Santos Ltd (STO) 2000年年度報告「ASX」.pdf

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1、annual report2000SantosUnited StatesCompany Overview 1 Chairmans Review 2 Managing Directors Review 4 Financial Highlights&Overview 7Business Unit Operations12 Review of Performance Exploration 14 Development16 Reserves 18 Australian Gas 19 Production 20 Environment&Safety 22 Community23 Board of Di

2、rectors26 Corporarte Governance 28 Group Interests 30 Glossary 32 Santos Areas of Operation3410 Year Summary 36Directors Statutory Report38Financial Report42Stock Exchange and Shareholder Information72Visit the Santos .auSantos Ltd ABN 80 007 550 923Incorporated in Adelaide,South Australiaon 18 Marc

3、h 1954.Quoted on theofficial list of the Australian StockExchange Ltd and the New ZealandExchange.Santos American DepositoryReceipts issued by Morgan Guaranty inthe USA are sponsored and are quotedon the NASDAQ system in the USA.CoverThe year 2000 wasan outstanding onefor Santos.One ofthe many achie

4、vmentswas that the Companydelivered record gasfrom south-westQueensland.Santos people are the drivers of technologicalinnovation in developing the Companysresources.Through the efforts of Rod McArdleand his team in Queensland,coal bed methanein the Scotia field is now being developed tosupply up to

5、120 PJ of gas to CS Energysnew gas fired power station at Swanbank,west of Brisbane.John Ellice-FlintManaging DirectorPictured on the cover are Ray Johnson,TeamLeader Petroleum Engineering,Brett Doherty,Area Superintendent Eastern Queensland andPipelines,Bonnie Lowe-Young,ExplorationSupervisor,Queen

6、sland and Northern TerritoryBusiness Unit and the Ballera Gas Plant insouth-west Queensland.CONTENTS United StatesExploration Acreage Offshore Gulf of Mexico Onshore Texas and LouisianaGulf Coast and Arkoma Basin inOklahomaProduction Texas Gulf Coast Gulf of Mexico Stag Production FacilityPort Bonyt

7、hon LiquidsProcessing PlantHeytesbury Gas PlantCooper BasinIndonesiaExploration Acreage Warim Bentu Korinci-Baru SampangPapua New GuineaExploration Acreage SE Gobe fieldProduction SE Gobe fieldVictoria Exploration Acreage Onshore and Offshore Otway Basins Offshore Bass Basin Offshore Gippsland Basin

8、Production Heytesbury Gas ProcessingSouth Australia Exploration Acreage Cooper/Eromanga Basins(South Australia)Production Moomba Gas,Oil andLiquids Processing Port Bonython Oil andLiquids Processing Moomba PlantEast SparPapua NewGuineaIndonesiaMoombaBentuKorinci-BaruSampangWarimIrian JayaOtwayPort B

9、onythonGippslandBassSurat/BowenBallera and JacksonAmadeusCarnarvonBrowseTimor SeaOffshore AustraliaExploration Acreage Carnarvon Basin Browse Basin Timor SeaProduction Carnarvon Basin Oil(Stag,Chervil,andBarrow and ThevenardIslands fields)and salesgas and condensate(East Spar field)Timor Sea Oil(Ela

10、ng/Kakatua/KakatuaNorth fields(Timor Gap);Jabiru and Challis(Timor Sea)Queensland and Northern Territory Exploration Acreage Cooper/Eromanga Basins(south-west Queensland)Surat/Bowen Basins Amadeus BasinProduction Ballera Gas Processing Jackson Oil Processing Amadeus Oil&Gas Processing Surat/Bowen Oi

11、l&Gas ProcessingBarrow IslandSE Gobe Production FacilityDear Shareholder,There have been many importantdevelopments at Santos over thepast year.Santos delivered higher levels ofproduction and earnings than atany time in its history.Gearing fell to its lowest levelin 20 years.Santos share price incre

12、ased by 45%.The Companys long-standinginvestment in coal was sold.The South Australian Governmentcommenced a review of theCompanys shareholdingrestriction.A new Managing Director,MrJohn Ellice-Flint,was appointed.This marks the start of a newera for the Company.Santos was not unusual amongoil and ga

13、s companies inachieving record earnings in2000.However,with recordproduction of oil and liquids,theCompany was well positioned to benefit from high oil prices.Gas production also continued to grow by a further 6.4%.Altogether,30%of the increase inrevenue came from higherproduction.With significantly

14、 increasedproduction,Santos should beable to achieve higher earningsthan it has in the past,even if oil prices return to more normal levels.Workplace safety and goodenvironmental managementare priorities for the Board.Iam pleased to report that,in thecontext of increased production,the Company achie

15、ved a 20%improvement in its safetyperformance during 2000.Furthermore,there were nosignificant environmental incidents.During the year,the Board formedthe view that the Companysinvestment in QCT ResourcesLimited was no longer a coreinterest.This holding wassubsequently sold in October,realising a sm

16、all profit.Thisinvestment had been held for overa decade and its disposal marksa major change.In another development,theSouth Australian Governmentannounced that it was reviewingthe legislation restrictingshareholdings in Santos to amaximum of 15%.At the AnnualGeneral Meeting in May 2000,theBoard st

17、ated its view that thisrestriction is not in the long-terminterest of Santos shareholders.While the Governments reviewwill inevitably involve broaderconsiderations than thoserelevant to Santos shareholders,the Board and Company areplanning on the assumption that,sooner or later,the restriction willb

18、e removed.As at the time ofwriting,the Government had notyet announced the outcome ofthe review.CHAIRMANSREVIEW2A New Era Begins for SantosChairman John Uhrig reports to shareholders3The appointment of Mr JohnEllice-Flint to succeed theprevious Managing Director,Mr Ross Adler,ensures thatSantos cont

19、inues to have strongmanagement and leadershipgoing forward.Mr Ellice-Flint joined Santos inDecember,bringing impressiveinternational credentials in theoil and gas industry,plus otherqualities that the Board rateshighly.Among them are hisleadership capacity,abilityto motivate people,a strongfocus on

20、performance,anda commitment to buildingshareholder value.He returns to Australia after asuccessful career around theworld with the American oilcompany,Unocal,where hewas Senior Vice President GlobalExploration and Technology.Hismandate at Santos is for growthin shareholder returns.A strategic review

21、 of Santosactivities is underway,the mainpurpose of which is to put inplace a plan for further growthunder the new Managing Director.The review includes anassessment of the Companysongoing capital management,taking into account fundingrequirements for the growthprogram,changes to taxationlaw affecti

22、ng shareholders andthe Companys current surplusof franking credits.Directors have declared a finaldividend of 15 cents per share,increasing the total ordinarydividend to 30 cents for the year.This is a three-cent increase overthe total 1999 dividend payment.The dividend continues to be fully franked

23、.In view of the record profit resultDirectors have also decided topay a fully franked specialdividend of 10 cents per share.Historically Santos has beenrelatively late to report itsresults and to make its dividendpayments.From the 2001 InterimResult,Santos intends to bothreport its results and pay i

24、tsdividends earlier than in the past.The Company expects toannounce its 2001 Interim Resulton 22 August 2001(previously5 September in 2000)and to pay its interim dividend on28 September 2001(previously17 November in 2000).I will be retiring at the conclusionof the forthcoming AnnualGeneral Meeting.T

25、he presentDeputy Chairman,Mr StephenGerlach,who has served on theSantos Board for over 11 years,will succeed me.Santos is wellpositioned to continue growing.It has good acreage,a strongbalance sheet and a dynamicnew Managing Director.As you can see as you readthrough this report,Santosemployees made

26、 a greatcontribution during the yearand,on behalf of the Board,I wish to record our appreciationto all employees for their efforts.In particular I would like torecord our appreciation of thecontribution made over manyyears by Mr John McArdle,Executive General ManagerCommercial,who acted asManaging D

27、irector prior to JohnEllice-Flints appointment andwho has announced his intentionto retire in mid-2001.I would also like to pay tribute to the former Managing Director,Mr Ross Adler,who,over 16years,built Santos up to becomethe major Company it is today.The Board has great confidencein the future of

28、 the Companyunder the leadership of Mr Ellice-Flint and I thank shareholders for your support over my periodas Chairman.J A Uhrig,Chairman 9 March 20014A Great ResultAmong oil and gas companies theyear 2000 will be remembered asthe year of record high oil prices.With growing oil production,Santos wa

29、s in the right place atthe right time to benefit from thisfavourable environment.However,this was not justa matter of luck.Santos hasbeen actively increasing its oilproduction in recent years andfour developments in particularmade it possible to substantiallyincrease oil production in 2000:Successfu

30、l development workon the Stag oil field;Acquisition of interests in theBarrow and Thevenard Islandsoil fields;Successful development workon the Elang oil fields;and Onshore oil explorationsuccess.These developments increasedthe Companys production ofoil and liquids from 14.5 millionbarrels of oil eq

31、uivalent(boe)in1999 to 19 million boe in 2000.Gas production also grew,from202 petajoules(PJ)in 1999 to 215 PJ in 2000.Santos continuesto produce more domestic gasthan any other company inAustralia.Growing production and high oilprices came together to producerecord earnings of$487 million or80 cent

32、s per share.This is agreat result.Return on Average CapitalEmployed was 16.7%,wellabove the Weighted AverageCost of Capital.Importantly too,increasedcash flow and the disposal ofthe Companys interest in QCTResources Limited reducedgearing(net debt to equity)to 38%by the years end.Santos earnings out

33、look iscurrently better than at anytime in the recent past.While the result in any oneyear is sensitive to oil prices,an average oil price of aroundA$45 per barrel in 2001 wouldenable Santos to achieve 2001earnings similar with thosein 2000.Looking further forward,baselineproduction at around curren

34、tlevels would deliver earningssubstantially higher than thoseprior to 2000,even if oil pricesfall to around the long-termaverage level.As a new Managing Director,one cant have a much betterstart than this and I would liketo acknowledge my predecessor,Mr Ross Adler,and his contributionto building thi

35、s strong platform.My brief from the Board is to drivethe Company forward in seekingfurther growth and I am veryexcited about this.MANAGING DIRECTORS REVIEW 2000John Ellice-Flint sums up 2000 and talks about his firstimpressions of Santos5In this overview I would liketo share my first impressionsof S

36、antos.Since I was appointed at the endof 2000 I have met and spoken to hundreds of people across theCompany,as well as externally,getting their views on Santosgrowth potential.I have been impressed by theenergy and enthusiasm of thepeople in the Company and bytheir technical knowledge.Optionality I

37、have also been impressed bythe optionality available to theCompany.By optionality I meanhaving many options available to choose from.Santos has a good acreageposition.It has further potential in theCooper Basin.It has one of the bestgas marketing footprintsin Australia.It has a strong balance sheet.

