Santos Ltd (STO) 2021年年度報告「ASX」.pdf

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1、Positioned for successAnnual Report 2021Santos Limited ABN 80 007 550 923This Annual Report 2021 is a summary of Santos operations,activities and fjnancial position as at 31 December 2021.All references to dollars,cents or$in this document are to US currency,unless otherwise stated.An electronic ver

2、sion of this report is available on Santos website, Santos Corporate Governance Statement can be viewed at: Cover images(clockwise from left):Darwin LNG Facility,Australia.Moomba Processing Facility,Australia.Hela Province,Papua New Guinea.CONTENTS1 About Santos2 Financial Overview4 Message from the

3、 Chair and Managing Director and Chief Executive Offjcer6 Board of Directors10 Santos Leadership Team13 Reserves Statement18 Directors Report34 Remuneration Report65 Financial Report141 Directors Declaration142 Independent Auditors Report147 Auditors Independence Declaration148 Securities Exchange a

4、nd Shareholder Information150 Glossary151 Corporate DirectorySantos Annual Report 2021/1About usSantos is a global low-cost producer of oil and gas committed to ever-cleaner energy and fuels production with operations across Australia,Papua New Guinea,Timor-Leste and North America.Santos has been su

5、pplying reliable and afgordable energy toAustralia and the Asia-Pacifjc for over 65 years.At Santos,our commitment is to be a global leader in the transition to cleaner energy and clean fuels,by helping the worlddecarbonise to reach net-zero emissions in an afgordable and sustainable way.Santos is a

6、lready Australias biggest domestic gas supplier,a leading Asia-Pacifjc LNG supplier and is committed to supplying the critical fuels such as oil and gas in a more sustainable way through decarbonising projects such as the Moomba CCS project.Underpinned by a diverse portfolio of high-quality,long-lif

7、e,low-cost oil and gas assets,Santos seeks to deliver long-term value to shareholders.For more than 65 years,Santos has been working in partnership with local communities,providing local jobs and business opportunities,safely and sustainably developing its natural gas resources,and powering industri

8、es and households.As customer demand evolves,Santos plans to grow its cleaner energy and clean fuels through carbon capture and storage,nature-based ofgsets,energy effjciency and use ofrenewables in its operations.With a strong,low-cost base business supplying oil and gas and plans to develop cleane

9、r energy and clean fuels,Santos remains resilient,value accretive and at the leading edge ofthe energy transition.2/Santos Annual Report 2021Financial OverviewSales volume mmboeSales revenue US$millionProduction mmboeFree cash fmow US$millionUnderlying net profjt after tax US$millionNet(loss)/profjt

10、 after tax US$millionUnit production costs US$per boeCapital expenditure US$millionNet debt US$million201920182020202183.4201778.394.5107.1104.2201920182020202120173,1003,660 4,033 3,3874,7132019201820202021201731872771928794620192018202020212017 682 759 1,016 858 1,3872019201820202021201759.558.975

11、.589.092.120192018202020212017(360)630 674(357)658 20192018202020212017 2,731 3,550 3,325 3,664 5,15720192018202020212017 618 1,006 1,138 7401,504201920182020202120178.07 8.05 7.24 8.047.76Santos Annual Report 2021/320172018201920202021Sales volumemmboe 83.4 78.3 94.5 107.1 104.2 Productionmmboe 59.

12、5 58.9 75.5 89.0 92.1 Average realised oil priceUS$per barrel 57.8 75.1 72.0 47.7 76.1 Net(loss)/profjt after taxUS$million(360)630 674(357)658 Underlying net profjt after taxUS$million 318 727 719 287 946 Sales revenueUS$million 3,100 3,660 4,033 3,387 4,713 Operating cash fmowUS$million 1,248 1,57

13、8 2,046 1,476 2,272 Free cash fmowUS$million 618 1,006 1,138 740 1,504 EBITDAXUS$million 1,428 2,160 2,457 1,898 2,805 Total assetsUS$million 13,706 16,811 16,509 17,65630,009 Earnings per shareUS cents(17.3)30.2 32.4(17.1)30.8 Dividends declaredUS cents per share 9.7 11.0 7.1 14.0 Number of employe

14、es2,080 2,190 2,178 2,722 3,7862021 ResultsOwn product 83.3Third-party product 20.9Sales gas and ethane 2,213LNG 1,251Oil 688Condensate 428LPG 133Sales gas and ethane 40.1LNG 39.7Oil 5.9Condensate 4.7LPG 1.72021 Sales volumes mmboe2021 Production mmboe2021 Sales revenue US$millionAverage realised oi

