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Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000\
GPO Box 2455 Adelaide South Australia 5001
Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723
TO: Company Announcements Office ASX Ltd FROM: Company Secretary DATE: 4 March 2010 SUBJECT: International Investor Presentation – Delivering Transformational Growth Please find attached presentation slides being presented at International Conferences during March 2010. James Baulderstone Company Secretary
1
1
Investor Presentation Delivering Transformational Growth
March 2010
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.
2
3
Santos Overview
1P reserves 647 mmboe2P reserves 1,440 mmboeContingent resources 2,497 mmboe2009 production 54.4 mmboe2009 2P reserve replacement ratio 885%
One of Australia's leading upstream oil and gas companies and has been operating since 1954
Current production is:- ~600 MMscf/d of gas- ~40 kbbls/d of liquids
Employs approximately 2,200 people
Over 110,000 shareholders
Market capitalisation of ~US$10 billion (Feb 2010)
Exposure to LNG facilities and technology through its involvement as a key stakeholder in Darwin LNG, PNG LNG, GLNG and Bonaparte LNG
Regional footprint of operations
Key statistics (YE 2009)
Production
ExplorationOtway Basin
Kyrgyz Republic
Bangladesh
India
Phu KhanhBasin
Kutei Basin
Nam Con Son Basin
East Java BasinWest Papua and Papua New Guinea
Carnarvon Basin
Browse Basin
Timor Sea & Timor Gap
Bonaparte Basin
Amadeus BasinCooper Basin
Surat/Bowen Basins
Gippsland BasinGunnedah Basin
4
The Santos Strategy
Base business Eastern Australia: Margin growth and resource conversion Indonesia: Established business with incremental growth WA: Growing a material domestic gas business
LNG growth GLNG: A leading CSG to LNG project, FID mid-2010 PNG LNG: FID Dec-09, first LNG production mid-2014 Darwin LNG: Mature brownfield LNG growth Bonaparte LNG: Innovative floating LNG project
Focused growth in Asia Vietnam: Develop Chim Sao and exploration-led growth India/Bangladesh: Bay of Bengal exploration-led growth
Using quality assets, Santos will safely deliver:
3
5
Delivering Transformational Growth
FID 8 December 2009 on schedule 6.6mtpa capacity fully contracted
PNG LNG
Successful $3 billion equity raisingFunding for growth
Binding HoA with PETRONAS for 2mtpa with 1mtpa option underpins first LNG train
EIS & Supplemental EIS lodged, public submissions closed 1 Feb 10 FEED studies well advanced, long lead engineering orders placed Fairview produced water approval
GLNG
DeliveryTarget
Oyong Phase 2 (Indonesia) – first gas delivered on schedule Henry (Vic) – first gas 1H10 Kipper (Vic) – first gas 1H11 Reindeer (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
54.4 mmboe in line with 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 project sanctioned - first oil 2H11Vietnam
6
0
200
400
600
800
1000
1200
1400
1600
2004 2005 2006 2007 2008 2009
Base LNG
2P Reserves (mmboe)
Transformational Reserves Growth
5-Yr CAGR = 18%
4
7
30
40
50
60
70
80
2008 2009 2010 2011 2012
Production and sales grow to record levels
2009 production within guidance range
2010 impacted by lower Mereenie (contract expiry post Blacktip) & BayuUndan (35-day shutdown)
New production from sanctioned projects on line from 2011: Kipper, Reindeer & Chim Sao
Third party gas sales a significant new profit centre
Production and Sales (mmboe)
Asset divestment options being reviewed may result in sale of production