38、The Three BucketsAlthough people can over-complicate the oil and gasbusiness,successful explorationand production companiesessentially add value in threeways,through:Exploration;Acquisitions;and Reservoir Management.In any good exploration andproduction(E&P)company,all three buckets,as I call them,n

39、eed to contribute to a growingreserves,production,andearnings profile,which shouldin turn translate into highershareholder value.In addition,there are other waysof adding value that exist in allcompanies,such as capitalmanagement.ExplorationA successful exploration programis a key part of the value

40、equation.While Santos has beensuccessful onshore in Australia,the Cooper Basin is unlikely toyield future 100 million barreldiscoveries.This is reflected in the Companys2000 exploration and appraisalresults,which had a goodsuccess rate at 52%,but whichonly yielded 24 million boe ofnew reserves.At th

41、e same time Santos hassubstantial acreage,particularlyin the Carnarvon Basin,whichhas potential for larger discoveriesbut where I believe drilling hasprobably been under-funded.Outside Australia,there weresome interesting results in 2000.Runnells-3 discovered a newplay type in the onshore TexasGulf

42、coast and Anggur-1discovered shallow gas offshoreJava.Both of these discoverieshave created options for growth.I believe that Santos shouldbe able to get better returnsfrom its exploration investment.In particular I believe in havinga sustained exploration programin each of the Companys mainareas of

43、 interest.This makesit possible to accumulate andapply the lessons learnedfrom past drilling to reducedrilling costs and thereforeget more drilling done withmore well completions fromthe money spent.AcquisitionsGood E&P companies balancereserve additions throughexploration with growth fromacquisitio

44、ns,the second valuebucket.These can,if properlydone at the right prices,createadditional option platforms forvalue capture.In my view,Santos is one ofthe E&P companies that doesacquisitions reasonably well.TheCompanys major transaction in2000 was buying Shells interestsin Barrow and Thevenard Island

45、sin the Carnarvon Basin.As a result of the high oil pricesduring the year,this acquisitionhas performed substantiallybetter than originally expected.Acquisitions will continueto be an ongoing part ofSantos strategy.Reservoir ManagementThe third value bucket is reservoirmanagement.When I use thisterm

46、 I mean it in its broadestsense,covering all activitiesassociated with maximisingthe value of an asset throughits production life.Reservoir management initiativestend to be low risk/low return butthey do not require much capitaland can also have a quickimpact on the bottom line.I believe that Santos

47、 hassubstantial potential to improveday-to-day production efficiency,particularly through use of currenttechnology.For example,in theCooper Basin there is potentialfrom optimisation of completions,remote telemetry,more seismicand more production loggingover time to understand howour wells are behavi

48、ng and why.Increases in recovery factorscould also have substantialpotential,not only to lowercost,but also to improve thereserve position.CostsCost control is also an importantaspect of reservoir managementfor a low-margin producer suchas Santos.My attitude to costsis that there is always scope tod

49、o better and there should beno sacred cows.In the oil andgas industry,I believe there isunnecessary emphasis oncustom designing andbuilding and not enough onstandardisation,which hasthe potential for significantcost reduction.For Santos,there is scopeto reduce cost throughstandardisation,greatercoll

50、aboration with suppliers,and more efficient procurement,increased use of remotemonitoring,and bettermeasurement systems.I alsointend to focus effort on moretimely well completions overthe next year,along with allof our reservoir managementprocesses and practicesincluding reserves estimation.Prioriti

51、esI have three immediate priorities:To review Santos strategy,based on inputs from acrossthe Company;Cultural change andperformance improvement;and To create more win-winexternal relationships.6StrategyIt is important to have a clearlyarticulated strategy that everyonein the Company can identify wit

52、hand that investors canunderstand.Santos strategy is currentlyunder review,with the aim ofmaking appropriate statementsto shareholders about ourdirection in the second quarterof 2001.Cultural Change andPerformance ImprovementThe value of any oil and gascompany is far more than thevalue of its acreag

53、e.I believethat Santos has scope to gainmore from the knowledge andcreativity of its employees.Oiland gas is an ideas businessand that makes it a peoplebusiness.Getting the best fromyour people is critical.We will winor lose based on the calibre ofour people.Information sharing,teamwork and construc

54、tivedebate are important too.My second immediate priorityis to start creating a moreproductive internal culture,leading to performanceimprovement.I believe in performance-basedmanagement.This meansbeing able to benchmark theCompany as a whole against itspeers,as well as being able tobenchmark specif

55、ic operationsagainst worlds best practice.This will require developmentof the Companys informationmanagement systems andperformance measurementprocesses to improve value focusthroughout the organisation.I also believe in performance-based remuneration.However,the right business processesneed to be i

56、n place before thatis introduced.Speed of decision-making is alsoimportant,provided that it is fact-based.The aim is not only tomake the right decisions but tomake them quickly.Santos hasthe assets of a major company;itneeds to have the nimbleness ofa small operator.I have been impressed by theenerg

57、y and enthusiasm of thepeople I have met across theCompany and their desire tosee change.External RelationshipsMy third priority is to build ourrelationships with other industryplayers,our customers,suppliersand investors.These relationships need to beas productive as possible.We also need to build

58、strongerrelationships with our customersand suppliers,and work withthem to add value to all ourcollective organisations.This may require greatersophistication in our commercialarrangements and changes inpractices to foster cooperationand enable Santos to be solutionproviders and not just bulk seller

59、sof products.Lastly,investors ultimatelydetermine the fate of anycompany,whether they are largeinstitutions or small shareholders.Thus,good relationships withproviders of our capital are alsoimportant.ConclusionI have been with Santos forless than three months and theachievements made during 2000ref

60、lect the work of everyoneacross the Company.I would like to thank allemployees for providing sucha solid base from which to start.My vision for Santos is that itbecomes the most admired E&Pcompany,with the best peopleand best performance in anenvironment that is challengingfor all.I look forward to

61、reporting backregularly on how we are going.J C Ellice-Flint,Managing Director9 March 2001MANAGING DIRECTORS REVIEW CONTINUED7KEY FINANCIAL RESULTS2000 1999Sales$millions1,497945Operating Profit before Income Tax$millions726340Net Profit after Tax before abnormals487219Cashflow from Operations$milli

62、ons1,023530Earnings per Share80 cents36 centsDividends per Share40 cents27 centsCash Flow per Share$1.68$0.87Total Shareholders Funds$millions2,3112,057Return on Average Equity22%11%Gearing net debt/equity38%63%Net Interest Cover9.1 times5.2 times 2000OUROBJECTIVESTotal production to exceed 51 milli

63、on boe before acquisitions.Grow Australian gas sales through finding additional gasreserves and securing new and extending existing contracts.Increase exploration effort and review and upgrade theexploration portfolio.Add further value to the business through acquisitions.Profit to exceed$300 millio

64、n.2000WHAT WE ACHIEVEDIn 2000 total production was 53 million boe or 4%abovethe 2000 target after excluding the acquisition of Barrowand Thevenard Islands.Santos was able to grow total domestic gas sales by 8%to210 PJ.Santos signed a gas contract with CS Energy to supply120 petajoules over 10 to 15

65、years.Offshore Australia Business Unit developed an inventory of20 prospects and leads for drilling in 2001 and 2002.Santos acquired Shell Australias Barrow and ThevenardIslands interests adding 3 million boe to annual productionand 43 million boe to reserves.Santos achieved a record$487 million pro

66、fit.7AN OUTSTANDING YEAR 2000 FINANCIAL HIGHLIGHTS&OVERVIEWSantos Five Year Share Price Performance-2002060100199920001998percentSantos804019971996All OrdsEnergy Index Record sales of$1,497 million,up 59%Net profit of$487 million,up 122%Total dividend of 40 cents 30 cent ordinary dividend,fully fran

67、ked 10 cent special dividend,fully franked 22%return on equity Record production of 56 million barrels of oil equivalent Gearing fell to 38%QCT Resources Limited investmentsold in October 2000 Acquisition of a number of CarnarvonBasin oil and gas assets from ShellAustralia Successful private placeme

68、nt ofUS$290 million of notes to USinstitutions Sales Revenue aSantos Record Sales revenues increasedto$1,497 million,up 59%.30%of the increase in salesrevenue came from an increasein sales volumes and 70%froman increase in average realisedprices.The average realised crude oilprice was up 69%to A$46.

69、54in 2000.Sales volumes increased by15%to 55.7 million barrels of oil equivalent.Santos DeliversProfit Growth Santos reported a 122%risein profitability to$487 million.Higher sales volumes andhigher realised prices drovethe profit increase in 2000.With an A$45 per barrel averageoil price,Santos woul

70、d expectto be able to equal the 2000result in 2001.Higher ProductionDelivered in 2000 Production grew by 14%to 56 million barrels of oilequivalent.2000 is the fifth successive yearSantos has increased production.Crude oil production grew by48%driven by the Barrow andThevenard Islands acquisitionsand

71、 increased Stag production.Gas production increasedby 6%to 215 PJ as a resultof increased production inQueensland,Western Australiaand Victoria.Operating Cashflow a Record Operating cashflow of$1,023million is a Santos record.Surplus cash flow was usedto reduce debt.Proceeds from the sale of theQCT

72、Resources Limited stake($326 million)contributed todebt reduction.82000 FINANCIAL HIGHLIGHTS&OVERVIEWSales Revenue02004006008001000120014001600199920001998$million1600Sales Gas&EthaneCrude Oil&LiquidsPrice70%Volume30%7699451497Net Profit After Tax0100200300400500199920001998$million176219487Producti

73、on by Product02030405060199920001998mmboeSales GasCrude OilCondensateLPG10Sales GasCondensate464956Operating Cash Flow020040080010001200199920001998$million6004585301023Strong ShareholderReturns Santos shareholders benefitedfrom a 45%increase in theshare price during 2000.Earnings per share increase

74、dby 121%.Total ordinary dividend of30 cents was declared in2000,fully franked.A 10 cents special dividendwas also declared,fully franked.ReturnonEquityAbove 20%Return on average equityincreased to 22%from 11%.Higher return on equityreflects higher attributableprofits in 2000.Shareholders equityincre

75、ased to$2,311 millionfrom$2,057 million.Return on average capitalemployed was 16.7%Strong Balance Sheet Gearing(net debt to equity)fell to 38%.Higher cash flow and theproceeds from the sale of theQCT Resources Limited shareswere used to reduce net debtto$867 million.Low gearing provides Santos with

76、the flexibility to grow.Successful privateplacement of a US$290 millionbond to US institutions.Bondissue oversubscribed byUS$90 million.Average debt maturity 5.0 years.Exploration andDevelopment Expenditure Total exploration anddevelopment expenditurewas$441 million,up 48%.Exploration expenditureinc

77、reased by 28%to$100 million.Higher exploration expenditurereflects a focus on increaseddrilling program in bothonshore and offshore Australia.Development expenditureincreased by 55%to$341 million.Increased development activity in the Cooper Basin andoffshore Australia drove thehigher spending.Santos

78、 expects to increasedevelopment expenditure in2001 to meet the needs ofsignificant developmentprojects(Bayu/Undan,Legendre,Barrow andThevenard Islands).92000 FINANCIAL HIGHLIGHTS&OVERVIEWReturn on Average Equity0510152025199920001998percent91122Net Debt and Gearing020040060010001400199920001998$mill

79、ionGearingNet Debt02060100120140percent120080080401280130186766.063.037.5Exploration and Development0100200400600199920001998$millionDevelopmentExploration50030050529444180Returns02030406090199920001998cents per shareEarnings per shareDividends per share705080102529273640DELIVERINGFINANCE FLEXIBILIT

80、Y Graeme BethuneGeneral Manager,Finance&Investor RelationsThe securing of the US$290 million note facility givesSantos greater flexibility in financing going forward.“Securing thisfacility wasa significantand fulfillingchallenge for my team.”Dean Bowman Group TreasurerDean Bowman,Group Treasurer,pic

81、tured here with Bronte Hollow,Treasury Administrator“It is excitingto beworking onassets forwhich wewere partof thesuccessfulbid team”Tom Paspaliaris,Staff PetroleumEngineer and Ian Pedler,SeniorStaff Reservoir Engineer,Offshore Australia Business UnitDELIVERING HIGHER PRODUCTION John ArmstrongGener

82、al Manager,Offshore Australia Business UnitThe Barrow Island assets have added significant oil reserves and productionat a time of high oil prices.They bring long-term stable production withupside through enhanced oil recovery projects and in unproduced oil zonesand undeveloped oil and gas discoveri

83、es.We are also pleased with theThevenard Island fields and are investigating opportunities to improvetheir performance.South AustraliaJon YoungCooper/EromangaBasins(South Australia)Exploration acreage Production of salesgas and ethane,oil,condensates and LPGPort Bonython LiquidsProcessing Plant LPG

84、extraction andliquids processingOnshore and OffshoreOtway Basins Exploration acreage Production of salesgas and condensatesOffshore Bass Basin Exploration acreageOffshore GippslandBasin Exploration acreageBUSINESS UNITOPERATIONSQueensland andNorthern Territory Rod McArdleCooper/EromangaBasins(South-

85、WestQueensland)Exploration acreage Production of sales gas,oil and condensatesSurat/Bowen Basins Exploration acreage Production of sales gas,oil and condensatesAmadeus Basin Exploration acreage Production of salesgas and oilOffshore Australia John ArmstrongExploration acreage Timor Sea Carnarvon Bas

86、in Browse BasinProduction Oil(Stag,Chervil,andBarrow and ThevenardIslands fields)and salesgas and condensate(East Spar field)Oil Elang/Kakatua/Kakatua North fields(Timor Gap);Jabiruand Challis(Timor Sea)South East Asia Bob HallExploration acreageIndonesia Warim Bentu Korinci-Baru Sampang Papua New G

87、uinea SE Gobe fieldProduction SE Gobe field(oil)United States PresidentTo be appointedExploration acreageOffshore Gulf of MexicoOnshore Texas and LouisianaGulf Coast;and ArkomaBasin in OklahomaProduction Texas Gulf Coast(gas Runnells3and Mew1)Gulf of Mexico(gas and oil)BUSINESSGENERALOPERATIONALUNIT

88、MANAGERPROFILE12GEOGRAPHICKEY BUSINESSSALESUNIT INFORMATION(A)13Sales gas and ethane South Australia,NewSouth Wales,ACT,and Victoria Oil and condensate Domestic andinternational LPG International Reserves Gas 1575 PJ Oil 16(mmbbl)Condensate 20.8(mmbbl)LPG 2637(000 tonnes)Production Gas 105 PJ Oil 1.

