This document provides a summary of Santos' 2014 CLSA Investors' Forum presentation. Some key points:
- Santos is Australia's leading domestic gas producer and a top-25 ASX listed company, with production of 140,000 boe/d.
- Three major projects were delivered successfully in 2014 - PNG LNG ahead of schedule, Peluang in Indonesia ahead of schedule, and Dua in Vietnam on schedule. The GLNG project in Australia is over 85% complete and on track to start up in 2015.
- Strong Asian demand is expected to drive significant growth in LNG demand and provide opportunities for new supply projects like Santos' GLNG.
- Santos' dividend was increased
200215 Santos 2014 full year results presentationSantos Ltd
Santos today announced a 2014 underlying net profit of $533 million, up 6 per cent on the previous year.
Full-year highlights
•Production up 6% to 54.1 mmboe
•Sales revenue up 12% to $4 billion
•EBITDAX up 8% to $2,153 million
•Operating cash flow up 13% to $1,843 million
•PNG LNG start-up ahead of schedule with the project shipping 55 LNG cargoes in the year
•GLNG more than 90% complete and on track for first LNG in the second half of 2015, within budget
•Final dividend maintained at 15 cents per share, bringing the full-year dividend to 35 cents per share, up 5 cents
A presentation delivered by Cabot Oil & Gas at the Scotia Howard Weil Energy Conference in New Orleans in March 2016. During the presentation we learn Cabot plans to complete 40 wells in the Marcellus in 2016 and grow production slightly--up to 7% in 2016 over 2015.
200215 Santos 2014 full year results presentationSantos Ltd
Santos today announced a 2014 underlying net profit of $533 million, up 6 per cent on the previous year.
Full-year highlights
•Production up 6% to 54.1 mmboe
•Sales revenue up 12% to $4 billion
•EBITDAX up 8% to $2,153 million
•Operating cash flow up 13% to $1,843 million
•PNG LNG start-up ahead of schedule with the project shipping 55 LNG cargoes in the year
•GLNG more than 90% complete and on track for first LNG in the second half of 2015, within budget
•Final dividend maintained at 15 cents per share, bringing the full-year dividend to 35 cents per share, up 5 cents
A presentation delivered by Cabot Oil & Gas at the Scotia Howard Weil Energy Conference in New Orleans in March 2016. During the presentation we learn Cabot plans to complete 40 wells in the Marcellus in 2016 and grow production slightly--up to 7% in 2016 over 2015.
The slide presentation used at the Analyst Day presetation at the Ritz-Carlton in Dallas. The slides contain information about the Mariner East 1 & 2 pipelines and Sunoco's estimates of when those projects will be operational.
The revival and transformation of Europe’s largest onshore oilfield; the Pato...Albania Energy Association
Presentation: The revival and transformation of Europe’s largest onshore oilfield; the Patos-Marinza field
Leonidha Çobo, General Manager, Bankers Petroleum Albania Ltd
Santos has outlined its new strategy to drive sustainable shareholder value by becoming a low-cost, reliable
and high performance business.
Speaking at the company’s Investor Day in Sydney, Santos Managing Director and Chief Executive Officer
Kevin Gallagher said Santos will implement a disciplined, three-phase strategy to drive shareholder value.
• Transform: Simplify the business to focus on five core, long-life natural gas assets: Cooper Basin; GLNG;
PNG; Northern Australia, and Western Australia Gas. The remaining assets will be packaged and run
separately for value as a standalone business.
• Build: Progress growth opportunities across higher margin conventional assets and maximise production
across operated assets. Open infrastructure and facilities to increase throughput and drive down unit
costs.
• Grow: Develop focused exploration strategy and capability, and identify additional gas supply to drive
long-term value from the five core, long-life natural gas assets.
Edith Emily Dornwell was the first woman in Australia to graduate with a science degree, the first woman to graduate from the University of Adelaide and the first person to graduate from the University of Adelaide in 1885 with first class Honours in physics and physiology.
The internship initiative has been developed by the Office for Women within the Department for Communities and Social Inclusion, with funding from the Department of State Development’s Office of Science, Technology and Research.
The addresses of the Chairman, the Managing Director and CEO, and Chairman Elect are available on the Santos website. Click here to download their addresses.
In 2012, the oil and gas industry
contributed $29.4 billion to the
economy including approximately
$8.8 billion in income tax, corporate
tax and resource royalties.5
Santos GLNG alone will generate
billions of dollars in royalties and
taxes for Queenslanders for decades
to come. That means more money
for Queensland schools, roads
and hospitals.
In New South Wales, the Narrabri
Gas Project is expected to contribute
over $1.6 billion in royalties to the
State over the life of the project,
helping to deliver hospitals, schools,
roads, police services, public transport
and other state-based infrastructure
and public services.