Sanctioned projects drive production higher: 7% CAGR 2009-2012
ProductionSales
Sales forecast based on mid-point of annual production range
Range
8
Growth in LNG
5
9
LNG is a key component of Santos’ Growth Strategy
Strategy Components
Darwin LNG Production since 2006 3.6mtpa single train Santos 11.5%
GLNG Leading CSG to LNG 7.2mtpa two trains FID mid-2010 Santos 60%
PNG LNG Sanctioned Dec 2009 6.6mtpa two trains First LNG 2014 Santos 13.5%
Deliver the Base Business
LNG Growth
Focused growth in Asia
Bonaparte LNG 2mtpa FLNG Santos 40% with carry to FID
10
Strong Asia Pacific LNG Demand Outlook
Source: Wood MackenzieOthers includes: Alaska, Trinidad, Egypt, Yemen, UAE, Iran
Australia
Qatar
MalaysiaIndonesia
Russia East
Oman
Brunei
PNG
Others
Uncontracted Demand
LNG Demand
0
50
100
150
200
250
300
2008 2010 2012 2014 2016 2018 2020 2022 2024
LNG
Con
trac
ted
Supp
ly (
mtp
a)
0
50
100
150
200
250
300
LNG
Dem
and
(mtp
a)
6
11
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20 $30 $40 $50 $60 $70 $80 $90 $100
JCC ($/Bbl)
Ex-s
hip
LN
G P
rice
($/M
MB
tu
Source: Poten & Partners
Mid 2006
Late 2005
Late 2006
Early 20052003
2008-09
Ex-S
hip
LN
G P
rice
($
/MM
Btu
)
Asian Term Prices
Oil Parity
Recent contracts point to strong underlying demand
Pricing reflects new supply-demand equilibrium
Long-term Asia-Pacific pricing remains oil-linked
Continue to See Strong Long Term LNG Pricing
US$12.40/MMBtu
12
GLNG®
7
13
The Project – Two TrainsUpstream CustomersLNG Plant
Train 1
Train 2
1 Train: 600 TJ/d
Pipeline Shipping
3.6mtpa FOB
7.2mtpa FOB
Arcadia
Roma
Fairview
2 Trains:1,200 TJ/d
LNGCSG
CSG
Portfolio Gas
Storage
14
GLNG Milestones AchievedGLNG is progressing key milestones
Two trains, five train site
Downstream FEED 90% complete
Upstream FEED 75% complete
Binding off-take agreement
Supplementary EIS lodged - Public submission period closed
Long lead engineering orders placed
Water solution - 1 million trees planted
FID 1st train Mid 2010
First cargo 2014
8
15
GLNG Reserves and Resources
378%
549%exclGLNGsale
277%247%
GLNG has dedicated reserves and resources in excess of 10 tcf
GLNG Dedicated Areas (PJ) 2P reserves exceed
requirement for first train
95% uncontracted and available to project
Dedicated reserves & resources in excess of 10tcf
Portfolio gas provides optionality
GLNG will execute the most capital efficient reserves build
0
2,000
4,000
6,000
8,000
10,000
12,000
GLNG 2P + 2C GLNG 3P + 3C
2P 2C 3P 3C
4,0035,954
10,931
6,772
1,000 PJ = 0.94 tcf
16
GLNG Upstream Update GLNG has a comprehensive program to prove up reserves and deliverability
Well Production ComparisonMarch 2009 vs January 2010
0
2
4
6
8
10
12
Fairview Wells
Gas
Pro
duct
ion
Rate
(TJ
/d)
0
20
40
60
80
100
120
Cumulative R
ate (TJ/d)
March 2009 Gas Production
January 2010 Gas ProductionMarch 2009 Cumulative Gas Rate (TJ/d)
January 2010 Cumulative Gas Rate (TJ/d)
Sales Gas Snapshot:27 March 2009: 91 TJ7 January 2010: 126 TJ
Wells- 130 CSG wells were drilled for
GLNG in 2009- Successful deviated drilling
trials: reduces cost and increases productivity
Environment- Supplementary EIS lodged Dec
09, public submissions closed 1 Feb 2010
- Water management approved. Fairview forage irrigation and hardwood plantation established – 1 million trees planted so far
Upstream FEED- Dual competitive FEEDs 75%
complete- FEED finalisation 2Q10
9
17
GLNG Downstream update
Curtis Island site- EIS application for 10mtpa capacity
(3 trains) Downstream FEED
