2009 Investor Seminar Delivering Transformational Growth

Transcription

1 1 29 Investor Seminar Delivering Transformational Growth 9 December 29 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

2 Our View of Energy World Is Unchanged Fundamentally Unprecedented Asian economic growth driving energy demand Rising CO 2 emissions Security of supply becoming increasingly important To meet energy needs while reducing emissions Gas must have an increasing share of the fuel mix Unconventional hydrocarbon supplies must complement conventional Prices will reflect a new supply/demand equilibrium 3 Asia is the Engine of Energy Growth 1 World Population 16 World GDP* 8 World Primary Energy Consumption Billions of People Asia Rest of World US$ bn ($25) Asia Rest of World Quadrillions BTU Asia Rest of World Asia 47% of population growth 52% of GDP growth 62% of primary energy growth 4 Source: EIA International Energy Outlook 29 *World GDP by Region Expressed as Purchasing Power Parity

3 A Warming World Needs More Gas Global warming could reach as high as 7 degrees by the turn of the century if greenhouse gases grow unabated The Copenhagen Diagnosis Nov 29* 4 CO 2 concentration (ppm) : James Watt s steam engine marks Industrial Revolution Source: Professor David MacKay, Department of Physics, Cambridge University *Sydney Morning Herald Although Gas Demand Growth Strong, It is Still Under Represented in Non-OECD Asia Energy Mix 2 World Natural Gas Consumption Tcf Quadrillion Btu Non-OECD Asia Total Energy Consumption by Fuel Other Energy Nuclear Non-OECD Asia OECD Asia Rest of World Coal Gas Liquids Asia gas growth strong at 3.2% p.a. Still accounts for only 35% of global growth in consumption Non-OECD Asia gas share of fuel mix only increases from 8% to 1% Every 1% increase in gas share in the fuel mix in non-oecd Asia equates to 45 mtpa LNG in 23 Policy shift towards lower emission gas would sharply accelerate growth OECD Asia includes Japan, S. Korea, Australia, and NZ Non-OECD Asia includes China, India and all other 6 Source: EIA International Energy Outlook 29

4 Gas is an Underutilised Fuel for Power Generation in China, India and Australia Power Generated from Natural Gas (%) 9% 8% 7% 6% 5% 4% 3% 2% 1% % Singapore Thailand Malaysia California Italy UK Japan NZ US Korea Germany Australia India Canada China Source: IEA 27 Edition; EIA; Santos est. 7 Gas Market There for Those Who Can Deliver Growing markets Emerging markets China Taiwan India Thailand 1 Vietnam Indonesia 1 Woodmac estimates LNG demand (mtpa) Woodmac Regas Peak Capacity Estimates (mtpa) Additional LNG demand, Santos estimates (mtpa) 8 Established markets South Korea Japan Philippines 1 Singapore Malaysia

5 China LNG Factor: How Big Ultimately? Qinhuangdao LNG Caofeidian LNG (Tangshan) Wuhaogou LNG Fujian LNG Shanghai LNG Zhejiang LNG Shenzhen LNG Yuedong LNG Zhuhai LNG Dapeng LNG (Guangdong) Macau LNG Hainan LNG Dalian LNG Shandong LNG Rudong LNG (Jiangsu) Existing Currently 3 operating LNG receiving terminals at Guangdong, Fujian and Shanghai with a total capacity of 9.6mtpa plus Wuhaogou peaking terminal (.5mtpa) 4 more currently under construction, 7 more planned and expansion of existing terminals. Total receiving capacity of 41mtpa by 22 China plans to import 6 million tons of LNG each year by the year of 22 CNOOC (China Daily, 8 March 29) Under construction Source: Woodmac 9 Planned The Demand From New Asian LNG Markets Will Equal That of Traditional Markets Today 3 Asia Pacific LNG Demand and Market Potential LNG Demand mtpa Emerging markets Growing Markets Established Markets Source: Woodmac; Santos view of emerging markets 1

6 Continue to See Strong Long Term LNG Pricing Ex-ship LNG Price ($/MMBtu Ex-Ship LNG Price ($/MMBtu) $18 $16 $14 $12 $1 $8 $6 $4 $2 Asian Term Prices US$12.4/MMBtu Oil Parity $2 $3 $4 $5 $6 $7 $8 $9 $1 JCC ($/Bbl) Source: Poten & Partners Late Mid 26 Late 25 Early Recent contracts point to strong underlying demand Pricing reflects new supply-demand equilibrium Long-term Asia- Pacific pricing remains oil-linked 11 LNG is a key component of Santos Growth Strategy Strategy Components Performance from the Base Deliver LNG Growth Focused growth in Asia Bonaparte LNG 2mtpa FLNG Santos 4% with carry to FID Darwin LNG Commenced production in mtpa single train Santos 11.4% PNG LNG FID Dec-9 6.6mtpa two trains Santos 13.5% GLNG Leading CSG to LNG On track for FID mid-1 3.6mtpa first train 2 train FEED Santos 6% 12

