Santos Limited · ASX:STO
Santos — Investor Presentation (September 2023)
49 slides from Santos's investor presentation, Sep 19, 2023
Slide 1: Alaska Investor Visit
2023 Alaska Investor Trip ALASKA INVESTOR VISIT 17-19 September 2023
Slide 2: Disclaimer and important notice
2023 Alaska Investor Trip Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry, and the carbon capture and storage and carbon emissions reduction technologies industries. It is believed that th
Slide 3: Outline
2023 Alaska Investor Trip Outline Section Duration Time Speaker Board and exec slope visit 28 June Anthea McKinnell, Introduction 30 min 09:00-09:30 & Bruce Dingeman Resource Overview 15 min 09:30-09:45 Mark Ireland Chris Laing & Pete Pikka Phase 1 Project 45 min 09:45-10:30 Laliberte Break 15 min 1
Slide 4: Alaska Site Visit
2023 Alaska Investor Trip Alaska Site Visit Pikka 17-19 September 2023 Sunday, 17 September 2023 Management dinner Anchorage, Alaska Monday, 18 September 2023 Management presentation Stakeholder lunch & panel Anchorage Anchorage, Alaska Tuesday, 19 September 2023 Pikka Project site tour Alaska North
Slide 5: Santos is a global energy company
2023 Alaska Investor Trip Santos is a global energy company Market capitalisation1 Capital management Major projects in ~A$ 25.7billion framework execution 5 Targeting sustainable Moomba CCS, Barossa and returns to shareholders and Pikka Phase 1 gearing between 15-25% 2 Disciplined operating Strateg
Slide 6: Alaska in the Santos Portfolio
2023 Alaska Investor Trip Alaska in the Santos Portfolio World-class asset in OECD country with internationally competitive investment environment • Project Phase 1 final investment Alaska is a material part of the Santos decision (FID) taken August 2022 resource base 2P Reserves 2C Resources – Comm
Slide 7: Welcome to Alaska
2023 Alaska Investor Trip Welcome to Alaska An attractive place to find and develop oil • The oil and gas industry remains the single most important economic Supportive engine in the state Business • The oil industry has been the largest state taxpayer for over 40 years Environment • Santos team hig
Slide 8: Pikka is a world class conventional asset
2023 Alaska Investor Trip Pikka is a world class conventional asset Surrounded by infrastructure Deadhorse: Robust contractor capability; North Pikka Slope field services hub Quokka Deadhorse TAPS Horseshoe Open access Trans- Alaska Pipeline System (TAPS) National Petroleum Reserve-Alaska 0 30 Valde
Slide 9: Alaska Asset Overview
2023 Alaska Investor Trip Alaska Asset Overview Asset Details • 2013: Pikka field discovered • 2017: Horseshoe discovery confirmed giant oil field across Nanushuk-3 fairway Alaska North Slope units • 2018: Initial acquisition completed, and Operatorship assumed Pikka • 2019: Option for additional in
Slide 10: Alaska Leadership
2023 Alaska Investor Trip Alaska Leadership World class development has attracted high calibre talent with substantial Alaska experience Kollin Fencil HSES Wanda Lewis Bruce Dingeman SVP Operations Production Operations VP People & Culture EVP & President Alaska Supply Chain Drilling & Completions M
Slide 11: Building the team through disciplined hiring
2023 Alaska Investor Trip Building the team through disciplined hiring Focus on experience, capability, likely fit, and alignment with culture & vision 120 CURRENT DIRECT HIRES 383 CANDIDATES INTERVIEWED 458 CANDIDATES PRESENTED 259 847 CANDIDATES PRE-SCREENED Total Team Includes: 120 Alaska Employe
Slide 12: Highly Experienced Alaska Team
2023 Alaska Investor Trip Highly Experienced Alaska Team Team staffed with Alaska operations veterans Nanushuk Operations Pad (NOP) overview • Santos has one of the leading teams focused on the North Slope – New world class development project has attracted high calibre talent Polaris Camp with subs
Slide 13: Environmental Protocols and Standards Across the North Slope
2023 Alaska Investor Trip Environmental Protocols and Standards Across the North Slope • Responsible development is important to local communities, the State of Alaska and North Slope oil and gas operators • Authorizations required from multiple federal, state, and local regulatory agencies – Most u
Slide 14: Emphasis on Safety and Environmental
2023 Alaska Investor Trip Emphasis on Safety and Environmental Proactive EHS culture focused on planning, monitoring leading indicators & thorough incident reviews with prompt action • Strong safety and environmental management plan in place Leadership Safety Meeting, North Slope • Strong safety cul
Slide 15: Alaska is the right place for responsible development
2023 Alaska Investor Trip Alaska is the right place for responsible development • Alaska and the North Slope have some of the strongest environmental standards in the oil and gas industry – Robust permitting process is the foundation of the North Slope’s strong environmental credentials and performa
