The JP Morgan Australasian Conference 2009 – … JP Morgan Australasian Conference 2009 –...
Transcript of The JP Morgan Australasian Conference 2009 – … JP Morgan Australasian Conference 2009 –...
Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001
Telephone: +61 8 8116 5000 Facsimile: +61 8 8116 5131 www.santos.com
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Media enquiries Investor enquiries Matthew Doman Andrew Nairn +61 8 8116 5260 / +61 (0) 421 888 858 +61 8 8116 5314 / +61 (0) 437 166 497 [email protected] [email protected]
8 October 2009
The JP Morgan Australasian Conference 2009 – Presentation Slides
Please find attached presentation slides which were presented at the JP Morgan Australasian
Conference held in Edinburgh on 8-9 October 2009.
Ends.
1
Investor PresentationOctober 2009
2
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 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.
3
Securing our Energy Future
Natural gas can meet new base load power generation requirements in Eastern Australia:- Lowering the carbon intensity of power generation by up to 70%- Significantly lowering power generation’s water use by up to 99%
that of coal
Eastern Australian gas reserves continue to grow:- A global resource base in close proximity to key markets, situated
within an integrated energy market
Australia will be a key player in meeting Asian LNG growth- Enhancing Australia’s role as a strategic supplier of energy resources
Natural Gas will play a vital role in meeting the energy requirements for Australia and the Asia Pacific region…
4
Global Natural Gas Production
5
Natural Gas – Australia’s strategic advantageOn 2008 consumption levels, eastern Australia has over 400 years of possible CSG resources alone …
Australian domestic gas demand: > 1.1 Tcf pa
Eastern Australian gas demand: 0.62 Tcf pa
Remaining EA Potential Resource: ca. 42.8 Tcf
EA 2P reserves increased by 60.7% from Dec 07 to Mar 09
CSG Production increased by 17.7% in the 12 months to March 2009
Gas Pipeline
Moomba Hub
Gladstone LNG
Reserve / Resource Size
2008 Gas Consumption
200+ Tcf
CSGResourcePotential250+ Tcf
0.62Tcf
10+Tcf
ResourcePotential25+ Tcf
0.39Tcf
6
Canada
Qatar
US
Russia
Iran
ME
Nigeria
Algeria
Indonesia
Malaysia
17
16159
743 177
300
90
164
Proven gas reserves (bboe)
Proven oil reserves (bbl)
Unconventional gas (bboe) economically recoverable
Proven unconventional oil (bbbl)
*3P
40
CSG +40bboe Resource potential
20*
37
33
28
Eastern Australia Coal Seam gas: A globally significant play
1970
Russian
2007
Map: BP statistical review, June 2007, journalsPie Chart: Adapted from PFC Energy
Partial list for comparisonSoviet NOC
Full IOC Access (85%)
IOC
NOC Reserves(78%)
7
The Santos Strategy
Base business Eastern Australia: Margin growth and resource conversion Indonesia: Steady business with incremental growth WA & NT: Exploit asset position
LNG growth GLNG: The leading CSG to LNG project PNG LNG: On track for 2009 FID Darwin LNG: Mature brownfield LNG growth Bonaparte LNG: Innovative floating LNG project
Focused growth in Asia India/Bangladesh: Bay of Bengal exploration-led growth Vietnam: Develop Chim Sao and exploration-led growth
Using quality assets, Santos will safely deliver:
8
Strategy delivery in 2009
Marketing key terms agreed for 6.3mtpa LNGApproval for early works
PNG LNG
Successful $3 billion equity raisingFunding for growth
Binding HoA with PETRONAS for 2mtpa with 1mtpa option underpins first LNG trainEIS lodged, public consultation period ended 17 AugustFEED studies commencedFairview produced water approval
GLNG
DeliveryTarget
