Moomba Operation Update 22^nd Jun 2001

Santos Ltd., as operator of the Moomba Gas Plant, and on behalf of the South Australian Cooper Basin Producers, provides an update on the status of the reinstatement of the Liquids Pumping Station following the incident that occurred on 16 June 2001.

Status

• The Moomba complex is currently producing at about 85% of its overall normal physical capacity, as detailed below.
• The incident has not effected gas production and supply from the Moomba complex, which is currently processing around 700 terrajoules per day gross (120,000 barrels of oil equivalent or boe).
• Production of condensate remains at normal levels (approximately 10,000 barrels per day gross or 9,350 boe) and is being directed into storage facilities. Around 50% of daily condensate production is being trucked to the Jackson facility in southwest Queensland for transport to Brisbane through the Jackson-Moonie-Brisbane pipeline.
• The supply of ethane recommenced on 19 June 2001 and is currently running at around 500-700 tonnes per day (5,000-7,000 boe),which is 60-70% of normal levels.
• South Australian oil production (usually around 8,000 barrels per day) remains shut-in.
• LPG production (usually 1,300 tonnes per day gross or 11,000 boe per day) continues to be redirected into sales gas or flared.

Investigations into the incident are ongoing, as is the assessment of the time required to fully reinstate the Liquids Pumping Station. Work has commenced on reinstatement of the permanent facilities.

Production of gas and oil in south-west Queensland has not been affected.

Forward Plan

Progress is being made on the installation of alternative pumping facilities to allow for the export of oil and condensate to Port Bonython through the Moomba-Port Bonython pipeline.

All Cooper Basin Producers are covered by comprehensive insurance policies that cover both property damage and business interruption. The policy excess (or deductible) is A$22 million gross (Santos share $13 million).

The interests of the South Australian Cooper Basin Producers are: