Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 - PDF document

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 Limited FROM: Company Secretary DATE: 22 September 2011 SUBJECT: INVESTOR PRESENTATION September 2011 Please find attached a Santos Investor Presentation, which is being presented in Hong Kong during September, 2011. David Lim Company Secretary

Investor Presentation September 2011 1 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. various countries approvals and cost estimates All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated. 2 1

Santos overview Regional footprint of operations  One of Australia's leading upstream oil and gas companies and has been Hai Phong Basin Kyrgyz Republic operating since 1954 operating since 1954 Phu Khanh Basin Bangladesh  Current production: Kutei Basin India Timor Sea & Timor Gap - ~ 600 mmscf/d of gas Nam Con Son Basin Bonaparte Basin West Papua and - ~ 30 kbbls/d of liquids East Java Basin Papua New Guinea Amadeus Basin Browse Basin  Employs 2,400 people Cooper Basin Carnarvon Basin Surat/Bowen Basins Gunnedah Basin  107,000 shareholders Gippsland Basin Otway Basin Exploration  Top-25 ASX listed company: Production market capitalisation p Key statistics (YE 2010) Key statistics (YE 2010) US$11 billion (Sept 2011) 1P reserves 646 mmboe  One of Australia’s largest 2P reserves 1,445 mmboe domestic gas producers and Contingent resources 2,261 mmboe key stakeholder in Darwin 2010 production 50 mmboe LNG, PNG LNG, GLNG and 2010 2P reserve replacement ratio 331% * Bonaparte LNG * 2010 2P organic RRR 3 Santos vision and strategy LNG Markets LNG CHANNEL DOMESTIC CHANNEL Focused Strong Asian A leading g Australian energy Growth Base company in Australia and Asia Strategic Domestic Gas positions in EA and WA 4 2

Transforming to oil-linked pricing 70% of 1.4bn boe 2P reserves Asset base is transformed exposed to oil prices through sanctioned projects Cooper to Production (mmboe) GLNG 80 Oil-linked Legacy domgas NSW 70 CSG 60 EA legacy 50 domgas contracts 40 Asia LNG domgas 30 WA legacy domgas d 20 20 contracts Crude, 10 Condensate, WA oil-linked LPG domgas & 0 uncontracted 2010 2011 2012 2013 2014 2015 domgas Contingent resources of 2.3bn boe Production exposed to oil price rises from has a similar pattern 27% in 2010 to 70% in 2015 5 Safety performance Santos TRCFR performance (Employees & Contractors) rate 7 ordable case frequency r r million hours worked) 6 5 4 3 2 2.6 Total reco (per 1 1 0 2006 2007 2008 2009 2010 2011 YTD 6 3

Working with local landholders and communities  One of Australia’s largest gas producers, Santos has a 50-year track record of safe, sustainable operations  W  We are committed to working with local landholders and itt d t ki ith l l l dh ld d contributing to communities  We will work in partnership with agriculture for sustainable resource management 7 2011 First-half highlights  Safety: 60% improvement in three years  Reported half-year profit up 155% to $504 million Reported half year profit up 155% to $504 million  Two-train GLNG project sanctioned in January  Halyard/Spar project on-line ahead of schedule  Chim Sáo, Reindeer and Wortel projects on track for start-up in the second half of 2011  Exploration success at Zola and Finucane South p  Strong balance sheet: $6.7 billion of funding capacity  Proposed acquisition of ESG via recommended Scheme of Arrangement and partnership with TRUenergy 8 4

Half-year net profit up 155% 2011 Half-year result Change on 2010 first-half Production Production 22 9 mmboe 22.9 mmboe (5% ) (5% ) Sales revenue $1,101 million 1% EBITDAX $1,089 million 66% Net profit after tax $504 million 155% Underlying net profit $236 million 12% Operating cash flow $681 million 27% Interim dividend 15 cents per share 7 cents 9 Strong balance sheet to fund growth Funding position ensures balance sheet capacity to:  fund execution of business strategy  minimise refinancing risk Debt maturity profile y p $ $6.7 billion of funding capacity g p y A$ million A$ billion 1,800 7 1,600 6 1,400 5 1,200 4 1,000 800 3 600 2 2 400 1 200 0 0 2011 2013 2015 2017 2019 Beyond Undrawn Undrawn Cash corporate project line 2020 lines (PNG LNG) Drawn facilities Euro subordinated notes Undrawn bank facilities The Euro subordinated notes mature in 2070. Santos has the option to redeem the notes in 2017. Charts as at 30 June 2011. 10 5