Oyong Phase 2 (Indonesia) – first gas 3Q09Henry (Vic) – first gas 1H10Kipper (Vic) – first gas 1H11Reindeer (WA) – first gas 2H11
Next phase of projects on schedule
Acquisition of additional acreage and investment in ESG$300 million in asset sales executed including Petrel/Tern/Frigate
Portfolio management
26.6 mmboe in first half, on track for full year guidance2009 production 53 – 56 mmboe
Bas
e B
usi
nes
sLN
G G
row
thA
sia Bay of Bengal 3D seismic survey completedIndia / Bangladesh
Chim Sao reservoir and facilities studies complete, assessing options for FPSO, target first oil in 2011
Vietnam
9
Profits impacted by lower oil pricesChange on 20082009 Half Year Result
Oil Price A$73.28 per bbl (39)%
Production 26.6 mmboe (4)%
Sales Revenue $1,024 million (26)%
EBITDAX $647 million (37)%
Net Profit After Tax $102 million (66)%
Operating Cash Flow $499 million (20)%
Interim Dividend 22 cents per share unchanged
10
2P Reserves (mmboe)
0200400600
Track record of reserves growth
643774 819 879
1029
378%
549%exclGLNGsale
277%247%
5-Yr CAGR = 12%Impressive & consistent growth in both 2P and 2C Proven and probable (2P) reserves now exceed
1 billion barrels of oil equivalent (boe) 2008 2P reserves replacement ratio of 347%,
or 517% if GLNG selldown excluded 2P reserves replacement cost $5.90/boe Contingent resources increased by 254 million
boe to 2.85 billion boe Major contingent resource booking in the
Cooper Basin for unconventional reservoir gas and closer spaced drilling into conventional reservoirs
Material size of resources “cupboard” relative to company size
Management team focused on continuing track record of contingent resource commercialisation
643774 819 879
1013
8001,0001,200
2004 2005 2006 2007 2008
2C Resources (mmboe)
0500
1,0001,5002,0002,5003,000
2004 2005 2006 2007 2008
5-Yr CAGR = 19%
1443
19712248
25952849
11
Santos “Beyond the 2P”
Cooper Tight Gas – next phase of unconventional growth
Cooper Gas – opportunity from improved recovery as prices re-rate
Cooper Oil – pursue high value scalable exploitation opportunities
Tirrawarra Oil / MCS1 –application of global technology to
local opportunity
Infrastructure – utilising footprint as gas market decouples
Asian GrowthLNG
Australia & Indonesia Base
GLNG – continuous multi-TCF reserves bookings, exploiting world class scalable CSG assets with leading LNG partner
PNG LNG – Expansion opportunities
Burnside – good prospect in great neighbourhood
Bonaparte LNG – Partnership with GDF SUEZ to develop FLNG
Near-term oil and gas development in Oyong and Wortel
Multiple TCF gas prospects in Bay of Bengal
Near term oil development in Chim Sao/Dua
Significant oil prospects in Vietnam
PNG LNG – significant project underpinned by world class gas reserves
Volume growth –gas-fired power generation in CO2 constrained world
Margin growth –carbon driven fuel switching & LNG export
Gunnedah – future growth from multi-TCF quality assets
12
Growth in LNG
12
13
LNG is a key component of Santos’ Growth Strategy
Strategy Components
Darwin LNG Commenced production
in 2006 3.25mtpa single train Santos 11.4%
GLNG Leading CSG to LNG On track for FID 1H10 3.5mtpa first train 2 train FEED Santos 60%
PNG LNG On track for FID 4Q09 6.3mtpa two trains Santos 13.7%Deliver the
Base Business
LNG Growth
Focused growth in Asia
Bonaparte LNG 2mtpa FLNG Santos 40% with carry to FID
14
Gladstone LNG
15
GLNG: The Leading CSG to LNG Project
Freehold land for liquefaction plant
Pre FEED work completed
PETRONAS selected as partner
LNG marketing well underway
Reserves build on track
Downstream FEED entry
EIS lodged, public comment period ended 17 August
Fairview produced water approval
Pipeline FEED entry
Binding offtake agreement with PETRONAS for 2mtpa plus 1mtpa