Shale gas is natural gas. It is found
in hard, dense underground rocks
called shale (in the past shale was
called slate). Shale gas is odourless,
colourless and mostly methane,
exactly the same as natural gas used
in homes and businesses.
Shale gas was first extracted in the
United States in 1821, but it is only
in the last decade that advances in
technology have made production
viable on a large scale. As a result, shale
gas has grown from 1 per cent of the
United States’ natural gas production
in 2000 to over 26% today.*
The United States Energy Information
Administration has estimated that
Australia could have 437 trillion
cubic feet of recoverable shale gas,
the equivalent of over 200 years of
production at current rates.
Hydraulic fracturing, or fracking, is used
to increase the flow of oil or natural
gas from a well. It has been used safely
around the world since 1949 in over two
and a half million wells.
Santos has used fracking to produce
oil and gas in South Australia and
Queensland for nearly 50 years. It has
also been used in other industries to
increase the flow of water wells or
to clean up hazardous waste sites4.
In over 60 years of operations, there
has not been one proven case of water
contamination as a result of fracking.
Studies in the United States, United
Kingdom and here in Australia have
concluded that fracking can be
undertaken safely.
Natural gas is an abundant Australian
energy resource which has been used
in our country for over 100 years. It is
a naturally occurring compound made
up of mainly methane. Odourless and
colourless, it is found in different types
of rocks, including sandstones, coal
seams and shale.
Natural gas has the lowest carbon
intensity among fossil fuels, emitting
less carbon dioxide (CO2) per unit of
energy generated. It burns cleanly and
efficiently, with very few non-carbon
emissions.
Coal seam gas (CSG) is natural gas
mainly composed of methane, the
odourless and colourless gas used
in homes and businesses.
CSG collects in underground coal
seams formed over tens of millions
of years from compressed organic
material. The naturally occurring
coal seam gas bonds to the surface
of coal particles.
A combination of water and ground
pressure traps the gas in fractures of
underground coal seams, typically 500
– 1,200 metres below the surface.
Fourth quarter production of 15.1 mmboe - 15% higher than the corresponding quarter - brought full-year production to 54.1 mmboe. This was a 6 per cent increase on the previous year and within the company’s guidance range of 53-55 mmboe.
“Notwithstanding the fall in oil prices, Santos has delivered growth in full-year and quarterly production, and record sales revenue,” Santos Managing Director and Chief Executive Officer David Knox said.
“These results affirm the strength of Santos’ underlying business, the transformation of our operations and the positioning of the company as a major player in the Asian LNG market.”
“We look forward to further growth in 2015 with the start-up of GLNG in the second half of this year.”
41 metre bicycle seeks to break Guinness Book world record at the 2015 Santos Tour Down Under
A locally made bicycle measuring 41.9 metres and carrying 20 passengers will this Saturday (17 January 2015) attempt to ride its way into the Guinness Book of Records and become the world’s longest bicycle.
The attempt will take place on Rundle Road, Adelaide CBD (between East Terrace and Dequetteville Terrace) at 10 am.
The bike will have to travel 100 metres unaided to officially break the current world record which stands at 35.79 metres, set in the Netherlands in August 2011.
Santos Group Executive for Public Affairs Damon Hunt said the bike design and construction was a collaboration between Santos and the University of South Australia, and the culmination of nine months of development and planning.
This nine-day event brings top UCI WorldTour professional cycling teams to race on the streets of Adelaide and regional South Australia each January. Up for grabs are important UCI points and the Santos Ochre Leader’s Jersey.
Australian oil and gas exploration and production company Santos has entered into a partnership with OzHarvest which will bring the food rescue group to Western Australia for the first time.
OzHarvest collects surplus food from all types of providers (including fruit and vegetable markets, supermarkets, hotels, wholesalers, farmers, corporate events, catering companies,restaurants) and delivers that food free of charge to charity clients.
With its headquarters in Sydney, OzHarvest has operations in Brisbane, Gold Coast, Newcastle, Melbourne and Adelaide, and is now coming to Perth.
Pwc report- Oil and gas industry-Sept-2014Santos Ltd
Australia’s oil and gas industry plays an important role in the prosperity of Australia’s economy through its value-add, employment, scale of technology, and tax contribution.
To understand its relative contribution to the Australian economy, APPEA has engaged PwC to prepare a policy paper that examines the economic importance of the oil and gas industry to the Australian economy and national incomes.
Santos Chairman, Ken Borda, today announced the appointment of Yasmin Allen to the Santos Board as an independent non-executive director, effective 22 October 2014.
