新奥股份定期财报：新奥股份：Santos2019年年度报告（英文）

AnnualReport2019ABN80007550923This2019AnnualReportisasummaryofSantos’operations,activitiesandfinancialpositionasat31December2019.Allreferencestodollars,centsor$inthisdocumentaretoUScurrency,unlessotherwisestated.AnelectronicversionofthisreportisavailableonSantos’website,Santos’CorporateGovernanceStatementcanbeviewedat:/who-we-are/corporate-governanceCONTENTS1AboutSantos2FinancialOverview4MessagefromtheChairmanandfromtheManagingDirector&ChiefExecutiveOfficer8BoardofDirectors11SantosLeadershipTeam14ReservesStatement18Directors’Report32RemunerationReport59FinancialReport135Directors’Declaration136IndependentAuditor’sReport142Auditor’sIndependenceDeclaration143SecuritiesExchangeandShareholderInformation145Glossary146CorporateDirectoryCoverimage:DarwinLNG,WickhamPoint,NorthernTerritoryAboutSantosAnAustralianenergypioneerSantosisanAustraliannaturalgascompany.Establishedin1954,theCompany’spurposeistoprovidesustainablereturnsforourshareholdersbysupplyingreliable,affordableandcleanerenergytoimprovethelivesofpeopleinAustraliaandAsia.Fivecorelong-lifenaturalgasassetssitattheheartofaclearandconsistentstrategytoTransform,BuildandGrowthebusiness:WesternAustralia,theCooperBasin,QueenslandandNSW,NorthernAustraliaandTimor-Leste,andPapuaNewGuinea.Eachcoreassetprovidesstableproduction,long-termrevenuestreamsandsignificantupsideopportunities.WithoneofthelargestexplorationandproductionacreagesinAustralia,asignificantandgrowingfootprintinPapuaNewGuineaandastrategicinfrastructureposition,Santosiswellpositionedtobenefitfromthegrowingglobaldemandforenergy.TodeliverourvisiontobeAustralia’sleadingnaturalgascompanyby2025,wewillaspireto:reduceemissionsandimproveairqualityacrossAsiaandAustraliabydisplacingcoalwithnaturalgas,andsupporttheeconomicdevelopmentofcombinedgasandrenewableenergysolutions;betheleadingnationalsupplierofdomesticgasinAustralia;bealeadingregionalLNGsupplierbyincreasingLNGsalestoourAsiancustomerstoover4.5milliontonnesperannum;berecognisedasthesafestandlowest-costonshoregasdeveloperinAustralia;becomethemarketleaderinrunningthesafestandlowest-costfacilitiesandinfrastructureoperations;contributepositivelytothecommunitiesinwhichweoperatebyprovidingjobs,energysupplyandlocalpartnerships;developourpeopleandculturetodeliverourvision.Santostodayisasafe,low-cost,reliableandhigh-performancebusiness,proudlydeliveringtheeconomicandenvironmentalbenefitsofnaturalgastohomesandbusinessesthroughoutAustraliaandAsia.SantosAnnualReport2019/1SantosAnnualReport22/SantosAnnualReport2019FinancialOverviewSalesvolumemmboeSalesrevenueUS$millionProductionmmboeFreecashflowUS$millionUnderlyingnetprofitaftertaxUS$millionNetprofitaftertaxUS$millionUnitproductioncostsUS$perboeCapitalexpenditureUS$millionNetdebtUS$millionSalesvolume64.384.183.478.394.5201720162015201820192,4422,5943,1003,6604,033Salesrevenue201720162015201820195475318727719Underlyingnetprotaftertax201720162015201820191,2886256827591,016Capitalexpenditure2017201620152018201957.761.659.558.975.5Production20172016201520182019-1,953-1,047-360630674Netprotaftertax201720162015201820194,7493,4922,7313,5493,325Netdebt20172016201520182019-7392066181,0061,138Freecashow2017201620152018201910.358.458.078.057.24Unitproductioncosts2017201620152018201920152016201720182019Salesvolumemmboe64.384.183.478.394.5Productionmmboe57.761.659.558.975.5AveragerealisedoilpriceUS$perbarrel53.846.457.875.172.0NetprofitaftertaxUS$million-1,953-1,047-360630674UnderlyingnetprofitaftertaxUS$million5475318727719SalesrevenueUS$million2,4422,5943,1003,6604,033OperatingcashflowUS$million8118401,2481,5782,046FreecashflowUS$million-7392066181,0061,138EBITDAXUS$million1,4541,1991,4282,1602,457TotalassetsUS$million15,94915,26213,70616,81116,509EarningspershareUScents-169.5-58.2-17.330.232.4DividendsdeclaredA20cps––US9.7cpsUS11cpsNumberofemployees2,9462,3662,0802,1902,1782019ResultsOwnproduct73.5Third-partyproduct21.0LNG1,515Salesgasandethane1,172Oil927Condensate335LPG84Salesgasandethane37.2LNG25.3Oil7.7Condensate4.0LPG1.32019Salesvolumesmmboe2019Productionmmboe2019SalesrevenueUS$millionAveragerealisedoilpriceUS$perbarrel53.846.457.875.172.020172016201520182019SantosAnnualReport2019/3SantosAnnualReport24/SantosAnnualReport2019MessagefromtheChairmanandfromtheManagingDirector&ChiefExecutiveOfficerDearShareholder,In2016SantosunveiledanewcorporatestrategytoTransform,BuildandGrowthebusinesstorestoreanddriveshareholdervalue.Overthepastfouryears,thesuccessfulimplementationofthisstrategyhasresultedinasimplifiedandhigh-gradedportfoliooffivecorelong-lifeassethubs.Non-coreassetshavebeensoldandvalueaccretiveacquisitionshavedeliveredoperatorshipoflow-cost,strategicdomesticgasassetsandLNGinfrastructure.OurdisciplinedOperatingModelandfocusonsafe,low-cost,efficientoperationshasunderpinnedourcompetitiveadvantageandprovidedtheframeworkforthecontinuedgenerationofstrongandstablecashflows.Dividendshavebeenreinstatedandourstrengthenedbalancesheetremainssupportiveofourdisciplinedgrowthstrategy.In2019,theongoingsuccessfulexecutionoftheTransform,BuildandGrowstrategydelivered:Recordfreecashflowof$1,138millionRecordsalesvolumesof94.5mmboeRecordproductionvolumes75.5mmboeUnderlyingnetprofitaftertaxof$719million,andDividendsofUS11centspershare,fullyfranked,whichincludesthefinal2019dividendofUS5centspershareOurportfolioofassetsarenowgeographicallydiverseandbalancedbetweenonshoreandoffshoreoperations,betweennaturalgasandliquidsandoursalesvolumesbetweenoilprice-linkedandCPI-linkedcontracts.NotonlyarewealeadingnationalsupplierofdomesticgasacrossboththeeastandwestcoastmarketshereinAustralia,butourLNGprojectsarebenefitingfromrapidurbanisationandtheswitchfromcoaltonaturalgasasAsiancountriesseektoreduceairpollutionandlowergreenhousegasemissions.OurdisciplinedOperatingModelcontinuestoensurethatthewholeCompanyremainsfocusedoncontinuousimprovement.Witheachofourfivecorelong-lifeassethubsrequiredtogeneratefreecashflowatanoilpriceoflessthanUS$40perbarrel,weareconstantlylookingatwaystochallengethestatusquotodriveefficienciesanddelivergreatershareholdervalue.In2019,ourrelentlessfocusonsafe,low-cost,efficientoperationsresultedinafreecashflowbreakevenoilpriceofUS$29perbarrel,beforehedging.ThesuccessfulimplementationofourdisciplinedOperatingModelenablesSantostocontinuetofundtheTransform,BuildandGrowstrategyinaloweroilpriceenvironmentandimportantly,benefitfromsignificantcashgenerationinahigheroilpriceenvironment.Freecashflowgenerationiscriticaltothecontinuedsuccessofourbusinessastheseproceedsareusedtopaysustainabledividends,reducedebt,replacereservesandresources,andfundmajorgrowthprojects.OuracquisitionofConocoPhillips’northernAustraliaassets,comingjust12monthsafterweboughtQuadrantEnergyinWesternAustralia,istestamenttothestrengthoftheCompanyandthehardworkofourpeopletoturnthebusinessaroundanddriveshareholdervalue.ThevalueaccretiveacquisitionisfullyalignedwithourgrowthstrategytobuildonexistinginfrastructurepositionsanddeliversoperatorshipandcontrolofstrategicLNGinfrastructureatDarwin.OPERATINGPERFORMANCEOurfocusonsafe,low-cost,efficientoperationscontinuedtodrivestrongresultsacrosseachofourfivecorelong-lifeassethubsin2019.WesternAustraliaThesuccessfulintegrationofQuadrantEnergyintotheSantosbusinessoverthecourseof2019transformedthescaleofouroperationsinWesternAustraliaandalsosignificantlystrengthenedouroffshoreoperatingexpertiseandcapabilities.Asaresultoftheacquisitionandstrongoperatingperformance,salesvolumesincreased134%to30.4mmboeandproductionvolumes147%to30.9mmboe.Asuccessfulappraisalprogramintheshallow,shelf-watersoftheBedoutandCarnarvonBasinsconfirmedlargerthananticipatedresourcevolumesandsignificantlyde-riskedfuturedevelopmentoptions.TheDoradoappraisalprogramresultedinasignificantresourceupgradeandprovedtheBedoutBasin,whereSantoshasacontrollingposition,tobeaworldclassliquids-richpetroleumsystemwithhighqualityreservoirs.DevelopmentoptionsfortheDoradodiscoveryarecurrentlybeingworkedthroughandareexpectedtoresultinaninitialoilandcondensatedevelopmentfollowedbyafuturegasphasedevelopment.FrontEndEngineeringandDesign(FEED)fortheprojectistargetedtocommenceinthesecondquarterof2020.BuildingonourexplorationandappraisalsuccessintheBedoutBasin,inSeptemberwewerepleasedtobeawardednewacreageon-trendwiththeDoradodiscoveryinajointventurewithBP.Weareexcitedattheopportunitytoincreaseourexposuretothishighlyprospectiveregion,leveragingourshallowwateroffshoreoperatingexpertisetobuildonthesuccessofour2019drillingcampaign.IntheCarnarvonBasin,thedrillingoftheCorvus-2gasappraisalwellconfirmedoneofthelargestcolumnseverdiscoveredacrosstheNorthWestShelf.With100%ownershipoftwogasplantsintheregion,near-termdevelopmentopportunitiesareconsistentwithourbrownfieldgrowthstrategytobuildonexistinginfrastructurepositions.WesternAustraliaisnowSantos’largestassethubwhereourhigh-margin,conventional,naturalgasassetsarebackedbymedium-tolong-termCPI-linkedcontractsandourheavysweetcrudeoiliscommandingasignificantpremiumtotheBrentoilpriceduetothehighdemandforviscous,lowsulfurcrudeonthebackofcleanerglobalship-fuelstandards.CooperBasinIntheCooperBasinourlow-costdisciplinedOperatingModelcontinuestounderpinourcapitalallocationdecisionssupportingmoreefficientoutcomes.In2019,drillingactivityincreased35%to115wellsandproductiongrewforthesecondconsecutiveyearto15.8mmboe.Advancesindrillingtechnologydrovedevelopmentcostsdownfurtherandcontributedtoenhancedreservoirdeliverability.Projectcycletimeswereagainafocuswiththefastestevertotalwellexecutionrecordedof4days,rigreleasetorigrelease.TheopportunitysetswithintheBasincontinuetogrownowthatwehavesignificantlyreducedthecostbaseoftheasset.TheappraisalofMoombaSouthwasthefirstofseverallarge-scaleprojectappraisalprogramsfocusedonresourceconversion.In2019ourdrillingactivitycombinedwiththesuccessfulappraisalprogramatMoombaSouthdelivereda183%2Preservesreplacement.Thisisthefirsttimesince2012thattheCooperhasmorethanreplaceditsannualproduction.Withcurrentresourcesofapproximately300millionbarrelsofoilequivalent,theCooperBasinwillremainahigh-valueswingproducersupportiveofeastcoastgasmarketsaswellasthestrongAsiandemandforLNGfordecadestocome.Queensland&NSWInQueenslandarecord393wellsweredrilledacrosstheGLNGacreage,a29%increaseon2018.Wellcostdisciplinewasmaintaineddespitethehigherlevelofactivityaswecontinuedtomaximisevaluefromourregionalexpertiseandlow-costOperatingModel.UpstreamgasproductioncontinuedtobuildthroughouttheyearandinOctober,GLNGachieveditstargetedsalesrun-rateof6mtpa.Withtherightrigsinplace,experiencedcrewsandhighvolume,repeatabledrillingprograminmotion,weareconfidentthatupstreamfieldperformancewillcontinuetoimproveandunderpinournewsalesrun-ratetargetof~6.2mtpafrom2020.InNewSouthWales,weremainfocusedonsecuringapprovalfortheNarrabriGasProject.Manufacturersontheeastcoastarecallingformoregassupplyandmorecompetitionwillputdownwardpressureongasprices.Wehavecommitted100percentofNarrabrigastothedomesticmarket,enoughtosupplyuptohalfofNSW’sneedsandhelpsupportabout300,000jobsinNSWthatrelyonnaturalgas.SantosisawaitingadecisiononitsEnvironmentalImpactAssessmentsubmissionwhichisexpectedinthefirst-halfof2020.NorthernAustralia&Timor-LesteInNorthernAustralia&Timor-Leste,DarwinLNGcontinueditsstrongoperatingperformancein2019,producing2.9milliontonnesofLNG.On14October,weannouncedthevalueaccretiveacquisitionofConocoPhillips’northernAustraliabusiness,deliveringshareholdersoperatinginterestsinlong-life,low-costnaturalgasassetsandstrategicLNGinfrastructure.TheacquisitionissupportiveofaFinalInvestmentDecision(FID)onthelowrisk,brownfieldBarossaprojecttosupplybackfillgastoDarwinLNG.TheBarossaprojectisexpectedtoextendtheoperatinglifeofDarwinLNGbymorethan20yearsandmorethandoubleSantos’productioninNorthernAustralia&Timor-Leste.TheBayu-Undanfieldisexpectedtocometotheendofitsfieldlifeinlate2022withlifeextensionworksplannedatDarwinLNGplantpriortobackfillproductioncomingonlineinlate2024.Inlightofthis,SantosisalsoworkingwithourjointventurepartnerstoevaluateinfilldrillingopportunitiestoextendthelifeoftheBayu-Undanreservoirs.Onshore,followingthesuccessfulstimulationoftheTanumbrini-1wellintheMcArthurBasinandtheapprovalofenvironmentalplansbytheNorthernSantosAnnualReport2019/5SantosAnnualReport26/SantosAnnualReport2019MessagefromtheChairmanandfromtheManagingDirector&ChiefExecutiveOfficercontinuedTerritorygovernment,wenowexpecttodrilltwoappraisalwellsin2020followingthewetseason.TheMcArthurBasinhassignificantgasresourcesandhasthepotentialtoprovidefeedgastosupportfuturebackfilland/orexpansionopportunitiesthroughDarwinLNG.PNGPNGLNGcontinuestobeawell-run,high-performingassetinourportfolio,delivering8.5milliontonnesofLNGin2019,up15%followingthesevereearthquakethatimpactedtheSouthernHighlandandHelaProvincesin2018.Santos’acreagepositioninPNGissupportiveofourlong-termcommitmenttotheregionaswelooktoworkwithourjoint-venturepartnersandthePNGGovernmenttocontinuetoalignintereststosupportandparticipateinopportunitiesthroughthePNGLNGproject.RESILIENCEANDOPPORTUNITIESINALOWERCARBONFUTURENaturalgastodayremainsacrucialpartoftheenergymixifwearetosolvethetwinchallengesofreducingcarbonemissionswhilemeetingthegrowingdemandforsecureandreliablepowergeneration.Santosiscommittedtoalower-carbonfutureandourClimateChangePolicyguidestheCompany’sactivitiestoreducecarbonemissionsasitproducesthereliable