7 The Santos Strategy Using quality assets, Santos will safely deliver: 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: The leading CSG to LNG project, FID mid-21 PNG LNG: FID Dec-9, first LNG production mid-214 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 13 We have a Transformational Growth Pipeline Upside Potential Likely Sanction Sanctioned Producing Australia Base Shaw River Power Gunnedah Basin Eastern QLD CSG Cooper Tight Gas Sole Fletcher Cooper Gas Infill (214-16) Halyard Spar (211-12) Henry & Netherby (21) Kipper (211) Reindeer (211) Cooper Oil & Gas Casino & Minerva Fairview & Scotia EQ Oil & Gas John Brookes WA Oil LNG Growth Gunnedah Basin Eastern QLD CSG Caldita & Barossa Evans Shoal Burnside GLNG (214) Bonaparte LNG (216+) PNG LNG (214) Darwin LNG Focused Asia 14 Indonesia Bangladesh PNG Train 3 Vietnam Bay of Bengal Kyrgyzstan Wortel (211) Peluang (212) Maleo Enhanced Recovery (21) Chim Sao (211) Oyong (Indonesia) Maleo (Indonesia) Sangu (Bangladesh) SE Gobe (PNG)

8 Which We are Commercialising 1,5 2P Reserves (mmboe) 1, 5 CAGR = 12% Proven and probable (2P) reserves exceed 1 billion barrels of oil equivalent Management team focused on continuing track record of growing 2P reserves with PNG LNG Base + Asia LNG Growth Projects 15 Production from Existing Projects 7 Production (mmboe) Production Range 16

9 Twin Themes Of Strategy Twin themes for shareholder value creation Building a better base business Delivering transformational growth 17 Delivering Without Compromising Safety 4% reduction in TRCFR during Santos TRCFR performance (Employees & Contractors) TRCFR YTD 29 Year 18

10 The Delivery Model Corporate Centre Strategy, Finance, Public Affairs & Investor Relations Peter Wasow Legal, Corporate Development & Commercial James Baulderstone Human Resources Petrina Coventry Disciplines Technical Ray Betros Exploration Trevor Brown Business Units WA & NT John Anderson Eastern Australia Mark Macfarlane Asia Pacific Martyn Eames GLNG & Queensland Rick Wilkinson 19 Strategy Eastern Australia WA & NT Asia Pacific GLNG Technical Exploration Outlook & Funding Wrap Up David Knox Mark Macfarlane John Anderson Martyn Eames Rick Wilkinson Ray Betros Trevor Brown Peter Wasow David Knox Agenda 2

11 Eastern Australia Business Unit 21 Mark Macfarlane Vice President, Eastern Australia Eastern Australia The Next 4 Years Today s pioneers capitalising on gas demand growth for the next 4 years Opening up market channels Reserves growth and extension Cost and reliability improvement 22

12 Demand for Eastern Australia Gas Demand will nearly triple within 1 years 24 2 PJ/a Planned LNG Projects Year Historic Average Carbon driven fuel switching Source: AEMO, EnergyQuest, Santos, Company Announcements driven by LNG export and carbon policy 23 Santos Unique Position Suits the Rapidly Developing Market In every producing basin Infrastructure network in place Arbitrage value across supply points Facilitates ramp gas management Hub Potential hub Gas pipeline 24 Moomba Patricia Baleen plant

13 Reports of the Cooper s Death are Greatly Exaggerated Cooper Gross Reserves and Unrisked Resource Potential Conventional Reserves/Resources Aspirational 75% 2P Recovery Factor 2,866 PJ Cooper infill Booked Contingent Resources 1,584 PJ 2P Current Produced 6,317 PJ Note: Gross volumes 2P Reserves 1,163 PJ 25 Create Supply Cooper Infill, Beyond the 2P Technically robust, multi tcf potential Spacing Rock Outcropping of Mesaverde River Deposits 1 acre 2 acre 4 acre Land Sat Image - Jonah Field (USA) Green = current Cooper spacing ~2ac 26

