2022 Annual General Meeting

2022 Santos Annual General Meeting update

Following the Santos AGM on Tuesday 3 May 2022, Santos offers the following clarifications:

Barossa Gas Project

In response to a question about the Barossa Gas Project, Santos Chief Executive Officer and Managing Director Kevin Gallagher said the project had all of its approvals in place. Santos clarifies the project has all the approvals in place for construction phase of the project.

Government funding in the Northern Territory

In response to a question asking if Santos had applied for funding to frack in the Beetaloo Basin, Chairman Keith Spence responded “No we haven’t”.

Santos clarifies that the company did apply for funding, however, elected to proceed to drill the well without funding and therefore became ineligible to receive funding.

Narrabri Gas for the domestic market

In response to a question about what would happen to Narrabri gas if the Perdaman fertiliser project didn’t go ahead, Chairman Keith Spence said, “we have options including exporting the gas”.

Santos clarifies that the Chairman was referring to the “export” of gas via pipeline to east coast gas markets, not overseas.

Santos has committed 100 per cent of the gas from the Narrabri Gas Project to the domestic market.

NZE Scenario

In response to a question about how Santos’ investment in new oil and gas projects is consistent with the NZE scenario, Chairman Keith Spence and CEO Kevin Gallagher referred to the IEA’s statements being qualified by the need to invest to offset declines in existing fields and to invest around existing hubs and infrastructure.

Santos clarifies further how investment in new oil and gas fields is compatible with the NZE scenario.

In the NZE, an assumed rapid rise in low emissions fuels is one of the key reasons – along with greater efficiency and electrification – why the IEA said no new oil and gas fields would be required beyond those already approved for development. However, the IEA also noted that actual deployment of low emissions fuels is well off track. For example, despite increasing interest in low-carbon hydrogen, the pipeline of planned hydrogen projects falls short of the levels of use in 2030 implied by announced pledges, and even further short of the amounts required in the NZE (which are nine times higher than in the announced pledges scenario). The World Energy Outlook also states that “Oil and gas spending today is one of the very few areas that is reasonably well aligned with the levels seen in the NZE to 2030” and warns that the world is not investing enough to meet its future energy needs, and that uncertainties over policies and demand trajectories create a strong risk of a volatile period ahead for energy markets. Source: World Energy Outlook 2021.