Santos Limited · ASX:STO
Santos — APPEA Investor Briefing 2013
32 slides from Santos's conference presentation, May 28, 2013
Slide 1: APPEA Investor Briefing
APPEA Investor Briefing 28 May 2013 1
Slide 2: Disclaimer & important notice
Disclaimer & 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 cou
Slide 3: Western Australia & Northern Territory Business Unit
Western Australia & Northern Territory Business Unit 3
Slide 4: WA&NT – delivery today/growth for tomorrow
WA&NT – delivery today/growth for tomorrow Highest ever production from Carnarvon Basin in 2012, driven by Reindeer and Domestic Spar Gas Winchester and Bianchi (Zola appraisal) drilling underway, success will offer multiple growth options Fletcher Finucane now in production, on Carnarvon budget and
Slide 5: Fletcher Finucane - delivery today
Fletcher Finucane - delivery today First oil 20 May 2013 ahead of schedule and on budget Oil currently flowing from three subsea wells at a gross production rate of 17km 45,000 bbl/day 14km Forecast average gross production rate of 15,000bbl/day in the first 12 months Gross proved and probable Finuc
Slide 6: Fletcher Finucane – discovery to first oil in < 2 years
Fletcher Finucane – discovery to first oil in < 2 years Well heads for Critical path Spud first Project development LLI ordered development Install initiation ordered well pipelines First oil 2011 2012 2013 7 Months 16 Months Finucane South discovered Final Investment Decision 6
Slide 7: Greater Mutineer Exeter Area – ongoing plans
Greater Mutineer Exeter Area – ongoing plans FPSO Window for future tie-backs to further extend refurbishment in field life Singapore Drill Vanuatu prospect 3 well work-over campaign 2013 2014 2015 2018 Fletcher Finucane extends Mutineer Exeter production to at least 2018 Mutineer Exeter forecast pr
Slide 8: Northern Australia – future growth for Santos
Northern Australia – future growth for Santos Timor Bayu Undan: Detailed design Joint Petroleum underway for Phase 3 offshore Development Barossa: Rig secured for drilling program Area appraisal campaign and concept studies underway Fisburne (459-P): Seismic acquired, and processing underway Darwin
Slide 9: Browse – Crown success unlocks material play
Browse – Crown success unlocks material play Crown gas–condensate Prospect “D” Dufresne discovery (Santos 30%) Bassett West Under-construction pipeline - Contingent recoverable resource estimate range Astrolabe Grande 0.5 to 5 Tcf Bassett West-1 exploration WA-274P well (Santos 30%) drilling ahead,
Slide 10: Bonaparte LNG – on track for FEED
Bonaparte LNG – on track for FEED Santos (40%) and GDF SUEZ (60%, Operator) Development of Petrel, Tern and Frigate fields located 250km west of Darwin in the Timor Sea Floating LNG technology, producing between 2 to 3 mtpa - Steel double-hull floating facility, 400m long and 70m wide with project l
Slide 11: Caldita Barossa – concept studies underway
Caldita Barossa – concept studies underway New partnership with SK E&S to progress Caldita Barossa appraisal and development - Santos (25%), ConocoPhillips (37.5%, operator) and SK E&S (37.5%) SK E&S to fund up to US$520 million in joint venture appraisal drilling, pre-FEED, FEED and milestone payme
Slide 12: McArthur Basin Shale – major new play for Santos
McArthur Basin Shale – major new play for Santos Interest in approximately 25,000 square kilometres Darwin LNG Farm-in with Tamboran earned an initial 50% operated interest in four permits, option to Ichthys LNG increase equity to 75% Darwin Gove Wickham Point Proven sub-basin EP 189 - Shenandoah-1
Slide 13: WA&NT – delivery today/growth for tomorrow
WA&NT – delivery today/growth for tomorrow Highest ever production from Carnarvon Basin in 2012, driven by Reindeer and Domestic Spar Gas Winchester and Bianchi (Zola appraisal) drilling underway, success will offer multiple growth options Fletcher Finucane now in production, on Carnarvon budget and
Slide 14: Questions
Questions 14
Slide 15: Eastern Australia Business Unit
Eastern Australia Business Unit 15
Slide 16: Key Messages
Key Messages Commercialising world class unconventional resources across Central Australia 2013-14 focus on building base gas capacity and to ensure ongoing Cooper Gas in reliability of existing facilities transition to meet 2015 growth Transitioning from a decade of decline to deliver 30% productio
Slide 17: EABU key themes
EABU key themes 1. Cooper Gas in transition to meet 2015 growth 2. Santos is uniquely positioned for Cooper unconventional resource success 3. Santos’ Narrabri gas project is a significant part of the NSW energy solution 17