14 Reports of the Cooper s Death are Greatly Exaggerated Gross Unrisked Resource Potential Unconventional Resources Booked Contingent Resources 4,75 PJ Developed Conventional Moomba TOOL DARA Unconventional Resource Potential: 39,+ PJ Undeveloped Unconventional Gross gas thickness ~16 feet Shale Gas ROSE EPSI MTRE Tight Gas PATC Deep Coal Note: Gross volumes GRANITE 27 Reserves Growth Opportunity World scale operation, significant strategic asset 1,25 Cooper Basin 4 yr Production history and growth Gas Production Rate (TJ/d) 1, ,317 PJ Base production Infill & Unconventional 28

15 Delivering Sanctioned Projects - Henry Leveraging Casino infrastructure to add reserves and production Henry Project (5%, operator) Otway Basin, Victoria Sub-sea tie back to existing Casino infrastructure Offshore installation vessels mobilised Start-up 1H 21 2P reserves ~ 75 PJ dry gas Capital cost estimate ~ $185 million Subsea 7 Vessel All figures Santos net 29 Delivering Sanctioned Projects - Kipper Utilising existing Gippsland Basin infrastructure Offshore Victoria Gippsland Basin JV: Santos (35%), ExxonMobil (32.5%) (Operator), BHPB (32.5%) Stage 1: First Gas April Two subsea gas wells and four subsea gas coolers - Procurement & Fabrication progressing, main installation contracts in place, Drilling to commence Q Costs ~ $14 million STO 2P reserves ~ 21 PJ sales gas and 11 mmboe condensate/ LPG Initial production ~ 5TJ/d sales gas West Tuna Kipper All figures Santos net 3

16 Oil Production Significant oil opportunity remains in the basin 29 delivery in line with forecast, notwithstanding reduced drilling activity 4 well Charo campaign exceeded expectations Rate and reserve outcomes improving New rigs will improve F&D costs Solid forward drilling seriatim Initial Rate, bopd Cooper Oil Drill Target Selection Forecast P Dev EUR, kbbl Charo 2 beam pump 31 Development Cost Improvement Focus on maximising production, whilst minimising cost Implementation of new technology - 3 new drilling rigs being contracted - 7% to 14% reduction in gas & oil well costs - Pad drilling capabilities as infill, unconventional enabler Contract reviews - Contracts being progressively renegotiated/ retendered - >25% reduction in compression projects - >1% reduction in range of oilfield services contracts Work processes - All aspects of operations being reviewed Profitability focus, whilst positioning for growth 32

17 Production Cost & Reliability Improvement Contemporary performance achieved through implementing proven systems as well as upgrading asset condition Long term benefits through reliability improvement Investing in maintenance in 21 Consequent improvement in uptime and cost 29$M Maintenance Spend/Downtime 6 Act 7 Act 8 Act 9Proj Downtime % Maintenance spend Downtime 33 Eastern Australia The Next 4 Years Today s pioneers are unlocking the opportunities to satisfy gas demand growth over the next 4 years Opening up market channels Reserves growth and extension Cost and reliability improvement 34

18 Western Australia & Northern Territory John Anderson Vice President, Western Australia & Northern Territory 35 Western Australia and Northern Territory WA & NT Business Unit is focused on two key themes 1. Building a leading domestic gas business in Western Australia 2. Maximising value from LNG in Northern Australia delivering more than 33% of Santos production in 29 with a portfolio of quality growth opportunities 36

19 Strong Base with Growth Opportunities Upside Potential Likely Sanction Sanctioned Producing Domestic Gas Carnarvon NFE Spar/Halyard Hub growth Reindeer New gas hub John Brookes Upside playing out Northern LNG Other Significant portfolio upside with shallow water, quick cycle time NFE and development options Evans Shoal Caldita Barossa Browse Commercialisation opportunities under review Bonaparte LNG (STO-GDF Suez) Market opportunity price trending upwards Petrel Tern monetisation executed Accessing increased processing capacity Bayu Undan DLNG Continue to optimise core LNG asset Mutineer Exeter Stag Barrow Thevenard Legendre Jabiru Challis Mereenie Palm Valley 37 WA Domestic Gas Exposing Santos to WA resources boom Demand No reliance upon wholesalers and retailers for channels to market Material market (1,Tj/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 211) - Halyard / Spar (short cycle time via Varanus Island facilities) 38 Onslow Exmouth 5% PERTH Bunbury 17% 5% 25% Port Hedland Dampier 25% 3% Sources of demand* Alumina 25% Electricity generation 25% Chemicals 2% Mining 15% Mineral Processing and Manufacturing 1% Residential/Commercial 5% 5% 5% Albany Kalgoorlie 1% Share of demand centre** *Source: RISC ** Source: Santos

