031111 glng investor tour presentation
TRANSCRIPT
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Santos LtdABN 80 007 550 923Ground Floor, Santos Centre60 Flinders StreetAdelaide South Australia 5000
GPO Box 2455Adelaide South Australia 5001
Direct: + 61 8 8116 5000Facsimile: + 61 8 8116 6723
TO: Company Announcements OfficeASX Limited
FROM:Company Secretary
DATE: 3 November 2011
SUBJECT: GLNG Investor Tour Presentation
Please find attached a presentation GLNG Investor Tour, being presented by Mark Macfarlanein Roma on Thursday 3 November 2011.
David Lim
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3-4 November 2011
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Disclaimer & Important Notice
This presentation contains forward looking statements that are subject to
.
expectations reflected in these statements are reasonable, but they may beaffected by a range of variables which could cause actual results or trends to
differ materiall includin but not limited to: rice fluctuations actual
demand, currency fluctuations, geotechnical factors, drilling and production
results, gas commercialisation, development progress, operating results,
engineering estimates, reserve estimates, loss of market, industrycompetition, 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.
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Project Overview
Development of CSG
First LNG expected in 2015 on schedule
Arcadia Area
Surat Basins
FID Jan 2011
Queensland
US$16 billion project
5,000 jobs in construction
Scotia AreaFairview Area
,
420km pipeline and 7.8mtpatwo train plant
Roma Area
First cargo 2015
Customers
- PETRONAS, 3.5mtpa
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- Kogas, 3.5mtpa
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Strong Partnership / Contractors
Project partners have industry leading expertise providingend to end supply chain coverage
Predominantly fixed price EPC contracting strategy with
GLNG leveraging strength of partnerships
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Experienced Leadership Team
President GLNG
Experience:25 years Oil & Gas experience.Held position of Vice President
GM ExternalAffairs
Victoria Somlyay
GMDownstreamOperations
ProjectDirector Plant
& Port
GM UpstreamOperationsRob Simpson
GM Marketin gKartina Amin
(Acting)
GM LegalPatrick Ronan
DirectorGas Suppl yMike Hughes
GM HumanResourcesPeter White
GLNGProgramDirector
GM BusinessServices
Olivier Depraz
Eastern Australia for Santos
25+ years (including20+ years oil & gas)extensive operationaland financemanagement,business development,
35+ years oiland gas, 15years LNGprojectexperience
PETRONASsecondee.PreviouslyManagedMLNG. 28years
Totalsecondee.29 years oil& gasexperienceover a range
15+ yearspolitical &seniorcorporateaffairsexperience
15+ years HRexperience,significant oil& gasexperience,project
20 yrs legalexperience inconstruction,infrastructure,resources andfinance
PETRONASsecondee. 13years in oil &gas industrywith 8 years inLNG marketing
Totalsecondee. 40years projectmanagementexperience
30+ yearsoperationsand projectexperience
SupportGas Supply Execute Operate
international
management andstrategic planningexperience
operations
experience
of projects
with Total
experience
withinconstructionindustry
projects
globally
& trading
coveringAtlantic & AsiaPacific regions
5 structured for delivery
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Project Progress
First LNG expected in 2015 on schedule
Component Highlights
Upstream
~520 landholder agreements in place All cultural heritage clearances obtained
>500 Fluor personnel working on project
o a we s r e n e e s o a e
Industry leading position on water and brine management
- Two reverse osmosis (RO) plants, two associated water amendment facilities
- 1,300 ha drip irrigated chinchilla white gum, 234 ha RO permeate irrigatedforage, 102 ha pivot and drip irrigated forage at Mt Hope Station (landholderproperty, Roma)
Pipeline All cultural heritage clearances obtained
Production of line- i e commenced >100km alread manufactured
Plant andPort
Clearing of 144 hectare LNG plant site on Curtis Island complete, maintaining themangroves, construction commenced
Bulk earthworks >25% complete
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a n an og s cs s es we a vance
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Upstream
Fairview CSFairview CS--33 Arcadia ValleyArcadia Valley
Fairview CSFairview CS--33WallumbillaWallumbilla
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Santos CSG Involvement
Santos recently celebrated
Fairview Compressor Station 2Fairview Compressor Station 2
in the Roma area
Santos commencedcommercial production ofCSG in Queensland in 1995
~90% of Queenslands gasproduction
Santos funds local infrastructureSantos funds local infrastructure
Santos leveraging strongcommunity presence andgood engagement with
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landholders
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Upstream Overview
Fairview, Roma, Arcadia, Scotia
~520 landowner agreements with200 landowners in place
Arcadia Area
34,000 hectares of land owned- Used for key development activities
and environmental offsets Fairview Area 383 wells drilled to date
207 wells commissioned withcapacity ~240 TJ/d
Scotia Area
- Producing to domestic nomination- Injecting into storage
Roma underground storage
Roma Area
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- Ramp gas management tool- Injection commenced and ramping-up
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Fairview Wells Capacity ~200 TJ/d