Upstream FEED entry
Final Investment Decision (FID)
First LNG
Momentum building towards FID in first half of 2010
3Q 09
1H 10
2014
1H
20
09
16
GLNG: Upstream update Wells
- 90 CSG wells drilled so far this year Production
- Phase 2 Fairview expansion commissioned- Fairview exceeded 100TJ/d for first time
Environment- EIS lodged in March, public comment
period ended 17 August- EPA approval for innovative Fairview
irrigation project for forage cropping and hardwood plantation
Upstream FEED- Dual FEED contractors appointed- FEED entry 3Q09
Reserves- 3,246PJ 2P reserves as at 31 Dec 2008- 2009 reserves build on track- Next reserves report early 2010
17
GLNG: Downstream update Curtis Island site
- EIS application for 10mtpa capacity (3 trains)
Downstream FEED- Bechtel appointed- 2-train FEED 40% complete- Curtis Island geotechnical site
survey work complete Pipeline FEED
- GHD appointed- FEED 50% complete
Marketing- Binding offtake agreement with
PETRONAS for 2mtpa plus 1mtpa at GLNG sole option
- Ongoing discussions with other Asian customers
18
0
2,000
4,000
6,000
2007 20081P 2P 3P
GLNG: Building the reserves
95% of 2P reserves uncontracted and available for GLNG project
2008 program successful in converting resources to reserves, and conversion of possible to proved and probable
2P reserves up 142% to 3,246PJ
GLNG JV CSG Reserves (PJ)
6,0006,000
4,0004,000 3,2463,246
1,1671,1671,3441,344545545
Injune
Roma Wallumbilla
WandoanScotia
Taroom
Emerald
Gladstone
FairviewFairview
RomaRoma
ProposedPipelineProposedPipeline
GLNG JV acreageOther Santos acreage
50 Km
ArcadiaArcadia
19
PNG LNG, Darwin LNGand Bonaparte LNG
19
20
PNG LNG on Track for 4Q 2009 FID Pre FEED work on two train
6.3mtpa plant Marketing Representative
Agreement Coordinated Development and
Operating Agreement Gas Agreement Front End Engineering Design Entry
Decision Project finance progressing well EIS submitted Marketing key terms agreed for
6.3mtpa Approval for early works Landowner Agreements Final Investment Decision First LNG
3Q 09
4Q 092013/14
1H
20
09
21
Darwin LNG & Timor/Bonaparte/Browse
Darwin LNG
Santos 11.4%
Base project continues to deliver with potential upside unfolding
Timor Bonaparte
Santos has material contingent gas resource to support new LNG development
New LNG development may involve multiple regional assets
Browse
Burnside-1 discovery
LegendSantos acreageOil fieldGas field
Oil pipelineGas pipelineProposed pipeline
NorthernTerritory
WesternAustralia
DarwinIndianOcean
EvansShoal
PetrelTern
Barossa
Bayu-Undan
Ichthys
Caldita
Multiple pathways to growth
22
Strategic partnership with GDF SUEZ
NorthernTerritory
WesternAustralia
DarwinPetrel
TernFrigate
Barossa
CalditaEvans Shoal
Bayu-Undan
NT/RL1
NT/P61NT/P48
NT/RL1
WA-27-RWA-6-R
JPDA 03-12
AC/L1AC/L2AC/L3
Jabiru
ChallisCassini
WA-274-P
WA-281-PWA-411-P
Ichthys
Timor Sea
IndianOcean
LegendSantos acreageSantos/GDF SUEZ acreageOil fieldGas fieldGas pipeline
Santos has sold 60% of Petrel/Tern/Frigate to GDF SUEZ for up to US$370 million and a full carry of Santos’ share of costs to FID including 2 appraisal wells
The fields have a gross contingent resource of 2.1tcf – ideal size for FLNG
Consistent with Santos’ corporate strategy:- Unlocks value in contingent resources- Partner with world class companies- Deepening our LNG growth options
Santos retains a 40% interest in the Evans Shoal, Barossa and Caldita fields
Unlocks value in 2.1 tcf contingent gas resource
Santos retains approximately 70% (500mmboe) of its total Bonaparte Basin 2C contingent resource.
Continuing to progress options for commercialisation of the Evans Shoal, Barossa and Caldita fields.
