Santos Limited · ASX:STO
Santos — Corporate Update (March 2021)
34 slides from Santos's corporate update, March 2021
Slide 1: Bayu-Undan Suspension of Operations Package 1 Activities
Bayu-Undan Suspension of Operations Package 1 Activities Supplier Information Session, Dili, Timor-Leste, March 2021 1
Slide 2: Agenda
Agenda Safety Briefing Timor Plaza Hotel Representative Fernando da Silva, Opening Address ANPM Director Development & Production Jose Lobato Introduction and Purpose of Information Session Santos Country Manager / Diretór Nasionál Santos Paul Pattrick Bayu-Undan Overview Santos Operations Lead Gen
Slide 3: Opening Address / Diskursu Abertura
Opening Address / Diskursu Abertura Fernando da Silva Director-Development and Production / Diretór Dezenvolvimentu no Produsaun Development and Production Directorate / Diresaun ba Dezenvolvimentu no Produsaun 3
Slide 4: Purpose of Information Session
Purpose of Information Session Jose Lobato Goncalves – Santos Timor-Leste Country Manager / Diretór Nasionál 4
Slide 5: Santos in Timor-Leste
Santos in Timor-Leste + Santos is a foundation partner in Bayu-Undan + 2020: Santos purchased ConocoPhillips interest in Bayu- Undan and is now Operator and the biggest equity holder + Jan 2021: US$235 million investment to drilling three new infill wells to extend the Bayu-Undan life to ~2023 + Loo
Slide 6: Timor-Leste Participation
Timor-Leste Participation + Santos is committed to Bayu-Undan delivering jobs, business opportunities and training to Timor-Leste + US$173+ million spent locally by Bayu-Undan; US$18+ million in 2020 + 340+ Timorese are employed in Bayu-Undan; 40%+ of our offshore workforce is Timor-Leste + US$20+ b
Slide 7: Support Timorese Supplier Participation
Support Timorese Supplier Participation + Decommissioning is a long-term project in the planning phase + Seeking to maximise TL supplier participation + Early information to suppliers + Use of local infrastructure (e.g. Tibar port) + Unbundling of scopes and targeted procurement + Encouraging intern
Slide 8: Key Objectives of Today
Key Objectives of Today + Inform potential business opportunities for Timor-Leste suppliers + Types of services that will be required + Outline opportunities for Timor-Leste suppliers, and potential for partnerships & alliances + Details of where can you find information and who to contact + What Sa
Slide 9: Bayu-Undan Overview
Bayu-Undan Overview Paul Pattrick – Operations Lead 9
Slide 10: Bayu-Undan Infrastructure
Bayu-Undan Infrastructure Un-manned wellhead platform (WP1) WP1 Processing platforms and living quarters. Gas goes to the Darwin LNG plant and condensate to the FSO for selling CPP Floating, Storage and Offloading facility (FSO) FSO Refer to handout for further detail 10
Slide 11: Package 1: Suspension of Operations
Package 1: Suspension of Operations Production Warm Package1 Stack Cessation ~2023 Suspension of Operations ~ 6 months Package1 Suspension of Operations Scope + Suspend all wells • Cessation of Production estimated in 2023, actual date may vary + Clean facility and subsea production systems • Suspen
Slide 12: Package 1: Suspension of Operations
Package 1: Suspension of Operations Suspension of operations: + Wastes disposal + Isolate and disconnect all + Remove some subsea hydrocarbon sources, de- facilities energise facilities, suspend + Tow FSO to disposal yard topside wells and dispose + Purge, flush and clean topside and subsea faciliti
Slide 13: Package 1: Suspension of Operations - Vessel Utilisation
Package 1: Suspension of Operations - Vessel Utilisation Examples of vessels typically used for these type of activities + Vessels and tugs will be used for: + Cleaning and flushing of subsea facilities and pipelines + Removing subsea equipment + Towing removed subsea equipment to disposal yard Clea
Slide 14: Package 1: Topsides Maintenance during NUI
Package 1: Topsides Maintenance during NUI + Due to start at end of Package 1 + Topsides items require remote monitoring + Platform equipment to remain operational + Guard Boat supporting maintenance + 30 berth maintenance accommodation + 25m personnel gangway + 4.5m pedestal + Assess to cellar deck
Slide 15: Package 1 - Tibar Port Opportunities
Package 1 - Tibar Port Opportunities + Tibar Port being developed Concept >2030 Status Q1 2021 + Construction is currently in progress: estimated operations by mid 2022 + Opportunity to use part of the port area for: ─ Dismantling yard ─ Marshalling + Waste management in country needs to be further
Slide 16: Local Participation and Contracting
Local Participation and Contracting Genevieve Wallace – Contracts & Procurement Manager Adam Widdowson – Contracts & Procurement Analyst Paul Pattrick – Operations Lead – Bayu Undan Reinalda Pires – Dili Procurement Officer 16
Slide 17: Suspension of Ops: Planned Tendering for 2021
Suspension of Ops: Planned Tendering for 2021 Timing: 2021 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Vessel - flushing & cleaning spread & TL Supplier Engagement jumper removal / disposal TL participation ITT EOI Removal of Risers, Mid Water Arch and Notif ITT / Single Source Turret Buoy TL partic
Slide 18: Package 1 – Tibar Port Opportunities
