Welcome and introduction David Knox Managing Director and Chief Executive Officer Unloading GLNG piperack modules, Curtis Island
Delivering the Strong LNG project delivery in 2013 positions Santos strategy in 2013 to achieve 80 to 90 mmboe of production by 2020 AUSTRALIA LNG ASIA Fletcher Finucane first oil PNG LNG 90% complete Dua and Peluang on track…
Strong GLNG project GLNG is 72% complete and on track delivery in 2013 for first LNG in 2015 Drilling ahead of plan Fairview wells continue to produce strongly Roma pilot well data supporting predicted capacity First new wells at…
Production guidance 2014 production 52-57 mmboe, growth driven by PNG LNG start-up. 2013 production now expected to be approximately 51 mmboe Production 2014 guidance 52-57 mmboe mmboe New projects on line 60 60 PNG LNG 2H 2014 58…
Safety performance Lost time injury frequency rate of 0.6 per million hours worked Safety performance (employees and contractors) Fatality on Saxon CSG drilling Rate per million Work hours rig 185 on 23 June 2013 hours worked…
Principles of Increasing the confidence and trust of responsible operations the communities in which we operate Operating safely Protecting the environment Treating people with respect Limiting our footprint Making a…
2013 Investor Seminar Todays agenda Welcome and introduction David Knox Strategy and LNG markets Peter Cleary Business outlook Andrew Seaton GLNG upstream Trevor Brown GLNG downstream Rod Duke Q&A followed by morning tea…
Strategy and LNG markets Peter Cleary Vice President Strategy & Corporate Development PETRONAS Putri class LNG tanker
Our strategy Our vision is to be a leading energy company in Australia and Asia AUSTRALIA LNG ASIA Growing our Delivering our Building a focused strong domestic transformational exploration-led base business LNG portfolio…
Global LNG demand LNG continues to be a fast growing fuel and supply outlook mtpa 600 500 400 290 160 mtpa mtpa 300 Other Pacific 200 Atlantic Qatar 100 Australia 0 2000 2005 2010 2015 2020 2025 2030 Source: Wood…
LNG Demand Forecasts frequently underestimate actual LNG demand mtpa 2012 contracted LNG by source LNG delivers energy security 100 Buyers rely on the spot market or short term market to meet their LNG needs 80 Spot Traditional…
Global LNG demand US LNG alone will not fill the gap vs US LNG in 2025 mtpa Constraints on 500 US LNG exports Buyer appetite for 400 diversity of supply Contestable 100 mtpa 160 market Not all US LNG projects US LNG will secure…
US LNG pricing Portfolio players and trading houses dominate US LNG off-take with higher pricing Sabine Pass LNG pricing - 2012 Portfolio player pricing terms for resale - 2013 US/mmBtu US/mmBtu 16 16 Spot 14.6/mmBtu 14 13.5/mmBtu…
Santos unique Interests in four LNG projects LNG portfolio with growth opportunities Operating Darwin LNG 11.5% equity 3.7 mtpa plant capacity Fully contracted to 2023 Under construction PNG LNG GLNG 13.5% equity 30% equity…
Strong Australian base Santos has a significant infrastructure footprint that provides development optionality Santos assets Northern LNG INFRASTRUCTURE: FPSO LNG Gas Processing / Load out facility Carnarvon Eastern…
Strong diverse portfolio Delivering a balanced portfolio of 80-90 mmboe in 2020 2020 indicative production split Asia Australia Liquids LNG Gas Unconventional Conventional 18 2013 INVESTOR SEMINAR
Business outlook Andrew Seaton Chief Financial Officer
Strong business outlook Operating cash flow is expected to double by 2016, providing the foundation for further growth and increased shareholder returns Clear production growth outlook Growing margins Robust funding position…
Production growth Delivering 80-90 mmboe of production by 2020 from already captured opportunities Santos production Upside potential mmboe Aust: Cooper shale, Cooper tight gas, Zola, 90 Winchester, Amadeus, McArthur LNG: PNG LNG…
Margin growth Growing margins from higher revenues and lower unit costs Increasingly oil price-linked Growing revenue per barrel Oil price-linked 35% Other 70% 2012 2015 Santos average realised gas price Rising domestic gas…
Capex guidance 2013 is peak year for capex guidance unchanged at 4 billion. 2014 guidance 3.5 billion Capital expenditure 2014 guidance of 3.5 billion (excludes capitalised interest) (excluding capitalised interest) Abillion GLNG 1.4…
Strong funding position 3.7 billion in balance sheet capacity to fund execution of business strategy and minimise financing risk. Minimal debt maturities to 2016 Available liquidity Debt maturity profile Abillion Amillion Notes…
GLNG upstream Trevor Brown Vice President Queensland Drilling rig, Fairview field
Strong GLNG project GLNG is 72% complete and on track delivery in 2013 for first LNG in 2015 Drilling ahead of plan Fairview wells continue to produce strongly Roma pilot well data supporting predicted capacity First new wells at…
