Santos Limited · ASX:STO
Santos — Investor Presentation (May 2013)
39 slides from Santos's investor presentation, May 22, 2013
Slide 1: GLNG investor visit
GLNG investor visit 22-23 May 2013 1 1
Slide 2: Disclaimer & important notice
Disclaimer & 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 cou
Slide 3: GLNG is over 50% complete and remains on track for first LNG in 2015
GLNG is over 50% complete and remains on track for first LNG in 2015, US$18.5 billion capex maintained Continued time and cost performance gains in drilling Fairview average gas capacity Upstream of 1.6 TJ/day per well Upstream hub construction well underway On track for Q2 2014 Gas completi
Slide 4: Joint-venture between Santos and three of the world's largest energy companies
Joint-venture between Santos and three of the world's largest energy companies PETRONAS, Total and KOGAS Upstream surface 30% facilities EPCM contractor 27.5% Gas transmission pipeline EPC contractor 27.5% Santos GLNG LNG plant 15% EPC contractor 4
Slide 5: Strong LNG off-take agreements with flexible contract build
Strong LNG off-take agreements with flexible contract build Binding 20-year sale and purchase agreements for 7.2 mtpa with PETRONAS and KOGAS Flexible contract build; full contract off-take by 2019 Train 1 first LNG expected in 2015; LNG production expected to ramp-up over 3-6 months Train 2
Slide 6: GLNG on track for first LNG in 2015
GLNG on track for first LNG in 2015 Milestone Date First Curtis Island works May 2011 First permanent structural concrete for Feb 2012 Train 1 propane refrigeration compressors First concrete for LNG tanks – LNG Tank B July 2012 First module complete Feb 2013 Marine crossing tunnelling commenced Apr
Slide 7: Upstream
Insert picture Fairview Hub 04 - NCS Compressor Area Upstream 7
Slide 8: CSG Drilling - on target to spud more than 200 wells in 2013
CSG Drilling - on target to spud more than 200 wells in 2013 Current rig fleet of eight drilling rigs and four completion rigs - Ninth drilling rig mobilised in mid- April 13 On target to drill more than 200 wells in 2013 - 49 wells spudded in Q1 2013 - Record 27 wells spudded in April 2013 Mo
Slide 9: CSG Drilling - continuing cost performance gains
CSG Drilling - continuing cost performance gains Roma deviated overbalanced well drilling cost 14% reduction in drilling $million cost for Roma deviated 1.5 2012 average $1.1 million per 2013 average wells in Q1 2013 1.2 well $0.94 million per well - >40% reduction since FID 0.9 19% reduction in
Slide 10: Over 8,300 PJ of dedicated 2P reserves and 2C resources at the end of 2012
Over 8,300 PJ of dedicated 2P reserves and 2C resources at the end of 2012 GLNG dedicated 2P GLNG dedicated 2P and 2C reserves grew by 12% in PJ (GLNG share) 2012 to 6,721 PJ 10,000 9,491 9,295 Dedicated 2P reserves 8,359 include 1,345 PJ of Santos 8,000 3,732 3,277 1,638 portfolio and third par
Slide 11: Fairview wells continue to produce strongly - average gas capacity of 1.6 TJ/day per well
Fairview wells continue to produce strongly - average gas capacity of 1.6 TJ/day per well 325 development Fairview well performance as at 1 May 2013 wells have been drilled 166 wells connected with a current capacity of 250 Gas capacity for Water capacity for TJ/day individual wells individual w
Slide 12: Early Roma pilot data confirming individual well potential capacity of 0.5 TJ/day
Early Roma pilot data confirming individual well potential capacity of 0.5 TJ/day Over 110 development wells drilled Roma pilot locations since FID Roma West – 8 pilots producing Roma West - New wells online in 5 pilots along eastern and southern flanks of area - Coxon Creek East and Sawpit Cree
Slide 13: Roma and Fairview development
Roma and Fairview development Queensland Gas Pipeline F-HCS-05 170TJ/d F-CS-02 SWQP F-CS-01 CRWP Loop PCS Gas Tunnel Facility Transmission (4-km) CRWP PCS Pipeline WCS (420-km) Roma to Brisbane Pipeline GLNG R-HCS-02 Plant RUGS 145TJ/d F-CS-03 F-HCS-04 250TJ/d GLNG existing facilities GLNG new facil
Slide 14: Upstream construction
Upstream construction Roma Hub 02 - Hub compressor installation Fairview Hub 04 – Gas turbine compressor installation 14 Fairview Hub 05 - AWAF3 cable installation Fairview Hub 04 - Nodal compressors units installed
Slide 15: Fairview Hub 4 – combined gas processing, compression and water treatment
Fairview Hub 4 – combined gas processing, compression and water treatment with 250 TJ/day gross capacity Dawson Bend access road HCS-04 compressor hub Fluor/ Santos offices 250 TJ/day gross capacity 340 ML permeate pond 200 ML associated water pond 15 9 May 2013
Slide 16: Fairview Hub 4 – gas turbine alternators, nodal compressor skids placed on foundations
Fairview Hub 4 – all gas turbine alternators, nodal compressor skids and coolers have been placed on foundations 10 x Nodal 3 x Hub Compression Compressor Skids packages 4 x Gas Turbine 3 x Tri Ethylene Alternator packages Glycol packages Water Treatment Facilities 16 9 May 2013
Slide 17: Fairview Hub 5 – combined gas processing, compression and water treatment
Fairview Hub 5 – combined gas processing, compression and water treatment with 170 TJ/day gross capacity Fluor/Santos Offices CDJV Camp CDJV Laydown Yard 1 CS-01 35ML Associated Water Pond HCS-05 Compressor Hub 170 TJ/day gross capacity 17 9 May 2013
Slide 18: Fairview Hub 5 - AWAF facility nearing completion