20 Hub-led Strategy Santos supplies gas via one of two existing hubs and one new hub under construction Focused NFE Reindeer Spar / Halyard Legend Santos acreage Oil field Gas field 39 John Brookes East Spar Gas pipeline Gas hub 21 NFE well Varanus Is. Devil Creek with focused NFE in shallow water close to existing hubs targeting low risk/quick cycle gas tie-back prospects Hub 1: Varanus Island 59 PJ YE 8 2P Reserves 56 PJ YE 8 2C Resource John Brookes - Producing asset - 45% working interest - New gas sales at higher prices - Field capacity +3TJ/d (gross); East Spar plant capacity ~23TJ/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 21 4 Spar / Halyard Focused NFE John Brookes East Spar Varanus Is.

21 Hub 2: Devil Creek/Reindeer Devil Creek / Reindeer new gas hub 22 PJ YE 8 2P Reserves Creation of 3 rd WA gas hub Under development first gas Q % 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 Reindeer Focused NFE Devil Creek Reindeer works assembly yard in Thailand 41 Growing Northern Australia LNG Business 4 Northern Australia Growth options Sunrise Bayu-Undan Evans Shoal 3 Barossa Caldita Northern LNG Expansion Frigate Indian Ocean Petrel Tern Darwin 1 Darwin LNG Ichthys Burnside 2 Bonaparte LNG Legend Santos acreage Oil field Gas field 42 4 Browse Oil pipeline Gas pipeline Western Australia 1 Kilometres Northern Territory

22 Bayu Undan / Darwin LNG Santos first producing LNG asset 2 nd largest equity participant and only Australian participant (11.4%) 79mmboe YE 8 2P Reserves Bayu Undan - producing ~1.1bcf raw gas per day (gross) - Approximately 13, bbl/d liquids (gross) DLNG 3.5mpta plant - Turbine upgrade during 21 statutory shutdown to increase to 3.6mtpa Base project continues to deliver with potential upside unfolding: - Third Party Gas - Phase 2 Drilling campaign 21 planned shutdown; 35 days in 21 will reduce production and increase production cost for the year 43 Floating LNG Partnership with GDF SUEZ unlocks value in 36mmboe of contingent gas resource Santos has sold 6% of Petrel/Tern/ Frigate to GDF SUEZ for up to US$37 million and a full carry of Santos share of costs to FID The fields are an ideal fit for FLNG: - Low in CO 2 - 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 on track for completion - FIRB approval given GDF SUEZ and Santos establishing project team in Perth Santos retains approximately 7% (5mmboe) of its total Bonaparte Basin 2C contingent resource. 44

23 Northern Australia LNG Exploration success Torosa WA-274-P WA-41-P Poseidon Argus WA-274-P Territory of Asmore & Cartier Islands Ichthys North WA-274-P Concerto Echuca Prelude Shoals Ichthys Montara Crux Cornea Legend Santos acreage Oil field Gas field Brecknock Calliance Caswell WA-411-P WA-281-P Burnside Gwydion Western Australia Arquebus Psepotus Kilometres in a great street address 45 Mapped Area Exploiting Other Assets Core Producing Assets: 28 mmboe YE 8 2P Reserves Stag - Production decline has been arrested - Oil production ~7,5bbls/d (gross) - Cumulative production +5mmbbl (gross) Mutineer Exeter - Operated asset - Oil production ~8,5bbl/d (gross) - Cumulative production 5mmbbl achieved in March 29-99% uptime in 29 Barrow Island - >4 producing wells - Water-flood opportunity to increase recovery 46

24 Exploiting Other Assets Carnarvon late life producers: 1.9 mmboe YE 8 2P Reserves Thevenard Island - Producing asset % working equity Legendre - Producing asset % Working equity Other Assets: Jabiru Challis - Producing asset % Working equity Mereenie and Palm Valley - Amadeus basin producing assets - 65% working equity, Mereenie operated - Q49 end of gas contracts for Mereenie post Blacktip - ~ 1mmboe production lost 47 Western Australia and Northern Territory WA & NT Business Unit is focused on building a material business based on two key themes 1.To become a leading Domestic Gas supplier in Western Australia 2.Maximising value from LNG in Northern Australia whilst continuing to exploit other core assets and divesting immaterial assets not central to a long term high margin business 48