GLNG project summary The GLNG project is 72% complete and on track for first LNG in 2015 Rockhampton Curtis Island Location Queensland, Australia GLNG plant Project Santos (30% and operator), PETRONAS, Gladstone participants…
GLNG upstream On track to drill over 230 wells in 2013. Continued focus on field development optimisation On track to drill over 230 wells in the GLNG acreage in 2013 224 wells drilled in the GLNG acreage year-to-date Average 2013…
Fairview field Fairview wells continue to produce strongly, with an development average gas capacity of 1.63 TJ/day per well Fairview well performance as at 1 October 2013 170 wells are connected with a current capacity of 278 TJ/day…
Roma field development Roma pilot data supporting individual well capacity of 0.5 TJ/day. First wells have been connected to new facilities Roma well performance as at 1 October 2013 34 appraisal pilot wells in Optimum gas Optimum…
Fairview Hub 4 Commissioning of the water processing facilities is 250 TJ/day capacity underway. All nodal compressors, gas turbine alternators, switchrooms and control buildings are installed Nodal compressors and piperack, Fairview Hub…
Fairview Hub 5 Commissioning of the associated water amendment 170 TJ/day capacity facility (AWAF 3) has been completed AWAF 3, Fairview Hub 5 32 2013 INVESTOR SEMINAR
Roma Hub 2 First development wells have been connected 145 TJ/day capacity and dewatering has commenced Scrubbers and hub compressor, Roma Hub 2 33 2013 INVESTOR SEMINAR
Upstream infrastructure APLNG collaboration agreement has been signed. CRWP loop and electrification projects underway Collaboration agreements signed between the GLNG and APLNG projects in October Queensland 2013 for gas swaps and…
GLNG Upstream Significant milestones achieved in 2013. GLNG remains on track for first LNG in 2015 Milestone Date Over 200 wells spudded in 2013 October 2013 Collaboration agreement signed with APLNG October 2013 First wells…
GLNG downstream Rod Duke Vice President Downstream GLNG GLNG plant site, Curtis Island
Gas transmission pipeline Remains on track for completion in Q2 2014, with pre-commissioning activities underway 420-kilometre gas pipeline construction progressing well: Clearing and grading is complete Stringing is complete…
Marine crossing tunnel Over 3.7 kilometres of the 4.3 kilometre tunnel is complete, on track for Q1 2014 completion Marine crossing tunnel Tunnel boring machine reception shaft, Curtis Island 38 2013 INVESTOR SEMINAR
LNG plant site Significant construction progress over the past 12 months GLNG plant site, Curtis Island October 2013 39 2013 INVESTOR SEMINAR
LNG plant modules Over half of the Train 1 modules have been shipped from the module yard to Curtis Island 82 Train 1 modules required: 47 modules shipped to site 8 modules complete and ready for shipping 27 modules under…
LNG trains Construction progressing well, with module installation underway Train 1 site, Curtis Island October 2013 41 2013 INVESTOR SEMINAR
LNG tanks Good construction progress with both roofs raised, concrete roof pours complete and work underway on inner nickel steel tanks October 2013 Inside LNG Tank B LNG Tank B roof concreting LNG Tank B and A 42 2013…
LNG jetty Installation of jetty modules, loading arms and marine flare complete. Dredging complete. Pipe welding of trestle modules has commenced LNG jetty, Curtis Island October 2013 43 2013 INVESTOR SEMINAR
Commissioning and Teams recruited and commissioning plans in place Operations Dedicated Bechtel commissioning management team for GLNG plant LNG plant commissioning team will include GLNG operators Experienced GLNG partner…
Downstream collaboration QGC pipeline interconnection agreement signed; construction to commence in 2014. Further areas for collaboration are being explored Agreement signed with QGC to interconnect both projects pipelines Allows…
GLNG downstream Significant milestones achieved in 2013; GLNG remains on track for first LNG in 2015 Milestone Date Marine crossing tunnelling commenced April 2013 First LNG tank roof raise completed June 2013 Second LNG tank…
Exploration Bill Ovenden Head of Exploration Crown-1ST1
Strong track record Santos exploration team has consistently delivered material resource additions Pre-drill exploration 2C discovered 2P reserves 1P Finding costs, 2008-2012 opportunities resources USD/boe1 7.95 Phu Khanh basin…
Exploration strategy The Santos exploration strategy delivers options to underpin long term organic growth 2014 seismic acquisition Strengthen position in focus 2014 exploration drilling super basins Focus super basins Frontier…
Carnarvon Basin Bianchi and Winchester discoveries build on recent success with further upside potential, proximal to infrastructure PSTM Near Stack Pluto Reindeer Winchester Io Stag John Brookes Gorgon Spar Varanus Island…
Browse Basin World class resources and prospect inventory. Lasseter prospect to be drilled in Q2 2014 Poseidon Dufresne 2013 program discovery Crown discovery (P&A) Bassett West Basset West-1 discovery discovery Dufresne-1…