- Bechtel appointed- 2-train FEED 90% complete- Curtis Island geotechnical site survey
work complete Pipeline FEED
- FEED 90% complete (GHD)- Pipeline tender released
Marketing- Binding offtake agreement with
PETRONAS for 2mtpa plus 1mtpa at GLNG sole option
- Ongoing detailed discussions with other Asian customers for offtake and equity
T1 T2 T3
T4T5
18
Technology innovation will realise value and opportunities
Pad Drilling
2-9 wells/pad
Reduced rig moves
CAPEX and OPEX savings
Facility simplification
Economies of scale
Operator efficiency
Gas to processing station Water to plantation/crops
Pad Drilling
10
19
Roma Storage WithdrawalRoma Storage Withdrawal
Turndown &/or Portfolio Gas Sales
0
600
2010 2014
Gas
sup
ply
(TJ/
d)
Existing Domestic ContractsExisting Domestic Contracts
Roma Storage InjectionRoma Storage Injection
GasProduction
GasProduction
Roma gas storage is integral to ramp gas management
and supports gas supply optimisation
Ramp Gas Strategy
20
PNG LNG, Darwin LNGand Bonaparte LNG
11
21
Papua New Guinea LNG
FID approved on 8 Dec 2009 3 SPAs executed, remaining
one expected to be executed in early-2010 Financial Close 1Q 2010 First sales are targeted for
2014 Santos interest 13.5% Plateau Production of ~9
mmboe pa net to Santos 2P reserves addition 218
mmboe
PNG LNG Project FID approval signals next step in LNG growth strategy
22
Papua New Guinea LNG
Papua New Guinea
LegendSantos acreageOil fieldGas field
Oil pipelineProposed gaspipeline
MarineTerminal
PRL 9PDL 3
PDL 1
Santos’ acreage and infrastructure position provides opportunity for further growth
100km
Hides
LNG Plant
Port Moresby
Gulf of Papua
First redetermination to follow Hides drilling in 2012/13
Debottlenecking has the potential to increase off-take
3rd train alternatives being considered
- Hides drilling results could be key driver
12
23
Santos’ first producing LNG asset
Santos interest 11.5%
Bayu Undan- producing ~1.1bcf raw gas per day (gross)- Approximately 103,000 bbl/d liquids (gross)
DLNG 3.5mpta plant- Turbine upgrade during 2010 statutory
shutdown to increase to 3.6mtpa
Base project continues to deliver with potential upside unfolding:- Third Party Gas - Phase 2 Drilling campaign
2010 planned shutdown; 35 days in 2010 will reduce production and increase production cost for the year
Bayu Undan / Darwin LNG
24
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
The fields are an ideal fit for FLNG:- Low in CO2- Low in liquids- Material resource size (~2.1 tcf)
Executing on strategy:- Unlocks value in contingent resources- Partner with world class companies- Deepening our LNG growth options- Use new technology
Transaction completed Jan 2010
GDF SUEZ and Santos establishing project team in Perth
Partnership with GDF SUEZ unlocks value in 360mmboe of contingent gas resource
Santos retains approximately 70% (500mmboe) of its total Bonaparte Basin 2C contingent resource.
Bonaparte LNG
13
25
WA-281-P
WA-411-P
WA-274-PWA-410-P
WA-274-P
WA-274-P Concerto
PreludeEchuca Shoals
Ichthys
ArgusCrux
Montara
Arquebus
CallianceBrecknock
Torosa
Poseidon
Gwydion
Caswell
LegendSantos acreageOil fieldGas field
0 20 40 60 80 100
Territory of Asmore & Cartier Islands
Western Australia
Mapped Area
Cornea
Burnside
IchthysNorth
Exploration success
Burnside Discovery
in a great street addressPsepotus Kilometres
26
Australia Domestic Gas
14
27
Gas is an Underutilised Fuel for Power Generation in Australia
Source: IEA 2007 Edition; EIA; Santos est.
