Cooper and GLNG Investor Visit 20 - 23 April 2015 Moomba gas processing plant, GLNG Fairview Hub 4, GLNG LNG tanks
Santos Eastern Australia Operations Leveraging the past to create value for the future James Baulderstone Vice President Eastern Australia Moomba processing plant, Cooper Basin
East Australia value Value creation through integrated portfolio of remains strong resources and infrastructure Gas capacity, production and resource position on track to meet Cooper delivery commitments Significant cost savings…
Safety performance Strong emphasis on Process Safety and Work Health Safety Process Safety Proactive safety critical maintenance embedded Plant and Pipeline Integrity Programs (8,000km pipe network) Contractor Management Robust…
Cooper Basin Key themes continue to drive forward outlook Sustainability of East Coast business in challenging market conditions Transformational increase in natural gas demand Infrastructure positions business to deliver…
Cooper Gas Performance Improved key metrics Gas well head capacity Increased well head capacity by 15% YE 2012 to YE 2014 (from 393 to 453 mmscf/d) 15% Q-Q production Grown Q1 to Q1 gas production for the last two years…
Cooper meeting the cost Reducing costs - critical response to challenging challenge market conditions Decreasing well costs1 AUD 000 Cost savings delivered across all areas 8,000 25% reduction in overall 2015 Cooper Basin capital…
Cooper infill Big Lake Big Lake demonstrating sound development metrics Excellent execution efficiencies and solid reservoir performance 2H 2014: 32 wells drilled, 24 wells Big Lake Infill Programme: Well Head first 30 fractured…
Strategy and market Converting strategic potential into value opportunity 10 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Eastern Australia Positioned to capitalise on the changing market gas market portfolio dynamics with Cooper playing a central role Changing market dynamics Santos integrated value proposition Tripling of Eastern Australia Gas Demand…
Market opportunity Significant opportunity to supply uncontracted demand Eastern Australia contracted supply and demand PJ Current contracted supply is insufficient to meet forecast demand 2,500 Total East Coast Demand…
Leverage our strategic Linking resources and market through our unique infrastructure footprint infrastructure positions Process Aggregate Store / Arbitrage Moomba is open for business Aggregate third party raw and Optimise…
Cooper Oil Strong production combined with well established and growing third party revenue stream Cooper oil production and EBITDAX margin STO mmbbl Percent Cooper oil production has 4 100% remained strong 3 million bbl per year…
Cooper Gas Balancing resource conversion, delivering contracted volumes and future growth potential Big Lake, Cooper Basin 15 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Cooper Basin gas reserves Expected recovery increased by 17% since 2007 and resources Santos estimated expected recovery1, year end 200714 PJ, net Santos 36% 7,000 Increased expected recovery 17% by 17% in a mature basin 6,000…
Cooper Basin reserves Strong growth in conventional 2P since 2010 and resources Greater Tindilpie downside result and Horizon gross up impacting reserve build Comparing year end 2P reserves and 2C resources, 2010-2014, by area PJ Net…
Delivering Horizon Grossing up of Horizon has necessitated a focus on deliverability Gross up of Horizon PJ Origin and Beach elected not to supply equity 1,200 1126 volumes into the Horizon contract 376 for Required a 50% increase…
Building well capacity Focused effort to increase well capacity from 2012 Recent cuts to forward capex will reduce capacity in the short term Cooper gas drilling & well capacity1 build Historic Previous Current Capacity Wells Wells…
Cooper infill program Greater Tindilpie disappointed whilst Big Lake delivered on expectation GT prioritised as considered most suitable for large pad drilling to achieve US-like cost savings Greater Cowralli 16 well pad drilled…
Future of the Cooper Existing resources are only part of the future Basin independent experts highlight multi-tcf conventional upside potential1 PJ, STO PJ, STO SA Northern Fields SWQ Liquids rich Greenfield under explored 2P YE…
Queensland Cooper gas Highly under-explored area with green and brownfield growth opportunities Opportunity to explore, appraise and commercialise conventional resources Attractive brownfield opportunities for current 176 bcf 2C STO…