Browse Basin Lasseter is an exciting prospect in the heart of the Browse, with drilling planned for Q2 2014 Santos is operator with 30% Lasseter equity interest, partners are Chevron and Inpex Multi target prospect in WA-274-P,…
PNG and West Papua Renewed focus on exploration in the Papuan Basin, exploration farm-in to four exploration licences in 2013, drilling and seismic planned for 2014, Warim reactivated 2013 program West Papua Farm-in to…
Offshore South Australia Gazettal capture of a 50% interest in EPP 43 in the offshore Ceduna Basin in October 2013 Oil prone source rocks Access to a large from sea floor sampling frontier basin Ceduna 16,600 km2 block with water…
Australian shale Cooper and McArthur Basins have some key technical attributes comparable to successful US shale basins Organic matter Hydrocarbon Mineralogy TOC wt% content Non-clay content McArthur Basin mmboe/km2 % Darwin…
McArthur Basin Large footprint in the heart of the McArthur Basin unconventional oil and gas potential with scale Beetaloo sub-basin 2D seismic example Santos EP-161 permit Kyalla Fm (Shale) Velkerri Fm (Shale) 5 KM…
2014 exploration schedule Delivers on our exploration strategy across super basins, frontier basins and unconventional basins Santos Well Name Basin / Area Target Timing Interest % Manta-1 PNG Gas 30 Drilling South Sumatra CSG…
Drilling and Completions Diana Hoff Vice President Technical and Engineering Roswell-2 horizontal shale well 30 Conductor 17-1/2 Surface hole 13-3/8 Surface casing +/-3800ft 12-1/4 Intermediate hole 9-5/8 Intermediate…
Drilling and completions On track to deliver over 330 wells for 2013 309 operated wells drilled year-to-date, including: 224 GLNG wells 68 Cooper Basin wells All 8 South Sumatra CSG exploration wells completed with zero…
GLNG drilling and Continued time and cost efficiencies achieved in 2013, completions with 224 wells drilled year-to-date Average actual cost per GLNG Over 30% reduction in drilling and completion development well (million) costs per…
GLNG drilling and Over 50 minimal disturbance lease pads have been completions delivered in 2013; driving down lease construction costs and reducing our site footprint Lease construction costs have reduced by over 50% due to:…
Cowralli multi-well pad, Comprising 16 wells across two pads, Cooper Basin 10,500 foot s-curve drills and 5 frac stages per well Longest step-out of 2,928 feet Record Polycrystalline Diamond Compact (PDC) drill bit run of 9,435…
Cowralli multi-well pad, Multi-well pads deliver greater efficiency, lower costs Cooper Basin and a smaller environmental footprint Number of frac stages per day Cowralli multi-well pad drilling completed in October 2013 with…
Cooper Basin horizontal Roswell-2: Santos first horizontal REM shale well. shale program Continuing to define an optimal well and frac design to deliver maximum rate and recovery at lowest cost 30 Conductor Roseneath formation shale…
Eastern Australia Business Unit James Baulderstone Vice President Eastern Australia Drilling rig, Narrabri gas project
Eastern Australia Santos ideally placed to leverage value market opportunity from its portfolio of resources and infrastructure East coast gas demand to triple leading to higher prices Gas demand Santos responding by building gas…
Eastern Australia gas Additional supply is required to meet increased market transformation demand and Santos well placed to benefit Eastern Australia gas demand (PJ) Tripling of gas demand creating market tightness 2,500 Recent east…
Santos well placed to Cooper Basin legacy infrastructure and existing meet growing demand resource base provides great competitive advantages Cooper Basin gas production capacity has Cooper raw gas capacity (mmscf/day) turned the…
Increasing Cooper Basin Targeting three key areas during 2014 2016 gas production enabling cost efficiencies from increased scale 2 rig, pad development focus Santos acreage Gas field Moomba High deliverability Oil field Gas…
Operational efficiencies Improved reliability, production optimisation and unlocking value drilling improvements leading to higher margins Cooper gas downtime (%) Cooper gas production cost Cooper gas drilling program (million, Santos…
Cooper infrastructure Stage 1 infrastructure upgrades on track to meet expansion production growth targets - taking Moomba average processing capacity to 420 TJ/day sales gas Site works commenced for 22,000 HP compression at 3 key…
Narrabri Gas Project Strong Narrabri stakeholder support progressed during 2013 enabling recommencement of activity Leewood water treatment plant Appraisal program Largely completed remediation of legacy issues 16 well appraisal…
Narrabri Gas Project 2014 program aiming to be in a position go forward to deliver first gas in 2017 Landholder agreements and local investment Community Job creation peaking at 1,200 Attractive community compensation package…
