GLNG fields to d
Slide 8: Upstream
Upstream For personal use only Fairview CS- CS-3 Arcadia Valley Wallumbilla Fairview CS- CS-3 7
Slide 9: Santos CSG Involvement
Santos CSG Involvement For personal use only Fairview Compressor Station 2 Santos recently celebrated 50 years of gas production in the Roma area Santos commenced commercial production of CSG in Queensland in 1995 CSG already accounts for ~90% of Queensland’s gas Santos funds local infrastruct
Slide 10: Upstream Overview
Upstream Overview For personal use only Fairview, Roma, Arcadia, Scotia GLNG project areas ~520 landowner agreements with 200 landowners in place Arcadia Area 34,000 hectares of land owned - Used for key development activities and environmental offsets Fairview Area 383 wells drilled to date
Slide 11: Fairview Wells Capacity ~200 TJ/d
Fairview Wells Capacity ~200 TJ/d For personal use only 12.00 8000 bbl/d) al Wells (TJJ/d) 7000 ual Wells (b 10.00 Gas capacity for Water capacity for 6000 individual wells individual wells 8.00 5000 or Individua Water Capacity ffor Individu 6.00 4000 Current average gas capacity Current average wat
Slide 12: Upstream Status
Upstream Status For personal use only We have the rigs we need Multi-Pad Well Heads - 6 drilling rigs and 6 completion rigs in operation - Wet weather in first quarter of 2011 impacted the drilling program - Expect to drill ~135 wells in 2011 and ~170 wells in 2012 Pad drilling - Updating d rig
Slide 13: Nodal Compressor Unit Being Tested
Nodal Compressor Unit Being Tested For personal use only 12
Slide 14: Temporary Camp Construction
Temporary Camp Construction For personal use only 13
Slide 15: Reserves and Resources
Reserves and Resources For personal use only GLNG has 9 tcf of dedicated reserves and resources GLNG dedicated 2P+2C (PJ)2 As at 31 December 2010 NSAI estimates GLNG 10,000 ultimate 2P CSG reserves 8,000 maturation of 9,848 PJ from existing acreage1 6,000 In addition to CSG reserves, Santos S t
Slide 16: Water Management
Water Management For personal use only Santos water infrastructure well advanced - 2 x Reverse Osmosis (RO) Plants – Roma and Fairview - 2 x Associated Water Amendment Facilities (AWAF) – Roma and Fairview - Regional bore inventory of around 400 bores - Ongoing O i monitoring it i off aroundd 100
Slide 17: No Impact on Viability of GAB
No Impact on Viability of GAB For personal use only Impervious formation 16
Slide 18: Extensive Water Monitoring
Extensive Water Monitoring For personal use only Santos has an extensive groundwater management plan Supported by one of Australia’s largest and best proactive groundwater monitoring programs Will be actively monitoring over 100 locations l ti across our fields fi ld to confirm our modelling a
Slide 19: CSG: Producing Usable Water
CSG: Producing Usable Water For personal use only Treated CSG water is an opportunity for landholders Landholders in Roma region recognising the value Pilot irrigation trial on Santos land in Fairview very successful – up to 25 times productivity Launched first irrigation project with privat
Slide 20: Hydraulic Fracturing
Hydraulic Fracturing For personal use only Established oil and gas industry practice for more than 60 years Going forward will depend on the geology of the area Purpose, to open coal seams without natural fractures to allow extraction of more gas - Individual wells more productive, limiting dr
Slide 21: Pipeline
Pipeline For personal use only Line-Pipe, Jindal SAW 20
Slide 22: Status
Status For personal use only Saipem - Office established in Brisbane - GLNG personnel embedded with Saipem in Farno - Expected p to start laying y g pipeline pp 2012,, on track - Two full ‘pipe laying seasons’ to complete Line--Pipe at Jindal SAW Line Engineering and procurement more than 40% co
Slide 23: Pipeline Route / Scope