15、l price US$per barrel2019201820202021201757.875.172.047.776.14/Santos Annual Report 2021Dear Shareholder,The past year has been a truly remarkable one for Santos.The successful merger with Oil Search Limited,which completed in December 2021,has transformed Santos into a company with the size and sca

16、le necessary to fund sustainable growth,the transition to a lower carbon future and deliver returns for shareholders.Santos now has a diversifjed portfolio of long-life,low-cost assets leveraged to strengthening global demand for energy.Had the merger been in place for all of 2021,the combined asset

17、 portfolio would have generated more than US$2.3 billion in free cash fmow for the year.This asset portfolio combined with our disciplined,low-cost operating model and unrivalled growth opportunities,support our vision of becoming a global leader in the energy transition.In 2022,we plan to further o

18、ptimise the portfolio,reduce gearing and conduct a review of the capital management framework including returns to shareholders.Consistent and successful strategy delivers record cash fmow and higher dividendsOur clear and consistent strategy delivered strong results in 2021,including:Completion of

19、the merger with OilSearch Limited.Record annual production,sales revenue,free cash fmow and underlyingnet profjt after tax.Final investment decisions on theBarossa LNG and Moomba CCSprojects.The Board resolved to pay a fjnal dividend of US8.5 cents per share,franked to 70 per cent,bringing the total

20、 dividend for 2021 to US14 cents per share,up 97 per cent.The dividend equates to 20 per cent of full-year proforma free cash fmow for the merged entity less dividends paid in the fjrst half by both companies,in-line with Santos sustainable dividend policy which targets a range of 10 per cent to 30p

21、ercent payout of free cash fmow.Consistent with our strategy,our next stage of growth will be disciplined and phased.In 2021,the Barossa LNG project was sanctioned.Barossa will supply gas to the Santos-operated Darwin LNG plant and is a world-class LNG project with a very competitive cost of supply

22、into Asian markets.The project remains on track for fjrst production in the fjrst half of 2025.Santos is playing a constructive role in the energy transitionThe world continues to demand reliable,sustainable and afgordable energy.Through decarbonising todays base business while investing in clean fu

23、el projects and technologies of the future,Santos is committed to delivering net-zero equity Scope 1 and 2 emissions by 2040.We will initially focus on lower-carbon technologies where we have a competitive advantage.Our infrastructure-led carbon capture and storage(CCS)strategy potentially provides

24、more than 30 million tonnes per annum of carbon dioxide storage capacity.The fjrst critical step was taking the fjnal investment decision on Phase 1 of the Moomba CCS development,located in the Cooper Basin in Australia.This project will inject 1.7 million tonnes of carbon dioxide per year and is on

25、 track for fjrst injection to commence in 2024.The Moomba CCS project is one of the worlds lowest cost CCS projects and an important enabler in the transition to cleaner energy and clean fuels such as hydrogen and ammonia as well as potential carbon removal technologies such as direct air capture.In

26、 summary,Santos has now developed intoa major Australian energy producer with a portfolio of high-quality,long-life,low-cost assets across Australia,Timor-Leste,Papua New Guinea and North America.The portfolio is diversifjed,resilient and well positioned to benefjt from recovering commodity prices.T

27、his portfolio provides a strong platform to deliver both sustainable growth and shareholder returns as we transition to a lower-carbon future.On behalf of the Board and Management team we acknowledge you,our shareholders,for your continued trustandsupport.Yours sincerely,KEITH SPENCE ChairKEVIN GALL

28、AGHER Managing Director and Chief Executive OffjcerMessage from the Chair andManaging Director and Chief Executive OffjcerKEITH SPENCE ChairKEVIN GALLAGHER Managing Director and Chief Executive OffjcerSantos Annual Report 2021/5Key growth milestonesMoomba Final investment decisionBarossa Final inves

29、tment decisionOil Search Successful mergerOur Moomba CCS project is a critical step in decarbonising natural gas on the path to cleaner energy.Santos and Oil Search arestronger together.As one company,we have increased scale and capacity to drive a disciplined,low-cost operating model with unrivalle

30、d growth opportunities over the nextdecade.Drilling rig,Papua New Guinea.Port Bonython Processing Facility,Australia6/Santos Annual Report 2021Board of DirectorsKEITH SPENCEChairBSc(First Class Honours in Geophysics),FAIMMr Spence is an independent non-executive Director.He joined the Board on 1 Jan

31、uary 2018 and became Chair on 19 February 2018.He is Chair of Santos Finance Limited and Chair of the Nomination Committee.Mr Spence has over 40 years experience in managing and governing oil and gas operations in Australia,Papua New Guinea,theNetherlands and Africa.A geologist and geophysicist by t

