where to from here, page-6

Santos to supply 750PJ of portfolio gas to GLNG
Oil-linked pricing to underwrite long-term future of the Cooper Basin
Secures additional strategic advantage for GLNG
Santos today announced an agreement to supply 750 PJ of gas to the GLNG project.
The gas will be delivered from Santos?f eastern Australian gas portfolio, with existing uncontracted
Cooper Basin 2P reserves being the primary supply source.
The gas supply to GLNG is consistent with Santos?f strategy of developing its significant Australian
gas reserve and resource position through both the domestic and LNG export channels to market.
With an oil-linked pricing formula, the agreement not only accelerates monetisation of Cooper 2P
reserves, but provides a key catalyst for longer-term investment in the Cooper Basin.
The gas will be supplied over a period of 15 years commencing in 2014 and is conditional on a final
investment decision on GLNG train two.
Santos Chief Executive Officer David Knox said the agreement delivers significant value to Santos?f
Cooper Basin position by opening an export channel for Cooper gas and accelerating its
monetisation.
?gThe oil-linked pricing will underwrite future investment in the Cooper Basin and unlock the potential of
the Basin?fs remaining substantial resources. For some time, Santos and our partners in the Cooper
Basin have highlighted the enormous potential of infill drilling and unconventional gas if a sufficiently
attractive price could be established. This deal achieves that,?h Mr Knox said.
Santos Vice President Eastern Australia James Baulderstone said the GLNG supply deal, coming on
top of Cooper domestic gas contracts valued in excess of $400 million gross already agreed or
pending this year, highlights the long-term importance of the existing Moomba facilities in Eastern
Australia?fs gas infrastructure. The ability to access oil-linked pricing through the LNG market will
transform the Cooper Basin in terms of its long-term production outlook.
?gMoomba and the Cooper Basin have traditionally played a pivotal role in supplying gas to the
domestic market. This unparalleled opportunity ensures that the company?fs Cooper Basin operations
in South Australia and Queensland will continue to play that role,?h Mr Baulderstone said.
Santos Limited ABN 80 007 550 923
GPO Box 2455, Adelaide SA 5001
Telephone: +61 8 8218 5111 Facsimile: +61 8 8218 5131
www.santos.com
Page 2 of 2
It is not anticipated that there will be any requirement for material capital expenditure prior to 2014 to
deliver the Cooper Basin volumes. Firm pipeline capacity to transport the gas from Moomba to the
Wallumbilla gas hub in Queensland is available to Santos via Epic Energy. Santos is also in
discussions with its Cooper Basin Joint Venture partners regarding their possible participation in the
GLNG supply agreement.
Santos has a 66.6% interest in the South Australian Cooper Basin Joint Venture. The other
participants are Beach Energy (20.21%) and Origin Energy (13.19%).
Santos Chief Executive Officer David Knox said the unique ability of Santos to leverage its gas
portfolio and infrastructure position in eastern Australia would also give GLNG a significant strategic
advantage in being able to execute the most capital efficient ramp up of gas supply for trains one and
two.
?gIn combination with Roma underground gas storage, supply of conventional Santos portfolio gas will
enable GLNG to optimise both CSG field development and LNG train ramp up. These levers provide
GLNG with a significant strategic advantage,?h Mr Knox said.
GLNG Federal environmental approval
GLNG received its environmental approval from the Federal Government on 22 October.
GLNG has reviewed the conditions outlined in the Minister?fs approval.
?gWe are committed to meeting the stringent conditions of the Federal and Queensland government
environmental approvals,?h Mr Knox said.
GLNG received its environmental approval from the Queensland government in May 2010.