0%10%20%30%40%50%60%70%80%90%
Singa
pore
Thailan
d
Malaysia
Califo
rnia
Italy UK
Japa
n NZ USKo
rea
Germ
any
Austr
alia
India
Cana
daCh
ina
Power Generated from Natural Gas (%)
28
0
400
800
1200
1600
2000
2400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PJ/a
Demand for Eastern Australia Gas
10 Year Historic Average
Demand will nearly triple within 10 years…
…driven by LNG export and carbon policySource: AEMO, EnergyQuest, Santos, Company Announcements
PlannedLNG
Projects
Carbon driven fuel switching
15
29
In every producing basin
Infrastructure network in place
Arbitrage value across supply points
Facilitates ramp gas management
Santos’ Unique Position Suits the Rapidly Developing Market
Patricia Baleen plantPatricia Baleen plantMoombaMoomba
HubPotential hubGas pipeline
30
Reports of the Cooper’s Death are Greatly ExaggeratedCooper Gross Reserves and Unrisked Resource Potential
Current Produced6,317 PJ
2P Reserves1,163 PJ
Aspirational 75% 2P Recovery Factor
2,866 PJ
2P
Note: Gross volumes
Booked Contingent Resources 1,584 PJ
Conventional Reserves/Resources
Cooper infill
16
31
198619992006
Land Sat Image - Jonah Field (USA)
Create Supply – Cooper Infill, Beyond the 2P
Technically robust, multi tcf potential Rock Outcropping of MesaverdeRiver Deposits
10 acre 20 acre 40 acreSpacing
Green = current Cooper spacing ~200ac
32
Gross Unrisked Resource Potential
Note: Gross volumes
Unconventional Resource Potential: 39,000+ PJ
Booked Contingent Resources 4,750 PJ
Moomba
TOOL DARA
ROSE EPSI MTRE
PATC
GRANITE
Shale Gas
Tight Gas
Deep Coal
Developed Conventional
Undeveloped Unconventional
Gross gas thickness ~1600 feet
UnconventionalResources
Reports of the Cooper’s Death are Greatly Exaggerated
17
33
ESG operated areas- Net 2P reserves 724 PJ
- Net 2C resource 951 PJ
STO operated areas- Initial exploration phase
underway- 2010 program:
- 4 coreholes- 8-10 pilot wells- 90 km seismic
Basin master position 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
Focussing on commercialisation
Gunnedah Basin – Next Major Play in Coal Seam Gas
34
Proposed Shaw River Power Station
Power generation consistent with commercialisation of Santos’ extensive gas resources SRPS now targeting FID in
2nd half 2010:- Regulatory certainty (CPRS)- Key approvals- Partner selection
Santos portfolio to supply gas
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
Targeting FID 2H 2010
18
35
Western Australia Domestic Gas
Demand No reliance upon wholesalers and
retailers for channels to market Material market (1,000Tj/d)
Supply Incumbent asset holders in
shallow water are well positioned Santos well positioned before
new LNG projects to grow domestic market share: - Reindeer (first gas Q4 2011) - Halyard / Spar (short cycle time
via Varanus Island facilities)
17%
10%
5%5%
5%
3%
5%
25%
25%
Exmouth
PERTH
Bunbury
Kalgoorlie
Onslow
DampierPort Hedland
Albany
Share of demand centre**
Exposing Santos to WA resources boom
Sources of demand*
Alumina 25%
Electricity generation 25%
Chemicals 20%
Mining 15%
Mineral Processing and Manufacturing 10%
Residential/Commercial 5%
*Source: RISC
** Source: Santos
36
Santos supplies gas via one of two existing hubs and one new hubunder construction…
Hub-led Strategy
LegendSantos acreageOil fieldGas field
Gas pipelineGas hub
East Spar
Varanus Is.
John Brookes
Devil Creek
Focused NFE
…with focused NFE in shallow water close to existing hubs targeting low risk/quick cycle gas tie-back prospects
Reindeer
Spar / Halyard
2010 NFE well
19
37
East Spar
John Brookes
Focused NFE
Spar / Halyard
John Brookes- Producing asset - 45% working interest- New gas sales at higher prices- Field capacity +300TJ/d (gross); East
Spar plant capacity ~230TJ/d (gross)- Opportunities to maximise production
via spare processing capacity in Harriet Joint Venture and sales to Harriet parties
Spar / Halyard- Apache progressing Halyard
development- Spar development under review
NFE Opportunities- Existing acreage with shallow water
and access to existing gas hub- Spar Deep and East Spar East NFE
wells planned in 2010
Hub 1: Varanus Island
Varanus Is.
38
Devil Creek
ReindeerDevil Creek / Reindeer –new gas hub
Creation of 3rd WA gas hub
Under development – first gas Q4 2011
45% working interest
Shallow water offshore platform 45kms south west of Dampier
Two train production capacity (field and plant) 215 TJ/d (gross). Site designed to take an additional train
NFE within existing acreage in shallow water and targeting low risk tie-back prospects to new hub
CITIC Pacific Iron Ore gas sale (US$585m); other contracts to follow
Hub 2: Devil Creek/Reindeer
Reindeer works – assembly yard in Thailand
Focused NFE
20
39
2009 Full Year Results
40
2009 Profits Impacted by Lower Product Prices
2009 Full Year Result
Oil Price A$78.83 per bbl
Production 54.4 mmboe
Sales Revenue $2,181 million
Underlying Net Profit After Tax $257 million
Net Profit After Tax $434 million
Operating Cash Flow $1,155 million
Final Dividend 20 cents per share
21
41
Production Cost, Cost of Sales Lower
800
1000
1200
1400
1600
2008 2009
Total Cost of Sales
Gas Purchases
Production Cost
Cost of produced
gas 1
300
350
400
450
500
550
600
2008 2009
$9.78/boe
$9.99/boe $23.67/
boe$25.50/
boe
$m
1 Includes production cost, tariffs, tolls and pipeline costs, royalties, inventory and DD&A
$m
42
Eastern Australia 625 900WA&NT 630 862GLNG 38 58Asia Pacific 99 208Gains on sale of assets 261 1,697Corporate and unallocated items (65) (42)Total EBITDAX 1,588 3,683
Eastern Australia | Lower liquids prices and production volumesWA&NT | Higher gas volumes but lower liquids prices and volumesGLNG | Expanding field operations increasing production costsAsia Pacific | Higher gas production, lower liquids prices and volumes
Segment EBITDAX Summary
Segment 2009 2008
$m
22
43
$5 Billion of Funding Capacity
31 December 2009
Cash & term deposits 2,240Undrawn, committed corporate lines 700Undrawn, committed project line* 2,117Cash & committed debt lines 5,057
* Converted at year end exchange rate
$m
44
0
500
1000
1500
2000
2500
3000p q
Reserves Growth and Resource Conversion
0
500
1000
1500
2000
2500
3000
mmboe
(54) 147
378 (44)
1,013
1,440
2008 20092C Contingent resources 2P Reserves
20092008
2,849 (412)
(342)153
250 2,498
mmboeCommercialisation
DivestRevisions
Acq
Prod RevisionsAcq/Div
Commercialisation
To cash
23
45
Reference Slides Delivering Transformational Growth
March 2010
46
Indonesia: Madura Offshore PSC
Maleo- Production start-up 29 Sept.
