Santos Limited · ASX:STO
Santos — Corporate Update (December 2006)
11 slides from Santos's corporate update, Dec 8, 2006
Slide 1: Banjar Panji-1 Incident Briefing Document
Santos Limited Banjar Panji-1 Incident Panji-1 Briefing Document 8 8 December December 2006 2006 1. Introduction to Santos Santos is a major Australian- Australian-based oil and gas exploration and production company with interests and operations in every major Australian petroleum province and in I
Slide 2: Santos in Indonesia - Key Facts
Santos in Indonesia - Key Facts • Santos commenced business activity in Indonesia in 1993 • 168 staff (92% nationals). Offices in Jakarta and Surabaya • Asset acquisition from Novus Petroleum in 2004, including Brantas Production Sharing Contract (PSC) • Exploration spend of US$178m to date (US$83m
Slide 3: Indonesian Business
Indonesian Business Kakap PSC West Natuna Basin Kakap 2005 Production 0.4 mmboe Kutei Basin Hiu Aman discovery 2005 LNG potential Brantas Kalimantan Kutei PSC Sulawesi West Papua Wunut field West Papua 2005 Madura Offshore PSC Production Maleo first gas 3Q 2006 0.6 mmboe Java Warim PSC East Java Nor
Slide 4: Brantas PSC JV and Banjar Panji-1 Chronology
Brantas PSC JV • Joint Venturers: Bakrie Group Public - PT Lapindo Brantas (50%, Operator) 55%+ 30% - PT Medco E&P Brantas (32%) PT Energi Mega Persada - Santos Brantas (18%) 100% 99.9% • Other than the JV, Santos does Kalila Energi Ltd PAN Asia Ent Ltd not have a corporate relationship 84.2% 15.8%
Slide 5: Cause of the Incident
Cause of the Incident • Definitive cause yet to be established • Operator, Lapindo, indicates that a seismic event triggered the incident - On 27 May, an earthquake measuring 6.3 on the Richter scale occurred near Yogyakarta, 300km SW of Sidoarjo • Joint Venturer, Medco, asserts gross negligence on
Slide 6: Affected Area and Affected Infrastructure
Affected Area Railway Line Toll Road Original BP- BP-1 Drilling Site Relief Well R2 Main Vent 11. Affected Infrastructure Toll Road Levee to protect railroad Factories 12. 6
Slide 7: National Mitigation Team and Relief Wells
National Mitigation Team (NMT) • On 8 September, Indonesia’s President established a National Mitigation Team (NMT) - Chaired by the Minister of Energy & Mineral Resources - Tasked with sealing the breach, mitigating the impact, and managing the social consequences - Six month mandate • On 27 Septem
Slide 8: East Java Pipeline Incident and Community Assistance
East Java Pipeline Incident • On 22 November, the East Java gas pipeline failed • The pipeline is owned and operated by Pertamina • 13 fatalities, 1 missing person and at least 13 injured • The NMT has attributed the cause of the failure to subsidence that in turn increased pressure on the pipeline
Slide 9: Environmental Issues & Response; Role of Santos
Environmental Issues & Response • Independent Indonesian Government and UN assessments found the water and mud to be non-toxic • NMT directive to dispose of mud/water into the Porong River to relieve pressure on the levee system during the wet season Spillway construction • NMT concept to dredge mud
Slide 10: Financial Implications for Santos and Insurance Coverage
Financial Implications for Santos • Santos provision A$24m as at 30 June based on US$100m estimated total cost • On 19 October, Operator revised the estimated cost from US$100m to US$180m - A$43.7m, or 7.4 cents per STO share prior to potential insurance recovery • Lapindo has stated - That the cost
Slide 11: Disclaimer & Important Notice
Disclaimer & Important Notice This presentation contains forward looking statements that are subjectsubject to risk factors associated with the oil and gas industry. It is believed believed that the expectations reflected in these statements are reasonable, but they they may be affected by a range o