Full Year 2021 Santos Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dale Johannes Koenders - Barrenjoey Markets Pty Limited, Research Division - Analyst : Just a couple of questions. Firstly, on the $2 billion, $3 billion asset sale range. Can Kevin provide some color? Is this effectively like a risk-adjusted number? Just thinking about the Independent Expert Report estimating a $3 billion sale for PNG LNG doesn't leave a lot of room for the other assets. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 16, 2022 / 12:30AM, STO.AX - Full Year 2021 Santos Ltd Earnings Call

Question: Dale Johannes Koenders - Barrenjoey Markets Pty Limited, Research Division - Analyst : That's clear. The comment around FID ready for Alaska and Dorado and the various terms it's subject to, one of them is sell-down, I mean, the (inaudible)...

Question: Dale Johannes Koenders - Barrenjoey Markets Pty Limited, Research Division - Analyst : Sure. Is one of the conditions for FID, a sell-down of interest in these assets before they move forward still?

Question: Dale Johannes Koenders - Barrenjoey Markets Pty Limited, Research Division - Analyst : Sure. just finally, production guidance, Santos last year, you did about 90 mmboe Oil Search was about 30 mmboe. You've called out Darwin LNG and (inaudible) between 2 steps down by 10 mmboe. But early on it gets the top end of the guidance range of 100 to 110 if other production is flat. I'm just wondering, should we be thinking you hit the top end of your guidance? Or is there downside risk to other assets to get towards the middle or the bottom end of that range? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 16, 2022 / 12:30AM, STO.AX - Full Year 2021 Santos Ltd Earnings Call

Question: Dale Johannes Koenders - Barrenjoey Markets Pty Limited, Research Division - Analyst : Just in terms of the rest of the portfolio, is it flat production outlook then?

Question: Nik Burns - Jarden Limited, Research Division - Analyst : Just another question in relation to Alaska. You mentioned the sale process is kicking off there. Can I ask if operatorship is being offered as part of this process? And the reason I ask is that I expect the sale process will likely take a few months to complete. And if you're bringing in a new operator but like we want to undertake a full-scale review and make wholesale changes potentially to the proposed development plans, which could potentially kick FID back to late this year even 2023. Is that a possibility here?

Question: Nik Burns - Jarden Limited, Research Division - Analyst : Got it. That's clear. And just a question on Barossa and Bayu-Undan CCS, 6 months ago, I think we talked about need to progress the proposed Bayu-Undan and CCS project as it has implication for your plan for Barossa LNG in terms of CO2 removal facilities, the pipeline, et cetera. Can you talk about where you are at in relation to talking to relevant stakeholders around this?

Question: Nik Burns - Jarden Limited, Research Division - Analyst : That's great. Just one really quick one. Just on Barossa LNG sanction in March, I believe there was a $200 million FID payment trigger to Conoco. Can I just check to see whether that has been paid?

Question: Nik Burns - Jarden Limited, Research Division - Analyst : So can I take it that the -- your breakeven oil price guidance for 2022 excludes that payment? Or does it include that payment?

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : Papua LNG, obviously, you're progressing with Feed there. Just wanted to ask, and it's probably a bit early. Oil Search had previously stated they wanted to lock in their equity LNG sales volumes prior to FID. And just wanted to see if Santos had a slightly different view from that.

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : Papua. Yes.

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : And type of pricing, JCC versus JKM, considering is on a JKM contract at Barossa? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 16, 2022 / 12:30AM, STO.AX - Full Year 2021 Santos Ltd Earnings Call

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : Are you also able to confirm if there's Chinese interest in offtake specifically from Sinopec?

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : And just last one -- that's fine. Just last one for me, just on unit production costs. they're going up. And one of the reasons, obviously, is the Bayu-Undan decline, but you've also mentioned PNG oil production assets, their cost on the unit basis are a bit higher. If we look on a percentage basis, how much of it is driven by Bayu-Undan, so I'm just talking about going from 7.76% to 8% to 8.50% in 2022. How much of that on a percentage basis would be Bayu-Undan then? Because you've actually given us $1.20, but it's not really -- you can't correlate that across.

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : I mean follow up with that...

Question: Gordon Alexander Ramsay - RBC Capital Markets, Research Division - Analyst : No, that's good. I'll get Andrew to follow up on that one with you.