89、8(mmbbl)Condensate 1.5(mmbbl)LPG 178(000 tonnes)Sales revenue$511 million Net assets$918 millionSales gas and ethane South Australia,Northern Territoryand Queensland Oil and condensate Domestic andinternational Reserves Gas 1585 PJ Oil 14.6(mmbbl)Condensate 19.8(mmbbl)LPG 1357(000 tonnes)Production

90、Gas 87.5 PJ Oil 1.9(mmbbl)Condensate 1.0(mmbbl)LPG 85.7(000 tonnes)Sales revenue$430 million Net assets$363 millionOil International Reserves Gas 146 PJ Oil 3.1(mmbbl)Production Gas no productionin 2000 Oil 0.4(mmbbl)Sales revenue$21 million Net assets$8 millionSales gas and ethane United States Oil

91、 and condensate United States Reserves Gas 34 PJ Oil 1.5(mmbbl)Production Gas 3.7 PJ Oil&condensate 0.1(mmbbl)Sales revenue$26 million Net assets$130 millionSales gas and ethane Western AustraliaOil and condensate Domestic andinternational Reserves Gas 745 PJ Oil 61.4(mmbbl)Condensate 40.7(mmbbl)LPG

92、 1510(000 tonnes)Production Gas 19 PJ Oil 9.3(mmbbl)Condensate 1.1(mmbbl)Sales revenue$359 million Net assets$359 million(A)Excludes group net assets of$533 million.142000 EXPLORATION RESULTSExploration 2000 The year 2000 was a yearof consolidation for Santosexploration,with a focus onseismic acquis

93、ition andinterpretation,and reviewingthe exploration target portfolio,especially in offshore Australia.During 2000 Santos drilled42 wells.Santos explorationprogram targeted lower riskprospects reflected by the factthat exploration was primarilyfocussed on the gas program,representing 74%of totalexpe

94、nditure.The oil program wascentred on offshore Australia andconsisted of 11 wells in an effortto define fairways and ultimateprospectivity,plus substantialinvestment in 2D and 3D seismic.The Company booked 24 millionboe of oil and gas reserves at theend of the year:The South Australia BusinessUnit d

95、rilled ten wells achievinga 90%success rate anddiscovered 11.3 million boe.This included the Moomba104 and 119 oil discoveries.The Queensland and NorthernTerritory Business Unitparticipated in nineteen wells,achieved a 53%success rateand discovered 9.2 million boe.The Offshore Australia BusinessUnit

96、 drilled five wells,all targetingoil,but without success.The South East Asia BusinessUnit drilled one well,Anggur-1,in Indonesia.This wellencountered gas at a shallowdepth and will be followed upin 2001.Seven wells were drilled in theUSA with a 43%success rate.Total discoveries amounted to3.4 millio

97、n boe.Two of the exploration highlightsof the year were the Moomba104 oil discovery in the SouthAustralian Cooper Basin andRunnells3 gas and liquidsdiscovery in the United States.Moomba 104,which was drilledin February 2000,penetrateda nine metre oil column in theJurassic Hutton Sandstone andwas cas

98、ed and suspended as anoil producer.The well was broughtinto production in March 2000.Runnells3 was a wildcat onshorediscovery.The well was drilledto test deep,geopressured FrioSands.The well did not reachtarget depth but a total of 168feet of net pay was logged in fourFrio pay intervals.The well was

99、pressure tested at an unstimulateddaily flow rate of 22 million cubicfeet of natural gas and 494 barrelsof condensate.Further follow-updrilling will occur in 2001.Wells DrilledSuccessful WellsSuccessGasOilGasOilRate%South Australia827290Queensland1549153Offshore Australia0500(A)South East Asia10000U

100、S703043Total311119352Santos Exploration Strategy Build upon accumulated knowledge and experience in the Cooper/EromangaBasins to add value via the discovery of additional reserves.Pursue diversification of the business outside the Cooper/Eromanga Basins viaparticipation in offshore Australia and foc

101、ussed exploration opportunities in PapuaNew Guinea,Indonesia and the USA.Actively manage the risk profile of exploration expenditure.Actively and rigorously manage the exploration acreage portfolio through farm-outs,farm-ins and relinquishment to optimise the expenditure and exposure of theexplorati

102、on program.Cost effectively apply modern technologies using skilled people.REVIEW OF PERFORMANCE EXPLORATIONKEY FACTS Successful appraisal of theScotia Field in the BowenBasin(eastern Queensland)resulting in a decision tocommercialise the field.Two significant new fielddiscoveries in onshore US.Enco

103、uraging results inSouth Australia fromMoomba oil exploration.A new gas discovery in theonshore Otway Basin withpromising indications from 3D seismic.3-year rolling averageexploration finding costof$4.11 52%exploration success rate.Exploration Allocationby Business Unit2000South AustraliaQueensland&N

104、orthern TerritoryOffshore AustraliaSouth East AsiaUnited StatesOther(low deliverability gas)18%27%24%14%14%3%(A)encountered gas,to be appraised15Exploration success isclosely related to anorganisations depth ofknowledge of the areasbeing worked.Success isachieved by maintaining afocus on key geograp

105、hicalareas.Santos is primarilyfocussed on opportunitiesin Australia(Cooper Basin,Surat/Denison Trough andNorth West Shelf);SouthEast Asia(Indonesia andPapua New Guineafoldbelt);and NorthAmerica(onshore andoffshore Gulf Coast).2000 Seismic Program 5,674 kilometres of 2D and2,048 kilometres of 3D seis

106、micwere acquired in 2000 in onshoreand offshore Australia enhancingSantos ability to assess futureexploration prospects.Future ExplorationProgram Oil and gas companies aim tomore than replace productioneach year through exploration.Santos has not achieved this inrecent years,resulting in a fall inre

107、serves.Part of this outcome isthe result of the increased levelsof gas production the Companyhas achieved.However,rectifyingthis situation is a priority.Topperforming companies typicallyhave a production replacementratio of 150%.Some of the stepsSantos plans to take are:High grading acreage throughr

108、egional studies;Reducing drilling costs toincrease the number of wellsdrilled for a given budget;Improving risk management;and Taking a more programmedapproach to exploration.2000 SEISMIC PROGRAMSABUQNTBUOABUSEABUSUSAC2 Dimensional(km)2381120421554473 Dimensional(km2)29619392806313-Year Rolling Aver

109、ageFinding Costs015199920001998dollars per boe2432.83.24.12000 DevelopmentProgramSantos spent$341 millionon development in 2000,withsignificant spending increasesin the Cooper Basin and onmajor Offshore Australia projects.In South Australia 49development wells were drilled(13 in 1999),five compressi

110、onfacilities were installed and55 fracture stimulations wereexecuted(20 in 1999).A largepart of the 2000 South Australianprogram focussed on gasdevelopment to meet continuingstrong gas demand.In 2000 Santos conductedseveral studies and field trialsaimed at commercialisation of lowdeliverability gas

111、reservoirs in theNappamerri Trough.Progress wasmade on fracture placement andeffectiveness through the Kirby-2and Wantana-1 fracturestimulation projects.Studiesalso focussed on developingtechniques to locate and exploitareas of enhanced reservoirquality,or sweet spots,withintight gas regions.During

112、the year the Moomba104 oil pool was also developed.In Queensland 20 developmentwells were drilled(10 in 1999),five compression facilities installedand 22 gas well projects executed(6 in 1999).As in South Australia,most of the Queensland programwas focussed on gas.Total gasdeliverability by the Busin

113、ess Unitexceeded 500 TJ per day inwinter 2000.The south-west Queensland gasdrilling program had good results.One of the highlights was a three-well program of multilateralhigh-angle wells in the Challumfield.Initial production from oneof these wells was the highestever recorded from a Queenslandwell

114、(36 TJ per day).The Barrolka appraisal drillingprogram recommenced in 2000with a three-well underbalanceddrilling program.Barrolka 4provided useful reservoirinformation and allowed testing ofthe underbalanced drilling systemand procedures.Barrolka 5DWwas cased and completed as agas producer.A total

115、of$72 million was spenton development in OffshoreAustralia during the year.Thisincluded:Additional drilling activity atStag(which lifted production toa peak of over 30,000 barrelsof oil per day).Drilling of five developmentwells at Barrow and ThevenardIslands.Development of the Bayu-Undan Project(li

116、quids phase)on which Santos spent$29 million during 2000.TheCompanys share of remainingexpenditure from 2001 to firstproduction is around$290 million.This field isscheduled to commenceproduction in early 2004.Development of the Legendreoil field,on which Santos spent$12 million in 2000.Expenditure o

117、n Legendre in2001 is expected to be$13 million,scheduled to comeonstream mid-2001.2001 DevelopmentProgramThe 2001 development budgetis$500 million,up 47%on 2000.Spending on onshore Australiais expected to remain at highlevels.Gas expenditure inSouth Australia and south-west Queensland is expectedto

118、continue at current levelsreflecting the high level ofproduction.The Queenslanddevelopment program alsoreflects the cost of developingthe Scotia field in the DenisonTrough at a total cost to Santosof$15 million.The Offshore AustraliaBusiness Unit developmentprogram will focus on oildevelopment activ

119、ities andwill involve the drilling of fourLegendre development wellstogether with one reinjection well;two,possibly three wells at Stagand three Thevenard and 12Barrow infill wells.Thevenard oildevelopment includes$17 millionfor the replacement and repairof the Roller pipeline.Legendreexpenditure is

120、 forecast to incur$13 million in addition to the$12 million spent in 2000 andproduction is expected tocommence mid-2001.The Bayu-Undan gas liquids schemeis forecast to incur$88 million in2001.The project will develop 33 mmboe of reserves and willadd 3.4 mmboe to Santosproduction in the first 12 mont

121、hsof production,beginning in 2004.162000 DEVELOPMENT EXPENDITURE($million)19992000South Australia85135Queensland84109Offshore Australia3372South East Asia29US35Other1211Total219341REVIEW OF PERFORMANCE DEVELOPMENT17Opening New Frontiersand extracting HiddenValue through InnovativeTechnologySantos ha

122、s focussed oncontinued application oftechnology to extract maximumbenefits for the company through:Resource Commercialisation coal-bed methane fromScotia FieldThe major development workprogram to bring gas on line fromthe Scotia Field by January 2002will commence in 2001.Deliverability ChallumField

123、high angle multilateraldrilling program Three high-angle multilateral wellswere drilled in the Challum Field.This is the first time this type ofwell has been drilled in onshoreAustralia,with the implementationof this technology reducing unitdevelopment costs and providingmore gas deliverability than

124、conventional vertical fracturestimulated wells.Theimplementation of high-angleand dual-stacked lateral welltechnology to the Challum Fieldhas improved the Fieldsprofitability by reducing both thecost of development and the costof deliverability.Cost Savings Moomba NorthField development programA maj

125、or development programwas undertaken in the MoombaNorth Field.The developmentactivities included a 17-welldrilling program that deliveredan incremental 49 MMscf/d gas,developed reserves of 68 PJ(13.7 mmboe)and realised over25%in cost savings comparedwith previous best practice.This successful campai

126、gngas development sets newbenchmarks for onshore fielddevelopment.Profitability Optimalexploitation of Moombathin oil reservoirsSantos has demonstrated withMoomba 102DW that high-anglewells are the optimum method fordeveloping single well oil poolswith thin oil columns of less than15 feet.The high-a

127、ngle sectionis able to maximise oil rate andincrease recovery sweepefficiency,increasing projectprofitability.Previous uneconomicoil pools are being re-assessedin 2001 using this technology.Improving Existing Technology Fracture StimulationFracture stimulation is a corebusiness in the Cooper Basin,w

128、ith a record 55 fracturestimulation projects to increasedeliverability executed in 2000.Santos has made significantadvances in its fracturestimulation practices,costreduction initiatives andtechnologies.This is crucial to developingthe gas resource in theNappamerri Trough and otherregions of the Coo

129、per Basin,aswell as optimising the exploitationof significantly depleted reservoirspreviously considered toodifficult to fracture stimulate.The success of this technologyhas considerable scope toimprove the performance ofother low pressure,currentlyproducing,wells.Extracting maximum valuefrom existi

130、ng tools Seismicmulti-attribute analysisSeismic multi-attribute analysisis a new statistical procedurethat attempts to predictgeological properties awayfrom well control by combiningthe seismic response with knownwell data.Geological propertiesderived from this technique havebeen used by geologists