Santos has been active in Indonesia since the 1990s and now operates three producing assets, is developing a fourth and has an exciting exploration program.
Courier management system project report.pdfKamal Acharya
It is now-a-days very important for the people to send or receive articles like imported furniture, electronic items, gifts, business goods and the like. People depend vastly on different transport systems which mostly use the manual way of receiving and delivering the articles. There is no way to track the articles till they are received and there is no way to let the customer know what happened in transit, once he booked some articles. In such a situation, we need a system which completely computerizes the cargo activities including time to time tracking of the articles sent. This need is fulfilled by Courier Management System software which is online software for the cargo management people that enables them to receive the goods from a source and send them to a required destination and track their status from time to time.
Saudi Arabia stands as a titan in the global energy landscape, renowned for its abundant oil and gas resources. It's the largest exporter of petroleum and holds some of the world's most significant reserves. Let's delve into the top 10 oil and gas projects shaping Saudi Arabia's energy future in 2024.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
Forklift Classes Overview by Intella PartsIntella Parts
Discover the different forklift classes and their specific applications. Learn how to choose the right forklift for your needs to ensure safety, efficiency, and compliance in your operations.
For more technical information, visit our website https://intellaparts.com
Immunizing Image Classifiers Against Localized Adversary Attacksgerogepatton
This paper addresses the vulnerability of deep learning models, particularly convolutional neural networks
(CNN)s, to adversarial attacks and presents a proactive training technique designed to counter them. We
introduce a novel volumization algorithm, which transforms 2D images into 3D volumetric representations.
When combined with 3D convolution and deep curriculum learning optimization (CLO), itsignificantly improves
the immunity of models against localized universal attacks by up to 40%. We evaluate our proposed approach
using contemporary CNN architectures and the modified Canadian Institute for Advanced Research (CIFAR-10
and CIFAR-100) and ImageNet Large Scale Visual Recognition Challenge (ILSVRC12) datasets, showcasing
accuracy improvements over previous techniques. The results indicate that the combination of the volumetric
input and curriculum learning holds significant promise for mitigating adversarial attacks without necessitating
adversary training.
Welcome to WIPAC Monthly the magazine brought to you by the LinkedIn Group Water Industry Process Automation & Control.
In this month's edition, along with this month's industry news to celebrate the 13 years since the group was created we have articles including
A case study of the used of Advanced Process Control at the Wastewater Treatment works at Lleida in Spain
A look back on an article on smart wastewater networks in order to see how the industry has measured up in the interim around the adoption of Digital Transformation in the Water Industry.
Sachpazis:Terzaghi Bearing Capacity Estimation in simple terms with Calculati...Dr.Costas Sachpazis
Terzaghi's soil bearing capacity theory, developed by Karl Terzaghi, is a fundamental principle in geotechnical engineering used to determine the bearing capacity of shallow foundations. This theory provides a method to calculate the ultimate bearing capacity of soil, which is the maximum load per unit area that the soil can support without undergoing shear failure. The Calculation HTML Code included.
Cosmetic shop management system project report.pdfKamal Acharya
Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
Instead of buying and hoping for the best, we can use data science to help us predict which products may be good fits for us. It includes various function programs to do the above mentioned tasks.
Data file handling has been effectively used in the program.
The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Student information management system project report ii.pdfKamal Acharya
Our project explains about the student management. This project mainly explains the various actions related to student details. This project shows some ease in adding, editing and deleting the student details. It also provides a less time consuming process for viewing, adding, editing and deleting the marks of the students.
TECHNICAL TRAINING MANUAL GENERAL FAMILIARIZATION COURSEDuvanRamosGarzon1
AIRCRAFT GENERAL
The Single Aisle is the most advanced family aircraft in service today, with fly-by-wire flight controls.
The A318, A319, A320 and A321 are twin-engine subsonic medium range aircraft.
The family offers a choice of engines
2. Disclaimer and
important notice
This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including
but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development
progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and
regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.
All references to project completion percentages are on a value of work done basis, unless otherwise stated.
This presentation refers to estimates of petroleum reserves and contingent resources contained in Santos’ Annual Reserves Statement released to the ASX on 21
February 2014 (Annual Reserves Statement). Santos confirms that it is not aware of any new information or data that materially affects the information included in the
Annual Reserves Statement and that all the material assumptions and technical parameters underpinning the estimates in the Annual Reserves Statement continue to
apply and have not materially changed.
The estimates of petroleum reserves and contingent resources contained in this presentation are as at 31 December 2013. Santos prepares its petroleum reserves and
contingent resources estimates in accordance with the Petroleum Resources Management System (PRMS) sponsored by the Society of Petroleum Engineers
(SPE). Unless otherwise stated, all references to petroleum reserves and contingent resources quantities in this presentation are Santos’ net share. Reference points
for Santos’ petroleum reserves and contingent resources and production are defined points within Santos’ operations where normal exploration and production business
ceases, and quantities of produced product are measured under defined conditions prior to custody transfer. Fuel, flare and vent consumed to the reference points are
excluded. Petroleum reserves and contingent resources are aggregated by arithmetic summation by category and as a result, proved reserves may be a very
conservative estimate due to the portfolio effects of arithmetic summation. Petroleum reserves and contingent resources are typically prepared by deterministic
methods with support from probabilistic methods. Conversion factors: 1PJ of sales gas and ethane equals 171,937 boe; 1 tonne of LPG equals 8.458 boe; 1 barrel of
condensate equals 0.935 boe; 1 barrel of crude oil equals 1 boe.
EBITDAX (earnings before interest, tax, depreciation, depletion, exploration, evaluation and impairment), EBIT (earnings before interest and tax) and underlying profit
are non-IFRS measures that are presented to provide an understanding of the performance of Santos’ operations. Underlying profit excludes the impacts of asset
acquisitions, disposals and impairments, as well as items that are subject to significant variability from one period to the next, including the effects of fair value
adjustments and fluctuations in exchange rates. The non-IFRS financial information is unaudited however the numbers have been extracted from the financial
statements which have been subject to review by the company’s auditor.
2014 2 | CLSA INVESTORS' FORUM
Cover image: GLNG plant site, Curtis Island
3. Santos overview
Australia’s leading domestic gas
producer
2013 production 140,000
boe/d (70% gas/30% liquids)
Top-25 Australian Securities
Exchange listed company
Market capitalisation
$15 billion (September 2014)
A leading energy company in Australia and Asia
3 | 2014 CLSA INVESTORS' FORUM
Proved reserves 620 mmboe
Proved plus probable
reserves
1,368 mmboe
2C Contingent resources 1,869 mmboe
2013 production 51 mmboe
Three-year organic
reserve replacement ratio
102%
boe/d: barrels of oil equivalent per day
mmboe: million barrels of oil equivalent
Otway
Phu Khanh
Nam Con Son
Offshore Malaysia
Papuan
Carnarvon
Browse
Timor Sea
Bonaparte
Amadeus
Cooper
Surat/Bowen
Gippsland
Narrabri
East Java
Bay of Bengal
McArthur
Santos assets
West Natuna
Bight
4. Strong business outlook LNG projects are providing the foundation for further
growth and increased shareholder returns
4 | 2014 CLSA INVESTORS' FORUM
Hides Gas Conditioning Plant, PNG LNG
Clear production growth
outlook
Growing margins
Robust funding position
provides the capacity to
fund execution of strategy
5. PNG LNG start-up ahead of schedule and strong
progress on GLNG enables significant lift in interim
dividend
First-half summary
5 | 2014 CLSA INVESTORS' FORUM
Safety LTIFR of 0.6 per million hours worked
Strong project
delivery
• PNG LNG start-up ahead of schedule
with first cash received in July
• GLNG more than 85% complete and on
track for first LNG in 2015, within budget
• Peluang and Dua projects on line
Sound financial
performance
Underlying profit up 3% to $258 million
Operating cash flow up 18% to $744 million
Higher dividend
33% increase in interim dividend to 20 cents
per share fully-franked
Exploration
success
Significant gas-condensate discovery in the
Browse with Lasseter-1 well
First cargo from PNG LNG
6. Production
First half production up 2%
─ PNG LNG first LNG in April 2014
─ Peluang first gas in March 2014
Full-year guidance maintained at
52-57 mmboe
─ PNG LNG at full production
─ 35-40 day Bayu-Undan/Darwin
LNG planned shutdown starts in
late-August 2014
─ 45 day shutdown of Fletcher-
Finucane/Mutineer Exeter planned
for 2H 2014
139,600
135,300
141,000
164,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
2013 Q1 2014 Q2 2014 July 2014
PNG LNG start-up drives sound first half and builds
momentum for a stronger second half
6 | 2014 CLSA INVESTORS' FORUM
Average daily production
boe/day
7. Dividends Start-up and first cash from PNG LNG has enabled the
33% increase in interim dividend to 20 cents per share
fully-franked
2014 7 | CLSA INVESTORS' FORUM
22 22
15 15 15
20
20
15
15 15 15
0
10
20
30
40
50
2009 2010 2011 2012 2013 2014
Interim Dividend Final Dividend
Cents per
share
Fully-franked dividends declared per share
Increased dividend consistent
with prudent capital
management
Plan to maintain or increase
each dividend as earnings and
cash flow increase
It is expected that the level of
dividend will next be reviewed
around the time of GLNG
start-up
Will strike a balance between
higher dividends, debt
repayment and ongoing
investment for growth
GLNG FID
PNG LNG FID
First PNG LNG
cash
8. 2014 Highlights Three projects delivered, GLNG progressing well and
exploration success in the Browse
8 | 2014 CLSA INVESTORS' FORUM
Vietnam oil
Dua project delivered on
schedule in July 2014
Indonesia gas
Peluang project delivered
ahead of schedule in March
2014
PNG LNG
Delivered ahead of schedule
in April 2014
GLNG
More than 85% complete
and on track for first LNG in
2015, within budget
Browse
Significant gas-condensate
discovery at Lasseter-1
Narrabri
9 appraisal wells drilled and
evaluation underway
Cooper unconventional
2 horizontal wells drilled
2 wells now on line
Malaysia
Farm-in to Block S, first
exploration well in Q4 2014
9. -
50
100
150
200
250
300
350
400
450
2010 2015 2020 2025 2030
Strong Asian demand for
LNG
Large opportunity exists for new projects to supply
into the Asian market
9 | 2014 CLSA INVESTORS' FORUM
Source: Wood Mackenzie, LNG supply represents contracted volumes sold into Asia Pacific
from global operating and under construction projects.
