Welcome and introduction David Knox Managing Director and Chief Executive Officer Hides Gas Conditioning Plant, PNG LNG
7.2 8.3 BILLION BILLION PEOPLE PEOPLE World population in 2014 (United Nations) World population in 2030 (US National Intelligence Council) 1.3 50 % BILLION MORE PEOPLE ENERGY have no access to electricity required by 2030…
Vision and strategy Our vision is to be a leading energy company in Australia and Asia Driving value and performance in base business and unlocking Australia resources to meet gas demand Leveraging existing LNG LNG…
Strategy has Portfolio transformed from domestic gas producer transformed Santos to leading Australian and Asian E&P, and regional LNG player Significant exposure to Transformation of Santos portfolio % of production rising gas…
Strong GLNG project GLNG is 90% complete delivery in 2014 On track for first LNG in the second half of 2015, within US18.5 billion budget Gas LNG plant Gas supply transmission and port pipeline Over 600 wells drilled since…
Safety performance Lost time injury frequency rate of 0.6 per million hours worked Safety performance (employees and contractors) Rate per million Work hours hours worked (million) 2 60 50 40 1 30 20 10 0 0 2008 2009…
2014 Investor Seminar Todays agenda Welcome and introduction David Knox LNG markets Peter Cleary Business outlook Andrew Seaton GLNG upstream Trevor Brown GLNG downstream Rod Duke Q&A followed by morning tea Exploration…
LNG markets Peter Cleary Vice President LNG Markets and Eastern Australia Commercial
Global LNG demand and A gap between LNG supply and demand continues to supply outlook widen into the next decade Global LNG demand vs. LNG supply by region mtpa 600 500 250 400 120 mtpa mtpa US 300 Other Atlan5c Other…
Impact of US LNG US LNG is not expected to overwhelm the market Global LNG demand vs. US LNG supply in 2025 mtpa 500 450 75 mtpa 400 120 Contestable market Unsanctioned 350 US LNG US supply 50-80 mtpa 300 250 200 Available…
LNG pricing Different indexation offers buyers options in terms of risk, not delivered price Henry Hub-linked vs Oil-linked LNG pricing US/mmbtu Oil-linked LNG 20 at US120/bbl 15 0.60 3 10 Oil-linked LNG at US 15-22% HH 3…
Domestic gas prices for End user gas pricing increasing across the Asian industrial users region supporting further LNG imports CHINA JAPAN, KOREA, TAIWAN A10-23/GJ A16-27/GJ VIETNAM A10-11/GJ INDONESIA A5-10/GJ…
Business outlook Andrew Seaton Chief Financial Officer Unloading the first PNG LNG cargo at TEPCO Futtsu-2 Terminal
Business outlook Project delivery on track Disciplined approach to future investment Focus on operating efficiencies in volatile oil price environment Clear production growth outlook Operating cash flow increases by: 100% by 2016…
Production guidance 2014 production guidance narrowed to 53-55 mmboe 2015 production guidance 57-64 mmboe, growth driven by PNG LNG at plateau and GLNG start-up Production 2014 production guidance narrowed to 53-55 mmboe mmboe YTD…
Capex guidance Capex decreasing as LNG projects are completed 2015 guidance 2.7 billion 2014 guidance unchanged at 3.5 billion Capital expenditure 2015 guidance (excluding capitalised interest) (excludes capitalised interest) Growth…
Focus on operating Managing the business for a volatile oil efficiency price environment Reducing unit production costs Production cost per boe Targeting 9% reduction in unit production costs in 2015 compared to 2014 16.1 14.6 Fixed…
Balance sheet and Strong liquidity position and minimal debt maturities in funding the near term Continued proactive approach to capital management Debt maturity profile 2.1 billion in cash and undrawn debt Notes mature in 2070, with…
GLNG upstream Trevor Brown Vice President Queensland Fairview Hub 5
Project overview GLNG is 90% complete On track for first LNG in the second half of 2015, within US18.5 billion budget Drilling 800 CSG wells over 2011-15, in addition to existing pre-FID wellstock Existing and sanctioned gross…
Fairview well performance Performance continues to exceed expectations gross field well capacity expected to be 500 TJ/day by the end of 2014 Reservoir performance Fairview well performance as at October 2014 213 wells connected…
Roma well performance Online and dewatering, supporting average individual well capacity of 0.5 TJ/day 76 development wells Roma well performance as at October 2014 76 wells connected online and dewatering 4 wells are flowing 0.5…
Upstream gas processing Gas hub construction is complete and commissioning is well advanced 170 TJ/day existing gross gas capacity at Existing Fairview and Scotia 160 TJ/day gross gas capacity Fairview Hub 5 4 ML/day water…
Fairview Hub 5 160 TJ/day capacity - construction and commissioning complete 27 2014 INVESTOR SEMINAR
Fairview Hub 4 250 TJ/day capacity - construction complete and commissioning underway 28 2014 INVESTOR SEMINAR
Roma Hub 2 145 TJ/day capacity - construction complete and ready for commissioning 29 2014 INVESTOR SEMINAR
Incremental gas supply Incremental infrastructure and field development and infrastructure projects projects tracking on or ahead of schedule and on or under budget Comet Ridge to Wallumbilla pipeline loop mechanically complete On…
Ready for operations Significant progress in 2014 and preparing for the operations phase of our project Brisbane control room Well site Fairview Hub 5 31 2014 INVESTOR SEMINAR
