Slide 1: ASX Media Release: 2022 Climate Change Report Investor Briefing presentation
ASX / Media Release 31 March 2022 2022 Climate Change Report Investor Briefing presentation Attached is a presentation on Santos’ 2022 Climate Change Report which will be used at an For personal use only investor briefing today commencing at 10:00am AEDT. The presentation should be read in conjuncti
Slide 2: 2022 Climate Change Report Investor Briefing Presentation
2022 For personal use only Climate Change Report Supplying critical fuels more sustainably Investor Briefing Presentation 31 March 2022
Slide 3: Disclaimer and forward-looking statements
2022 Climate Change Report Disclaimer and forward-looking statements For personal use only This report 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
Slide 4: Agenda
2022 Climate Change Report Agenda For personal use only Kevin Gallagher Jane Norman Brett Darley Brett Woods Kevin Gallagher Managing Director Vice President Strategy President Upstream President Midstream Managing Director and Chief Executive Officer Oil and Gas and Clean Fuels and Chief Executive
Slide 5: Strategy
2022 Climate Change Report Strategy For personal use only Kevin Gallagher Managing Director and Chief Executive Officer Investor Briefing I 3
Slide 6: Overview
2022 Climate Change Report Overview For personal use only We aim to deliver superior shareholder returns whilst being a global leader in the transition providing cleaner energy and clean fuels that are affordable and sustainable 1 2 3 4 5 Santos has a Our climate Our plan is to We will do Transition
Slide 7: Transform Build Grow strategy
2022 Climate Change Report Transform Build Grow strategy For personal use only Consistent and successful strategy supporting our Grow new revenue from carbon credits for new technologies Vision and Purpose (eg DAC, post combustion capture (PCC), CCS services) and nature based offset projects Grow De
Slide 8: Strong free cash flows from five core producing assets
2022 Climate Change Report Strong free cash flows from five core producing assets For personal use only Decarbonisation focus and market-led, profitable transition to a lower carbon future Balance & Scale & Market-led, profitable Re-set diversification decarbonisation energy transition 2016-2017 201
Slide 9: Delivering on our commitments
2022 Climate Change Report Delivering on our commitments For personal use only Track record of doing what we say Net-zero 2025 Scope 1 and 2 emission Energy CCS CO2 emissions reduction solutions projects storage by 2040 targets Climate Transition Accelerated delivery Since 2017, Moomba Phase 1 100 m
Slide 10: Our goal is to achieve net-zero Scope 1 and 2 emissions by 2040
2022 Climate Change Report Our goal is to achieve net-zero Scope 1 & 2 emissions by 2040 For personal use only New 2030 Scope 1 and 2 absolute and emissions intensity reduction targets 2030 2040 Absolute Intensity Absolute Target Net-zero Target Target Target 30% reduction in 40% reduction in Reduce
Slide 11: Climate transition action plan
2022 Climate Change Report Climate transition action plan For personal use only Our Climate Transition Action Plan provides a clear pathway to net-zero scope 1 and 2 emissions with medium and long term targets Categories Description Initiatives and Indicative timeline We will report progress Operati
Slide 12: Evolving to support the transition to clean fuels
2022 Climate Change Report Evolving to support the transition to clean fuels For personal use only Positioned to decarbonise the base business and develop new revenue streams through clean fuels and carbon solutions 2016 Traditional E&P business 2022 Delivering CCS, clean fuels and low carbon soluti
Slide 13: Markets and resilience
2022 Climate Change Report Markets and For personal use only resilience Jane Norman Vice President Strategy Investor Briefing I 11
Slide 14: Gas demand remains strong amid supply constraints
2022 Climate Change Report Gas demand remains strong amid supply constraints For personal use only Continued investment required to ensure secure, reliable and affordable supply Geopolitical unrest, recovering economic activity and lower LNG Average annual commodity prices 2 availability due to unde