Cooper unconventional Moving from testing to enhancing flow rates exploration Unconventional exploration WORK IN PROGRESS Roswell-2 horizontal well 23 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
World scale Cooper Work program: understanding geology, targeting unconventional resource sweet spots, testing well designs to lower costs and potential increase flow rate McArthur Basin Exploration Development Pre-discovery…
Unconventional resources Three plays successfully tested with program moving to target sweet spots 10 deep coal add-on frac stages now flow tested across Cooper Basin; averaging 0.3 mmscf/d with up to 1 mmscf/d achieved. Condensate…
Unconventional appraisal Unique RQ / CQ characteristics requires innovative and iterative learning to unlock the resource potential The economic success of unconventional resource plays depends upon the interplay between: Reservoir…
Cooper Basins Patchawarra Trough Deep Coal showing encouraging unconventional resources results Increasing flow rates from effective fracture stimulation 2013 Encouraging flow results with 1,200 high liquids content (10-100 Initial…
East Australia value Value creation through integrated portfolio of remains strong resources and infrastructure Gas capacity, production and resource position on track to meet Cooper delivery commitments Significant cost savings…
GLNG Trevor Brown, Vice President Queensland Rod Duke, Vice President Downstream GLNG GLNG Plant, Curtis Island
Project overview Integrated LNG project on track for first LNG around the end of the third quarter of 2015, within US18.5 billion budget Santos (30% and operator), PETRONAS, Total and Project partners KOGAS Existing and sanctioned…
Project progress On track for first LNG around the end of the third quarter of 2015 GLNG provides positive free cash flow at US40/bbl oil Surface LNG plant Gas supply facilities & and port pipelines Over 9,000 PJ of…
Safety performance Over 80 million hours worked since FID, including 4 million hours worked in 2015 to date Continuous improvement in lost time injury frequency rate (LTIFR) since FID 2014 LTIFR of 0.34 per million hours worked…
US18.5 billion1 capex from FID to the end of 2015 GLNG expenditure guidance 2016-20 average capex estimate A900 million average per annum GLNG provides positive free cash flow at US40/bbl oil Vast majority of 2016-20 expenditure is…
Upstream Hub 4, Fairview
GLNG upstream delivery Upstream is supplying gas to the LNG plant Performance of Fairview wells continues to exceed expectations Well capacity expected to be 600 TJ/day by the end of 2015 Roma well capacity growing in line with…
Gas supply Over 9,000 PJ of dedicated 2P reserves and 2C resources at the end of 2014 YE 2014 GLNG dedicated 2P and 2C GLNG has an integrated gas supply portfolio of (GLNG share PJ) indigenous gas, Santos portfolio gas, third party…
Third party gas supply Third party gas generates significant value for the project Secured up to 2,228 PJ Santos portfolio and third Supplier Quantity TJ/day Starts Term Delivery point Price basis party supply Santos portfolio 750…
Fairview The initial GLNG upstream development is focussed on the mature Fairview field The Fairview field is located in south-central Queensland, about 100 km north of Roma Fairview is a mature field, with over 20 years of…
Fairview well performance Performance continues to exceed expectations gross field well capacity expected to be 600 TJ/day by the end of 2015 Fairview well performance as at March 2015 Performance of Fairview wells continues 347…
Fairview upside potential Significant upside potential exists in the Early Permian coals and on the flanks of Fairview Significant gas in place confirmed in Early Permian coals directly beneath Fairview Field and close to existing…
Roma Santos has a long history operating in the Roma area The Roma field is situated in south-central Queensland, some 300 km north-west of Brisbane On trend with APLNG and QCLNG key field development areas Covering…
Roma well performance Online and dewatering, supporting average well capacity of 0.5 TJ/day 271 development wells Roma well performance as at April 2015 120 wells connected drilled Optimum gas Optimum water 120 wells online and…
Roma field performance Strong gas and water production performance from the Hermitage and Pleasant Hills area Best results observed in areas already dewatered Roma RM02-04-1 well - actual production by pilot production Results…
