Moomba Incident - Financial Impact
Further to previous ASX announcements, Santos Ltd advises the following in relation to insurance arrangements and possible financial impacts.
Santos and its joint venture partners maintain insurance for Property Damage and Business Interruption to the Moomba facility. The insurance excess (or deductible) for property damage is A$1.5 million (Santos Share) and for business interruption, insurance is available after 45 days.
The estimated financial impact to Santos, based on the full 45 day waiting period for Business Interruption cover and including payment of the excess for Property Damage is A$25-30 million net profit after tax and A$35-40 million of operating cash flow. These estimates are based on December 2003 oil prices and exchange rates.
Based on a 45 day period the total production loss would be 2.1 million barrels of oil equivalent comprising approximately 10 petajoules of sales gas and ethane, 200,000 barrels of condensate, 25,000 tonnes of LPG and a small quantity of oil.
Any delays in resumption of full production beyond 45 days would have a further impact on production but the lost revenue would be claimable under insurance.