25 49 Asia Pacific Business Unit Martyn Eames Vice President, Asia Pacific The Santos Strategy & Asia Pacific Leverage Asia s growing energy needs to develop material & sustainable exploitation focused businesses Base business Eastern Australia: Margin growth and resource conversion Indonesia: Established business with incremental growth Western Australia: Growing a material domestic gas business LNG growth GLNG: The leading CSG to LNG project, FID mid-21 PNG LNG: FID Dec-9, first LNG production mid-214 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 5

26 Asia Pacific Vision & Strategy Leverage Asia s growing energy needs to develop material & sustainable exploitation focused businesses Deliver base business safely and cost effectively Execute key projects Focused growth primarily through exploitation in proven fairways Exit non-core businesses and reshape deep water asset base 51 Indonesia Established business in East Java with incremental growth Strong performance with production plateau (~ 6 mmboe) maintained until 214 Assets competitively located adjacent to East Java industrial centre Well positioned to take advantage of higher trending domestic gas prices Opportunities to expand portfolio where Santos is competitive 52

27 Madura Offshore PSC Maleo performing beyond expectation; incremental growth from Peluang Maleo - Production start-up 29 Sept Gross gas production ~ 11 mmscf/d - Reserve upgrade at end 29 forecast - Long term sales gas contract to PT Perusahaan Gas Negara Peluang - Peluang-1 well drilled in 1Q 29 - Potential tie back to Maleo to maintain plateau 53 Surabaya Grati Processing Plant 5km Legend Santos acreage Oil field Gas field Peluang-1 Madura Island East Java Oil pipeline Gas pipeline Maleo Madura Offshore PSC Bali Sampang PSC Oyong Phase 2 delivered on time; incremental growth from Wortel Oyong Phase 1 (oil) - Production performance above expectation at ~ 36 bbl/day (gross) Oyong Phase 2 (oil and gas) million manhours without a Lost Time Injury - Gas production start-up on time (Q39) and plateau of ~ 6 mmscf/d (gross) reached within 2 days - Gas sales to PT Indonesia Power Wortel - Tie back to Oyong - POD approval expected in December 29 - FID targeted mid 21 - First gas forecast 2H Surabaya Wortel Grati Processing Plant 5km Legend Santos acreage Oil field Gas field Madura Island Oyong Sampang PSC East Java Oil pipeline Gas pipeline Java Sea Bali

28 Papua New Guinea LNG PNG LNG Project FID approval signals next step in LNG growth strategy FID approved on 8 December 2 SPAs executed, remaining two expected to be executed by early-21 Financial Close early in 21 First sales are targeted for 214 Initial equity determination in line with prior guidance Plateau Production of ~ 9 mmboe pa Reserves addition 22% of Santos YE 28 2P Reserves 55 Papua New Guinea LNG Santos acreage and infrastructure position provides opportunity for further growth First redetermination to follow Hides drilling in 212/13 Debottlenecking has the potential to increase off-take 3rd train alternatives being considered - Hides drilling results could be key driver Papua New Guinea Hides PDL 1 Legend Santos acreage Oil field Gas field PDL 3 PRL 9 Marine Terminal Gulf of Papua Oil pipeline Proposed gas pipeline 1km Proposed LNG Plant Port Moresby 56

29 Vietnam Attractive oil project providing medium term growth with upside Chim Sao Project reshaped for value Revised Field Development Plan submitted to government for approval Principal contracts covering EPCI and FPSO lease executed in October Wellhead platform 64% complete expected to be installed 2H 21 Latest capital expenditure estimate $US27 million net First oil targeted for 2H 211; net plateau production ~ 8, bbl/d Dua tie-back being evaluated 2D seismic complete in Block 123 in Phu Khanh basin, drilling in 211 planned. Burma Laos Thailand Legend Santos acreage Oil field Gas field Vietnam Cambodia Chim Sao Oil pipeline Gas pipeline China South China Sea Dua 123 PSC 12W PSC 57 Bay of Bengal Potential for medium term exploitation business in Bangladesh and long term business in India 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 21 India - Targeting material gas prospectivity for domestic market - 3D seismic program largely complete - Interpretation underway 58 India Legend Santos acreage Gas field Bangladesh Bay of Bengal Oil pipeline Gas pipeline India Sangu Block 16 NEC-DWN-24/2 NEC-DWN-24/1 Burma

30 Kyrgyz Republic Potential for medium term exploitation business. Key tests in 21 & 211 Leading acreage position 2D seismic complete Shallow prospects drilled in 29 secured prospective acreage and developed concepts Deep drilling in 21 & 211 Early production feasible with multiple export options Option secured on acreage adjacent to Kyrgyzstan licences Uzbekistan Andizhan Fergana Tajikistan Legend Santos acreage Refinery Oil field Kazakhstan Talas Kyrgyz Republic Osh Oil pipeline Gas pipeline Jalal-Abad Bishkek China Naryn 59 Summary Producing assets continue to deliver strong performance Focused portfolio will provide multiple mid term growth options: - Wortel and Peluang tie back to existing fields - Chim Sao oil project and near field exploitation - Potential for Magnama and South Sangu gas to be developed through existing infrastructure - Potential for onshore oil discoveries in Kyrgyz Republic PNG LNG project will: - deliver a new core asset - consolidate Santos reputation as an LNG supplier Potential material longer term business opportunities in India and PNG LNG expansion 6

31 61 GLNG Rick Wilkinson President, GLNG and Queensland Overview We have the energy to deliver The Project Two trains Milestones achieved Operational Excellence & Innovation The Right People Comprehensive CSG program Reserves growth Technology innovation Scalability Ramp gas strategy Storage advantage Capability established PETRONAS leverage Train 2 and beyond CSG to LNG: a world first 62

32 The Project Two Trains Upstream Pipeline LNG Plant Shipping Customers Fairview Arcadia Train 1 3.6mtpa FOB Roma 1 Train: 6 TJ/d CSG CSG LNG Portfolio Gas 2 Trains: 1,2 TJ/d Train 2 7.2mtpa FOB 63 Storage The Project Milestones Achieved GLNG is meeting key milestones EIS lodged Dual FEED upstream Binding offtake agreement Field development planning Supplementary EIS lodged Water solution - 7, trees planted - 1,3 km irrigation pipeline laid FID Mid 21 First cargo 214 building momentum to deliver first gas in

33 Operational Excellence and Innovation GLNG has a comprehensive program to prove up reserves and deliverability Since January 28 we have: Nine rigs operating continuously - four purpose-built CSG drilling rigs - three workover rigs to maximise well production - two coring rigs for appraisal 24 wells drilled - 71 production wells - 13 pilot wells - 66 core-holes 7 gas content samples to enable detailed reservoir characterisation 65 Gas Production Rate (TJ/d) Well Production Comparison March 29 vs October 29 Fairview Wells March 29 Gas Production March 29 Cumulative Gas Rate (TJ/d) October 29 Gas Production October Cumulative Gas Rate (TJ/d) Cumulative Rate (TJ/d) Operational Excellence and Innovation Roma reserve growth 1P 2P 3P Reserve Position Year End 27 1 km

34 Operational Excellence and Innovation Roma reserve growth 1P 2P 3P 28 corehole 28 pilot well Reserve Position Year End 28 1 km Operational Excellence and Innovation Roma reserve growth 1P 2P 3P 28 corehole 28 pilot well 29 corehole 29 pilot well Reserve Position Year End 29 1 km

35 Operational Excellence and Innovation 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 69 Operational Excellence and Innovation Scalability our assets are delivering in the field now CSG exploration & production Compressor Stations CSG Water Projects Daily water production capacity 8, bbl/d Amended water Reverse osmosis 9 operating rigs 12 wells drilled in core-holes Compressor capacity 13 TJ/d 3 installed compressor stations 7, trees Drip irrigation 23 ha forage crops Pivot irrigation and are ready to be scaled up to full capacity 7

36 Operational Excellence and Innovation Technology innovation will realise value and opportunities Storage Approx 15 Gas TJ/d withdrawal Approx 2 TJ/d Gas injection Gas supply optimisation Ramp management Existing depleted fields Santos operated Gas export Gas withdrawal ~15 TJ/d Gas input Gas injection ~2 TJ/d Underground storage 71 Operational Excellence and Innovation Ramp Gas Strategy: Roma gas storage is integral to ramp gas management 6 Roma Storage Withdrawal Gas supply (TJ/d) Turndown &/or Portfolio Gas Sales Roma Storage Injection Gas Production Existing Domestic Contracts and supports gas supply optimisation 72

37 Operational Excellence and Innovation Depleted conventional reservoirs suitable for storage Storage wells Queensland Proposed pipeline Gladstone Roma Wallumbilla Arcadia Fairview Roma 25km Legend Santos/Petronas JV permits Other Santos acreage have been identified in Santos-operated acreage 73 Gas field Gas pipeline Proposed GLNG pipeline Preparing for Train 2 Upstream reserves already building for Train 2 Plant Train 2 FEED well progressed 6% complete Up to $6m of pre-investment in Train 2 facilities - Shared facilities - Pipeline designed to include Train 2 Significant reduction in investment required for Train 2 Current plan to commence operating Train 2 one year after Train 1 Gas supply and marketing efforts under way 74