Package 1 – Tibar Port Opportunities + Package 1 components for dismantling at Tibar Port: ─ 121t Mid-Water Arch (MWA) ─ 300t Submerged Turret Loading Buoy (STLB) + Opportunity for a dismantling yard to be developed (provided Tibar Port facilities are demonstrated as structurally suitable) + Opportu
Slide 19: Package 1 - Planned Tendering for 2022
Package 1 - Planned Tendering for 2022 + Offshore preservation / maintenance + Marshalling Space Timor-Leste personnel + Tibar Port + Temporary power generation + Waste facility + Walk to work gangway + International supply vessel + Guard / Maintenance vessel + Equipment to support cleaning operatio
Slide 20: Targeted Procurement Opportunities
Targeted Procurement Opportunities Tibar Port is a key enabler to achieve the following targeted procurement outcomes for Package 1 (2021 & 2022) Scope Targeted Procurement Opportunity Diesel Globally traded commodity, limited barrier to entry. Targeted Procurement opportunity, as vessels are typica
Slide 21: Package 1 Goods Required by Major Contractors
Package 1 Goods Required by Major Contractors Temporary supports and frames for PPE equipment Food and catering transportation supplies Rigging equipment Temporary Hoses Flanges and Fittings Cleaning chemicals and acids Containment Maintenance materials consumables Medical Supplies Low spec valves T
Slide 22: Package 1 Services to Major Contractors
Package 1 Services to Major Contractors Vessels Scrap Metal and Equipment Disposal Industrial Warehouse cleaning and & laydown decontamination Temp Hire Equipment Catering & cleaning Offshore N2 and steam Container Hire Generator Hire Marine vessel maintenance Mobile plant maintenance General and Ha
Slide 23: What do we need from our Suppliers?
23 What do we need from our Suppliers? Good oilfield practice requires the following: + Health safety and environmental standards + Performance + Quality of goods + Technology considerations + Delivery timeframes + Local content requirements + Considerations for local partnerships + Inclusion of tar
Slide 24: Where can you find information?
Where can you find information? Advertisements requesting Expressions of Interest: + Published in Independente and Timor Post + Available on Santos website: https://www.santos.com/procurement/bayu-undan- opportunities/ + Adverts provide details of scopes of work required and minimum requirements Act
Slide 25: Communications
Communications Bayu-Undan Local Business Register + Timor-Leste suppliers that have registered interest in supplying goods and/or services to Bayu-Undan + Issued by Santos with Invitations to Tender + Maintained by Procurement Officer in Dili Office If interested in supplying goods / services to Ten
Slide 26: Dili Office Procurement & Technical Team
26 Dili Office Procurement & Technical Team Procurement Team: Reinalda Pires, TL Procurement Officer Eligio Alves, Supply Chain Rulison De Jesus, Supply Chain + Dili based Procurement support for local supplier participation + Focal point for responses to Expression of Interest (EOI) adverts + Facil
Slide 27: Summary
27 Summary + Looking for opportunities to extend Bayu-Undan life further, as well as other growth opportunities in Timor-Leste + In parallel we are planning for the eventual decommissioning of Bayu-Undan; a large project that will occur over several years + Participation of local Timor-Leste supplie
Slide 28: Thank you / Questions?
Thank you / Questions? Santos
Slide 29: Annexes
Annexes (to be added to the handout material only) 29
Slide 30: Bayu-Undan Offshore Facilities Overview
Bayu-Undan Offshore Facilities Overview FSO + 172,500 dwt tanker + 230,000m3 product storage + Submerged turret loading system with 12 chains/wire and anchor piles Water depth: 78 – 110m Subsea Structures Wells + SUDU, SSIV, DWM + 32 Wells + MDB and Gravity Base (23 platform, 9 subsea) + STL Buoy an
Slide 31: Package 1 contract scopes and LC application
Package 1 contract scopes and LC application Indicative list of all Package 1 contracts to be Tendered in 2021/2022 with local content potential Item Local Content Subcontract Description Tendered in No Assessment 1 LCP / TP 2021 Vessel, flushing and cleaning spread and jumper removal / Disposal 2 L
Slide 32: Package 1 Itemised Goods Required with Potential for Local Participation
Package 1 Itemised Goods Required with Potential for Local Participation Description Category 1 Catering Supplies Catering 2 Cleaning/Utility Supplies Catering 3 Food Supply Catering 4 Fuel Supply (Diesel) Consumables 5 Temporary Hose supply Consumables 6 Industrial Gasses (Lab & Welding) Consumable
Slide 33: Package 1 Itemised Services Required with Potential for Local Participation
Package 1 Itemised Services Required with Potential for Local Participation Description Category 19 Offshore Catering services Catering 20 Offshore Cleaning/utility services Catering 21 FSO Tank cleaning & CSE Services Decontamination 22 Topsides cleaning support services Decontamination 23 Engineer
Slide 34: Package 1 Itemised Services Required with Potential for Local Participation
Package 1 Itemised Services Required with Potential for Local Participation Description Category 46 Accommodation Dili Logistics 47 Crane and transport service Dili Logistics 48 Decommissioned equipment marshalling yard Logistics 49 Expediting and clearance services Logistics 50 Forklift Hire and ma