131、indeveloping depositional modelsand as a tool in refining drillinglocations to maximise reservoirintersection.This methodologyhas been further advanced in2000 in combination with recentwell results,and is now gainingrecognition as an important toolin extracting the maximumreservoir information froms

132、eismic response.Reservoir“A”Reservoir“B”Reservoir“C”P2 CoalChallum Multilateral Well ConfigurationCoalCoal6”Open Hole Approx.1500 ft in Middle/Lower Toolachee Sands Approx.1100 ft in Upper Sand9 5/8”Casing approx.3300 ft7”Casing18Santos has proved andprobable reserves of 921million boe.Gas reservesa

133、re equivalent to anaverage of 19 years of2000 production and oiland liquids reserves areequivalent to 11.5 years.Wildcat exploration additionscomprised 14.4 million boe from2000 activity.The South AustraliaBusiness Unit contributed 5.4 million boe,Queensland andNorthern Territory 5.6 million boe,and

134、 Santos USA 3.4 million boe.Appraisal activity on existing fieldsadded 9.9 million boe comprising5.8 million boe in the SouthAustralia Business Unit and4.1 million boe in the Queenslandand Northern Territory BusinessUnit.The 49 million boe addedfrom acquisitions reflects theacquisition of Shells ass

135、ets inBarrow and Thevenard Islands(43 million boe)and an extra 7%share in the Kipper Field offshorein east Gippsland.The positiveresults of a redetermination ofreserves in SE Gobe(PNG)arealso included,offsetting smalldivestments in the United States.Reserves in existing fieldswere revised downwardsb

136、y 37.2 million boe primarilyin the Cooper Basin andNorthern Territory.Resources potential Resources potential excludedfrom the year end reservesfigures is discovered oil and gasaccumulations which currentlyfall outside the definition ofproved and probable reserves.This resource is known to existand

137、will become reserves iftechnical,infrastructure andmarket issues are resolved.The Companys most significantresources in its portfolio includethe Hides and Petrel/Tern gasfields,oil and gas at BarrowIsland,other gas in the CarnarvonBasin and low deliverability gas inthe Cooper Basin.REVIEW OF PERFORM

138、ANCE RESERVESPROVED&PROBABLE HYDROCARBON RESERVESKEY FACTS Total proved and probablereserves of 921 million boe.Average reserve life of 16.5years.49 million boe added throughacquisitions.24 million boe added throughexploration and appraisals.Revisions reduced reservesby 37 million boe.Sales GasCrude

139、 OilCondensateLPGTotal(incl Ethane)(PJ)Million barrelsMillion barrels(000 tonnes)(mmboe)Estimated reserves at 31/12/994338708653269412000 Production(215)(13)(4)(263)(56)Additions from 2000 Exploration62 2 1 71 14Appraisal existing fields 51 1 63 10 Revisions existing fields(202)(2)(3)256(37)Acquisit

140、ions/Divestment 50 40 0 52 49 Estimated reserves at 31/12/00 4084 97 81 5505 921 Reserves02004006001000199920001998mmboeReserves/production ratioReserves010152025average reserve life(years)800596692121191694119Santos ability to competein Eastern Australian gaswas highlighted during2000 by the new co

141、ntractwith CS Energy inQueensland.In 2000 Santos delivered arecord 210 PJ of gas to theAustralian market.All businessunits increased gas salesreflecting growing demandfor domestic gas during 2000.Offshore Australia gas salesgrew to 17 PJ.Steadily growingdemand for Cooper Basin gasresulted in eastern

142、 Australia gassales growing to 193 PJ.2000was the first full year of deliveryof gas to WMC Fertilisers.Santosannounced an agreement tosupply up to 120 PJ of gasfrom the Scotia Field over 10 to15 years to CS Energy Ltd,a Queensland Government-owned electricity generator.Santos also commenced supplyun

143、der an additional East Spargas contract to the South WestCogeneration Project.Santos Gas OperationsOnshore Australia gas operationsaccount for 89%of gas sales.The core operations are locatedin the South Australian CooperBasinandsouth-westQueensland.Gas from the Cooper Basin isdistributed to customer

144、s in SouthAustralia,the Australian CapitalTerritory,Victoria and New SouthWales via the Moomba facilityand in Queensland via theBallera facility.Ethane is alsosold to Qenos Ltd in New SouthWales.Santos has other gasproducing areas located in theNorthern Territory,WesternAustralia and Victoria.Deregu

145、lation inthe AustralianGas MarketCreatingnewopportunitiesfor gas deliveriesDuring the year approximately8 PJ of Cooper Basin gas wassold into Victoria.The EasternGas Pipeline(EGP)fromLongford in Victoria to Sydney inNew South Wales was completedin September 2000.The impactof commencement of supply b

146、ythe EGP on Santos gas sales inNSW was as expected.Competition in the Australian gasmarket is expected to rise overthe coming years.Santos expectsthat the Cooper Basin will remaina competitive and strong supplierof gas to south-eastern Australia.REVIEW OF PERFORMANCE AUSTRALIAN GASKEY FACTS Santos s

147、old a record 210 PJof sales gas and ethane toAustralian customers.Santos signed a contract withCS Energy for 120 PJ of gasover a 10 to 15 year period.East Spar sales increased by68%to 17 PJ.Victorian Otway Basindelivered five PJ of gas inits first full-year of production.SANTOS INTEREST IN UNCONTRAC

148、TED GAS RESERVES(A)PJ AS AT DEC 2000Total Gas Reserves Santos Share UncontractedSantos Share of in Santos of GasGas in Santos Uncontracted Acreage Reserves Acreage GasSouth Australia246614691238730Minerva3093130931Kipper3717437174SW Queensland189411251133668Surat/Bowen25616014783Amadeus496300354215E

149、ast Spar43019311953Reindeer2569225692Bayu/Undan36094273609427Barrow Island/Thevenard Island1103311033Sub-total Australian areas10197390476462406Other areas272180238146Total10469408478842552Australian Gas Sales050250199920001998petajoules10020015017619521051%41%8%Australian Gas&Ethane Salesby Busines

150、s UnitSouth AustraliaQueensland&Northern TerritoryOffshore Australia(A)Includes ethaneIn 2000 Santos produced arecord 56 million boe,up 14%.The increase in production isattributable to the benefits ofthe ongoing exploration anddevelopment program andSantos corporate developmentactivities.Total produ

151、ction fromthe Offshore Australia BusinessUnit doubled to 14 million boe(7 million boe in 1999)whileproduction from the Queensland/Northern Territory Business Unitincreased 6%to 19 million boe.A highlight for the year was oiland liquids production reachinga record 19 million boe,boostedby higher oil

152、production from theStag and Elang/Kakatua oil fieldsand the Barrow and ThevenardIslands acquisition.Otherhighlights were the significantcontribution from the Stag oilfield where oil productionaveraged over 23,000 bopd andpeaked over 30,000 during 2000.The improved performance andextension of well li

153、fe of the StagField can be directly attributedto the development programthat involved successful waterinjection in 1999 and additionalremedial drilling during 2000.A further example of successthrough development is theElang/Kakatua Field whereremedial development work thatinvolved the drilling of a

154、sidetrackhole,workover and use of 3Dseismic led to improvedproduction.Elang/Kakatuaperformance improvedsignificantly and averaged 18,000 bopd during 2000.The Elang/Kakatua Fieldreached a significant milestoneduring January 2001 whencumulative production exceeded20 million boe.Santos expects 2001 pro

155、ductionto be 2%to 3%above the recordlevel achieved in 2000.OffshoreAustralia is expected to continueto contribute to Santosproduction profile in a significantway with new projects such asthe Legendre oil field.Significantinvestment in development during2000 will help Santos grow itsproduction profil

156、e.Production benefits fromthe Development Program The Elang/Kakatua oil field reached a milestone20 million barrels of cumulative productionduring 2001.The Stag oil field reached a milestone 18 millionbarrels of cumulative production during 2000benefiting from the development program.REVIEW OF PERFO

157、RMANCE PRODUCTIONKEY FACTS Production reached a record56 million boe.Stag oil production averaged23,000 bopd for the year.Elang/Kakatua productionaveraged 18,000 bopd forthe year.East Spar gas productionrose to 19 PJ for the year.Carnarvon Basin acquisitionboosted 2000 oil productionby 3 million boe

158、.Santos produced a record215 PJ of gas and ethane.Production02030405060199920001998mmboe10Sales gasðaneCrude oil&liquids4649562001000kilometresIndonesiaPacific OceanPapuaNew GuineaBentuKorinci-BaruWarimSampangIrian JayaAustraliaMelbourneSouthern OceanIndian OceanBonaparteGulfBass BasinCooper/Erom

159、angaBasinsAmadeusBasinCarnarvon BasinBrowse BasinTimor SeaSurat Basin&Denison TroughTimor GapOtway BasinHobartDarwinBrisbaneSydneyCanberraPerthGippsland BasinMt IsaMcArthurRiverKalgoorlieGladstoneAdelaideExplorationProductionOil pipelineGas pipelineEthane pipelineSE GobePRODUCTION STATISTICSField Un

160、itsSales Gas&EthaneCrude Oil CondensateLPGPJ000 bbls000 bbls000 tonnes 20001999200019992000199920001999South AustraliaCooper/Eromanga100.0105.71800.41860.41440.11573.9177.5198.9Otway4.81.653.219.0Total104.8107.31800.41860.41493.31592.9177.5198.9Queensland&Northern TerritorySW Queensland65.756.31442.

161、41705.6947.8941.385.679.5Surat/Denison11.211.9107.9133.821.835.40.11.8Amadeus10.611.3343.1399.2Total87.579.51893.42238.6969.6976.785.781.3Offshore AustraliaTimor Sea333.2403.6Timor Gap1397.71701.5Carnarvon18.910.34648.32378.71079.9609.3Thevenard/Barrow0.12898.4Total19.010.39277.64483.81079.9609.3Sou

162、th East AsiaSeramPNG425.2448.5Total425.2448.5US3.74.975.292.819.337.6Total215.0202.0 13471.89124.13562.13216.5263.2280.2Million Barrels of Oil EquivalentSales Gas&EthaneCrude Oil CondensateLPGTotal2000199920001999200019992000199920001999South AustraliaCooper/Eromanga 17.2018.171.801.861.351.471.501.

163、6821.8523.18Otway 0.830.280.050.020.880.30Total 18.0318.451.801.861.401.491.501.6822.7323.48Queensland&NorthernTerritorySW Queensland 11.309.681.441.710.890.880.720.6714.3512.94Surat/Denison 1.932.050.110.130.020.030.022.062.23Amadeus 1.821.940.340.402.162.34Total 15.0513.671.892.240.910.910.720.691

164、8.5717.51Offshore AustraliaTimor Sea 0.330.400.330.40Timor Gap 1.401.701.401.70Carnarvon 3.251.774.652.381.010.578.904.72Thevenard/Barrow0.022.902.90Total 3.271.779.284.481.010.5713.536.82South East AsiaPNG 0.430.450.430.45Total 0.430.450.430.45US 0.640.840.080.090.020.040.740.97Total 36.9934.7313.4

165、89.123.343.012.222.3756.0049.232122EnvironmentSantos operates in many variedenvironmental settings throughoutAustralia.The Company has along history of conducting itsactivities in a way that avoidsand minimises potential impactson the environment.Santos first environmentalprofessional was employedin

166、 1980.Since that time,theCompany has established a coreteam of dedicated environmentaladvisors as well as incorporatingenvironment into the linemanagement function.Aswith safety,the environment iseveryones responsibility be theyemployee or contractor,operatoror manager.The Companys environmentalpoli

167、cy was updated in 1997 and it is used as the basis of acomprehensive environmentalmanagement system tailor-madefor Santos.The Corporatecomponent of the SantosAustralian EnvironmentalManagement Systemincorporates corporaterequirements which are reflectedin the more detailed Business Unitsub-systems.T

168、his ensures thatthe differing,specific regulatoryrequirements of the various Stateswithin which Santos operates canbe reflected in sufficient detail toenable easy comprehension andcompliance with State andTerritory requirements.Santos has achieved highstandards of environmentalperformance illustrate

169、d bythe many awards it has received.Relationships with regulatorybodies are robust and positiveand focussed on an evolvingprocess of co-regulation.Emergency contingency planshave been established for all keyoperating areas.These are testedand updated on a regular basis.All environmental incidents ar

170、ereported and rectified.Issuesidentified as causal factors areincorporated into ongoing riskmanagement and modifiedprocedures aimed at preventingreoccurrence in all similarcircumstances.During 2000Santos was not fined orprosecuted,nor did it receive anynotices of non-compliance.This process of conti