38 The Right People PETRONAS is the right partner for Santos Operator of MLNG, Bintulu, Sarawak 25 years supply LNG to Asia 3rd largest LNG producer in the world One of the largest owner-operator LNG fleets in the world with unrivalled skill and experience 75 The Right People Capability footprint is established International Contractors PETRONAS Global operations Technical knowledge Marketing expertise World class shipping fleet Purchasing power Bechtel Foster Wheeler Fluor GHD and stretches from Roma to Asia 76

39 The Right People We have the energy! 77 Beyond Train 2 T4 T5 T1 T2 T3 5 metres

40 Screening Gate Concept Design Gate Concept Select Gate Definition Gate Pre- Commitment Gate Sanction Gate RFSU Gate Project Close out Gate 79 Technical Ray Betros Executive Vice President, Technical Technical Excellence Outstanding project delivery achieved by the integration of exceptional people, tools and technology Systems People Improvement Tools 8

41 Gunnedah Basin Next Major Play in Coal Seam Gas Basin master position with >5 tcf prospective potential ESG operated areas (STO 47.65%)* - Net 2P reserves** PJ - Net 3P reserves** PJ - Net contingent resource (2C) 838 PJ STO operated areas - Initial exploration phase underway - 21 program: - 4 coreholes pilot wells - 9 km seismic *Santos 47.65% economic interest calculated as 35% direct interest plus 19.45% of ESG s 65% interest ** 19 August PEL 434 PEL 462 Dubbo PPL 3 PAL 2 5km PEL 45 PEL 433 Wilga Park Power Station Narrabri PEL 238 PEL 12 PEL 456 PEL 1 Legend Santos operated acreage Eastern Star operated acreage Gas pipeline Proposed gas pipeline Focussing on commercialisation New South Wales Gunnedah PALA 5 Tamworth PEL 452 Newcastle Gunnedah Basin Next Major Play in Coal Seam Gas Field Gas Content (m 3 /t) Permeability Flow Rate (md) (mmscf/d) Spacing (km 2 ) GIP/Well (bcf) Coal Thickness (m) Fairview s Gunnedah * s??? 5-6 San Juan** Santos assets * Combined STO operated and non- operated assets **Source: JPT February 28, Santos 82

42 Proposed Shaw River Power Station Targeting FID 2H 21 Power generation consistent with commercialisation of Santos extensive gas resources SRPS now targeting FID in 2nd half 21: - Regulatory certainty (CPRS) - Key approvals - Partner selection Santos portfolio to supply gas Proposed Shaw River Power Station Site Orford Koroit Willatook Port Fairy Warrnambool Proposed Pipeline Route Victoria Mortlake Terang Camperdown Allansford Port Campbell 15 km Bass Strait Timboon 83 Nanai Permit, Fergana Basin, Kyrgyz Republic 84 Exploration and Subsurface Trevor Brown Vice President, Exploration

43 Exploration Performance Conventional Exploration Capex (A$mm) 3 Cumulative Mean Resource Adds (mmboe) Oyong, Maleo, Mutineer/Exeter, Casino Peluang, Burnside Netherby, Frigate Deep, Ichthys North Magnama, Reindeer (Gnu) Barossa, Chim Sao, Wortel Henry, Caldita Exploration Capex (A$mm) Cum. Resource Adds (mmboe) 85 Exploration Wells (Number) Finding Costs - (US$/boe) Finding Cost (US$/boe) 5 4 Asia Pacific Peers Santos Santos Average Finding Costs (including CSG) US$.91/boe Forecast Henry, Caldita Barossa, Chim Sao, Wortel, Fairview,. Roma, Scotia Magnama, Reindeer (Gnu), Fairview, Roma Netherby, Frigate Deep, Ichthys North, Fairview, Roma Peluang, Burnside, Roma, Surat, Gunnedah 86 Source: IHS Herold Inc., Santos. Based on 2P & 2C data

44 Exploration Strategy Applying subsurface skills on captured CSG opportunities CSG exploration, appraisal and development is benefiting from the application of conventional subsurface skills and technology combined with coal specific research Queensland Denison Trough Surat Basin Fairview Dawson River Bowen Basin Scotia Brisbane New South Wales Sydney Basin Gunnedah Basin Sydney 2km 87 Exploration Strategy Our conventional exploration portfolio contains significant growth options - Australia - Indonesia - Vietnam - India - Bangladesh - Kyrgyz Republic Actively developing a material portfolio for future growth - Australia - Asia 88 Bengal Fan, Bay of Bengal, India

