Santos Limited · ASX:STO
Santos — Investor Presentation (July 2003)
20 slides from Santos's investor presentation, July 2003
Slide 1: Santos: Fuelling The Growth Engine – Investor Briefing
Santos: Fuelling The Growth Engine Investor Briefing July 2003
Slide 2: Santos' Vision
Santos’ Vision Past How Future Australian Australian Oil, Oil, Gas Gas & & LNG LNG Gas Exploration Commercialisation Asian Asian Australian Oil Oil & & Gas Gas Gas Onshore Acquisitions Production Optimisation Operator US US Gas Gas Cost Leadership Onshore Onshore Desert Desert Operator Operator Top
Slide 3: Santos' Strategy
Santos’ Strategy Leveraging our Base Business • Skills/cash through Option Generation • Exploration • Gas Commercialisation • Production Optimisation • Acquisitions • Cost Leadership and Portfolio Management • Superior Capital Allocation 3
Slide 4: Progress Since 2000
Progress Since 2000 Production Exploration Gas Acquisitions Costs and Optimisation Commercialisation Capital Efficiency • 200% • 173 mmboe of • 650 PJ of gas • Natural Gas • $78 million of improvement resource contracted Australia savings in 2002 potential (Santos share) achieved end • Esenjay 2002
Slide 5: Santos Today
Santos Today Australian oil and gas Over 6 TCF of gas business resources Cash flow Strong Identified Expanding Exploration/ stability Base Growth New Ventures Business Options portfolio Long-term 4 Flagship contracts, development customer projects relationships Demonstrated Capacity Technical Low co
Slide 6: Santos' Base Business
Santos’ Base Business Australian Gas & Oil Production Sumatra Papua New Guinea Java USA Timor Gap Timor Sea Darwin Darwin Bonaparte Basin Browse Basin Carnarvon Basin Amadeus Basin Alice Alice Springs Springs Surat/Bowen Basins Cooper/ Brisbane Brisbane Eromanga Legend Houtman Basin Basins Perth Per
Slide 7: Australian Gas With Leverage To Oil
Australian Gas With Leverage To Oil Australian Gas Production* (bcf) Mmboe 250 60 5.5 5.4 5.4 50 200 5.4 13.5 12.6 12.2 5.3 40 9.1 150 8.5 37.7 39.7 30 37.0 31.8 34.7 100 20 50 10 0 0 1995 1996 1997 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 Santos BHP Woodside ESSO Liquids Oil Gas * Company
Slide 8: Australian Domestic Gas
Australian Domestic Gas • Cooper Basin - AGL contract, other new base contracts - Strong free cash flow going forward - Targeting flat opex/reduced capex per boe - Well positioned to meet high margin intermediate and peak needs • Other Australian gas - Increasing contributions from other fields - Ea
Slide 9: Oil Optimisation
Oil Optimisation Targeting quick payback Accelerated Cooper Basin Legendre infill Fast track development of small oil discoveries Strong Base Business 9
Slide 10: Bayu Undan Liquids & LNG Project
Bayu Undan Liquids & LNG Project Start Up: 2004 & 2006 East Timor Evans Shoal Joint Petroleum Development Area Bayu Undan Legend JPDA91-12 03-12 Timor Exploration 91-13 JPDA 03-13 Sea acreage Timor Gap Gas pipeline Petrel Proposed Darwin gas pipeline Timor Tern Sea Indian Ocean 0 200 Bonaparte Basin
Slide 11: Mutineer/Exeter Oil Development
Mutineer/Exeter Oil Development Start Up: 2005 • Field Development Plan being finalised • FPSO contract end Santos June 2003 acreage WA-191-P Potential • Development drilling oil field starting first half 2004 Prospect 0 5 • Production planned kilometres Mutineer for mid 2005 • Operator: Santos Exet
Slide 12: Emerging Asian Gas Business
Emerging Asian Gas Business Oyong Maleo • 90 Bcf Gas, 5 MMbbl oil • Potential to supply • FEED completion Q3 2003 100 mmscfd for five plus years on plateau • First gas sales @ 40 MMscfd • First gas sales possible by 2006 scheduled for Q2 2005 • Gas sales HOA under negotiation • Operator: Santos • Of
Slide 13: Gas Commercialisation
Gas Commercialisation PJ Bayu Undan LNG 2003 Priorities: John Brookes (275 PJ) 600 Maleo (225 PJ) Casino (80 PJ) 400 Oyong AGL 200 0 Dec 02 Feb 03 Jun 03 Identified Growth Options 13
Slide 14: Growing Gas Opportunities
Growing Gas Opportunities Legend Gas pipeline Proposed Oyong Maleo Hides gas pipeline Bayu Undan Evans Shoal Existing gas fields Petrel/Tern Committed gas projects John Brookes Future East Spar Amadeus gas projects Basin Surat/Bowen Cooper Basins Basin Otway Basin Patricia Baleen 0 1000 Sole/Golden
Slide 15: New Exploration Acreage
New Exploration Acreage Popodi Popodi PSC PSC Bawean 1 PSC Papalang Papalang East Java PSC PSC Kutei Basin Woodbine WA-338-P Trend PELA 114 Texas Browse Basin Gulf of Cooper Basin Mexico Legend WA-339-P Duntroon Otway Basin VIC/P51 VIC/P51 Basin VIC/P52 VIC/P52 Oil EPP 32 Houtman Basin T/32P T/32P G
Slide 16: Key Remaining Exploration Wells
Key Remaining Exploration Wells Kutei Prospect Mangga East Java Kutei Basin Woodbine Trend Charlemagne 1 Gulf of Mexico Chiru 1 Carnarvon Basin Legend Oil Lead G Lead A Gas Otway Basin Identified Growth Options 16
Slide 17: Financial Strategy
Financial Strategy Strong Ratios Deep Deep Capital Organic Organic Discipline Growth Growth Inventory Inventory Portfolio Management Demonstrated Capacity 17
Slide 18: Focus On Margin
Focus On Margin New Target (A$ million cumulative) End 2003 100 Capital Costs 90 Operating 80 Market Costs Commitment 70 End 2003 60 50 40 30 20 10 0 Mar Jun Sep Dec Mar Jun Sep Dec Demonstrated Capacity 18
Slide 19: Changing The Culture
Changing The Culture Geoscience employee turnover 25% 22% 20% 15% 10% 5% 4% 0% 2001 2002 19
Slide 20: Santos Today
Santos Today • Strong base business with growing cash flow • Strong dividend yield • Meeting near term challenges through production optimisation • Quality flagship growth projects • Quality exploration and gas portfolio to drive future projects 20