GLNG downstream Rod Duke Vice President Downstream GLNG GLNG plant site, Curtis Island
Gas transmission pipeline 420-kilometre pipeline is complete and gassed-up to Curtis Island 42-inch diameter 420-kilometre pipeline Gassing-up commenced in October and gas has reached Curtis Island Pipeline control from Brisbane…
October 2014 2013 LNG plant site - Significant construction progress over the past 12 months First commissioning gas expected in December 2014 34 2014 INVESTOR SEMINAR
October 2014 2013 LNG train 1 - All 82 modules are set on their foundations Piping installation and cable pulling are well advanced 35 2014 INVESTOR SEMINAR
October 2014 2013 LNG train 2 - All 29 modules are set on their foundations Piping installation and cable pulling are under way 36 2014 INVESTOR SEMINAR
2013 October 2014 LNG tanks - Hydrostatic testing of both tanks complete Insulation and piping installation underway 37 2014 INVESTOR SEMINAR
October 2014 2013 LNG jetty - LNG loading jetty substantially complete and subcontractor demobilised from site 38 2014 INVESTOR SEMINAR
Commissioning and Integrated commissioning and operations team operations in place 78 Santos GLNG staff October 2014 embedded in integrated Bechtel/GLNG commissioning and start-up team LNG plant commissioning team includes GLNG…
GLNG downstream Significant milestones achieved in 2014 On track for first LNG in the second half of 2015, within US18.5 billion budget Milestone Date Marine crossing tunnelling completed February 2014 Last Train 1 module…
Exploration Bill Ovenden Head of Exploration Tanumbirini-1 side wall core
Exploration performance Exploration is a competitive advantage for Santos 2P+2C finding costs (2009-2013) Santos is a leading low cost US/boe explorer Conventional only finding cost better than average for peers Leading resource…
Exploration strategy Pursuing the best rocks and leveraging our infrastructure positions Strengthen position in focus super basins Targeted entry to frontier basins Develop leading Australian unconventional position 2015…
Exploration portfolio Significant acreage capture is reloading the exploration portfolio with attractive opportunities Material deepwater Malaysian Australia Browse oil prospects Asia WA-502, 504 Malaysia DW-S Consolidate Phu…
Browse Basin Lasseter and Crown are Santos largest operated Lasseter-1 discoveries; they have materially increased our Browse resource position Lasseter-1 and Crown-1 are Crown-1 Lasseter-1 Santos two largest operated discoveries…
McArthur Basin McArthur Basin shale play opener shows great promise Tanumbirini-1 25,000km2 acreage footprint Adjacent to existing pipeline infrastructure / access to regional road and rail links Well drilled to calibrate the…
Hides deep Drilling ahead, seeking gas to support PNG LNG T3 Exploration target below the existing Hides field and gas processing plant Large well-constrained anticline with a primary objective approximately 700 metres beneath…
Malaysia Two well program targeting material oil in a proven prolific play fairway offshore deepwater Malaysia Farmed into a 25% equity position in Deepwater Block-S Partners: INPEX (operator) and PETRONAS High quality deepwater…
2015 exploration schedule Delivers on our exploration strategy across super basins, frontier basins and unconventional basins Santos Well Name Basin / Area Target Timing Interest % Hides Deep Papuan, PNG Gas 24 Drilling…
Technology driving performance and delivery Diana Hoff Vice President Technical, Engineering and Innovation Saxon 185 drilling Fairview multi-well pads Photo to be updated 50 2014 INVESTOR SEMINAR
GLNG drilling and Multi-well pads continue to drive greater efficiency, completions lower costs and a smaller environmental footprint Fairview deviated well drilling cost performance Current Saxon rig fleet designed for multi-well pad…
Eastern Australia drilling Next generation rigs in the Cooper Basin and completions Cooper Basin Ensign rigs 970 and 971: 1500hp diesel-electric rigs Capable of drilling to 20,000 ft / 6100 m Mast Height: 136 ft / 41 m with a…
Advanced drilling Simulated drilling environments technology Rig contractor simulators optimise training and safety by verifying personnel skills prior to arriving on well site. Highly realistic training environment with no risk to…
Surface Engineering Virtual Plant engineering technology driving information availability and minimising operational downtime System based on Intergraphs industry leading SmartPlant suite of engineering software Engineering…
Eastern Australia James Baulderstone Vice President Eastern Australia Moomba processing plant, Cooper Basin
Eastern Australia Leveraging value from portfolio of resources and market opportunity infrastructure Tripling of east coast gas demand and associated higher prices Gas demand Cooper Basin capacity build on track to meet 2015+…
Eastern Australia Positioned to capitalise on the changing market gas market portfolio dynamics with Cooper playing central role Eastern Australia gas demand (PJ) Gas prices likely to remain robust at A8/GJ 2,500 2015 Transition…
Cooper Basin well placed Legacy infrastructure and existing resource base to meet growing demand provides great competitive advantages Cooper gas drilling & well capacity1 build Cooper Basin gas production Wells drilled Well capacity…