Cooper Basin Market demand accelerating the commercialisation unconventional of three potential multi tcf plays in the Basin opportunity Santos Exploration permit Basin Centred Gas Santos Production licence Shale Gas Play Regionally…
Cooper unconventional Important milestones have been met during 2013, results and 2014 program designed around key learnings Play Program milestones Progress 2013 program achievements Drill Gaschnitz-1 Proven play with large…
High value Cooper oil Maximising production and margin business Cooper Basin crude oil sales 100% reserve replacement for three consecutive years mmbbl Netback 70 per barrel 10 16 million 2P undeveloped reserve dominated by five key…
Eastern Australia Santos positioned to capitalise 2015 transformation on strong market demand Recent contracts signed at 8/GJ New gas supply Cooper gas and Narrabri Gas Project well positioned to supply sources critical into this…
Asia Pacific Martyn Eames Vice President Asia Pacific PNG LNG plant site, near Port Moresby
Strategic importance Building a high-margin business in Asia of Asian business with a focus on three core countries Our position Unlocking scale in 2013 Foundation owner in PNG LNG over 90% complete and on PNG PNG LNG project track…
PNG LNG project Over 90% complete and on track for first LNG in 2H 2014 Location Papua New Guinea Project Santos 13.5%, participants ExxonMobil, Oil Search, NPCP, JX Nippon, MRDC, Petromin PNG Project scope Upstream gas and…
PNG LNG project Significant milestones achieved in 2013, with commissioning activities well underway Hides Gas Conditioning Plant 81 2013 INVESTOR SEMINAR
PNG LNG potential Existing infrastructure can support potential future expansion expansion. As an owner of the foundation project infrastructure, Santos is well placed Multiple options for potential expansion of foundation 2-train…
Indonesian domestic gas Strong base business in East Java underpinned by rising prices 13% of Santos current gas production is from Oyong, Wortel and Maleo Weighted gas price has doubled to US5/mmbtu Peluang gas project is over…
Indonesia oil Acquisition of a 50% operated interest in Ande Ande Lumut oil field, with Indonesian government approvals received in November 2013 Vietnam Santos acreage Leverage Santos core skills in Indonesia Gas field Oil field…
Vietnam oil Building our high-margin oil business with Dua development over 65% complete Vietnam Ho Chi Minh City Chim So Santos acreage Gas field Full oil and gas production resumed following repair of Oil field Gas pipeline…
Asia Pacific Business Unit Building a high-margin business in Asia with a focus on three core countries Asia Pacific EBITDAX (excluding asset sales) million PNG 400 197 300 70% EBITDAX margin Indonesia 200 175 170 110…
Western Australia and Northern Territory John Anderson Vice President WA & NT Fletcher Finucane oil project
WA & NT Business Unit Three business themes delivering high margins with significant growth options Deliver new high margin oil opportunities Carnarvon oil Build inventory of near-infrastructure oil opportunities Leverage…
Carnarvon oil Fletcher Finucane adds to high margin oil production. Building incremental oil opportunities Target Delivery First oil by 2H 2013 Ahead of schedule Fletcher Finucane 490 million gross capex Under budget by 20…
Carnarvon domestic gas Santos is the third-largest domestic gas supplier in Western Australia with further margin potential Santos position In two of four gas hubs (at uniform equity level of 45%) A market leader Large…
Focused Carnarvon Basin Bianchi and Winchester discoveries located near gas exploration key infrastructure. Davis-1 well targeting additional resource additions Bianchi - material extension to Zola, allowing Winchester - strategically…
Bayu-Undan / Darwin LNG Strong production in 2013. Progress on Phase 3 drilling program. Multiple feed gas options for backfill and expansion emerging Maintain high margin asset Site for new FID on Phase 3 offshore LNG trains…
Browse Basin Material resource build to support multiple commercialisation options including collaboration with adjacent resource owners for brownfield expansion Significant resource build Grand prospect Dufresne-1 Bassett West…
Caldita Barossa Concept evaluation completed for three well carried appraisal program commencing Q1 2014 Partnership with ConocoPhillips and SK E&S with joint venture funding of up to US520 million in appraisal drilling, pre-FEED,…
Bonaparte LNG Competitive concept definition has been completed with consortia FEED bids under evaluation. FEED targeted for 1H 2014 Development of Petrel, Tern and Frigate fields, located 250km west of Darwin Floating LNG…
WA & NT Business Unit Three business themes delivering high margins WA & NT EBITDAX (excluding asset sales) million Carnarvon 1000 oil 800 423 423 70% 600 EBITDAX Domestic margin gas 400 368 369 384 200 Northern LNG…
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