171、nualimprovement underlies the SantosEnvironmental ManagementSystem,which in itself is subjectto constant evolution,amendmentand change reflecting bothexternal and in-company changesover time.The ultimate aim is toachieve a level of excellence byconstantly bridging the gapbetween admirable rhetoric a

172、ndthe realities of the harsh,remotenatural environmental in whichthe majority of Santos operationsare located.SafetySantos investigates and reportsall accidents,near misses andhazards.The measure of safetyperformance used is the TotalRecordable Case Frequency rate(TRCF)which is defined as thenumber

173、of Recordable Cases(Medical Treatment and LostTime Injuries)per million hoursworked by Santos employeesand contractors.In 2000,Santos recorded acontinued improvement in itssafety performance achievinga further reduction of 20%,following an almost 50%reduction in 1999,in itsTRCF rate.The Company stri

174、ves for thehighest standard of occupationalhealth and safety(OH&S)andis fully committed to a workenvironment free of injuries.Whilethis has not yet been achieved,the progress for the past twoyears indicates continualimprovement and progresstoward this.Under Santos OH&S policy,all employees and contr

175、actorshave specific responsibilities forobserving and maintaining asafe working environment.Ofparticular emphasis for safetyprograms has been the intentthat contractor safetyperformance should match thatof Santos employees.Manycontractors now achieve safetyperformance matching that ofSantos employee

176、s.REVIEW OF PERFORMANCE ENVIRONMENT&SAFETYSafety Performance01012161820199920001998TRCF(rate)2144681910823In 2000 Santos continued itsprogram of providing supportto cultural,educational and not-for-profit organisations withinthe communities in which theCompany operates.The Art Gallery of SouthAustra

177、lia,the Queensland ArtGallery,the Adelaide,Brisbane,and Darwin Festivals,the SantosSchool of Petroleum Engineeringand Management,and the Anti-Cancer Foundation,are amongthe many institutions and eventsthat benefit from this program.For the past two years Santoshas been the Principal Sponsorof the Ad

178、elaide SymphonyOrchestra and continues thisin 2001.The orchestra playsa vital role in the cultural life ofSouth Australia,performing anextensive concert program aswell as supporting theperformances of the StateOpera of South Australiaand the Australian Ballet.One of the highlights of theorchestras s

179、eason is theannual Santos Symphony underthe Stars,a free public concertheld in Elder Park.This is asummertime institution inAdelaide and is attended bymore than 30,000 people.In 2000 Santos supported theSave the Bilby organisation bydonating a 4WD vehicle to beused in a feral animal eradicationprogr

180、am.This program willsecure a habitat for the GreaterBilby in the Currawinya NationalPark in south-west Queensland,ensuring the survival of thisalmost extinct Australian iconfor future generations to seeand enjoy.For many years,Santos hascontributed to a number ofevents and organisations in theWhyall

181、a region of South Australia.This year the Company will assistthe establishment of newpremises for the Air Sea RescueSquadron.Santos has commenced aprogram of community support inthe Western District of Victoriaincluding support to the Timboonand District Healthcare Servicefor the purchase of an esse

182、ntialpiece of equipment and to thePort Campbell Surf Life SavingClubs building appeal.REVIEW OF PERFORMANCE COMMUNITY“The Otway projectwas an extremechallenge for thesmall dedicatedteam working in ageographical areanew to Santos.”Graeme Parsons Senior Staff Geologist,South Australia Business UnitDEL

183、IVERING NEW OPPORTUNITIES Jon YoungGeneral Manager,South Australia Business UnitThe Otway project team proved that there are economic prospects in Victoriawhich can be readily developed and marketed in Eastern Australias largestmarket place.“Frontier exploration in PNG offers satisfying challengesbo

184、th technically and on the ground”Jan Hulse Senior Geologist,South East Asia Business UnitDELIVERING FUTURE GROWTH Bob HallGeneral Manager,South East Asia Business UnitPapua New Guinea is a challenging area with great potential that can deliversignificant value to Santos.John Allan Uhrig AC,BSc,DUniv

185、,Hon.DEcon,FAIMAge 72.Director since3 December 1991 andChairman since 15 February 1994.FormerChairman of WestpacBanking Corporation,ofRio Tinto Ltd and formerDeputy Chairman of RioTinto plc.Until 1985 wasManaging Director ofSimpson Holdings Ltd.John Charles Ellice-Flint BSc(Hons)Age 50.Managing Dire

186、ctorsince 19 December 2000,member of theEnvironmental Committeeof the Board and alsoChairman of otherSantos Ltd subsidiarycompanies.Twenty-sixyears experience in theinternational oil and gasindustry with Unocal,including as SeniorVice President:GlobalExploration andTechnology and VicePresident:Corpo

187、ratePlanning and Economics.Stephen GerlachLLBAge 55.Director since 5 September 1989 andDeputy Chairman since 20 June 2000.Chairmanof the EnvironmentalCommittee of the Boardand also Chairman ofSantos Finance Ltd.Chairman of Amdel Ltd,Equatorial Mining Ltd,Elders Australia Ltd andBeston Pacific Vineya

188、rdManagement Ltd.Directorof Southcorp Holdings Ltd,Futuris Corporation Ltd,Challenger Beston Limitedand Elders Rural ServicesLtd.Former ManagingPartner of the Adelaidelegal firm,Finlaysons.Peter CharlesBarnettFCPAAge 60.Director since 31 October 1995 andmember of theEnvironmental Committeeof the Boa

189、rd.Director ofMayne Nickless Ltd andAMCIL Ltd.FormerManaging Director andChief Executive Officer ofPasminco Ltd and ChiefExecutive Officer of EZIndustries Ltd.John Walter McArdle FCPAAge 54.Executive Directorsince 5 September 1995and Executive GeneralManager-Commercial ofSantos Ltd.Director ofSantos

190、 Ltd subsidiarycompanies.FormerManaging Director ofDelhi Petroleum Pty Ltdand former Chairman ofAustralian NationalRailways Commission.BOARD OF DIRECTORSIan Ernest Webber AO,BE,ATS,FCIT,FAIMAge 65.Director since 16 February 1993 andmember of the AuditCommittee of the Board.Director of Pacific Dunlop

191、Ltd and WMC Ltd.FormerManaging Director andDeputy Chairman ofChrysler Australia Ltdand Managing Directorof Mitsubishi MotorsAustralia Ltd.FormerChairman of MayneNickless Ltd Group.Michael AnthonyOLeary DipMinE,BSc,FAusIMM,FAIMAge 65.Director since 15 October 1996 andmember of theEnvironmentalCommitt

192、ee of the Board.Deputy Chairman of Bankof Western Australia Ltd.Former Chairman ofHamersley Iron,ArgyleDiamonds,Dampier Saltand former Director ofRio Tinto Ltd and RioTinto plc.Professor JudithSloan BA(Hons),MA,MScAge 46.Director since 5 September 1994 andmember of the AuditCommittee of the Board.Ch

193、airman of SGICHoldings Ltd and Directorof Mayne Nickless Ltd anda Board member of theAustralian BroadcastingCorporation.FormerProfessor of LabourStudies at the FlindersUniversity of SouthAustralia and Directorof the National Instituteof Labour Studies.Frank John ConroyBCom,MBA,FAIM,FAICD,FAIBFAge 58

194、.Director since 19 October 1999 anddirector of Santos FinanceLtd.Chairman of HowardSmith Ltd,St GeorgeBank Ltd and ORIXAustralia CorporationLtd.Director of FuturisCorporation Ltd andAustralian PharmaceuticalIndustries Limited.FormerManaging Director ofWestpac BankingCorporation.Graeme WilliamMcGrego

195、r AO,BEc,FCPA,FCA,FAIM,FAICDAge 62.Director since 3 September 1999,Chairman of the AuditCommittee of the Boardand director of SantosFinance Ltd.Director ofFosters Brewing GroupLtd,Nufarm Ltd,WereSecurities Ltd andCommunity FoundationNetwork Ltd.Member ofthe Financial ReportingCouncil.Former Executiv

196、eDirector Finance of TheBroken Hill ProprietaryCompany Limited.CORPORATE MANAGEMENTManaging Director John Ellice-Flint General Manager Finance&InvestorRelations Graeme BethuneExecutive GeneralManager Commercial John McArdleGroup General Counsel&Company SecretaryMichael RobertsGeneral Manager Account

197、ingDon PriestleyGeneral Manager Petroleum Development&PlanningAshok KhuranaGeneral Manager EngineeringDenis Dare28Corporate GovernanceStatementThe purpose of this statementis to provide details of the maincorporate governance practicesthe Company had in place duringthe past financial year.The Board

198、of Santos Limitedis committed to good corporategovernance and to this end hashad in place,for a number ofyears,formal guidelines recordingthe Boards policy on:Boardcomposition and appointment ofchairman;Board membership andattendance;the appointment andretirement of Directors;independent professiona

199、l advice;compensation arrangements;external auditors;riskmanagement;and ethicalstandards.References in thisstatement to the“Boardguidelines”are to the formalguidelines in force during thepast financial year.The Boardguidelines are reviewed by theBoard on an annual basis andas required.Board of Direc

200、torsand its CommitteesThe Board is responsible forthe overall corporate governanceof the Company including itsstrategic direction and financialobjectives,establishing goals formanagement and monitoring theattainment of these goals.To assist in the effective executionof its responsibilities,the Board

201、has established a number ofBoard Committees,including aNomination and RemunerationCommittee,an Audit Committeeand an Environmental Committee.The Nomination and RemunerationCommittee comprises all non-executive Directors and eachof the Audit and EnvironmentalCommittees comprises a majorityof non-exec

202、utive Directors and ischaired by a non-executiveDirector.The Board guidelinesprescribe that the Board is tomeet at least 10 times a year.All current non-executiveDirectors,including theChairman,are considered tobe independent Directors,asdefined in the 1999 guidelinesof the Australian Investment and

203、Financial Services Association.Composition of the BoardThe names and details of theexperience,qualifications,age,special responsibilities andshareholdings of each Directorof the Company are set out onpages 26,27 and 38 of thisAnnual Report.The composition of the Boardis determined in accordance with

204、the Companys Constitution andthe Board guidelines including:the Board is to comprise aminimum of five and a maximumof ten Directors(exclusive of theManaging Director);the Boardshould comprise a substantialmajority of non-executiveDirectors(currently the Boardcomprises eight non-executiveand two exec

205、utive Directors);there should be a separationof the roles of Chairman andChief Executive Officer of theCompany;and the Chairmanof the Board should be a non-executive Director.Under the Board guidelines,it is the responsibility of theNomination and RemunerationCommittee to devise the criteriafor,and

206、review membership of,and nominations to,the Board.The primary criteria adopted inselection of suitable Boardcandidates is their capacity tocontribute to the ongoingdevelopment of the Companyhaving regard to the locationand nature of the Companyssignificant business interestsand to the candidates age

207、 andexperience by reference to theage and diversity of experienceof existing Board members.When a Board vacancy existsor where it is considered thatthe Board would benefit fromthe services of a new Directorwith particular skills,theNomination and RemunerationCommittee has responsibilityfor proposing

208、 candidates forconsideration by the Board and,where appropriate,engages theservices of external consultants.Prior to appointment,eachDirector is provided with aletter of appointment which,inter alia,encloses a copyof the Board guidelines.Theexpectations of the Board inrespect to a proposed appointee

209、to the Board and the workings ofthe Board and its committees areconveyed in interviews with theChairman and access providedto appropriate executives inrelation to details of the businessof the Company.Under the CompanysConstitution approximately one-third of Directors retire by rotationeach year and

210、 Directors appointedduring the year are required tosubmit themselves for election byshareholders at the Companysnext Annual General Meeting.The Board guidelines prescribethat,under normal circumstances,Directors should retire at the firstAnnual General Meeting afterreaching the age of 72 yearsand no

211、t seek re-appointment.Independent ProfessionalAdviceThe Board guidelines set out thecircumstances and procedurespursuant to which a Director,in furtherance of his or her duties,may seek independentprofessional advice at theCompanys expense.Thoseprocedures require priorconsultation with,and approvalb

212、y,the Chairman and assurancesas to the qualifications andreasonableness of the fees of therelevant expert and,under normalcircumstances,the provision ofthe experts advice to the Board.RemunerationUnder the Board guidelines,theNomination and RemunerationCommittee is responsible forreviewing the remun

213、erationpolicies and practices of theCompany including:thecompensation arrangements forexecutive Directors and seniormanagement;the Companyssuperannuation arrangements;employee share and option plans;and,within the aggregate amountapproved by shareholders,thefees for non-executive membersof the Board