Pipeline Route / Scope For personal use only KP 400 LNG Terminal KP 300 KP 200 KP 100 420km x 42” #600 Pipeline Free flow capacity sized for two trains 2-layer FBE Coating plus epoxy lining Wall thickness, 14.1mm to 19.7mm 6 MLVs Launcher and receiver traps 1 x 5.5km Marine Crossing KP
Slide 24: LNG Plant and Port
LNG Plant and Port For personal use only TEG Vessels in Manufacture, China 23 LNG Plant model, Curtis Island
Slide 25: Plant and Port Scope
Plant and Port Scope For personal use only Located at Curtis Island, Gladstone GLNG Plant Two 3.9 mtpa trains, Fishermans Landing two LNG storage tanks COP Optimised Cascade MOF Process Lump sum contracting R G Tanna strategy with Bechtel Gladstone Ports Port Central Corporation carrying o
Slide 26: Plant Status
Plant Status For personal use only Commenced construction on Curtis Island and the mainland facilities Earthworks >25% of required 4 million m3 completed Completed first Factory Acceptance Test for refrigeration gas turbine Culvert Installation, Curtis Island New berths at Fishermans Landing
Slide 27: Port Status
Port Status For personal use only Western basin main works dredging contract awarded to Van Oord / Dredging International joint venture (VODI) Dredging by Coastal Dredging & Construction at materials Dredging, Gladstone Harbour offloading g facilityy >60% complete and on track Bund wall constr
Slide 28: Curtis Island, Clearing Completed
Curtis Island, Clearing Completed For personal use only Camp Accommodation MOF 3 October 2011 27
Slide 29: Plant Material Offloading Facility
Plant Material Offloading Facility For personal use only A – J Holland’s Office and laydown B – RO plant area C - Batch Plant D - Haul Road Pioneer Ramp A D C B Barge Berth Aggregate Berth Ferryy Terminal Lo-Lo and Ro-Ro Berth face 3 October 2011 28
Slide 30: Port Central – Ferry Terminal and RoRo
Port Central – Ferry Terminal and RoRo For personal use only 5 October 2011 29
Slide 31: RG Tanna – LoLo and RoRo Facility
RG Tanna – LoLo and RoRo Facility For personal use only 5 October 2011 30
Slide 32: Fisherman's Landing – Barge Landing
Fisherman’s Landing – Barge Landing For personal use only 5 October 2011 31
Slide 33: External Environment
External Environment For personal use only Co--existence Co Respectful relationships Beneficial 32 use of water Economic opportunities
Slide 34: Overview
Overview For personal use only Bipartisan support for CSG industry in Queensland. Recognised importance in underpinning future economic growth Strong positive track record in the Roma region - Over 50 yyears of g gas production p - Fifteen years of CSG Santos operates on grazing land, not crop
Slide 35: Boosting Local Economies, Communities
Boosting Local Economies, Communities For personal use only Substantial economic benefits for Queensland regions Santos employs p y almost 200 people p p in Surat Basin. Will grow g to a construction workforce of 1,000 people in the fields Provided opportunities for local businesses – a long t
Slide 36: Our Actions Speak for Us
Our Actions Speak for Us For personal use only ~520 land access agreements signed with ~200 200 landholders Standard rates of compensation reviewed regularly No Land Court action Strong community ties and respectful interaction with landholders We can co-exist with agriculture and boost th
Slide 37: Conclusion
Conclusion For personal use only Key messages First LNG expected p in 2015 on schedule World class contractors executing with experienced owner’s team Co-existence with agriculture and communities Transparent water management with beneficial use for regional communities 36
Slide 38: Questions
For personal use only 37 Questions
Slide 39: Contact Information
Contact Information For personal use only Head office Adelaide Andrew Nairn Group Executive Investor Relations Ground Floor, Santos Centre Level 10, Santos Centre 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairn@santos.com GPO Box 2455 Adelaide, South Au