23
Burnside-1 – Great street address
WA-281-P
BurnsideBurnside--11
WA-411-P
WA-274-PWA-410-P
WA-274-P
WA-274-P Concerto
Mimia Echuca Shoals
Ichthys
ArgusCrux
Montara
Psepotus
Arquebus
CallianceBrecknock
Torosa
Poseidon
Gwydion
Caswell
LegendSantos acreageOil fieldGas field
121˚ 122˚ 123˚ 124˚ 125˚
-13˚
-14˚
-15˚
0 20 40 60 80 100
Kilometres
Territory of Asmore& Cartier Islands
Western Australia
Mapped Area
Cornea
24
Coal Seam Gas Assets
24
25
Queensland
New South Wales
Brisbane
Gladstone
GunnedahBasin
SuratBasin
BowenBasin
Newcastle
Santos’ Leading CSG Acreage PositionDenison
6,500 km2 (gross)
Exploration stage
Greater Roma
7,700 km2 (gross)
High quality resource
Active pilot programme
Gunnedah
45,000 km2 (gross)
30+ core hole & lateral pilot well programme
Leverage to NSW markets or potential longer term LNG
Greater Scotia
2,500 km2 (gross)
27 TJ/d production
Production since 2002
Greater Fairview
7,300 km2 (gross)
115 TJ/d production
Active development & appraisal programme
LegendGLNG acreageCSG operated acreageCSG non-operated acreageOil pipelineGas pipelineProposed gas pipeline
26
Acceptable Good
Santos CSG assets are world class
??? ?Gunnedah
Scotia
Coal Thickness
Black Warrior
Powder River
San Juan
Roma
Fairview
GIP/WellSpacingFlow RateSaturationPermeabilityGas ContentField
Source: JPT February 2008, Santos
Best in class Santos assets
…while Gunnedah is emerging
Fairview and Roma will supply GLNG…
27
0
20
40
60
80
100
120
140
160
180
May
-05
Aug-
05
Nov
-05
Feb-
06
May
-06
Aug-
06
Nov
-06
Feb-
07
May
-07
Aug-
07
Nov
-07
Feb-
08
May
-08
Aug-
08
Nov
-08
Feb-
09
May
-09
Aug-
09
Fairview, Scotia & Roma Sales Gas
Production DeliveryFairview production has reached 115TJ/d…
...establishing a new benchmark in Santos’ CSG production
Santos’ Operated CSG Sales Production Growth
Compressor Site 3 & Increased Water
Capacity Operational
Compressor Site 2
Expansions
Fairview-Wallumbilla Pipeline Tie-in &
Compressor Site 2 ExpansionCompleted
Tipperary Acquisition
Scotia Shutdown for Routine
Maintenance
TJ/d
28
0
1
2
3
4
5
6
7
8
9
10
11
12
13
Gas
Pro
duct
ion
Rat
e (M
Mcf
/d)
Well Production Comparison
End first quarter 09 production rate
End third quarter 09 production rate
Fairview wells
29
Fairview 18X
0
1000
2000
3000
4000
5000
6000
7000
8000
97 98 99 00 01 02 03 04 05 06 07 08 09
Mcf/d
0
1000
2000
3000
4000
5000
6000
7000
8000bbls/d
Produced Gas Mscf/d Produced Water bbl/d
Fairview ProductionProduction from the First 10 Fairview Wells
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08Gas
Pro
duct
ion
(Msc
f/d)
, W
ater
Pro
duct
ion
(bw
pd)
Total Water (bpd) Total Gas (Mscf/d)
Fairview 73
0
2
4
6
8
10
12
14
Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09M
Mcf
/dProduced Gas MMscf/d
Fairview Sales History 1998 - 2009
0
20
40
60
80
100
120
140
98 99 00 01 02 03 04 05 06 07 08 09
TJ/d
0
20
40
60
80
100
120
140Kbbls/d
Sales Gas (TJ/d) Produced Water (kbbl/d)
30
CSG Drilling Highlights
Since January 2009- 111 wells drilled- 18 exploration and 43 appraisal
wells in GLNG areas- 28 development wells in GLNG
areas- 21 exploration and 1 appraisal
wells drilled in non-GLNG acreage 11 rigs in operation sufficient for
business Record drilling times achieved
Extensive drilling activity in half year…
…on track to exceed 2008 total wells drilled