7000
800012.00
bl/d)
/d)
6000
8.00
10.00
alWells(
lWells
(T
Water capacity forindividual wells
Gas capacity forindividual wells
40006.00
orIndivid
rIndividu
Current average water capacityCurrent average gas capacity
2000
2.00
4.00
Capacity
capacityf
,from 619 bbl/d in Jan 2010
. ,from 1.0 TJ/d in Jan 2010
00.00 Wate
r
Gas
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Upstream Status
We have the rigs we need
-
Multi-Pad Well Heads
in operation- Wet weather in first quarter of
2011 impacted the drilling program
- Expect to drill ~135 wells in 2011and ~170 wells in 2012
Pad drilling- Updating rig fleet
- Reduced footprint, lower total cost
- Higher productivity
- Mobilisation to field commenced
- All long lead items ordered
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EIS approval for 2,650 wells
- Sufficient for current field development plans
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Nodal Compressor Unit Being Tested
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Temporary Camp Construction
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Reserves and Resources
GLNG has 9 tcf of dedicated reserves and resourcesGLNG dedicated 2P+ 2C (PJ) 2
NSAI estimates GLNGultimate 2P CSG reserves
8,000
10,000
from existing acreage1
In addition to CSG
6,000
378%
549%exclGLNGsale
reserves, an os osupply 750 PJ
2,000
,
1247%
0
2010
2P CSG 2P STO 2C CSG
2
1,000 PJ = 0.94 tcf
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NSAI: Netherland, Sewell & Associates, Inc. Based on their analysis, NSAI believe that continued developmentand appraisal drilling in the GLNG dedicated areas has a reasonable likelihood of extending the 2P reserves
area into most of the regions now categorised as possible reserves or 2C contingent resources.
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Water Management
Santos water infrastructure well
- 2 x Reverse Osmosis (RO) Plants Romaand Fairview
- 2 x Associated Water AmendmentFacilities (AWAF) Roma and Fairview
- Regional bore inventory of around 400
bores- ngo ng mon or ng o aroun ores
Plans going forward- 3 x RO Plants (Fairview, Roma and
Arcadia Valley)- 2 x AWAF (Fairview)- 3 x Mobile RO Plants (Roma and Fairview)
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No Impact on Viability of GAB
Imperviousformation
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Extensive Water Monitoring
Santos has an extensivegroundwater management plan
Supported by one of Australiaslargest and best proactive
programs
Will be actively monitoring over
oca ons across our e sto confirm our modelling andearly warning of any impacts
Launched on-line water portal,which will make public andtrans arent results of
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monitoring
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CSG: Producing Usable Water
Treated CSG water is an
Landholders in Roma regionrecognising the value
Pilot irrigation trial on Santos landin Fairview very successful
up to 25 times productivity Launched first irrigation project
with private landholder at MountHope Station last month. Santos providing up to 700 ML of treated water,p vo rr ga on sys em cover ng ec ares an ec ares o r p, an130 hectares of forage crops. Further projects to be rolled out
Planning Roma aquifer re-charge. Inject 10 ML of treated water per day.
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Boost Roma town water supply providing around 50 years of extra watersupply
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Hydraulic Fracturing
Established oil and gas industry practice for more than 60 years
Going forward will depend on the geology of the area
Purpose, to open coal seams without natural fractures to allowextraction of more as- Individual wells more productive, limiting drilling and surface footprint
Process involves pumping a mixture of sand and water and a very
- Chemicals are safe in the concentration used; found in household
We are transparent about the chemicals we use- n we s e- Inform regulator and landholder
Extensive regulations in place in Queensland
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- Water management and testing requirements
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Pipeline
Line-Pipe, Jindal SAW
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Status
Saipem
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- GLNG personnel embedded with Saipem inFarno- Ex ected to start la in i eline 2012 on track
- Two full pipe laying seasons to complete
Engineering and procurement more than
LineLine--Pipe atPipe at JindalJindal SAWSAW
Line pipe production commenced
- More than 100 km to date at approximately 150
joints (1.8km) per day Marine crossing line pipe complete and in
storage in Batam
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Geotechnical survey has been completed
along the main pipeline route
LineLine--Pipe atPipe at JindalJindal SAWSAW
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Pipeline Route / Scope
LNG TerminalLNG TerminalKP 400KP 400
KP 300KP 300
KP 200KP 200
420km x 42 #600420km x 42 #600 PipelinePipeline Free flow capacity sized for two trainsFree flow capacity sized for two trains 22--layerlayer FBE CoatingFBE Coating plusplus epoxy liningepoxy lining
KP 100KP 100
KP 00KP 00
WallWall thickness,thickness, 14.1mm to 19.7mm14.1mm to 19.7mm 66 MLVsMLVs LauncherLauncher andand receiver trapsreceiver traps 1 x 5.5km Marine Crossing1 x 5.5km Marine Crossing
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pe ne pera onspe ne pera ons en reen re