mtpa
127
mtpa
217
mtpa
Contracted Asian
LNG supply
Asia leads global LNG demand with
LNG forecast to meet over 50% of
Asia’s gas needs
− Asian LNG demand grows at CAGR
of 5.5%
− By 2030, over 71% of global LNG
demand comes from Asia
Large opportunity for new LNG
supply
− Over 127 mtpa of uncontracted
demand by 2025 (~ 32 new LNG
trains)
− Over 217 mtpa of uncontracted
demand by 2030 (~ 54 new LNG
trains)
Asian LNG supply and demand
10. Operator with 30% equity
7.8 mtpa plant capacity, 7.2 mtpa contracted
to 2035
Over 85% complete, on track for first LNG in
2015
10 |
Strong project delivery and performance supportive of
backfill and expansion opportunities
Santos’ LNG portfolio
2014 CLSA INVESTORS' FORUM
13.5% equity, 6.9 mtpa plant capacity
First LNG cargo in May 2014, >20 cargoes
shipped
6.6 mtpa contracted to 2034
Expansion potential: Hides Deep well Q4 2014
11.5% equity, 3.7 mtpa plant capacity
First LNG in 2006, >400 cargoes delivered
Fully contracted to 2022
Multiple options for backfill and expansion
emerging
Under construction Producing
Darwin
LNG
PNG LNG
GLNG
11. PNG LNG plant
PNG LNG project Successful delivery of the project in April 2014.
Over 20 cargoes have been shipped since start-up
11 | 2014 CLSA INVESTORS' FORUM
12. PNG Drilling Drilling complete on the Hides G-pad wells and
PWD well. Hides Deep expected to be spudded in
Q4 2014
12 | 2014 CLSA INVESTORS' FORUM
Drilling at Hides G-pad
PNG LNG Drilling
─ All eight Hides development wells successfully drilled to TD
─ Six of these are on production with the two G-pad wells
currently being completed
─ Hides PWD well has been drilled to TD and is being evaluated
to determine the gas water contact for Hides
─ First of two Angore development wells expected to spud in
Q4 2014
PNG Exploration
─ Hides F1 (Hides Deep, Santos 24%) expected to spud in
Q4 2014
─ Gas discoveries at Manta-1 (tested at 42 mmscf/d) in PPL 436
and NW Koko-1 (tested at 48 mmscf/d) in PPL 261
13. GLNG project summary The GLNG project is more than 85% complete
and on track for first LNG in 2015
2014 13 | CLSA INVESTORS' FORUM
Project
partners
Santos (30% and operator),
PETRONAS, Total and KOGAS
LNG plant
capacity
7.8 mtpa of LNG; 7.2 mtpa has been
sold to PETRONAS and KOGAS
Gross
capital cost
estimate
US$18.5 billion1 from FID to the end of
2015 when the second train is expected
to be ready for start-up
LNG train
ramp-up
Train 1 first LNG expected in 2015;
LNG production expected to ramp-up
over 3-6 months
Train 2 first LNG expected 6-9 months
after train 1; LNG production expected
to ramp-up over 2-3 years
1 Based on foreign exchange rates which are consistent with the assumptions used at FID
(A$/US$ 0.87 average over 2011-15).