214、.Further informationon these matters is included atpages 39 and 40 of this AnnualReport and details of theCompanys employee shareand option plans are provided inNote 18 of the Financial Report.No non-executive Director mayparticipate in any of the Companysshare or option plans.Informationin respect

215、to indemnity andinsurance arrangements forDirectors and senior executivesappears at page 41 of thisAnnual Report.The current members of theNomination and RemunerationCommittee,all of whom are non-executive Directors,are:Mr J A Uhrig(Chairman),Mr P C Barnett,Mr F J Conroy,Mr S Gerlach,Mr G W McGregor

216、,Mr M A OLeary,Professor J Sloanand Mr I E Webber.CORPORATE GOVERNANCE29Audit CommitteeThe Board guidelines require theBoard to continue in existence anAudit Committee of the Board.The role of the Audit Committeeis documented in a Charterapproved by the Board.The Committee is required tomeet at leas

217、t three times peryear and members may raiseany matters considered desirable.The role of the AuditCommittee includes:examiningthe accounting policies of theCompany to determine whetherthey are appropriate and inaccordance with all applicablereporting requirements;ensuringthat truth and fairness is re

218、flectedin the preparation and publicationof the Companys financial reports;meeting regularly with the auditorsto reinforce the independence ofthe auditors,to determine theappropriateness of internal andexternal audit procedures,toreview the performance of theauditors and to provide theauditors with

219、confidential accessto the Board;and referringmatters of concern to the Board,as appropriate,and consideringrisk management matters.Minutes and recommendationsof the Audit Committee aredistributed at the nextBoard Meeting.The current members of the AuditCommittee are:Mr G W McGregor(Chairman),Profess

220、or J Sloan andMr I E Webber.Risk ManagementThe Board has in place anumber of arrangementsand internal controls intendedto identify and manage areasof significant business risk.These include the maintenanceof:Board Committees;detailedand regular budgetary,financialand management reporting;established

221、 organisationalstructures,procedures,manuals and policies;audits(including internal and externalfinancial,environmental andsafety audits);comprehensiveinsurance programmes;andthe retention of specialisedstaff and external advisors.Management of environmentalrisk environmental risk ismanaged through:

222、comprehensive environmentalmanagement systems;environmental committees atBoard and management levels;the retention of specialistenvironmental staff andadvisers;regular internal andexternal environmental audits;and imposing environmentalcare as a line managementresponsibility.The currentmembers of th

223、e Committee are:Mr S Gerlach(Chairman),Mr PC Barnett,Mr M A OLeary andMr J C Ellice-Flint.Management of exploration risk exploration risk is managedthrough internal control systemswhich include:formalised riskassessment procedures at theBusiness Unit level;Corporatereview in both prospect andhindsig

224、ht;Board approval ofexploration budgets;andregular reporting on progress tothe Board.External reviews arealso undertaken as necessary.Investment appraisal theCompany has clearlydefined procedures for capitalexpenditure.These include:annual budgets;detailedappraisal and reviewprocedures;levels of aut

225、hority;and due diligence requirementswhere assets are being acquired.Financial reporting acomprehensive budgetingsystem exists with a five yearfinancial plan and an annualbudget approved by the Board.Monthly actual results arereported against budget and,where applicable,revisedforecasts for the year

226、 areprepared and reported to theBoard.Speculative transactionsare prohibited.Further detailsrelating to financial instrumentsand commodity price riskmanagement are included inNote 31 of the Financial Report.Functional speciality andbusiness unit reporting allsignificant areas of Companyoperations ar

227、e subject toregular reporting to the Board.The Board receives regularreports on the performanceof each business unit andon exploration,development,finance,liquids marketing,safety,government,investor relations andenvironmental matters.Senior management attendBoard and Committee meetings,at which the

228、y report to Directorswithin their respective areas ofresponsibility.This assists theBoard in maintaining itsunderstanding of the Companysbusiness and assessing thesenior management team.Where appropriate,advisers tothe Company attend meetings ofthe Board and of its Committees.Under the Companys Dele

229、gationof Authority,the Board isresponsible,inter alia,for theapproval of the annual corporatebudget and for significant:acquisitions and disposals ofassets;expenditure decisionsoutside of the corporate budget;hedging of product sales;salescontracts;and financingarrangements.Ethical StandardsIn pursu

230、ance of the promotionof high standards of corporategovernance,the Board has,without adopting a formal codeof ethics,established andmaintained various internalstandards which extend beyondrequirements prescribed by lawand include guidelines relatingto the dealing in securities byDirectors and manager

231、s.30SANTOS GROUP INTERESTSAS AT 1 MARCH 2001Licence Area%InterestLicence Area%Interest Queensland South-West Queensland ATP 259P Naccowlah(PLs 23-26,35,36,62,76-79,82,87,105,107,109,133&149)55.5Total 66(PLs 34,37,63,68,75,84,88,110,129,130,134,140,142-144&150)70.0Wareena(PLs 113,114,141,145,148,153,

232、157&158)61.2Innamincka(PLs 58,80,136,137&159)70.0Alkina72.0Aquitaine A(PLs 86,131&146)52.5Aquitaine B(PLs 59-61,81,83,85,97,106,108,111,112,132,135,139&147)55.0Aquitaine C(PLs 138&154)47.850/40/10(PL 55)60.0SWQ Unit60.1ATP 267P(Nockatunga)(PLs 33,50&51)59.1ATP 269P(Bodalla)5.8PLs 31,32 and 47(Bodall

233、a)5.3ATP 299P(Tintaburra)(PLs 29,38,39,52,57,95&170)89.0Surat BasinATP 212P(Major)(PLs 30,56&74)15.0ATP 336P(Kalima)85.0ATP 336P(Roma)(PLs 3-13,93&PPL2)85.0ATP 336P(Waldegrave)(PLs 10-12,28,69&89)46.3ATP 378P(Burunga)(PL 176)100.0ATP 470P(Redcap)(PL 71)10.0ATP 471P(Bainbilla)(PL 119)16.7ATP 471P(Mya

234、ll)69.5ATP 552P(Grail North)35.5ATP 552P22.0ATP 685P(Cockatoo Creek)100.0Boxleigh100.0PL 1(Moonie)100.0PL 1(2)(Cabawin)100.0PL 1(2)(Cabawin Farm-out)50.0PL 2(Kooroon)52.5PL 2C(Alton)100.0PL 2C(Alton Farm-out)63.5PL 5(Barcoo)85.0PL 5(Drillsearch)21.3PL 5(Mascotte)42.5PL 11(Snake Creek East)25.0PL 12(

235、Trinidad)92.5PL 1770.0PL 17(Bennett Exclusion)100.0PL 17(Leichardt Exclusion)70.0PLs 21,22,27 and 64(Balonne)12.5Denison TroughATP 337P(PLs 41-45,54,67 and 173)50.0ATP 553P50.0FacilitiesWungoona Processing Facilities50.0Moonie to Brisbane Pipeline100.0Jackson Moonie Pipeline82.8Ballera to Mt Isa Pip

236、eline18.0VictoriaOtway Basin PEP 153100.0PEP 15490.0PEP 16060.0VIC/RL7(La Bella)10.0VIC/RL8(Minerva)10.0Gippsland BasinVIC/RL1(Golden Beach)66.7VIC/RL2(Kipper)20.0VIC/RL3(Sole)25.0 TasmaniaBass Basin T/RL1(Yolla)5.0Northern TerritoryAmadeus Basin OL 3(Palm Valley)48.0OLs 4 and 5(Mereenie)65.0RL2(Din

237、go)65.7Mereenie-Brewer Estate Pipeline65.0 South AustraliaCooper Basin(Fixed Factor Area)(PPLs 6-20,22-25,27-61,63-75,78-117,119,120,124,126-130,132-140,143-146,148-151,153-155,157,159-163&164-166)59.8 Patchawarra East Joint Operating Area(PPLs 26,76,77,118,121-123,125,131,142,147,152,156,158&167)69

238、.4SA Unit and Downstream59.8 AverageUnited States of America working interestGulf of Mexico EC 15580.0 EI 5920.0 EI 14320.0 EI 33520.0 VR 24775.0 WC 27280.0 WC 27675.0 WC 58280.0 WC 63250.0Averageworking interestArkoma Basin32.0South Texas Aransas Bay25.0 Ashland Deep(Runnells-3)30.0 Birdie Porter G

239、reen50.0 Fuhrken25.0 Queen City(Mew-1)47.0 Remmers55.0 Suemar25.0 Driscoll25.0 West Rosita25.031Offshore Northern AustraliaCarnarvon BasinEP 6128.6EP 6228.6EP 6535.7EP 6635.7EP 32525.0EP 35735.7L1H28.6L1O28.6TL/215.0TL/328.6T/L435.7T/L735.7TP/228.6TP/3(1&2)35.7TP/3(3)75.0TP/7(1-3)43.7TP/7(4)18.7TP/1

240、333.3TP/1428.6WA-1-P22.6WA-7-L28.6WA-8-L(Talisman)27.4WA-13-L(East Spar)45.0WA-15-L54.2WA-15-L(Lower Area)36.0WA-20-L(Legendre)22.6WA-24-P(1)35.7WA-24-P(2&3)75.0WA-149-P18.7WA-191-P33.4WA-208-P20.0WA-209-P36.0WA-214-P20.0WA-261-P29.6WA-264-P66.7WA-298-P20.0Browse Basin WA-206-P100.0WA-239-P10.0WA-24

241、2-P33.3WA-281-P27.5WA-282-P42.5WA-283-P27.5Bonaparte Basin NT/RL1(Petrel)95.0WA-6-R(West Petrel)95.0WA-18-P(Tern)100.0Timor Sea AC/L1(Jabiru)10.3AC/L2(Challis)10.3AC/L3(Cassini)10.3AC/L4(Skua)37.4AC/P1533.3Timor Gap ZOCA 91-0125.0ZOCA 91-1221.4Bayu-Undan Gas Field11.8Papua New GuineaPDL 131.0PDL 315

242、.9PL 33.6PPL 15735.3PPL 18942.6PPL 19031.3PPL 19171.8PPL 20245.0PPL 20648.0PPL 21335.0PRL 435.3PRL 535.3SE Gobe Unit9.4IndonesiaBentu61.1Korinci-Baru61.1Sampang45.0Warim20.0Licence Area%InterestLicence Area%Interest32appraisal wellAn exploration well drilled for thepurpose of identifying extensionst

243、o known fields or discoveries.barrel/bblThe standard unit ofmeasurement for all productionand sales.One barrel equals159 litres or 35 imperial gallons.boeBarrels of oil equivalent.The factors used by Santosto convert volumes of differenthydrocarbon production tobarrels of oil equivalent areprinted a

244、bove.bopdBarrels of oil per day.the CompanySantos Ltd and its subsidiaries.development wellA well drilled to enableproduction from a known oil orgas reservoir.exploration wellA wildcat or appraisal well drilledto find new reserves of oil or gas.fracture stimulationA technique used to improvehydrocar

245、bon recovery fromreserves with poor permeability or porosity.Fracture stimulationinvolves the fracturing of thereservoir rock to encouragethe flow of hydrocarbons.hydrocarbonsSolid,liquid or gas compoundsof the elements hydrogen and carbon.LPGLiquefied petroleum gas.mbblsThousand barrels.mmbblsMilli

246、on barrels.mmboeMillion barrels of oil equivalent.OABUOffshore Australia Business Unit.petroleum liquidsCrude oil,condensate,or itsderivative naphtha,and theliquefied petroleum gasespropane and butane.PJPetajoules.Joules are themetric measurement unit forenergy.A petajoule is equal to1 kilojoule x 1

247、012.The equivalentimperial measure to joules isBritish Thermal Units(BTU).One kilojoule=.9478 BTU.PSCProduction sharing contract.QNTBUQueensland and NorthernTerritory Business Unit.reservesProved and probable reserves asdefined by the Australian StockExchange Ltd(ASX).Provedreserves are those reserv

248、es that,to a high degree of certainty,areclearly recoverable,at commercialrates,under currently anticipatedproduction methods,operatingconditions,prices and costs.Probable reserves are thosereserves that may be reasonablyassumed to exist because ofgeophysical or geologicalindications and drilling do

249、nein regions which contain provedreserves.Reserves reported arebased on,and accurately reflect,information compiled by full-timeemployees of the Company whohave the requisite qualificationsand experience prescribed by theASX Listing Rules.SABUSouth Australia Business Unit.SantosSantos Ltd and its su

250、bsidiaries.SEABUSouth East Asia Business Unit.seismic surveyA survey used to gain anunderstanding of rock formationsbeneath the earths surface.SUSACSantos USA Corp.TJTerajoules.Joules are the metricmeasurement unit for energy.Aterajoule is equal to 1 joule x 1012.TRCFTotal recordable case frequencyr