Other Achievements
Successfully commissioned two new rigs
Deepest corehole drilled by Santos at 1,435m
Drilling time savings from technology developments
Successfully installed 33 piezometers
Over 80km of hole drilled including +9km of core retrieved
Two rigs record 12 months without recordable incidents
31
Managing Coal Seam Gas Water
3 Pronged Strategy- Irrigation- Injection- Reverse Osmosis
Irrigation- 887,000 trees planted
to date - Targeting 1.2m trees
receiving 12.2 ML/day
Diversified water management strategy is being implemented
Irrigation
Cropping
Reverse Osmosis
32
Eastern Australia Gas
33
600
800
1000
1200
1400
1600
1800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PJ/a
Demand for Eastern Australia gas
10 Year Historic Average
Demand will more than double within 10 years…
…driven by government carbon policy and LNG export
Source: NEMMCO, Santos, company announcements
PlannedLNG
Projects
Carbon driven fuel switching
34
Gas power generation …underutilisedGas is underutilised in Eastern Australia for electricity generation
Gas Penetration as % of Power Generated
Source: IEA 2007 Edition; EIA; Santos
8.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Singa
pore
Thail
and
Malays
ia
Nether
lands
Italy UK
New Ze
aland
Japa
n USKo
rea
German
yIn
dia
Austr
alia
Cana
da
Fran
ceCh
ina
8.6%1.5%
1.0%
5.7%9.0%
36.6%
56.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Austr
alia
NSW
/ AC
TVI
CTA
SQLD
WA
/ NT SA
35
8
Enviable existing gas infrastructure
Source: Santos
Supply and demand centres are effectively networked
Further investment is needed to enhance deliverability from some emerging supply areas
Tasmania
Brisbane
Sydney
Canberra
Mt Isa
Longford
Culcairn
Melbourne
Gunnedah
Adelaide
Gladstone
Ballera
Moomba
Roma
Townsville
Wallumbilla
Fairview
Emerging Supply
Supply Point
Pipeline
36
Unconventional Cooper gas resources
USA unconventional gas production has doubled since 1992
STO mean contingent resource >4 TCF
High graded 3 play types coincident with conventional reserves in Moomba
5 “tests of concept” projects- Gas saturation in all 3 plays- Moveable gas in 2 plays -1 yet
to be tested - Expenditure to date is $30m
Deep coal frac flowing gas to surface
590 mmboe contingent resources booked in 2008 14.
GR
OS
S G
AS
TH
ICK
NES
S 1
,60
0 FE
ET
TOOL DARA
ROSE EPSI MTRE
PATC
GRANITE
Shale Gas
Tight Gas
Moomba
Undeveloped Unconventional
Gross gas thickness ~1600 feet
Developed Conventional
Deep Coal
Measured and considered program to define potential
Moomba 77 – Coal Frac, 100,000 scf/d, 9000 ft
37
Leading position in Gunnedah Basin
ESG operated areas (STO 48%)1
- 9 coreholes drilled of 20 well programme
- Stepping out exploration and appraisal in PEL 238
- Successful trials of horizontal well technologies
- 79% upgrade in 2P reserves to 602PJ and 51% upgrade in 3P reserves to 1,959PJ announced 19 August 2009
STO operated areas (100% and earning up to 65%)- Initial exploration phase- 15 of 23 coreholes drilled- 3 drilling rigs operating- 525 km seismic acquired
Basin master position in quality basin with >50 tcf prospective potential
50km
LegendSantos operated acreageEastern Star operated acreageGas pipelineProposed gas pipeline
NewSouth Wales
Narrabri
Dubbo
Gunnedah
Tamworth
PEL434
PEL450PEL
462