GLNG FID signing ceremony, 13 January 2011 L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS) Growth in LNG 11 LNG is a key component of Santos’ growth strategy Bonaparte LNG Strategy  2 mtpa FLNG PNG LNG PNG LNG Components Components  Santos 40% with carry to FID S t 40% ith t FID  Sanctioned Dec 2009  6.6 mtpa two trains Deliver the  First LNG due 2014 Base Business  Santos 13.5% Darwin LNG  Production since 2006  3.6 mtpa single train LNG Growth  Santos 11.5% GLNG GLNG  Sanctioned Jan 2011 Focused  7.8 mtpa two trains growth in Asia  First LNG due 2015  Santos 30% 12 6

Strategy delivers material LNG growth Santos equity LNG production GLNG T1 from existing discovered resources mtpa 5 BLNG 4 GLNG T2 3 2 GLNG T1 1 PNG LNG Excludes PNG LNG expansion Darwin LNG 0 2010 2020 13 Santos’ LNG customers and partners PNG LNG Bonaparte LNG Darwin LNG GLNG 14 7

Continue to see strong long-term LNG pricing Asian Term Prices  Recent contracts point $18 Late 2006 to strong underlying $16 2008-10 demand Ex-ship LNG Price ($/MMBtu $14 LNG Price ($/ MMBtu)  Pricing reflects new US$12/ MMBtu Mid 2006 $12 Oil Parity supply-demand equilibrium $10  Long-term Asia-Pacific Late 2005 $8 pricing remains oil- $6 $6 linked linked Ex-Ship $4 Early 2005 2003 $2 $20 $30 $40 $50 $60 $70 $80 $90 $100 JCC ($/Bbl) Source: Poten & Partners 15 GLNG 16 8

GLNG plant site, Curtis Island LNG plant site schematic 9 August 2011 9 August 2011 17 GLNG material offloading facility site 9 August 2011 9 August 2011 9 August 2011 18 9

GLNG Construction progressing to schedule and budget  FID Jan 2011  7.8 mtpa, two trains  Santos 30%  LNG off-take agreements with PETRONAS & KOGAS  Clearing of LNG plant site on Curtis Island 90% complete First batch of GLNG line-pipe  Bulk earthworks 20% complete  Production of line-pipe commenced  Capital expenditure US$16 billion gross includes US$2 billion in contingencies LNG plant site schematic  First LNG due in 2015 Culvert installation, Curtis Island 19 World-class GLNG contractors Predominantly fixed price EPC contracting strategy Project Description Contractor Contract Type Component Upstream surface All coal seam gas and Cost-reimbursable facilities water gathering and performance incentive processing contract based infrastructure predominantly on fixed unit rates Gas transmission 420-kilometre gas Fixed price lump sum pipeline transmission pipeline turnkey EPC contract from the gas fields to g Gladstone LNG Plant 7.8mtpa 2-train LNG Fixed price lump sum plant plus associated turnkey EPC contract infrastructure 20 10

Beneficial use of CSG water Santos GLNG President Mark Macfarlane with landowners Santos GLNG President Mark Macfarlane with landowners Ree Ree and Leon Price on their property. and Leon Price on their property. 21 PNG LNG, Darwin LNG and Bonaparte LNG 22 11

PNG LNG Progressing towards first LNG in 2014  FID Dec 2009  6.6 mtpa, two trains  Santos 13.5%  Four Asian LNG buyers  Design for major EPC contracts nearing completion, procurement well underway  LNG train foundations, structural Line-pipe at Kopi shore base steel and LNG tank foundations commenced  Delivery of line-pipe nearing completion  Piling for marine jetty commenced  First LNG due in 2014 Mubi River bridge, southern logistics route 23 PNG LNG plant site LNG plant site schematic 24 12