2006- Gross gas production
~ 110 mmscf/d- Reserve upgrade at end 2009- Long term sales gas contract
to PT Perusahaan Gas Negara Peluang
- Peluang-1 well drilled in 1Q 2009
- Potential tie back to Maleo to maintain plateau
Maleo performing beyond expectation; incremental growth from Peluang
LegendSantos acreageOil fieldGas field
Oil pipelineGas pipeline
MaduraOffshore PSC
East Java
Madura Island
Bali
Peluang-1Maleo
GratiProcessing
Plant50km
Surabaya
24
47
Indonesia: Sampang PSC
Oyong Phase 1 (oil)- Production performance above
expectation at ~ 3600 bbl/day (gross) Oyong Phase 2 (oil and gas)
- 2.6 million manhours without aLost Time Injury
- Gas production start-up on time (Q309) and plateau of ~ 60 mmscf/d(gross) reached within 20 days
- Gas sales to PT Indonesia Power Wortel
- Tie back to Oyong- POD approval expected in December
2009 - FID targeted mid 2010- First gas forecast 2H 2011
LegendSantos acreageOil fieldGas field
Oil pipelineGas pipeline
Surabaya
Sampang PSC
East Java
Madura Island
Bali50km
GratiProcessing
Plant
Wortel OyongJava Sea
Oyong Phase 2 delivered on time; incremental growth from Wortel
48
Vietnam
Chim Sao Project reshaped for value Revised Field Development Plan
approved by Government Principal contracts covering EPCI and
FPSO lease executed in October Wellhead platform expected to be
installed 2H 2010 Latest capital expenditure estimate
$US270 million net First oil targeted for 2H 2011; net
plateau production ~ 8,000 bbl/d Dua tie-back being evaluated 2D seismic complete in Block 123 in
Phu Khanh basin, drilling in 2011 planned.
Attractive oil project providing medium term growth with upside
LegendSantos acreageOil fieldGas field
Oil pipelineGas pipeline
Vietnam
Cambodia
Thailand
Laos
ChinaBurma
South China Sea
12W PSC
123 PSC
DuaChim Sao
25
49
Bay of Bengal
Bangladesh- Chittagong gas market significantly
undersupplied
- Sangu well optimisation is extending field life
- Free market gas rights obtained for Magnama
- 3D seismic on Magnama and South Sangu planned for early 2010
India- Targeting material gas prospectivity
for domestic market
- 3D seismic program largely complete
- Interpretation underway
Potential for medium term exploitation business in Bangladesh and long term business in India
LegendSantos acreageGas field
Oil pipelineGas pipeline
Bangladesh
Burma
India
India
Bay of Bengal
NEC-DWN-2004/2
NEC-DWN-2004/1
Block 16
Sangu
50
Kyrgyz Republic
Leading acreage position
2D seismic complete
Shallow prospects drilled in 2009 secured prospective acreage and developed concepts
Deep drilling in 2010 & 2011
Early production feasible with multiple export options
Option secured on acreage adjacent to Kyrgyzstan licences
Oil pipelineGas pipeline
Bishkek
Kyrgyz RepublicNaryn
Jalal-Abad
Osh
Andizhan
Talas
Fergana
ChinaTajikistan
Kazakhstan
Uzbekistan
LegendSantos acreageRefineryOil field
Potential for medium term exploitation business. Key tests in 2010 & 2011
26
51
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
2010 Forward Exploration Drilling Schedule
0 – 50 50 - 100 100 - 500
PEL 433 (1CH) Gunnedah Gas CSG √ 48.0 Q1
PEL 434 (2CH) Gunnedah Gas CSG √ 48.0 Q1
ATP 631P (R) (1CH) Surat Gas CSG √ 81.9 Q1
EPC 937 (1CH) East Bowen Gas CSG √ 85.0 Q1
PEL 452 (3CH) Gunnedah Gas CSG √ 100.0 Q1
ATP 655P (2CH) Surat Gas CSG √ 100.0 Q2
ATP 745P (2CH) Bowen Gas CSG √ 79.6 Q3