32、raining,Mr Spence commenced his career as an exploration geologist with Woodside Petroleum Limited in 1977.He subsequently joined Shell(Development)Australia,where he worked for 18 years.In 1994,he was seconded to Woodside to lead the North West Shelf Exploration team.In 1998,he left Shell to join W

33、oodside.He retired from Woodside in 2008 after a 14-year tenure in top executive positions in the company.He has expertise in exploration and appraisal,development,project construction,operations and marketing.Upon his retirement he took up several board positions,working in oil and gas,energy,minin

34、g,and engineering and construction services and renewable energy.This included Clough Limited,where he served as Chair from 2010 to 2013,Geodynamics Limited where he served as a non-executive Director from 2008 to 2016(including as Chair from 2010 to 2016),Oil Search Limited where he served as a non

35、-executive Director from 2012 to 2017,Murray and Roberts Holdings Limited,where he served as a non-executive Director from 2015 to 2020 and Base Resources,where he served as Chair from 2015 to 2021.MrSpence is also a past Chair of the National Ofgshore Petroleum Safety and Environmental Management A

36、uthority Board and led the Commonwealth Governments Carbon StorageTaskforce.Other current directorships:Non-executive Director of IGO Limited (since 2014).Former directorships in the last 3 years:Chair of Base Resources Limited(2015 to 2021)and Murray and Roberts Holdings Limited(2015 to 2020).KEVIN

37、 GALLAGHERManaging Director and Chief Executive OffjcerBEng(Mechanical)Hons,FEIAustMr Gallagher joined Santos as Managing Director and Chief Executive Offjcer on 1 February 2016,bringing more than 25 years international experience in oil and gas operations.Mr Gallagher is a member of the Environment

38、,Health,Safety and Sustainability Committee and is also a Director of Santos Finance Limited.Mr Gallagher commenced his career as a drilling engineer with Mobil North Sea,before joining Woodside in Australia in 1998.At Woodside,Mr Gallagher led the drilling organisation through a rapid growth phase,

39、delivering several Australian and international development projects and exploration campaigns,before leading the Australian oil business.Then,as CEO of the North West Shelf Venture,he was responsible for production from Australias fjrst-ever LNG project,which underpinned a new domestic gas market,f

40、uelling the mining sector and other industries in Western Australia.In 2011 Mr Gallagher joined ASX listed Clough Limited as CEO and Managing Director where,over four years,he transformed the business and delivered record fjnancial results.He oversaw the development of innovative programs to improve

41、 safety and drive productivity and executed an international expansion strategy.Since joining Santos Mr Gallagher has restructured the company and implemented the Transform Build and Grow strategy focussed on fjve core asset hubs,signifjcantly reduced costs and instituted a disciplined operating mod

42、el,strengthened the balance sheet and improved production.Mr Gallagher has successfully led the integration of the Quadrant and ConocoPhillips Australia-West businesses following acquisitions by Santos in 2018 and 2020.Under Mr Gallaghers leadership Santos has committed to net-zero emissions by 2040

43、,signifjcantly strengthened its balance sheet,improved production and fjnancial performance,and is now positioned on a sustainable growth trajectory around a portfolio of long-life natural gas,LNG and carbon capture and storage assets in Australia,Papua New Guinea,Timor-Leste and North America.Santo

44、s Annual Report 2021/7YASMIN ALLENBCom,FAICDMs Allen is an independent non-executive Director.She joined the Board on 22October 2014 and is the Chair of the People,Remuneration and Culture Committee and a member of the Audit and Risk Committee and Nomination Committee.Ms Allen has extensive experien

45、ce in fjnance and investment banking,including senior roles at Deutsche Bank AG,ANZ and HSBC Group Plc,as former Chairman of Macquarie Global Infrastructure Funds,and a former Director of EFIC(Export,Finance and Insurance Corporation).Other current directorships:Director of Cochlear Limited(since 20

46、10),National Portrait Gallery(since 2013),The George Institute for Global Health(since 2014),ASX Limited and ASX Clearing and Settlement boards(since 2015),Chair of Advance(since 2018),Acting President of the Australian Government Takeovers Panel(since 2017),Chair of Digital Skills Organisation(sinc

47、e 2020)and Chair of Tic:Toc(since 2021).Former directorships in the last 3years:Chair of Faethm.ai(2020 to 2021).GUY COWANBSc(Hons),Engineering,FCA(UK)MAICDMr Cowan is an independent non-executive Director.He joined the Board on10May2016 and is the Chair of the Audit and Risk Committee and a Directo