Slide 15: Strong long-term demand for LNG
2022 Climate Change Report Strong long-term demand for LNG For personal use only Historical underinvestment and project delays continue to limit near-term supply growth Historical underinvestment and project delays limit supply growth Global LNG supply and demand 1 Lack of investment and COVID const
Slide 16: Natural gas – a future fuel underpinning the energy transition
2022 Climate Change Report Natural gas – a future fuel underpinning the energy transition For personal use only Natural gas is critical to ensuring energy remains reliable and affordable as economies decarbonise More than half the world’s natural gas supply is used World Natural Gas Consumption (EJ)
Slide 17: Santos is resilient and sustainable through the energy transition
2022 Climate Change Report Santos is resilient and sustainable through the energy transition For personal use only Portfolio tested against a range of scenarios including two 1.5 degree scenarios The Stated Policies Scenario (STEPS) is >35% value Relative value of current portfolio and CCS and clean
Slide 18: Large scale-up of CCS required to meet climate objectives
2022 Climate Change Report Large scale-up of CCS required to meet climate objectives For personal use only Oil and gas industry is best placed to deliver CCS leveraging existing capability Global forecast CCS capacity 1 Global CCS forecast, IEA SDS 2 Total CCS capacity required per annum by 2050 3 9
Slide 19: CCS is a key enabler for Santos' energy transition strategy
2022 Climate Change Report CCS is a key enabler for Santos’ energy transition strategy For personal use only Santos has a competitive advantage to deliver value through the transition with Moomba CCS project sanctioned, Bayu-Undan CCS in FEED and Offshore WA in concept stage Electrification and inte
Slide 20: Upstream
2022 Climate Change Report Upstream For personal use only Brett Darley President Upstream Oil and Gas Investor Briefing I 18
Slide 21: Diversified portfolio with strong cashflows
2022 Climate Change Report Diversified portfolio with strong cashflows For personal use only Five core producing gas assets Queensland and Northern Australia Cooper Basin New South Wales Western Australia and Timor-Leste Papua New Guinea Asset type Onshore fields to domestic & LNG facility Oil FPSOs
Slide 22: Maximise value of five core long-life producing assets
2022 Climate Change Report Maximise value of five core long-life producing assets For personal use only Disciplined and phased investment to backfill core producing gas assets beyond 2040 Queensland and Northern Australia Cooper Basin New South Wales Western Australia and Timor-Leste Papua New Guine
Slide 23: Five core producing assets generating strong free cash flow
2022 Climate Change Report Five core producing assets generating strong free cash flow For personal use only Core asset portfolio focused on generating strong free cash flow, maintaining production and reducing emissions intensity. Targeting 40% reduction in emissions intensity by 2030 Forecast 2022
Slide 24: Midstream and clean fuels
For personal use only 2022 Climate Change Report Midstream and clean fuels Brett Woods President Midstream and Clean Fuels Investor Briefing I 22
Slide 25: Midstream and clean fuels portfolio
2022 Climate Change Report Midstream and clean fuels portfolio For personal use only Three hubs delivering safe, reliable, low-cost operations enabling clean fuels via CCS Eastern Australia Northern Australia and Timor-Leste Western Australia Moomba Darwin LNG Varanus Island Midstream infrastructure
Slide 26: Midstream strategic priorities
2022 Climate Change Report Midstream strategic priorities For personal use only Building a business with multiple revenue streams from Midstream Infrastructure, CCS and cleans fuels 2019 2021-2025 2025+ Midstream Separation Establish three Midstream and Deliver new revenues from carbon Clean Fuels H
Slide 27: Operationalising the climate transition action plan
2022 Climate Change Report Operationalising the climate transition action plan For personal use only Categories Description Progress Broad range of initiatives designed to reduce Scope 1 and 2 Operational efficiency emissions from our operations 4 Since 2017, delivered annualised savings of ~300 ktC