Fairview Hub 5 - AWAF facility nearing completion 5 x Nodal 2 x Gas Turbine 35ML Associated Compressor skids Alternator packages Water Pond 2 x Hub Compression packages 2 x Tri Ethylene Glycol packages AWAF3 Water Treatment Facilities CS-05 Access Road 18 9 May 2013
Slide 19: Roma Hub 2 – combined gas processing, compression and water treatment
Roma Hub 2 – combined gas processing, compression and water treatment with 145 TJ/day gross capacity Ponds Blythdale North Road CS-02 Access Road HC-02 Compressor Hub 145 TJ/day gross capacity Fluor/Santos Offices 19 9 May 2013
Slide 20: Roma Hub 2 - gas turbine alternators and hub compressors placed on foundations
Roma Hub 2 - all gas turbine alternators and hub compressors have been placed on foundations Water Treatment Facilities 3 x Gas Turbine Alternator packages 2 x Tri Ethylene Glycol packages East Main Piperack 2 x Nodal Compressor skids 2 x Hub Compression packages 20 9 May 2013
Slide 21: Brisbane control centre
Brisbane control centre Upstream plant and well operations controlled from Brisbane control room Fibre optics to field and wells 24/7 control of all upstream assets including vehicles from single point - Immediate awareness of asset integrity issues or downtime World class technology deploye
Slide 22: Gas transmission pipeline
Insert picture View from inside marine tunnel, May 2013 Gas transmission pipeline 22
Slide 23: 1,100 people now working on the 420-kilometre pipeline, targeting Q2 2014 completion
1,100 people now working on the 420-kilometre pipeline, targeting a Q2 2014 completion All pipeline manufactured and landed in Queensland Over 230 kilometres of the right-of way has been cleared and graded Over 190 kilometres of pipeline has been strung 13,200 of 35,000 joints have been weld
Slide 24: Marine Crossing: 4.3 kilometre long tunnel connecting Curtis Island to the mainland
Marine Crossing: 4.3 kilometre long, 3.4 metre diameter tunnel connecting Curtis Island to the mainland GLNG Gas Transmission Pipeline Marine Crossing Alignment Launch/Receptor Pads Image Source: Worldview2, April 2013 24
Slide 25: Tunnelling underway – expected to take 12 months to complete
Tunnelling underway – expected to take 12 months to complete Tunnel boring machine launched on 15 April 2013 on schedule - 300 metres drilled to date - Will accelerate to a steady rate of 120 metres per week Conventional segmental lined tunnelling methodology used Once complete, tunnel will be
Slide 26: LNG plant and port
Insert picture Curtis Island, April 2013 LNG plant and port 26
Slide 27: Over 2,000 people are currently working on Curtis Island
Over 2,000 people are currently working on Curtis Island Camp Material accommodation Offloading 1,680 rooms Facility Train 1 3.9 mtpa nameplate capacity Train 2 3.9 mtpa nameplate capacity LNG jetty Flare LNG Tank B LNG Tank A 140,000 m3 140,000 m3 capacity capacity 27 April 2013
Slide 28: Train 1 - heavy lifts are ongoing with major process equipment placed
Train 1 - heavy lifts are ongoing with major process equipment placed onto foundations Gas turbine Propane generators and CO2 absorber condenser substation area (placed March-13) foundations Ethylene cold box (placed March-13) Acid Gas Removal Unit area Methane cold box (placed March-13) Refrigerati
Slide 29: Train 2 – concrete foundations well-advanced
Train 2 – concrete foundations well-advanced Propane condenser foundations Ethylene cold box concrete foundations (poured March-13) Methane cold box concrete foundations (poured March-13) Compressor deck columns underway 29 April 2013
Slide 30: Train 2 – first heavy lift in early-May with installation of the CO2 absorber
Train 2 – first heavy lift in early-May with the installation of the C02 absorber 30
Slide 31: LNG Tank B – concrete placed for final wall lift
LNG Tank B – concrete placed for final wall lift and installation of concrete ring beam commenced 31 April 2013
Slide 32: LNG Tank B roof air-lift scheduled for Q3 2013
LNG Tank B roof air-lift scheduled for Q3 2013 32 April 2013
Slide 33: LNG Tank A – concrete placed for sixth wall lift
LNG Tank A – concrete placed for sixth wall lift and assembly of the arched steel roof segments is underway 33 April 2013
Slide 34: 360 metre LNG jetty
360 metre LNG jetty 34 April 2013
Slide 35: LNG jetty - 16 of 21 trestle bents have been completed
LNG jetty - 16 of 21 trestle bents have been completed 3 mooring dolphins currently under construction 26 of the 35 jetty-head loading piles have been cut to level 16 of 21 trestle bents have been completed 35 April 2013
Slide 36: Material Offloading Facility – cargoes continue to be offloaded on the Ro Ro
Material Offloading Facility – cargoes continue to be offloaded on the Ro Ro Concrete plant and water treatment Bulk aggregate berth Roll on roll off (Ro Ro) berth Load on load off Barge berth Passenger ferry (Lo Lo) berth jetty and terminal Pioneer barge ramp 36 April 2013
Slide 37: Batangas - First ten modules have been shipped
Batangas - First ten modules have been shipped 2,000 people currently working at the LNG plant module yard in Batangas - More than 3.3 million hours worked without a lost-time injury 82 Train 1 modules required - 10 modules have been shipped to site - 14 modules are complete Second module shipme
Slide 38: GLNG investor visit
GLNG investor visit 22-23 May 2013 38 38
Slide 39: Contact information
Contact information 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 Australia 5001 Telephone