LNG tanks, Sept 2014
14. GLNG upstream Construction of two upstream gas hubs is complete
and commissioning is underway
2014 14 | CLSA INVESTORS' FORUM
Ignition of the first hub flare stack at Fairview Hub 5
77 wells were spudded in 1H 2014
Performance of Fairview wells continues to
exceed expectations – average optimum gas
capacity of 2.2 TJ/day per well
Roma wells on line and dewatering, supporting
individual well capacity of 0.5 TJ/day; Roma 02-
04-01 well producing over 1 TJ/day
Fairview Hub 5 construction complete, and
commissioning is underway
Fairview Hub 4 construction complete, and
commissioning is underway
Construction of Roma Hub 2 is substantially
complete
15. GLNG downstream Pipeline commissioning commenced, with LNG plant
commissioning on track for Q4 2014
2014 15 | CLSA INVESTORS' FORUM
LNG trains, Sept 2014
Milestone Date
Marine crossing tunnelling
completed
February 2014
Last Train 1 module set June 2014
First LNG tank hydrotest July 2014
Pipeline commissioning
commenced
August 2014
Last Train 2 module expected on
Curtis Island
September
2014
First commissioning gas to LNG
plant
Q4 2014
First LNG Train 1 2015
16. Capital expenditure and
opex guidance
US$18.5 billion1 capex from FID to the end of 2015
2016-20 average capex estimate A$1 billion pa
2014 16 | CLSA INVESTORS' FORUM
Capital expenditure estimate
FID to end of
2015
US$18.5 billion1
2016-2020
~A$1 billion average per
annum
Post 2020
~A$0.5 billion average per
annum
1 Based on foreign exchange rates which are consistent with the assumptions used at FID (A$/US$
0.87 average over 2011-15).
Vast majority of 2016-20 expenditure is the upstream, and
includes:
─ Drilling and completion of new wells (~200–300 per annum)
─ Connections of new wells, including wellpads, gas gathering lines, water
pipelines, and power/communications infrastructure
─ Additional compression, water treatment facilities and ponds, trunklines,
transmission lines and roads
─ Capitalised cost of staff working on upstream capex projects and wages
associated with engineering, procurement and construction of upstream
capex projects
─ Exploration and appraisal
─ Domestic gas stay-in-business capex
Includes maintenance capex for the LNG plant and gas
transmission pipeline
Opex average cost estimate
Upstream field
(excludes electricity and carbon)
~A$1.25/GJ
Downstream
(pipeline, plant and port)
~A$150 million per annum
17. Third party gas supply Third party gas generates significant value for the
project
17 | 2014 CLSA INVESTORS' FORUM
Supplier Quantity TJ/day Starts Term Delivery point Price basis
Santos portfolio
‘Horizon’
750 PJ 140 2015 15 years Wallumbilla Oil-linked
Origin 365 PJ 100 2015 10 years Wallumbilla Oil-linked
Origin 194 PJ1 50-1001 2016 5 years Wallumbilla Oil-linked
Other suppliers 85 PJ 10-15
60-100
2015
2016
7 years
21 months
Wallumbilla Oil-linked
Meridian JV 445 PJ2 20-65 2015 20 years GLNG GTP Oil-linked3
Combabula/
Spring Gully 355 PJ4 30-50 2015 30 years Fairview Oil-linked
1 100 PJ firm volume over 5 years. Origin has the option to supply additional volumes of up to 94 PJ during the same period.
2 Source: WestSide Corporation Target Statement of 16 May 2014. Excludes additional gas production by the Meridian Joint Venture beyond 65 TJ/day. Volumes subject to
Meridian field production performance and implementation of expansion plans.