PEL12
PEL 238
PEL 433
PEL456
PEL 1
PPL 3PAL 2
PALA 5PEL 452
Newcastle
Wilga Park Power Station
1 Santos 48% economic interest calculated as 35% direct interest plus 19.99% of ESG’s 65% interest
38
Proposed Shaw River Power Station
Proposed 500MW CCGT first phase, expandable to 1500MW Environmental Effects Statement being
finalised for submission in Q4 2009 Pipeline route and ecological surveys
completed CCGT and Pipeline tendering process
commenced with EOI completed Gas supply for project from Santos’ gas
portfolio Water supply and waste agreements
being finalised by Q4 2009 FID revised to de-risk project pending
environmental & other approvals and CPRS certainty
On track for FID in 2nd half 2010 and first power generation in 2013
WarrnamboolPort Fairy
Orford
Willatook
Mortlake
TerangCamperdown
Timboon
Port Campbell
Koroit
Allansford
Proposed Shaw RiverProposed Shaw RiverPower Station SitePower Station Site
Proposed Pipeline Route
VictoriaVictoria
0 15 km Bass Strait
39
2008 gas and condensate production 5 mmboe
Established infrastructure
John Brookes ramp-up: 200PJ uncontracted 2P reserve
Reindeer development underway
Spar/Halyard - near field opportunities
>AUD$800m new gas sales entered into in 2009. More expected to follow.
WesternWesternAustraliaAustralia
100km100km100km100km
Reindeer
FletcherMutineerExeter
John Brookes
LegendSantos Acreage Oil FieldGas Pipeline Gas Field
Barrow Island
Thevenard Island
Legendre
Western Australia Domestic Gas
Santos portfolio is well placed to supply the WA domestic market
40
2009 Half Year Results
40
41
Reported & underlying profits
0
40
80
120
160
200
240
280
320
Reported NPAT: 1st half Underlying NPAT: 1st half
2008 2008 20092009
304
102 102(20)
(161)283
otherprices & fx
$m
42
EBITDAX
0
200
400
600
800
1000
1200
1,032
Prices
(312)
Mix
(48)
Operating Costs
17
Gas Purchases
(35)
Other
(7) 647
1st half 2008
Average cash margin $37.66 per boe
1st half 2009
Average cash margin $22.31 per boe
$m
Lower prices and lower value product mix reduced price by $15 per boe
Operating costs lower due to royalties which are linked to prices
Higher gas purchases due to PETRONAS equity gas in GLNG
Total cash operating costs increased by $0.40 per boe
Cash margin deterioration limited to fall in selling prices
43
Eastern Australia 318 451 (29)WA&NT 285 474 (40)GLNG 8 38 (79)Asia Pacific 64 102 (37)Corporate and unallocated items (28) (33) 15
TOTAL EBITDAX 647 1,032 (37)
Eastern Australia | Lower liquids prices and production volumesWA&NT | Higher gas volumes but lower liquids prices and productionGLNG | Expanding field operations increasing production costsAsia Pacific | Higher gas production, lower liquids prices and volume
Segment EBITDAX Summary
Segment$m
Half Year Half Year Change2009 2008 %
44
2009 guidance
No change$1,600 millionCapital expenditure (including exploration & evaluation)2
No change$80 to $100 million (after tax)
Royalty related taxation expense1
$12.20 per boe$12.80 per boeDepreciation, Depletion & Amortisation (DD&A) expense
No change$550 - $570 millionProduction costs
No change53 – 56 mmboeProduction
UpdatedGuidance
PreviousGuidance
Item
1 Royalty related taxation expense guidance assumes an oil price of A$75 per barrel which is consistent with analyst consensus forecasts for 2009.