251、ate.wildcat wellAn exploration well drilled toidentify new accumulations ofoil or gas.GLOSSARYCRUDE OIL 1 barrel=1 boeSALES GAS 1 petajoule=171.937 boe x103CONDENSATE/NAPHTHA 1 barrel=0.935 boeLPG 1 tonne=8.458 boe 33“The Moomba North Campaign has given us theopportunity to optimise our efforts both

252、 technicallyand operationally.The firm vision of the projecthas enabled the team,from office personnel torig crews,to focus on building effective teamworkand achieving greater results”Sylvie Tran Drilling Engineer,South Australia Business Unit DELIVERING HIGHER EFFICIENCYJon YoungGeneral Manager,Sou

253、th Australia Business UnitThe 25%cost reduction achieved in the Moomba North Drilling Programensures Cooper Basin gas is competitive and creates opportunities to develop additional gas reserves.33340200kilometresGulf of MexicoHoustonTexasMewRunnellsMexicoNordheim/FuhrkenMountainsideWC272WC2760100kil

254、ometresPDL 1PPL 190PDL 3PPL 206PPL 213Warim PSCStanleyKutubuHidesJuhuElevalaPnangSE KanauWasumaW AnesiKumulOffshoreFacilityBarikewaSE GobePapua New GuineaIrian JayaBosaviTumuliPPL 202PPL 157PPL 189Kau 201000kilometresIndonesiaPacific OceanPapua New GuineaBentuKorinci-BaruWarimSampangIrian JayaJavaSu

255、matraAustraliaSE Gobe50Kilometres0Sampang PSCSurabayaWunutMadura StraitMadura IslandJavaJava SeaAnggurOyongDukuhFlamboyanEnau025kilometresKorinci-Baru PSCPulp&PaperMillPekanbaruTerusanSengBumiSegatBentuKorinci/PerakTerusanBaruManganPerakBesiBentu PSCProposed AsameraDuri pipelinePerak-Korinci TrendSu

256、matraSANTOS AREAS OF OPERATIONSantos Acreage Sampang PSC(Java)Santos Exploration and Production Interests South East AsiaSantos Acreage Papua New GuineaSantos Acreage United States of AmericaSantos Acreage Bentu/Korinci Baru(Sumatra)01000kilometresSouthern OceanIndian OceanBonaparteGulfBass BasinCoo

257、per/EromangaBasinsAmadeus BasinCarnarvon BasinBrowse BasinTimor SeaSurat Basin&Denison TroughTimor GapOtway BasinMelbourneHobartDarwinBrisbaneSydneyCanberraPerthGippsland BasinMt IsaAlice SpringsMcArthurRiverKalgoorlieGladstoneAdelaide050kilometresMoombaQueenslandBalleraSouth AustraliaJackson35Explo

258、rationPrLegendoductionSantos acreageOil fieldGas fieldProspectOil pipelineGas pipelineEthane pipeline0100kilometresWestern AustraliaStagEast SparWA-191-P(1)WA-209-PWA-8-LWA-214-PWA-264-PEP 325WA-208-PWA-20-LWA-261-PTP/7(1)WA-214-PWA-13-LWA-15-LWA-191-P(2)TP/7(4)TL/2TP/7(3)WA-149-PTP/7(2)WA-1-P(1)WA-

259、1-P(3)WA-1-P(2)TL/7TL/4EP 61(1,2,3)TP/13TP/14TP/2EP 62(1,2,3)L 1 HL 10EP 65EP 357TP/3(2)WA-298-PWA-24-P(1)TP/3(1)WA-24-P(2)TP/3(3)WA-24-P(3)Barrow IslandThevenard IslandReindeer02 5kilometresHeytesbury Gas FacilityPort CampbellTimboonWarrnamboolPEP 153PEP 154(A)PEP 154(B)North Paaratte Gas FacilityS

260、outhern OceanCobdenVictoriaPL 5PL 4VIC/RL80200kilometresWestern AustraliaNorthernTerritoryZone ofCo-OperationTerritory ofAshmore&Cartier IslandsIndian OceanPetrelTernKakatuaElangJahalJabiruChallisSkuaBayu-UndanAC/L1AC/RL2AC/P1591-1291-01AC/L3AC/L4AC/L2WA-6-RNT/RL1WA-18-PWA-239-PWA-206-PWA-242-PWA-28

261、2-PWA-281-PWA-283-PTimorSantos Acreage Carnarvon BasinSantos Acreage Cooper BasinSantos Acreage Otway BasinSantos Acreage Bonaparte&Browse Basins3610 YEAR SUMMARY19912000As at 31 December1991199219931994199519961997199819992000Santos average realised oil price(A$/bbl)28.0028.6527.6423.6424.9627.4327

262、.4220.9527.5746.54Profit and Loss($million)Sales revenue655.9689.8680.2640.0671.6729.2778.5769.4944.51,497.1Total operating revenue702.0741.5931.6716.6740.1804.0859.51,000.8995.61,555.2Foreign currency gains/(losses)(11.4)(36.8)(7.3)66.3(16.0)25.03.62.00.32.7Operating profit before abnormal items223

263、.5245.1289.2295.9241.0331.9322.3267.3339.6725.9Income tax on operating profit106.8104.9104.8116.2101.1136.0116.191.0120.4239.1Operating profit after tax before abnormal items116.7140.2184.4179.7139.9195.9206.2176.3219.2486.8Abnormal items after tax(224.9)(27.5)34.910.7(29.3)89.9Operating profit/(los

264、s)after tax and abnormal items(108.2)112.7219.3190.4110.6195.9206.2176.3309.1486.8Outside equity interest in operating profit/(loss)2.7Profit/(loss)attributable to shareholders(110.9)112.7219.3190.4110.6195.9206.2176.3309.1486.8Balance Sheet($million)Total assets2,797.62,821.82,831.22,897.22,915.53,

265、443.44,036.24,236.14,338.74,659.8Net debt755.0797.4711.2619.9642.0938.61,114.21,280.01,301.1866.6Total shareholders equity1,215.11,231.71,380.61,532.21,519.31,586.31,919.01,939.22,056.72,310.9Exploration ExpenditureWells drilled(number)804166636691112813442Expenditure($million)79.876.779.691.987.912

266、1.1190.1180.778.1100.1Reserves(mmboe)6236706756637038601,009966941921Production(mmboe)34.234.636.337.236.839.241.145.649.256.0Other Capital Expenditure($million)Field developments51.933.240.052.253.9105.8179.7158.1116.8187.1Buildings,plant and equipment69.175.680.630.540.1150.3205.4165.7102.5153.5Sh

267、are InformationShare issues Number of issued shares at year end(million)473.0498.6517.9539.6539.6539.6607.3607.8608.2610.4Weighted average number of shares(million)477.5495.7518.8539.2553.3553.4583.7605.6606.1608.3Dividends per share ordinary()19.021.022.022.023.024.025.025.027.030.0 special()5.010.

268、0Dividends ordinary($million)88.5102.7112.3117.2123.6129.0151.3151.4163.7182.7 special($million)25.861.2Ratios and StatisticsEarnings per share before abnormal items()23.928.335.533.325.335.435.329.136.280.0 after abnormal items()(23.2)22.742.335.320.035.435.329.151.080.0Return on total operating re

269、venue(%)16.618.924.325.118.924.424.017.622.031.3Return on average shareholders equity(%)9.211.714.112.39.212.611.89.111.022.3Net debt/equity(%)62.164.751.540.542.359.258.166.063.337.5Net interest cover(times)4.15.97.08.35.86.25.44.45.29.1GeneralNumber of employees1,5701,4681,5261,4921,4711,4611,6151

270、,6501,6451,631Number of shareholders29,70635,49242,06850,59555,68455,48265,45981,28681,41676,457Market capitalisation($million)1,399.21,288.51,988.11,868.22,111.22,741.13,826.12,653.92,516.13,669.8Prior year amounts have,where applicable,been adjusted to place them on a comparable basis with current

271、 year amounts.DividendReinvestmentPlan/ExecutiveShare Plan DividendReinvestmentPlanDividendReinvestmentPlanDividendReinvestmentPlan/ExecutiveShare Plan 1 for 8 rights issue/EmployeeShare PlanEmployeeShare PlanEmployeeShare Plan/ExecutiveShare Plan EmployeeShare Plan/ExecutiveShare Plan/RestrictedSha

272、res/Exerciseof Options37FINANCIAL REPORTCONTENTSDirectors Statutory Report38Financial ReportProfit and Loss Statements42Balance Sheets43Statements of Cash Flows44Notes to the Financial Statements1Statement of Accounting Policies452Revenue483Depreciation,Depletion and Amortisation484Interest Expense

273、485Operating Profit496Taxation497Dividends508Receivables509Inventories5010Other Assets5011Investments5112Exploration and Development Expenditure5113Land and Buildings,Plant and Equipment5114Intangibles5215Accounts Payable5216Borrowings5217Provisions5318Share Capital5419Reserves5620Earnings per Share

274、5621Investments in Controlled Entities5722Interests in Joint Ventures5923Notes to Statements of Cash Flows6124Related Parties6225Executives and Directors Remuneration6326Remuneration of Auditors6427Segment Reporting6528Commitments for Expenditure6529Superannuation Commitments6630Contingent Liabiliti

275、es6731Additional Financial Instruments Disclosure6732Economic Dependency69Directors Declaration70Independent Auditors Report7138Directors Statutory ReportThe Directors present their report together with the financial report of Santos Ltd(“the Company”)and the consolidated financial report ofthe cons

276、olidated entity,being the Company and its controlled entities,for the financial year ended 31 December 2000,and the auditorsreport thereon.Information in this Annual Report referred to by page number in this report or contained in a Note to the financialstatements referred to in this report is to be

277、 read as part of this report.1.Directors,Directors Shareholdings and Directors MeetingsThe names of Directors of the Company in office at the date of this report and details of the relevant interest of each of those Directors inshares in the Company at that date are as set out below:SurnameOther Nam

278、esShareholdings in Santos LtdBeneficialNon-BeneficialInterestInterestUhrigJohn Allan(Chairman)16,875BarnettPeter Charles16,250ConroyFrancis John1,900 Ellice-FlintJohn Charles(Managing Director)1,000,000*GerlachStephen(Deputy Chairman)17,305 McArdleJohn Walter(Executive Director)516,732*37,913McGrego

279、rGraeme William10,000 OLearyMichael Anthony4,725SloanJudith2,500WebberIan Ernest26,250The above named Directors held office during and since the end of the financial year except for Mr J C Ellice-Flint,who was appointed a Director on 19 December 2000.Except where otherwise indicated,all shareholding

280、s are of fully paid ordinary shares.*These shares are Restricted Shares issued on the terms described in Note 18 to the financial statements.*Includes 160,000 partly paid Executive Share Plan shares.No Director holds shares in any related body corporate,other than in trust for the Company.At the dat

281、e of this report,Mr J W McArdle holds 1,000,000 options issued pursuant to the Santos Executive Share Option Plan,approved by shareholders at theAnnual General Meeting of the Company held on 15 May 1997.Mr J C Ellice-Flint holds 3,000,000 options under the Santos Executive Share Option Plan andsubje

282、ct to the further terms described in Note 18 to the financial statements.Details of the qualifications,experience and special responsibilities of each Director are set out on pages 26 and 27 of this Annual Report.Directors MeetingsThe number of Directors Meetings and meetings of committees of Direct

283、ors held during the financial year and the number of meetingsattended by each Director are as follows:SurnameOther NamesDirectorsAudit EnvironmentalNomination and MeetingsCommitteeCommitteeRemunerationCommitteeNumber ofNumber ofNumber ofNumber ofNumber ofNumber ofNumber ofNumber ofMeetingsMeetingsMe

284、etingsMeetingsMeetingsMeetingsMeetingsMeetingsHeld*AttendedHeld*AttendedHeld*AttendedHeld*AttendedUhrig1John Allan11112277Adler2Norman Ross883322BarnettPeter Charles11103277ConroyFrancis John111177Ellice-Flint3John Charles11Gerlach4Stephen1111333377McArdleJohn Walter111011McGregorGraeme William11113

285、377OLearyMichael Anthony11113377SloanJudith11113377WebberIan Ernest11103376*Reflects the number of meetings held during the time the Director held office,or was a member of the Committee,during the year.1 Retired as member of Environmental Committee on 5 September 2000.2 Retired as a Director of the