Slide 16: Community and Stakeholder Alignment
2023 Alaska Investor Trip Community and Stakeholder Alignment Santos is committed to meaningfully contribute to the future strength and prosperity of the communities where we operate, building deep, long-lasting relationships with positive intergenerational benefits. • Strong stakeholder support ali
Slide 17: Net Zero Commitment
2023 Alaska Investor Trip Net Zero Commitment Commitment for Pikka Phase 1 to be net-zero (Scope 1 and Scope 2 emissions, equity share) from first oil • Optimize projects for lower emissions intensity • Develop portfolio of offset opportunities to enable net zero development – Partnering with Native
Slide 18: Resource Overview
2023 Alaska Investor Trip Resource Overview World Class Resources in a Mature Petroleum Province 18
Slide 19: Nanushuk Geology – Unlocking Value in Brookian Clinoforms
2023 Alaska Investor Trip Nanushuk Geology – Unlocking Value in Brookian Clinoforms Excellent development opportunity across major Nanushuk trends with additional satellite reservoirs Nanushuk Depositional Model – Massive Topset Reservoirs 15+ Nanushuk Fairways across Santos Acreage • Nanushuk reser
Slide 20: Nanushuk Fairway
2023 Alaska Investor Trip Nanushuk Fairway Santos Portfolio and Offset Activities Proven play fairway with developments in progress and further running room US Geological Survey estimates Santos/Repsol >6 billion barrels • Pikka yet-to-find Terminal Nanushuk – Discovered in 2013 with the Qugruk-3 (Q
Slide 21: Pikka Phase 1 Exploits High Reservoir Quality
2023 Alaska Investor Trip Pikka Phase 1 Exploits High Reservoir Quality Highly appraised reservoir underpins robust Phase 1 economics Pikka is Fully Appraised with Logs, Core Data, and Strong Flow Tests • Pikka Phase 1 targets the heart of the Nanushuk 2/3 reservoirs NT3 Depth (feet – SSTVD) NDA – G
Slide 22: Pikka Phase 1
2023 Alaska Investor Trip Pikka Phase 1 Development Overview 22
Slide 23: Pikka Development Map
2023 Alaska Investor Trip Pikka Development Map STP 23
Slide 24: Pikka Phase 1 Development Concept
2023 Alaska Investor Trip Pikka Phase 1 Development Concept Pikka Phase 1 builds out initial processing facility, drill site, seawater treatment plant and operations pad Development Schematic(1) 4 5 3 1 2 Facilities 6 1 Nanushuk Drillsite B (NDB) 43 producer/injector wells 2 Nanushuk Processing Modu
Slide 25: Pikka Phase 1 Project Overview
2023 Alaska Investor Trip Pikka Phase 1 Project Overview The right project at the right time in the right location Asset Geography and Development Overview Key Metrics Pikka Unit Optimised using existing pipeline Development plan capacity, single small footprint drilling pad and electrified field op
Slide 26: Facilities Design & Logistics Approach
2023 Alaska Investor Trip Facilities Design & Logistics Approach Phasing & standardized truckable design reduce cost and risk Route Overview Project costs reduced through: • Standardized truckable NPF ~US$200m savings vs. typical North Slope sealift design • Driven by standardization of design and e
Slide 27: Technology has allowed reduction of drill site footprint
2023 Alaska Investor Trip Technology has allowed reduction of drill site footprint Pikka NDB (~8 sq km) (~18 sq km) (~57 sq km) 27
Slide 28: Rig Specifications & Upgrades
2023 Alaska Investor Trip Rig Specifications & Upgrades Fully enclosed & heated for Arctic Drilling Rig • Kuukpik-Parker joint venture • Built 2011, Full cantilever design • 1800 horsepower drawworks • Max hookload 750,000 lbs • 13-5/8" 5000 psi blowout preventer (BOP) • 3x3516C-HD Caterpillar engin
Slide 29: Pikka Project Update
2023 Alaska Investor Trip Pikka Project Update Drilling has commenced. Project remains on schedule and budget. ► Completed major contracting & issued purchase orders under awarded contracts totaling over $1 billion through June 2023 ► Drilling commenced in June ► Onsite 2022/23 winter construction a
Slide 30: Pikka Phase 1 Project Photos
2023 Alaska Investor Trip Pikka Phase 1 Project Photos Rig crossing bridge 30 April Rig tire change 4 May Unloading heavy VSMs 25 June Board on NDB 28 June NOP Comms Tower 8 August NOP: Nanushuk Operations Pad NDB: Nanushuk Drillsite B VSM: Vertical support member 30
Slide 31: Midstream Overview
2023 Alaska Investor Trip Midstream Overview Pikka volumes will be transported on existing open access midstream infrastructure with available capacity Pikka Transportation and Marketing Costs Pikka Oil Transportation Infrastructure Actual Expected Comments Pikka Unit Expected Crude Pipeline Route (
Slide 32: Beyond Pikka Phase 1
2023 Alaska Investor Trip Beyond Pikka Phase 1 32