Cooper infrastructure Stage 1 on track, taking Moomba average processing expansion (CIEP) capacity to 420 TJ/day sales gas CIEP approved scope is on schedule and on budget CIEP program Peak CIEP capex in 2015, significant reduction…
World scale 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 Exploration…
Unconventional Resources Encouraging results across all play types Langmuir-1 flowed at peak rate of 1.5 mmscfd Nappamerri Multiple Moomba-194 five stage frac achieved peak rate of 3.5 mmscfd Trough Targets 3D seismic acquired in…
Narrabri Gas Project Legacy rehabilitation complete, new world class Progress facilities now constructed Legacy rehabilitation complete World class centralised water handling constructed Well positioned for commercial…
Narrabri Gas Project Pilots drilled, flow lines laid, gas flowing Progress Ensign Heavy Drill Rig on Dewhurst 22 Northern Flowlines Construction Dewhurst 26 29 Flare During Testing 63 2014 INVESTOR SEMINAR
Narrabri Gas Project Strong support from the Government and Progress Narrabri community Government Community Land Access & Regulatory Support Support Over 95% of land access Growing support from Chief Scientist Report…
Narrabri Gas Project Initial appraisal is concentrating on a material reserve Phased Development sweet spot Successfully demonstrated triple-stack drilling Drilling ability, staying in seam 85% of the time 200 TJ/day with up to…
Narrabri Gas Project Drilled 9 of 16 planned wells targeting project technical risks Appraisal Update Likely 30% reduction in 2P reserves in 2014 to match phased development Operating 5 pilot production facilities Developing detailed…
Acreage with potential to Santos acreage covers seven sub-basins across the underpin NSW Energy Gunnedah Basin Supply Prospective Basins Taroom Bohena Trough Bellata Including initial methane sweet Maules Creek spot phase 1…
Eastern Australia Leveraging value from portfolio of resources and market opportunity infrastructure Tripling of east coast gas demand and associated higher prices Gas demand Cooper Basin capacity build on track to meet 2015+…
Asia Pacific John Anderson Vice President Asia Pacific, WA & NT PNG LNG, near Port Moresby and Spirit of Hela LNG vessel
Asia Pacific Strategy Focused Asia Pacific portfolio underpinned by high margin, long-life projects Large Core PNG yet-to-find countries Proximity potential and anchor Vietnam to demand assets Indonesia centres Access to…
Positioning and outlook Long life production assets and material prospect inventory Santos is the fourth largest independent E&P company in Asia Papua New Guinea 2014 Entitlement production (mboe/d) Anchor equity in world-class,…
PNG LNG anchor asset PNG LNG delivered April 2014, ahead of schedule 44 cargoes delivered thus far PNG LNG Project Delivery and Development Drilling All 8 initial development wells successfully completed First of two Angore…
PNG footprint expansion Santos continues to position itself in discovered resources and prospective exploration acreage that could play an important role in LNG expansion PNG LNG remains the preferred commercialisation route, but…
Indonesia footprint Ande Ande Lumut leverages our Indonesian operating expansion expertise in offshore, shallow water developments Project Santos (50%, operator) and participants AWE (50%) Project Long-life oil project scope…
Vietnam footprint Chim So and Dua performing strongly expansion Recently acquired Block 124 PSC bolsters position in the frontier Phu Khanh basin Chim So and Dua Strong oil production currently averaging 30 kbbl/d Dua field…
Asia Pacific is Santos Asia Pacific business unit has successfully core to Santos delivered key projects and grown through focused additions of high impact exploration acreage Asia Pacific 32% Vietnam Santos total Q3…
Western Australia and Northern Territory Brett Woods General Manager, WA & NT Jack Bates, Lasseter, Browse Basin
Western Australia and Three business themes delivering high margins with Northern Territory significant growth options Strong reservoir performance Carnarvon Work-over campaign delivered under budget oil FPSO dry-docking in Q1…
Browse and Bonaparte Opportunities being progressed to deliver next phase Basins of growth Barossa/Caldita Second of three well appraisal program underway Bayu Undan Darwin LNG Phase 3 drilling program, first gas Successful…
Browse Basin Major discoveries have provided momentum to drive Greater Crown and appraisal planning and evaluation of development Lasseter concepts Multi-tcf resource position underpinned by Crown and Lasseter discoveries…
Bonaparte Basin Three well appraisal drilling programme underway, Barossa Caldita supported by concept evaluation and pre-FEED studies Drilling second of three well appraisal programme: Barossa-2 successful well, intersecting…
WA domestic gas WA domestic gas assets supports volume growth with opportunity, capacity and higher margins growth Market opportunities Near term capacity and reserves in the event of third party project delays Capturing market…
2014 Investor Seminar 26 November 2014
Appendix Santos prepares an Annual Reserves Statement for each calendar year which is published at or around the same time as its full year audited accounts. Accordingly, the 2014 Annual Reserves Statement is still in the process of…
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 Box…
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