,affordableandcleanerenergyrequiredtomeetdomesticandglobaldemand.ThroughthecommitmentsmadeinourClimateChangePolicy,Santosisstrivingtocontributetotheglobalaspirationtolimittemperaturerisetolessthan2degreesCelsius.Wehavesetmedium-termtargetsthataligntotheseobjectivesandhavesetapathwaytoachievingourlong-termaspirationofnet-zeroemissionsby2050.Thetransitiontoalower-carbonfuturealsocreatesopportunitiesforSantoswithnaturalgasexpectedtoaccountforaquarteroftotalglobalenergydemandby2040inallIEA(InternationalEnergyAgency)WorldEnergyOutlook2018scenarios.In2016SantossetupanEnergySolutionsbusinesstobuildresilienceandidentifyandcreateopportunitiesforalowercarbonfuture.Sincethen,morethan100,000tonnesofannualCO2emissionsreductionhavebeendeliveredwithmanymoreopportunitiesidentified.In2019wemadesignificantinvestmentstodeployrenewableenergyandrecoverwasteheatacrossouroperations,aswellastestforlargescalecommercialcarboncaptureandstorage(CCS)intheCooperBasin,whichhasthepotentialtostore20milliontonnesofcarbondioxideperyear.AustraliacouldbeaworldleaderinCCSandcreateanexcitingnewindustrysupportinghydrogenproductionandensuringthesustainabilityofexistingindustriesincludingoilandgas,steel,coal,cementandchemicals.AustraliahasacompetitiveadvantageinCCS,builtontheavailabilityofvast,highqualitystoragereservoirs;theskills,technology,expertiseandinfrastructureoftheoilandgasindustry;andastrongreputationforenvironmentalregulationandcarbonmeasurementandaccountingintegrity.WethinkCCSisanexcitingopportunityforSantosandinthefuture,forourcustomersaswell.TolearnmoreabouttheCompany’sresilienceaswellastheopportunitiesinalowercarbonfuture,wewouldencourageyoutoreadourthirdClimateChangeReport,availableonourwebsiteatLOOKINGAHEADIthasbeen50yearssincetheveryfirstmoleculeofnaturalgasfromourMoombaprocessingplantintheCooperBasinarrivedinsuburbanBlairAthol,lessthan10kilometresfromtheAdelaideCBD.AsanAustralianenergypioneer,weareproudthatfromthesehumblebeginnings,ourCompanyhasnowgrownintoaleadingsupplierofsecureandreliableenergyforhomesandindustryacrossthenationandLNGintoAsia.Aswelooktobuildonourrecentsuccess,itwaspleasingtoseeour2020Graduate,ApprenticeshipandTraineeshipprogramsattractexceptionaltalentandforSantostoincreasinglybeconsideredanemployerofchoice.Femalerepresentationwasstrongacrossalltheprogramsaccountingfor60%ofourApprenticeshipintakeand50%ofourTraineeshipintake.OftheGraduateprogram,45%oftheintakewerefemale,thehighestproportionsincetheprogramwaslaunched.Inordertocontinuetoattractandretaintalentwithintheorganisationandsupportemployeestobetterbalanceworkandfamilylife,in2019Santosincreaseditspaidparentalleaveandintroducedachildcaresubsidy.ThisinitiativebuildsonSantos’leadershipinthisarea,havingintroducedpaidmaternityleaveoveradecadeago,andbeingthefirst,andstilloneofonlyafewcompaniesintheresourcessectortooffer‘superannuationtop-ups’forperiodsofunpaidmaternityleave.In2020wewillcontinuetoexecuteourclearandconsistentstrategytoTransform,BuildandGrowthebusinesstodeliverasafe,low-cost,reliableandhighperformancebusiness.InNorthernAustralia&Timor-LestewewilllooktocompletetheConocoPhillipsacquisitionandtakeaFinalInvestmentDecision(FID)ontheBarossaprojecttosupplybackfillgastoDarwinLNG.InWesternAustraliawearetargetingFrontEndEngineeringandDesign(FEED)onourDoradooilandcondensatedevelopmenttobringtheseres……