2 Capital expenditure guidance includes $180 million for exploration.
45
Reference slides
46
East Java
Surabaya
OyongMaleo
Java Sea
Sampang PSC
MaduraOffshore PSC
Indonesia – Oyong & Wortel
Oyong Phase 1 (oil)- First oil achieved in September
2007
Oyong Phase 2 (gas and oil)- 60km pipeline to Grati - Gas sales to PT Indonesia Power- Engineering and construction
complete- First gas September 2009
Wortel- Potential tie back to Oyong- Plan of Development being
negotiated with regulator(BPMIGAS)
- First gas targeted in early 2011
LegendSantos acreageOil fieldGas field
Oil pipelineGas pipeline
47
Vietnam
Prospective, lightly explored basins
Multiple, material play types
Oil and gas potential
Rapidly growing markets
Strong regulatory regimePhu KhanhBasin
Nam ConSon Basin
Song HongBasin101-100/04 PSC
123 PSC
12W PSC
ChinaVietnam
Thailand
LaosBurma
Cambodia
South ChinaSea
LegendSantos acreage
48
Vietnam – Nam Con Son Basin
Chim Sao/Dua- Santos 31.875% following PVN
back-in- Premier Oil operator- Reservoir and facilities studies
complete - Assessing options for FPSO- Target first oil in 2011
Two oil discoveries
LegendSantos acreageOil fieldGas field
ProspectGas pipeline
12W PSC
Chim Sao oil discovery
Dua oil discovery
South ChinaSea
ChimUng
Chim Cong
Swan Nam Con Son Basin
49
Bay of Bengal – India / Bangladesh
Material Gas targets
Enormous, underexplored, prospective tertiary delta near rapidly emerging markets
India- PSC’s signed March 2007- Processing of 2D seismic survey
completed- 4000 km2 3D seismic survey acquired –
currently interpreting
Bangladesh- Acquisition of interests Oct 2007- Production optimisation at Sangu- 3D seismic survey considered for late
2009 subject to resolution of commercial discussions
LegendSantos acreageApplication blockGas field
Oil pipelineGas pipeline
India
Bangladesh
India
BurmaBay of Bengal
Sangu
50
P&A Q2 0970OilFergana / KyrgyzstanNorth Ayzar 1
Q3 09
Q3 09
Q2 09
Q1 09
Q1 09
Timing
Drilling70OilFergana / KyrgyzstanHuday Nazar 1
P&A Gas discovery47.8GasBrowse /
AustraliaBurnside 1
Gas discovery67.5GasEast Java /
IndonesiaPeluang 1
P&A with full carry40OilGulf of Suez /
EgyptSouth East July 1
P&A with gas shows55GasSong Hong /
VietnamHa Mai 1
%100 -500
50 -1000 – 50
CommentsSantosInterest
Upside Resource Potential (mmboe)TargetBasin / AreaWell Name
2009 Forward Exploration Schedule
The exploration portfolio is continuously being optimised therefore the above program may vary as a result of rig availability, drilling outcomes and maturation of new prospects
51
2009 Capital expenditure outlook
2009 2008(A$ million)
5476Acquisitions
(2,052)(304)Disposal proceeds1
1,5001,600Capital expenditure
1 (pre tax, reported to date for 2009)
52
2009 Second Half Sensitivities
Sensitivity Change NPAT Impact A$m
US dollar oil price US$1/bbl 8
Gas price 10 cent/GJ 9
A$/US$ exchange rate 1 cent 5
Interest rates 1% 3
53
Oil Price A$/bbl
40
60
80
100
120
140
160
180
Jan 09Jan 08
1st half 2008 1st half 2009
Average: A$120.51
Average: A$73.28
A$/b
bl
Current A$84.55
Jun 08 Jun 09
54
Contact Information
Registered and head officeShare RegisterAdelaideGround Floor, Santos Centre60 Flinders StreetAdelaide, South Australia 5000GPO Box 2455Adelaide, South Australia 5001Telephone: +61 8 8116 5000Facsimile: +61 8 8116 5050
Useful email contactsShare register enquiries:[email protected]
Investor enquiries:[email protected]
Andrew NairnGroup Executive Investor RelationsLevel 10, Santos CentreDirect: + 61 8 8116 5314Facsimile: +61 8 8116 5131Email: [email protected]
Brooke HannInvestor Relations AnalystLevel 10, Santos CentreDirect: + 61 8 8116 7227Facsimile: +61 8 8116 5131Email: [email protected]
Website:www.santos.com