286、 Company on 30 September 2000.3 Appointed as a Director of the Company on 19 December 2000.4 Retired as a member of Audit Committee on 5 September 2000.As at the date of this report,the Company had an audit committee of the Board of Directors.Particulars of the Companys corporate governance practice

287、s appear on pages 28 and 29 of this Annual Report.392.Principal ActivitiesThe principal activities of the consolidated entity during the financial year were:petroleum exploration;the production,treatment andmarketing of natural gas,crude oil,condensate,naphtha and liquid petroleum gas;and the transp

288、ortation by pipeline of crude oil.Nosignificant change in the nature of these activities has occurred during the year.3.Review and Results of OperationsA review of the operations and of the results of those operations of the consolidated entity during the financial year are contained in pages2 to 9

289、and 12 to 21 of this Annual Report.4.DividendsIn respect of the financial year:(a)the Directors on 9 March,2001 declared a fully franked final dividend of 15 cents per fully paid share be paid on 27 April,2001 tomembers registered in the books of the Company as at close of business on 3 April,2001 a

290、nd declared that such dividend be aClass C franked dividend to the extent of 100%.This final dividend amounts to approximately$91.7 million;(b)the Directors on 9 March,2001 declared a fully franked special dividend of 10 cents per fully paid share be paid on 27 April,2001to members registered in the

291、 books of the Company as at close of business on 3 April,2001 and declared that such dividend be aClass C franked dividend to the extent of 100%.This special dividend amounts to approximately$61.2 million;and(c)a fully franked interim dividend of$91 million(15 cents per share)was paid to members in

292、November 2000.A fully franked final dividend of$91 million on the 1999 results(15 cents per share)was paid in April 2000.Indication of this dividendpayment was disclosed in the 1999 Annual Report.5.State of AffairsIn the opinion of the Directors,there were no significant changes in the state of affa

293、irs of the consolidated entity that occurred duringthe financial year other than those referred to on pages 7 to 9 of this Annual Report.6.Environmental RegulationThe consolidated entitys Australian operations are subject to various environmental regulations under Commonwealth,State andTerritory leg

294、islation,including under applicable petroleum legislation and in respect to:its South Australian operations,some 34 Stateand Commonwealth Acts and licences(nos.EPA 2569,1259,888 and 2164)issued under the Environmental Protection Act,1993;itsQueensland operations,some 27 State and Commonwealth Acts a

295、nd licence no.150029 issued under the Environmental Protection Act,1994;its Northern Territory operations,some 15 Territory and Commonwealth Acts;its offshore operations,some 29 State,Territory andCommonwealth Acts;and its Victorian operations,some 22 State and Commonwealth Acts.Applicable legislati

296、on and requisiteenvironmental licences are specified in the entitys relevant Environmental Compliance Manuals,which Manuals form part of the consolidatedentitys overall Environmental Management System.Compliance performance is monitored on a regular basis and in various forms,includingenvironmental

297、audits conducted by regulatory authorities and by the Company,either through internal or external resources.During thefinancial year:no fines were imposed;no prosecutions were instituted;and no notice of non-compliance with the above referencedregulations was received from a regulatory body.7.Events

298、 Subsequent to Balance DateIn the opinion of the Directors there has not arisen in the interval between the end of the financial year and the date of this report anymatter or circumstance that has significantly affected or may significantly affect the operations of the consolidated entity,the result

299、s ofthose operations,or the state of affairs of the consolidated entity in future financial years.8.Likely DevelopmentsCertain likely developments in the operations of the consolidated entity and the expected results of those operations in future financial yearsare referred to at pages 2 to 9 and 12

300、 to 20 of this Annual Report.Further information about likely developments in the operations of theconsolidated entity and the expected results of those operations in future financial years has not been included in this report becausedisclosure of the information would be likely to result in unreaso

301、nable prejudice to the consolidated entity.9.Directors and Senior Executives EmolumentsThe Boards Nomination and Remuneration Committee is responsible for reviewing the remuneration policies and practices of the Company,including the compensation arrangements for executive Directors and senior manag

302、ement,the Companys superannuation arrangementsand,within the aggregate amount approved by shareholders,the fees for non-executive members of the Board.This role also includesresponsibility for the Companys employee share and option plans.Executive and senior management performance review and success

303、ionplanning are matters referred to and considered by the Committee.The Nomination and Remuneration Committee has access to independent advice and comparative studies on the appropriateness ofremuneration arrangements.Non-executive Directors As indicated above,within the aggregate amount approved by

304、 shareholders,the fees of the Chairman and non-executive Directors are set at levels which represent the responsibilities of and the time commitments provided by those Directorsin discharging their duties.Regard is also had to the level of fees payable to non-executive Directors of comparable compan

305、ies.Non-executive Directors are also entitled to receive a retirement payment upon ceasing to hold office as a Director.The retirement payment(inclusive of superannuation guarantee charge entitlements)is made pursuant to an agreement entered into with each Director in termsapproved by shareholders a

306、t the 1989 Annual General Meeting.40Directors Statutory Report continuedSenior Executives Remuneration levels are competitively set to attract,retain and motivate appropriately qualified and experienced seniorexecutives capable of discharging their respective responsibilities.Remuneration packages o

307、f senior executives include performance based components in the form of equity participation through the SantosExecutive Share Option Plan.Options issued under the Plan are linked to the longer term performance of the Company and are onlyexercisable following the satisfaction of performance hurdles

308、that are designed to maximise shareholder wealth.Details of the nature and amount of each element of the emoluments for the financial year of each Director and each of the five officers ofthe Company and the consolidated entity receiving the highest emoluments are:Non-ExecutiveDirectors FeesCommitte

309、e SuperannuationNon-CashTotalDirectorsFeesContributions(1)Benefits$Uhrig,John Allan(Chairman)180,0005,446 74,688 260,134Gerlach,Stephen(Deputy Chairman)75,90410,058 6,447 92,409Barnett,Peter Charles60,0005,5004,913 70,413Conroy,Francis John60,000 4,500 64,500McGregor,Graeme William60,0006,3144,974 7

310、1,288OLeary,Michael Anthony60,0005,5004,913 70,413Sloan,Judith60,0005,5004,913 70,413Webber,Ian Ernest60,0007,2135,041 72,254 PositionBaseBonusesOtherRetirementTotalOptions(7)Remuneration(2)Benefits(3)Payments(4)Executive Directors$Ellice-Flint,CEO&52,05578,082201,837(6)331,974 3,000,000John Charles

311、(5)Managing DirectorMcArdle,Director&Executive686,926 231,695 918,621John WalterGeneral Manager CommercialAdler,Former 829,800 200,000 395,508 3,570,252 4,995,560Norman RossManaging DirectorExecutive OfficersArmstrong,General Manager 481,448165,766647,214John DennisOffshore AustraliaBusiness UnitMcA

312、rdle,General Manager 350,000146,184496,184Rodney EricQueensland and NTBusiness UnitLawrance,Former General Manager 170,37754,488446,490671,355Brian JeremyLiquids MarketingBaugh,Former President 589,61549,545639,160Michael ArleSantos USA CorpFrost,Former General Manager 160,68326,266298,769485,718Mic

313、hael FrancisExploration Review(1)Contributions made in accordance with the Companys Superannuation Guarantee Charge obligations.(2)Base Remuneration includes base salary,packaged benefits and FBT(where applicable).(3)Other Benefits are non base remuneration benefits including Company contributions t

314、o superannuation and the cost to the Company of cars(includingapplicable FBT).(4)Includes contractual and statutory payments made upon retirement.(5)1,000,000 Restricted Shares were issued on 13 December 2000 to a trustee in respect of Mr J C Ellice-Flint.The terms of issue of the Restricted Shares

315、areset out in Note 18 to the financial statements.The Restricted Shares were valued by independent valuers as having a fair value of$5.60 per share.This valuehas not been included in the emoluments disclosed above as it is only a notional value and ultimately no benefit may accrue to Mr Ellice-Flint

316、.(6)This amount includes a sign-on incentive payment.(7)Number of shares over which options were granted by the Company during the year.Options were granted pursuant to the Santos Executive Share OptionPlan,details of which are described in Note 18 to the financial statements.The Options were valued

317、 by independent valuers using the Binomial option pricingmodel as follows:41Grant DateExercise PriceExpiry DateValuation26 August 2000$5.8325 August 20101,000,000 options first exercisable on 26 August 2003:$0.77 per option1,000,000 options first exercisable on 26 August 2004:$0.76 per option1,000,0

318、00 options first exercisable on 26 August 2005:$0.75 per optionThese values have not been included in the emoluments disclosed above as they are only notional values and ultimately no benefit may accrue.Note:The five officers(including former officers)disclosed above were those executive officers wi

319、thin the consolidated entity responsible for the strategicdirection and operational management of major business units receiving the highest emoluments.No options have been granted since the end of the financial year.Information in relation to shares issued as a result of the exercise ofoptions over

320、 unissued shares is contained in Note 18 to the financial statements.10.IndemnificationArticle 177 of the Companys Articles of Association provides that the Company indemnifies each person who is or who has been an“officer”(as defined in the Corporations Law)of the Company against any liability to a

321、nother person(other than the Company or arelated body corporate)arising from their position as such officer,unless the liability arises out of conduct involving a lack of good faith.The Company has insured against amounts which it is liable to pay pursuant to Article 177 or which it otherwise agrees

322、 to pay by wayof indemnity.Article 177 also provides for an indemnity in favour of an officer or auditor(KPMG)in relation to costs incurred in defendingproceedings in which judgement is given in their favour or in which they are acquitted or the Court grants relief.In conformity with Article 177,the

323、 Company is party to Deeds of Indemnity in favour of each of the Directors referred to in this report,who held office during the year and certain General Managers of the consolidated entity,being indemnities to the full extent permitted bylaw.There is no monetary limit to the extent of the indemnity

324、 under those Deeds and no liability has arisen thereunder during or since thefinancial year other than in respect of the legal costs referred to below.During the financial year,the Company and Mr J C Ellice-Flint,theChief Executive Officer and Managing Director,entered into a Deed of Access,Indemnit

325、y and Insurance.Pursuant to the Deed,theCompany agreed to:indemnify Mr Ellice-Flint as an officer to the extent permitted by law;obtain D&O insurance for Mr Ellice-Flint duringthe time he holds office and for 7 years after he ceases to hold office;and allow Mr Ellice-Flint access to documents in acc

326、ordance withthe Corporations Law.During the financial year,Mr N R Adler,former Managing Director,and Mr J W McArdle,an executive Director,were provided with a taxindemnity by the Company in relation to any liability to tax that may arise in respect of payments,the benefit of which have been passedon

327、 to the Company,made upon their retirement as the Companys representatives on the Board of QCT Resources Limited.No liabilityhas arisen under the indemnities during or since the end of the financial year.During and since the financial year up to the date of this report,legal costs of$232,153 have be

328、en paid by the Company in defendingcertain proceedings in relation to termination of employment brought by a former employee against:the Company;the former ManagingDirector,Mr N R Adler;another employee of the consolidated entity,Dr J D Armstrong;and a former employee of the consolidated entity.Thes

329、e costs,which insofar as they relate to the three personal defendants have been paid pursuant to the terms of the above Deeds ofIndemnity,have not been apportioned among the Company nor the three indemnified personal defendants and therefore it is not possibleto determine the amount paid on behalf o

330、f each of them.11.RoundingAustralian Securities and Investments Commission Class Order 98/100,dated 10 July 1998,applies to the Company and accordinglyamounts have been rounded off in accordance with that Class Order,unless otherwise indicated.This report is made on 9 March,2001 in accordance with a

331、 resolution of the Directors.J A UhrigJ C Ellice-FlintDirectorDirector9 March,200142Profit and Loss Statementsfor the year ended 31 December 2000ConsolidatedSantos Ltd 2000199920001999note$million$million$million$millionRevenue from operating activities(2)1,555.2995.6722.1576.2Operating expenses(399

332、.7)(305.6)(160.9)(129.3)Depreciation,depletion and amortisation(3)(354.9)(278.5)(116.4)(103.9)Interest expense(4)(85.8)(74.4)(79.8)(74.6)Share of associated companys operating profit/(loss)after tax(18.7)2.5Proceeds from sale of associated company(2)325.5325.5Book value of associated company sold(5)

333、(295.7)(351.7)Operating profit before income tax(5)725.9339.6338.8268.4Income tax attributable to operating profit(6)(239.1)(120.4)(72.1)(54.3)Abnormal income tax item(6)89.9 48.3Operating profit after income tax attributable tothe shareholders of Santos Ltd486.8309.1266.7262.4Retained profits at the beginning of the year495.2378.3522.3423.6Adjustment to retained profits at the beginningof the yea