Scotia and Arcadia A phased future development strategy is being pursued in Scotia and Arcadia Scotia Area Arcadia The Scotia area is located about 100 km west of The Arcadia field is situated in south-central Queensland, the…
Resource growth In addition to the four core GLNG areas numerous opportunities growth opportunities exist across GLNG portfolio Numerous Brownfield opportunities, encouraging pilot results close to existing infrastructure 4 Greenfield…
Drilling and completions Multi-well pads continue to drive greater efficiency, lower costs and a smaller environmental footprint Fairview deviated well drilling cost performance Over 600 wells drilled since FID At peak drilling, ten…
Upstream infrastructure Integrated upstream development with connections to APLNG and QCLNG RUGS 100 TJ/d 47 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Upstream gas processing Hubs are supplying gas to the LNG plant and have produced above nameplate capacity Existing 170 TJ/day existing gross gas capacity at Fairview and Scotia 160 TJ/day gross gas capacity Fairview Hub 5 4…
Fairview Hub 5 160 TJ/day capacity - Facility operational 49 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Fairview Hub 4 250 TJ/day capacity - Facility operational 50 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Roma Hub 2 145 TJ/day capacity - Construction complete and commissioning well underway 51 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Upstream operations Upstream is controlled from Brisbane operations philosophy centre utilising world class technology to drive down operating costs and maximise productivity Operation Functional Teams Field Asset Teams Centre…
Pipeline compressor The pipeline compressor station is complete and station (PCS) operational Connection point to the gas transmission pipeline to Gladstone PCS is the collection point for all of GLNGs upstream gas infrastructure,…
Roma underground RUGS provides significant gas storage capacity storage (RUGS) adjacent to the Wallumbilla gas hub Gas storage in three depleted conventional Roma gas fields: Pleasant Hills, Grafton Range and Pickanjinnie 15…
Incremental gas supply Incremental infrastructure and field development and infrastructure projects delivered on or ahead of schedule and on or projects under budget In addition to the project scope approved at FID, the following…
Landholder and We respect and proactively engage with landholders community engagement and the local community GLNG has 720 agreements in place with 647 landholders We ensure success by: Upfront discussions with the landholders to…
Downstream GLNG Plant, Curtis Island
Downstream overview Plant commissioning is well underway First LNG expected around the end of the third quarter of 2015 Location Curtis Island, Gladstone, Queensland EPC contractor Bechtel Technology ConocoPhillips Optimized…
GLNG downstream Commissioning well underway and expect first LNG around the end of the third quarter of 2015 LNG Train 1 piping and cabling nearing completion with loop testing well advanced LNG Train 2 piping installation and cable…
February 2015 Utilities area Includes Central Control Camp Building accommodation 1,680 beds Gas inlet and refrigerant storage Train 2 3.9 mtpa nameplate capacity LNG jetty 360m long, 4 loading arms Flare Two LNG…
February 2015 Train 1 piping and cabling nearing completion with loop testing well advanced Train 2 piping installation and cable pulling underway 61 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
February 2015 Drying and purging of LNG Tank B complete and underway on Tank A, following which tanks will be ready to receive LNG 62 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
February 2015 LNG jetty is complete 63 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Commissioning and Integrated commissioning and operations team operations 107 Santos GLNG staff embedded in integrated Bechtel/GLNG commissioning and start-up team Gas has been introduced to LNG plant LNG plant commissioning…
GLNG On track for first LNG around the end of the third quarter of 2015, within US18.5 billion budget Milestone Date Marine crossing tunnelling completed February2014 Last Train 1 module installed June 2014 First LNG tank…
Curtis Island, February 2015 APLNG QCLNG GLNG 66 COOPER AND GLNG INVESTOR VISIT - APRIL 2015
Contact Information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairnsantos.com GPO…
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