Slide 28: Operational efficiency initiatives
2022 Climate Change Report Operational efficiency initiatives For personal use only Since 2017, energy solutions has delivered emission reduction of ~300 ktCO2e per annum Cooper Basin Renewable Power Optimisation, Port Bonython Moomba Heat Recovery Integration Projects Western Australia Solar Farm S
Slide 29: Three Santos-operated CCS and clean fuels hubs
2022 Climate Change Report Three Santos-operated CCS and clean fuels hubs For personal use only Three CCS hubs enable generation of carbon credits, provision of carbon services, clean fuel production and potential for direct air capture Eastern Northern Australia Western Australia Hub & Timor-Leste
Slide 30: Competitive advantage enables low-cost CCS hubs
2022 Climate Change Report Competitive advantage enables low-cost CCS hubs For personal use only Ability to leverage infrastructure and depleted reservoirs across our three operated CCS hubs Proven capture technology Transported using pipelines Storage in depleted gas reservoirs Existing capture fac
Slide 31: CCS is proven technology
2022 Climate Change Report CCS is proven technology For personal use only Decades of experience injecting gas into reservoirs at rates required to deliver Moomba CCS Santos’ extensive gas production and storage capability 1970s 1980s 1990s 2000s 2010s Santos has experience producing gas from the Coo
Slide 32: Moomba CCS provides step change in emission reduction
2022 Climate Change Report Moomba CCS provides step change in emission reduction For personal use only FID taken in November on one of the largest and lowest-cost CCS projects, with first injection expected in 2024 Existing plant New compression & dehydration facilities US$24/tonne CO2 lifecycle bre
Slide 33: Bayu-Undan CCS offers a regional carbon solution
2022 Climate Change Report Bayu-Undan CCS offers a regional carbon solution For personal use only Potential for up to 10 MtCO2e per annum of Santos and third party carbon services FEED commenced March 2022 Australia Facilities, pipeline, wells and reservoir injection history to capture Timor Sea all
Slide 34: Santos' low cost CCS represents natural advantage
2022 Climate Change Report Santos’ low cost CCS represents natural advantage For personal use only Low cost CCS value accretive through project lifecycle Carbon abatement cost curve 1 Carbon price 2 700 Carbon abatement cost (US$/tCO2e) 700 US$/tCO2e (2021 nominal) 600 600 500 500 400 400 300 300 20
Slide 35: Phased investment in market-led transition to clean fuels
2022 Climate Change Report Phased investment in market-led transition to clean fuels For personal use only Significant clean fuels value generation potential based on low cost CCS Domestic hydrogen demand forecast at 1-4 Mtpa by 2040 Production cost of hydrogen 1 Driven by conversion of hard to elec
Slide 36: Carbon solutions
2022 Climate Change Report Carbon solutions For personal use only Generating new revenue streams from carbon credits CCS expansion opportunities Direct air capture (DAC) Carbon offsets portfolio New technology Third party CCS services Cooper Basin Direct Air Capture Use our land positions across San
Slide 37: Summary
2022 Climate Change Report Summary For personal use only Kevin Gallagher Managing Director and Chief Executive Officer Investor Briefing I 35
Slide 38: Overview
2022 Climate Change Report Overview For personal use only We aim to deliver superior shareholder returns whilst being a global leader in the transition providing cleaner energy and clean fuels that are affordable and sustainable 1 2 3 4 5 Santos has a Our climate Our plan is to We will do Transition
Slide 39: Question and answer session
2022 Climate Change Report Question For personal use only and answer session Kevin Gallagher Managing Director and Chief Executive Officer Investor Briefing I 37
Slide 40: Definitions and abbreviations
2022 Climate Change Report Definitions and abbreviations For personal use only Absolute When used in reference to emissions reduction targets means reduction against the total emissions IHS ACCS The IHS Markit Accelerated Carbon Capture and Storage scenario at the relevant point in time, rather than