West Soh 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q3
Spar Deep Barrow / Australia Gas √ 100.0 Q3
North Auchi 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q4
West Mailisu 1 Fergana / Kyrgyz Rep. Oil √ 80.0 Q4
ATP 868 P (3CH) Surat Gas CSG √ 100.0 Q4
East Spar East 1 Barrow / Australia Gas √ 45.0 Q4
Alabuka West 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q4
Australia Offshore Australia Gas √ 50.0 Q4
Santos Interest
% Timing
Gross Unrisked, Upside Resource Potential (mmboe)
Basin / Area TargetWell Name/
CSG Program
52
Reported & Underlying Profits
1650
434(341)
50
548
257
0
250
500
750
1000
1250
1500
1750
Reported NPAT Underlying NPAT
2008 2008 20092009 Operatingresult
Prices & foreign
exchange
$m
27
53
0
10
20
30
40
50
6054.4 (0.8) 53.6 (3.1) 3.9 54.4mmboe
Production on Guidance
2008 20092008 Continuing operations
Production from continuing operations grows 0.8 mmboe
Natural decline and effect of downtime events offset by new production
Assetsales
Naturaldecline
anddowntime
Newproduction
andfield
productivity
54
Sales Volumes Grow 8%
0
500
1000
1500
2000
2500
30002,762 (597) 155 (139) 2,181
2009
$m
52.8 54.9
35.2
30
40
50
60
2008 2009
ProducedReserves
Purchased Gas
mmboe
2008
3rd party gas emerges as profit centre
Oil production continues decline
Gas production more than offsets lower oil outcome
Third party gas revenue $131 million
Price& fx Volume Mix
28
55
DD&A Declines by $50 million
0
100
200
300
400
500
600
700662
Rate
57
Volume
(7) 612
2008 2009
$m
$12.17/boe $11.25/boe
Additional reserve bookings in Cooper and Indonesia drive lower depletion rate
Slight increase in depreciation on GLNG facilities
56
Underlying profit 257 548Significant items 177 1,102Net profit after tax 434 1,650Significant items:
Gain on sale of oil and gas assets/controlled entities 180 1,188Impairment of oil and gas assets (17) (140)Provision of contract losses: rigs and offices (17) -Foreign currency losses/gains (21) 18Remediation and related costs of incidents 19 11Change in fair value of embedded derivatives 3 (9)Investment Allowance 21 -Income tax 6 28Net profit/(loss) impact of fair value hedges 3 6
Total 177 1,102
Significant Items (after tax)
2009 2008$m
29
57
2010 Guidance
2,800Capital expenditure (including exploration & evaluation)2 ($m)
90 to 110Royalty related taxation expense1
($m after tax)
11.70DD&A expense ($/boe)
540 - 560Production costs ($m)
51 – 54Production (mmboe)
2010Guidance
Item
1 Royalty related taxation expense guidance assumes an oil price of A$90 per barrel.
2 Capital expenditure guidance includes $150 million for conventional exploration.
58
2010 Sensitivities
Sensitivity Change NPAT Impact A$m
US dollar oil price US$1/bbl 9
Gas price 10 cent/GJ 18
A$/US$ exchange rate 1 cent 8
Interest rates 1% 1
30
59
Contact Information
Head officeAdelaideGround 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:webqueries@computershare.com.au
Investor enquiries:investor.relations@santos.com
Andrew NairnGroup Executive Investor RelationsLevel 10, Santos CentreDirect: + 61 8 8116 5314Facsimile: +61 8 8116 5131Email: andrew.nairn@santos.com
Brooke HannInvestor Relations AnalystLevel 10, Santos CentreDirect: + 61 8 8116 7227Facsimile: +61 8 8116 5131Email: brooke.hann@santos.com
Website:www.santos.com
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