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LNG Plant and Port
TEG Vessels in Manuf actur e, China
23 LNG Plant model, Curtis IslandLNG Plant model, Curtis Island
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Plant and Port Scope
Located at Curtis Island,
Two 3.9 mtpa trains,two LNG storage tanks
FishermansFishermansLandingLanding
MOFMOF
GLNG PlantGLNG Plant
Process
Lump sum contractingR GR G TannaTanna
Gladstone PortsCorporation carrying outdred in works
Port CentralPort Central
All critical path permits for mainland and Curtis Island delivered
Site position means GLNG less dependent on dredging than other LNG
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Plant Status
Commenced construction on Curtis
Earthworks >25% of required4 million m3 completed
Completed first Factory AcceptanceTest for refrigeration gas turbine
Culvert Installation, Curtis IslandCulvert Installation, Curtis Island
R G Tanna Raw Materials Facility andCurtis Island pioneer rampoperational
Accommodation Units
MacMahonSite offices
All key equipment purchase ordersfor Train 1 and Train 2 issued
Kitchen /Dining building
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ng neer ng an procuremencomplete
Plant Site, Curtis IslandPlant Site, Curtis Island
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Port Status
Western basin main works
Van Oord / DredgingInternational joint venture(VODI)
Dredging by Coastal Dredging &Construction at materials
offloadin facilit >60% Dredging, Gladstone HarbourDredging, Gladstone Harbour
complete and on track
Bund wall construction for thewestern basin com lete
Berth pocket dredging complete
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Western Basin, Bun WaWestern Basin, Bun Wa
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Curtis Island, Clearing Completed
MOFCamp Accommodation
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33 October 2011October 2011
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Plant Material Offloading Facility
AA JJ HollandsHollands Office andOffice and laydownlaydown
Pioneer Ramp
BB RO plant areaRO plant area
CC -- Batch PlantBatch PlantDD -- Haul RoadHaul Road
A
BC
D
Ferr TerminalAggregate Berth
Lo-Lo and Ro-RoBerth face
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3 October 2011
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Port Central Ferry Terminal and RoRo
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55 October 2011October 2011
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RG Tanna LoLo and RoRo Facility
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5 October 2011
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Fishermans Landing Barge Landing
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55 October 2011October 2011
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External Environment
Respectful relationshipsRespectful relationshipsCoCo--existenceexistence
32 Economic opportunitiesEconomic opportunitiesBeneficial use of waterBeneficial use of water
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Overview
Bipartisan support for CSG industry in Queensland. Recognised
Strong positive track record in the Roma region
- Over 50 ears of as roduction
- Fifteen years of CSG
Santos operates on grazing land, not cropping land Continued positive traction with Government with most major
primary and secondary approvals completed
nves men n wa er n ras ruc ure over e pas wo years
- Industry leading position on water and brine management
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Boosting Local Economies, Communities
Substantial economic benefits for Queensland regions
Santos em lo s almost 200 eo le in Surat Basin. Will row to a constructionworkforce of 1,000 people in the fields
Provided opportunities for local businesses a long term industry revitalisingthe regions
- a new airport terminal- industry medical helicopter
- new allied health facility att e ospita- social and affordable housing= more than $16 million in the
Maranoa re ion lus morethan $11 million in Gladstone
Project Road-use Management Planbeing finalised including LNG
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with Queensland Government
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Our Actions Speak for Us
~520 land access agreements~
Standard rates of compensationreviewed regularly
Strong community ties andrespectful interaction with
We can co-exist with agricultureand boost the productivity of
utilisation of CSG water We can do this in a way that is safe and sustainable, and with no impact
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We will deliver a once in a generation economic opportunity
for Queenslands regions
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Conclusion
First LNG ex ected in 2015 on schedule
Key messages
World class contractors executing with experiencedowners team
Co-existence with agriculture and communities
for regional communities
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Contact Information
Head off ice
Adelaide Andrew Nairn
Ground Floor, Santos Centre
60 Flinders Street
Adelaide, South Australia 5000
Level 10, Santos Centre
Direct: + 61 8 8116 5314
Email: [email protected]
GPO Box 2455
Adelaide, South Australia 5001
Telephone: +61 8 8116 5000Nicole Walker
Investor Relations ManagerFacsimile: +61 8 8116 5050
Useful email contacts
Level 10, Santos Centre
Direct: + 61 8 8116 5302
Email: [email protected]
Website:
www.santos.com
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