45 Exploration Spend A$mm Exploration Spend (A$mm) CSG Conventional % Exploration % of Total Capex Spar Deep Spar Deep gas opportunity, located beneath the Spar Gas Field, 7km from Varanus Island at a depth of 35m Targeting a structural/stratigraphic trap of Early Cretaceous age sands In success case, opportunity to quickly develop due to proximity to near-by facilities SW Spar 1 Spar 2 NE 9

46 Alabuka West Kyrgyz Republic 2D Seismic Profile Alabuka West oil opportunity, located in the Kyrgyz Republic Northern Fergana Basin, Nanai Permit Targeting a structural trap of Palaeogene age reservoirs Resource upside of greater than 5mmboe Structural culmination on regional field trend Oil seeps at reservoir outcrop Line Schematic Cross-Section Alabuka West Forward Exploration Drilling Schedule Well Name/ CSG Program Basin / Area Target Gross Unrisked, Upside Resource Potential (mmboe) Santos Interest % Timing PEL 433 (1CH) Gunnedah Gas CSG 48. Q1 PEL 434 (2CH) Gunnedah Gas CSG 48. Q1 ATP 631P (R) (1CH) Surat Gas CSG 81.9 Q1 EPC 937 (1CH) East Bowen Gas CSG 85. Q1 PEL 452 (3CH) Gunnedah Gas CSG 1. Q1 ATP 655P (2CH) Surat Gas CSG 1. Q2 ATP 745P (2CH) Bowen Gas CSG 79.6 Q3 West Soh 1 Fergana / Kyrgyz Rep. Oil 7. Q3 Spar Deep Barrow / Australia Gas 1. Q3 North Auchi 1 Fergana / Kyrgyz Rep. Oil 7. Q4 West Mailisu 1 Fergana / Kyrgyz Rep. Oil 8. Q4 ATP 868 P (3CH) Surat Gas CSG 1. Q4 East Spar East 1 Barrow / Australia Gas 45. Q4 Alabuka West 1 Fergana / Kyrgyz Rep. Oil 7. Q4 Australia Offshore Australia Gas 5. Q4 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 92

47 Outlook and Funding 93 Peter Wasow Executive Vice President & Chief Financial Officer Delivering Transformational Growth Asset quality is transformed 1% 75% Mature assets Production 5% 25% John Brookes, Reindeer, Kipper, Otway LNG Long life assets on plateau with high free cash flow % with liquids linked pricing rising to 7% of production 94

48 Building a Better Base Business Base business CAPEX excluding exploration and LNG 12 1 $m EA WA&NT Asia 95 Production and sales grow to record levels Sanctioned projects drive production higher: 7% CAGR production within guidance range 21 impacted by lower Mereenie (contract expiry post Blacktip) & Bayu Undan (35-day shutdown) New production from sanctioned projects on line from 211: Kipper, Reindeer & Chim Sao Third party gas sales a significant new profit centre Production and Sales (mmboe) Sales Production Range Sales forecast based on mid-point of annual production range Asset divestment options being reviewed may result in sale of production

49 Funding Growth Objective is to minimise equity employed while maintaining current investment grade credit rating - Prudent targets ensure access to debt capital through the cycle Implications: - Maximise debt consistent with rating, allowing for uncertainty - Lump sum contracting to reduce uncertainty - Improve base business operating cash flow - Reduce base business capital expenditure - Utilise hybrid securities if appropriate - Sell assets not adding to free cash flow, debt capacity or strategy - Sell down of 9% GLNG project equity - New equity to meet any remaining funding requirement 97 Guidance Item Previous Guidance Updated Guidance Guidance Production (mmboe) No change Production costs ($m) No change DD&A expense ($/boe) Royalty related taxation expense 1 ($m after tax) Capital expenditure (including exploration & evaluation) 2 ($m) 1,6 No change $2,8 1 Royalty related taxation expense guidance assumes an oil price of A$8 per barrel in 29 and A$9 per barrel in Capital expenditure guidance for 21 includes $1 billion for GLNG, $5 million for PNG LNG, $5 million for sanctioned projects (Kipper, Reindeer, Henry & Chim Sao) and $15 million for conventional exploration. 98

50 99 David Knox Chief Executive Officer & Managing Director Our strategy delivers Performance from the base business LNG growth - LNG at more than 5% of revenue - With equity in 4 LNG projects Focussed growth in Asia Thereby realising our vision to be a leading Australian company providing energy for Australia and Asia 1