3 Oil-linked from 2016.
4 Santos share 2P reserves in the APLNG-operated Combabula, Spring Gully and Ramyard fields at the end of 2013.
Attractive oil-linked
gross margins
Provides operational
flexibility in LNG train
ramp-up and operation
18. Bayu-Undan / Darwin LNG
Maintain high margin asset
─ track record of reliable delivery
(400+ cargoes since 2006; above
contract production)
─ Phase 3 expansion underway with
first gas expected in 2015
─ 35-40 day major shutdown
scheduled for Q3 2014
Backfill and expansion:
─ Government approval for 10 mtpa
and land available for Train 2
expansion
─ Multiple feed gas options available,
including Santos’ Caldita Barossa,
Bonaparte and Browse resources
─ Cost effective brownfield
development options with quicker
execution schedule
Strong production in 2014. Progress on Phase 3
offshore expansion. Multiple feed gas options
for backfill and expansion emerging
18 | 2014 CLSA INVESTORS' FORUM
Site for laydown and
flare expansion
Site for LNG tanks
and laydown
Site for new
LNG trains
Darwin LNG plant
19. Northern Australia Exciting opportunity to target high quality LNG
opportunities through partnerships and collaboration
Barossa-Caldita
Three well appraisal drilling
campaign underway
Bayu-Undan
Phase 3 offshore
expansion program
underway
Crown gas
discovery
Lasseter gas
discovery
Petrel-Tern
Assessment of concept
alternatives underway
NT/P84
New exploration block
19 | 2014 CLSA INVESTORS' FORUM
Darwin LNG
Options for
backfill and
expansion
20. Lasseter gas-condensate discovery
─ Well intersected a gross gas-condensate section of
405 metres
─ Wireline logging has confirmed 78 metres of net
gas pay in the Jurassic-aged Lower Vulcan and
Plover sandstone reservoirs
─ Samples confirm excellent mobility in the higher
porosity sands in the Lower Vulcan
─ Hydrocarbon sampling confirms condensate to gas
ratios between 10-25 bbls/mmscf
─ Well has reached a total depth of 5,329 mMDRT
and will now be plugged and abandoned as
planned
Builds on the existing 2012 Crown discovery
Browse Basin
20 | 2014 CLSA INVESTORS' FORUM
Significant gas-condensate discovery with the
Lasseter-1 well, adding to Santos’ material resource
position in the Browse
21. Eastern Australia gas
market transformation
Tripling of gas demand creating market tightness
Recent east coast gas contracts >$8/GJ
New sources of gas required in 2015-2020
to meet supply challenge
Santos well placed to meet increased east coast gas
demand with over 4,600 PJ of net 2P reserves,
6,700 PJ of 2C resources and existing infrastructure
Additional supply is required to meet increased
demand and Santos well placed to benefit
21 | 2014 CLSA INVESTORS' FORUM
Accelerating Cooper Basin supply
Narrabri Gas Project progressing
Encouraging further unconventional exploration
Increasing infrastructure, transport
and processing capability
0
500
1,000
1,500
2,000
2,500
2013 2015 2017 2019 2021 2023 2025
APLNG
GLNG
QCLNG
Power Gen
Retail, C&I
Eastern Australia gas demand (PJ)
x3
Santos asset footprint
Cooper Basin
Surat/Bowen
Narrabri
Otway/Gippsland
22. Cooper Basin
unconventional
exploration program
Building knowledge and technological capacity to
‘crack the code’; second horizontal successfully fracced
22 | 2014 CLSA INVESTORS' FORUM
Two shale wells are on line and producing
─ Moomba-191 on line since October 2012 and currently producing
1.7 mmscf/day, total production to date of ~1.3 Bcf
─ Moomba-194 producing 0.9 mmscf/day, significant contribution
from deep coal zone
Two horizontal shale wells have been successfully drilled,
fracced and flow tested
─ Roswell-2H: 550 metre horizontal section drilled, five frac stages
placed and production tested at 0.75 mmscf/day
─ Moomba-193H: 1,000 metres horizontal section drilled, 10 frac
stages placed and production tested at 1.5 mmscf/day
─ Successful implementation of multiple frac diagnostic techniques
─ Progressing frac capability in unconventional rocks
Current drilling campaign utilising high spec 3D seismic,
targeting potential “sweet-spot” in the Gaschnitz area
Moomba 193-H well
Moomba 193-H
Moomba 192
23. Asia Pacific Building a high-margin business in Asia, accounting for
over 20% of Santos’ first half of production
23 | 2014 CLSA INVESTORS' FORUM
Bangladesh
Block SS-1 seismic
campaign in 2015
Ande Ande Lumut
FEED studies are well
underway, targeting FID
in late 2015
Block 123, Vietnam
Exploration drilling planned for
2016
Block 12W, Vietnam
Chim Sào has produced over
25 million barrels of oil;
successful tie-back of Dua oil
field in July 2014
East Java, Indonesia
Four producing assets, with the
Peluang gas project delivered
ahead of schedule in March
2014
PNG LNG
13.5% partner in
foundation project
PNG Gulf
10% interest in PRL 38
containing the Pandora
discovery
Offshore Malaysia
Farm-in to Block S, first
exploration well in Q4 2014
PNG Forelands
Recently concluded
exploration campaign with
plans for further drilling in
2015-16
Warim, Indonesia
Data acquisition planning
underway by operator
25. 2014 First-half
financial result
Growth in sales revenue, EBITDAX and operating cash
flow. Underlying profit of $258 million, higher than
2013.
25 | 2014 CLSA INVESTORS' FORUM
2014
First-half
Change
on 2013
Production 25 mmboe +2%
Sales revenue $1,887 million +25%
EBITDAX $950 million +13%
Net profit after tax $206 million -24%
Underlying profit $258 million +3%
Operating cash flow $744 million +18%
Interim dividend 20 cents per share +33%
26. Strong funding position $2.7 billion in balance sheet capacity to fund execution
of business strategy and minimise financing risk.
