Unlocking the Cooper Basin s resource potential

Transcription

1 Unlocking the Cooper Basin s resource potential Mark Rosser, Eastern Australia Procurement Manager September 2014

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.

3 Cooper Basin: location and infrastructure Exploration area 40,000 sq kilometres gas fields, wells oil fields, wells 15 major satellite facilities 100 satellite/nodal compressors 50 wellhead compressors 6,000+ kilometres of pipelines/flowlines Gas storage facilities in the centre of the Eastern Australian integrated gas market

4 Servicing the Cooper Basin 1200 staff (600 Santos Contractors) Primarily 2 week on / 2 week off roster 9 fixed camps plus mobile camps meals per day 5000km+ roads maintained Aviation service ex Adelaide and Brisbane Light aircraft / helicopter services on site Emergency, Fire & Medical response Waste Management Landholder & Tourist emergency response

5 Domestic and export demand driving growth PJ 2,500 2,000 1,500 1, Export scale has reinvigorated investment in the Cooper Basin x3 Eastern Australia Gas Demand 1 Extending 50+ years of operating in the basin Underpinned upgrade of Moomba facility and ongoing field development expenditure Production decline arrested Safeguarded over 3,000 direct jobs Retail & C&I Power Generation QCLNG (T1&2) GLNG (T1&2) APLNG (T1&2) 1. Source: ACIL Allen Consulting Investment by international majors (Chevron & BG Group)

6 Cooper Infrastructure Expansion Project $5B investment over next 10 years on drilling and infrastructure DRILLING/ GATHERING Infill PAD Drilling Technology 4 new drilling rigs over 15 years 600 wells / 110 pads 300km of Gathering Network Infrastructure COMPRESSION Expansion of five Field Satellite Compression Stations Additional Field Gas Compression 50,000 Hp PROCESSING & TRANSPORT Moomba Gas Processing Plant Increased CO2 Processing capacity Steam / Power Gen upgrade Sales Gas export facilities delivering sales gas to meet new contracts from 2015

7 Increasing Cooper Basin gas production Targeting gas development in three key areas during enabling cost efficiencies from increased scale Santos acreage Gas field Oil field Gas pipeline Oil pipeline Moomba Big Lake 2 rig, pad development focus High deliverability ~70 wells Ballera Innamincka Jackson SWQ Unit Extending infrastructure to commercialise resource ~50 wells Moomba Western Flank High liquids, high value program Includes Drillsearch farm-in ~100 wells 7

8 Cooper s unconventional resource opportunity Market demand accelerating commercialisation of three potential multi-tcf plays the Basin BCG tight sands Regionally extensive over-pressured gas system Heterogeneous stacked tight fluvial sands 8 Shale Over-pressured gas system Tight formations requiring fracture stimulation Deep coal Porous coals, over-saturated with free gas Thick and regionally extensive Similar reservoir quality to successful US plays Cooper Basin, South Australia

9 Potential industry resource requirements Current annual activity 5 6 Drilling Rigs; wells frac stages k tonnes proppant km tubular people + services (trucking, flowlines, camps etc ) - ~1000 trailer loads Potential annual activity Drilling Rigs; wells frac stages - 500k 800k tonnes proppant km tubular people + services trailer loads

10 Procurement & Logistics Santos seeks to work with contractors and suppliers who contribute to sustainable development and are economically, environmentally and socially responsible. The Santos Procurement framework provides a simple and consistent framework of our expectations for all our suppliers in the following areas: Environment, Health and Safety Quality Sustainability Business integrity Corporate Social Responsibility

11 Santos Supplier Prequalification System Santos has implemented the Santos Supplier Prequalification System (SSPS) to make the process of supplying to Santos easier. Santos have engaged the services of Achilles First Point Assessment (FPS) to operate the SSPS which will be used for supplier prequalification. Prequalification is the initial step in the sourcing process designed to identify and assess a supplier's capabilities, qualifications and experience. In becoming a prequalified supplier, suppliers may be invited to participate in Santos sourcing opportunities.

12 How to become a prequalified supplier Stage 1 - Registration Registration of the goods and services a supplier is offering Stage 2 - Verification Provision of information on the goods and services a supplier is offering Stage 3 - Prequalification Audit Audit based the risk of the service being offered for Medium and High Risk Activities Prior to commencing registration it is recommended that the prospective suppliers read the Santos Supplier Prequalification System Questions and Answers on the Santos.com web site

13 Getting involved All new suppliers wishing to register their interest or to become a prequalified supplier go to Click on register your interest Complete the Santos Supplier Prequalification System (SSPS) If you have any questions regarding the SSPS please FPS@achilles.com or Call: +61 (07)