Slide 18: Cooper Gas: transitioning from decline to growth
Cooper Gas: transitioning from decline to growth Cooper Gas well-head production capacity step-up of 30% by 2015, reversing a decade of decline Gross Cooper Basin well-head gas production capacity1 mmscf/d 550 +30% 500 450 decline reversal achieved 400 Actual Forecast Actual Forecast 0 Dec-11 Dec-12
Slide 19: Three key Cooper Gas focus areas to meet 2015 growth
Three key Cooper Gas focus areas to meet 2015 growth Focussing on increasing volume and reducing costs to deliver a higher margin business 1. Existing facilities reliability 2. Upstream development Reliability Well-head production capacity Maintenance strategies delivering Growing through increased
Slide 20: Ensuring reliability of existing facilities
Ensuring reliability of existing facilities Cooper Gas unscheduled downtime now below 10% and planned production costs under $10/boe by 2015 Maintenance strategies delivering record facilities utilisation - Unscheduled downtime from >15% to <10% Unscheduled downtime - Moomba loss efficiencies reduce
Slide 21: Transforming to lower cost upstream development
Transforming to lower cost upstream development Increased program of multi-well drills and SIMOPS reduces the delivery time and cost of building production capacity to meet 2015 growth 180 Cooper Gas wells drilled from 2013 to 2015 4 Cooper Gas drilling rigs operational by 2014 Cowralli multi-well p
Slide 22: Cowralli multi-well pad drilling and SIMOPS
Cowralli 16 multi-well pad drilling and SIMOPS Cowralli multi-well drilling & SIMOPS Continuing the cost reduction Multi-well Pad 1 SIMOPS control location transformation journey with Cowralli Building on lessons from Big Lake and Tindilpie multi-well pads Cowralli on schedule with 4 of 16 wells dri
Slide 23: CIEP stage 1 to meet growth contracts
CIEP stage 1 to meet growth contracts Gross Stage 1 spend of ~$800M over 2013-17, flexible with upstream development pace Stage 1 In-field Stage 1 Moomba Gas Plant New satellite compression New Moomba CO2 train Additional compression at four key New (Train 8) 1000 Ktpa of CO2 satellites: removal fac
Slide 24: EABU key themes
EABU key themes 1. Cooper Gas in transition to meet 2015 growth 2. Santos is uniquely positioned for Cooper unconventional resource success 3. Santos’ Narrabri gas project is a significant part of the NSW energy solution 24
Slide 25: Basin Centred Gas
Encouraging progress in Cooper unconventional resources program provides new key insights Short-term Program Milestones Date Key Insights Drill Gaschnitz-1 Feb 2013 Basin Centred Gas Drill Van der Waals-1 June 2013 Nappamerri Trough Basin Centred Gas play now proven Basin Centred Gas Gaschnitz-1 gas
Slide 26: Ability to accelerate unconventional development
Ability to accelerate unconventional development Subject to realising commercial flow rates from exploration and pilot wells, Santos positioned to quickly commence development of its unconventional plays BCG Exploration BCG Production Pilot BCG Accelerated Development 2013 2014-2015 2016+ Prove Sust
Slide 27: EABU key themes
EABU key themes 1. Cooper Gas in transition to meet 2015 growth 2. Santos is uniquely positioned for Cooper unconventional resource success 3. Santos’ Narrabri gas project is a significant part of the NSW energy solution 27
Slide 28: Santos Narrabri development is part of NSW solution
Santos Narrabri development is part of NSW solution Santos can deliver gas to NSW customers during 2016-2019 window… Targeting NSW Minimal Agriculture protected customers environmental impact Phase 1 footprint Phase 1 developing 400 wells over 20 yrs Outside of prime 1,400 PJ at ~100 TJ/d Minimal Pi
Slide 29: Key Messages
Key Messages Commercialising world class unconventional resources across Central Australia 2013-14 focus on building base gas capacity and to ensure ongoing Cooper Gas in reliability of existing facilities transition to meet 2015 growth Transitioning from a decade of decline to deliver 30% productio
Slide 30: Questions
Santos Questions 30
Slide 31: APPEA Investor Briefing
APPEA Investor Briefing 28 May 2013 31
Slide 32: Contact information
Contact information Commercialising world class unconventional resources across Central Australia Head office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Level 10, Santos Centre Adelaide, South Australia 5000 Direct: + 61 8 8116 5314 GPO Bo