Slide 33: Pikka, Horseshoe, Mitquq, and Stirrup Discoveries
2023 Alaska Investor Trip Pikka, Horseshoe, Mitquq, and Stirrup Discoveries Pikka was the largest North American onshore oil field discovery in 30 years at the time of discovery, with strong Santos-led follow-on exploration success Exploration Wells Santos Alaska Gross 2C Resource History STO Units
Slide 34: Significant, Long-Term Development Potential
2023 Alaska Investor Trip Significant, Long-Term Development Potential Flexible and self-funding development pipeline to develop three Pikka-scale units Gross Resource by Unit • Material resource in stable regulatory environment, with strong stakeholder support STO Units Nanushuk Fairways • Pikka Ph
Slide 35: Scalable Facility Concept
2023 Alaska Investor Trip Scalable Facility Concept Reducing initial capital requirements and breakeven for subsequent phases Expansions leverage Phase 1 infrastructure Development Schematic Phase 1 • Roads and pipelines • Seawater treatment plant • Pad Space for Facility expansion (shown on right)
Slide 36: Carbon & Sustainability
2023 Alaska Investor Trip Carbon & Sustainability 36
Slide 37: Investing in Advantaged Assets over the Energy Evolution
2023 Alaska Investor Trip Investing in Advantaged Assets over the Energy Evolution Santos’ Alaska assets are highly economic, low emissions projects that are globally competitive Resilience (breakeven) and sustainability (emissions intensity) of undeveloped fields • Oil & gas investments required to
Slide 38: Pikka Phase 1 Carbon Management
2023 Alaska Investor Trip Pikka Phase 1 Carbon Management Avoid Low GHG intensity by design • Pikka Phase 1 is designed for top quartile low 100 carbon intensity within global O&G GHG 90 performance – 14tCO2e/mboe at 53% lower than average 80 conventional onshore developments 70 • Minimized emission
Slide 39: Net Zero Commitment
2023 Alaska Investor Trip Net Zero Commitment Avoid Reduce Offset • Minimize direct emissions of operations Technology / Abatement • Pursue portfolio of offset opportunities to deliver Pikka Phase 1 net DAC / CCUS zero1 at first oil and enable net zero for future development phases – Partnering with
Slide 40: Governance & Responsible Development
2023 Alaska Investor Trip Governance & Responsible Development 40
Slide 41: History of Oil & Gas in Alaska
2023 Alaska Investor Trip History of Oil & Gas in Alaska Alaska Native Claims Settlement Act (ANCSA) • The first major discovery of oil in 1957 paved the way for • The Alaska Native Claims Settlement Act of 1971 resolved statehood the land claims of Alaska's Indigenous people • Prudhoe Bay was disco
Slide 42: Local People and Community
2023 Alaska Investor Trip Local People and Community Local Community Highlights • Nuiqsut is approximately 11 miles from Pikka drill site B (ND-B) – Established in 1975 by 20 families from Utqiagvik – Population ~425 (>90% native & >60% are under 25 years old) ND-B – A tradition of hunting, gatherin
Slide 43: The Permitting Process is Multi-faceted and Evergreen
2023 Alaska Investor Trip The Permitting Process is Multi-faceted and Evergreen Permitting keeps lines of communication open and serves as a mechanism to help agencies ensure ongoing regulatory compliance throughout construction and operations • Alaska is a highly regulated jurisdiction with a feder
Slide 44: Local Content and Contribution
2023 Alaska Investor Trip Local Content and Contribution Strong stakeholder support aligned through royalty and land use agreement, high local content Long Term Land Use Agreement with Kuukpik Kuukpik and Santos leadership on NDB Pad • Subsistence preservation and open access with close cooperation
Slide 45: Community & Compliance Projects
2023 Alaska Investor Trip Community & Compliance Projects Two of three projects substantively complete, with the third under construction 1. Pikka Boat Launch Project: Provide Nuiqsut residents access to boat launch and parking on east side of Colville River 2. Nuiqsut Bridge Replacement Project: Re
Slide 46: Wrap Up
2023 Alaska Investor Trip Wrap Up 46
Slide 47: Alaska Business
2023 Alaska Investor Trip Alaska Business Core region aligned with corporate strategy Alaska Santos backfill & sustain opportunities Pikka Phase 1 Development • Priority is flawless execution of Pikka Phase 1, on track for first oil by 2Q 2026 – Contracting largely complete, with facility fabricatio
Slide 48: Appendix
2023 Alaska Investor Trip Appendix 48
Slide 49: Alaska Oil & Gas Fiscal Regime
2023 Alaska Investor Trip 1 Alaska Oil & Gas Fiscal Regime Oil and Gas Production Less: Royalty Share ▪ 12.5% or 16.67% of production is not taxable Alaskan North Slope (ANS) ▪ ANS currently trading at premium to Brent. Oil Price Less: Transport Costs ▪ Cost of moving product from field to point of