Minimal debt maturities to 2016
26 | 2014 CLSA INVESTORS' FORUM
Available liquidity Debt maturity profile
A$billion
0
1
2
3
4
Cash Undrawn
corporate
lines
Undrawn
project line
(PNG LNG)
ECA
facilities
0
400
800
1,200
1,600
2,000
2014 2015 2016 2017 2018 2019 2020 Beyond
2020
Drawn facilities Euro subordinated notes
ECA Undrawn bank facilities
A$million
0.4
1.5
0.2
0.6
Notes mature in 2070, with
Santos option to redeem in 2017
Charts as at 30 June 2014
27. Capital expenditure Capex of $1,862 million1 in 1H 2014, full year
guidance of $3.5 billion is maintained
27 | 2014 CLSA INVESTORS' FORUM
GLNG3
$795m
Cooper Basin
$444m
Exploration
$179m
WA&NT $30m
Other $11m
Breakdown of 1H 2014 capital expenditure
(excludes capitalised interest)
4.1
3.5
0.23
0.25
0
2
4
2013 2014F
Capex Capitalised interest
Full year capital expenditure
A$billion
Other EA2
$171m
1 Excludes first-half capitalised interest of $124 million.
2 Other EA includes expenditure on Combabula/Spring Gully, Narrabri, Mereenie and Victoria.
3 Includes non-LNG project capex of $65 million for domestic stay-in-business, appraisal and
pre-development, capitalised stripping costs and Santos corporate costs.
28. 2014 First-half
financials
Underlying profit up 3% to $258 million
2014 28 | CLSA INVESTORS' FORUM
271
206
251 258
0
100
200
300
1H 2013 1H 2014
NPAT Underlying profit
Half-year NPAT and underlying profit
$million
251
0
100
200
300
400
1H 2013 Prices and
foreign
exchange
Volume E&E
expensed
Production
costs
Net finance
costs
Other 1H 2014
Reconciliation of half-year underlying profit
$million
271
258
41
35 -29
-21
-28
9
29. 2014 guidance
29 | 2014 CLSA INVESTORS' FORUM
1 Royalty related taxation expense guidance based on an average realised oil price of A$110 per barrel
2 Capital expenditure guidance excludes capitalised interest, which is forecast at approximately $250 million in 2014
Item 2014 guidance
Production 52-57 mmboe
Production costs $820-880 million
DD&A expense $18.50/boe
Royalty related taxation expense1 (after tax) $60 million
Capital expenditure (including exploration & evaluation)2 $3.5 billion
All 2014 guidance is unchanged
30. 2014 exploration schedule Delivers on our play-based exploration strategy across
Australia and south-east Asia
30 | 2014 CLSA INVESTORS' FORUM
1 Subject to Government approval
Well Name Basin / Area Target
Santos
Interest
%
Result/Timing
Manta-1 PNG Gas 301 Gas discovery
Mt Kitty-1 Amadeus Gas 70
Gas discovery,
evaluation operations
suspended
NW Koko-1 PNG Oil / gas 301
Gas discovery with oil
shows
Vanuatu-1 Carnarvon Oil 37.5 P&A
Hon Khoai-1 Nam Con Son Oil 45 P&A
Lasseter-1 Browse Gas 30
Gas-condensate
discovery
Tanumbirini-1 McArthur Shale oil / gas 50 Drilling
Telus-1 Block S, Malaysia Oil 25 Q4
Hides F1 (Hides Deep) PNG Gas 24 Q4
The exploration portfolio is continuously being optimised, therefore the above program may vary as a result of farmout, rig availability, drilling outcomes and maturation of new prospects
31. Head Office Adelaide
Ground Floor, Santos Centre
60 Flinders Street
Adelaide, South Australia 5000
GPO Box 2455
Adelaide, South Australia 5001
Telephone: +61 8 8116 5000
Useful email contacts
Share register enquiries:
web.queries@computershare.com.au
Investor enquiries:
investor.relations@santos.com
Website:
www.santos.com
31 | 2014 CLSA INVESTORS' FORUM
Andrew Nairn
Group Executive Investor Relations
Direct: + 61 8 8116 5314
Email: andrew.nairn@santos.com
Andrew Hay
Manager Investor Relations
Direct: + 61 8 8116 7722
Email: andrew.hay3@santos.com
Nicole Walker
Investor Relations Manager
Direct: + 61 8 8116 5302
Email: nicole.walker@santos.com
Contact information
GLNG, Curtis Island, Queensland