48、r ofSantos Finance Limited.Mr Cowan had a 23-year career with Shell International in various senior commercial and fjnancial roles.His last two roles were as CFO and Director of Shell Oil US and CFO of Shell Nigeria.He was CFO of Fonterra Co-operative Ltd between 2005 and 2009.Other current director

49、ships:Chair of Queensland Sugar Limited(since 2015),the Stahmann Webster Group(since 2021)and Port of Brisbane(since 2021),AFFCotton Pty Ltd(since 2021),Director of Winson Group Pty Ltd(since 2014)andAbility First Australia(since 2010).Former directorships in the last 3years:Health and Plant Protein

50、 Ltd(2018 to 2021).EILEEN DOYLE BMath(Hons),MMath,PhD,FAICD Dr Doyle is an independent non-executive Director.She joined the Board on 17December 2021.Dr Doyles career spans the building materials,research,infrastructure,industrials and logistics sectors,including senior operational roles at BHP Limi

51、ted and CSR Limited and culminating in herappointment as CEO of CSRs PanelsDivision.Dr Doyle was previously Deputy Chairman CSIRO and Chairman of Port Waratah Coal Services and TheHunter Research Foundation and Director of Austrade,Boral Ltd,GPT Group Ltd,Bradken Ltd,Knights Rugby League Pty Ltd,Sta

52、te Super Financial Services,Ross Human Resources Ltd and Oil Search Ltd.She was Australias fjrst Fulbright Scholar in Business in 1993.Sheisa Foundation Fellow of the Australian Association of Angel Investors and a Fellow of the Australian Academy of Technology and Engineering.Other current director

53、ships:Dalrymple Bay Infrastructure Limited(since 2020),Airservices Australia(since 2021),NEXTDC Limited(since 2020),Hunter Angels Trust(since 2012),SWOOP Analytics(since 2020)and OConnell Street Association(since 2010).Former directorships in the last 3years:GPT Group Limited(2010 to2019),Boral Limi

54、ted(2010 to 2020)andOilSearch Limited(2016 to 2021).8/Santos Annual Report 2021HOCK GOHBEng(Hons)Mech EngMr Goh is an independent non-executive Director.He joined the Board on 22October 2012 and is a member of the Environment,Health,Safety and Sustainability Committee,Audit and Risk Committee and No

55、mination Committee.Mr Goh has more than 35 years experience in the global oil and gas industry,having spent 25 years with Schlumberger Limited,including as President of Network and Infrastructure Solutions division in London,President of Asia,and Vice President and General Manager of China.He previo

56、usly held managerial and stafg positions in Asia,the Middle East and Europe.Mr Goh commenced his career as a fjeld engineer on the rigs in Indonesia and subsequently in Roma and Sale in Australia.Mr Goh is a former Operating Partner of Baird Capital Partners Asia,based in China,(2007 to 2012)and non

57、-executive Director of Xaloy Holding Inc in the US(2006 to 2008)and BPH Energy Ltd(2007 to 2015).Other current directorships:Non-executive Director of Stora Enso Oyj(Finland)(since 2012)and AB SKF(Sweden)(since 2014).Former directorships in the last 3years:Chair of MEC Resources(2005 to 2018),and Di

58、rector of Harbour Energy(2015 to 2018)and Director of Vesuvius PLC(2015 to 2021).VANESSA GUTHRIE AODSc,PhD,BSc(Hons),FAICD,FTSEDr Guthrie is an independent non-executive Director.She joined the Board on 1 July 2017 and is a member of the People,Remuneration and Culture Committee and the Environment,

59、Health,Safety and Sustainability Committee.Dr Guthrie has more than 30 years experience in the resources sector in diverse roles such as operations,environment,community and Indigenous afgairs,corporate development and sustainability.She has qualifjcations in geology,environment,law and business man

60、agement including a PhD in Geology.She was awarded an Honorary Doctor of Science from Curtin University in 2017 for her contribution to sustainability,innovation and policy leadership in the resources industry.She is a Fellow of the Australian Institute of Company Directors and the Australian Academ

61、y of Technological Sciences and Engineering.In 2021 she became an Offjcer of the Order of Australia for her contribution to the mining and resources sector and as a role model for women in business.Other current directorships:AdBri Limited(since 2018),Tronox Holdings PLC(since 2019),Lynas Rare Earth

62、s Ltd(since 2020)and Cricket Australia(since 2021),Pro-Chancellor of Curtin University,Board member of the Australia-India Council and Infrastructure Australia,and member of the Vocational Education and Training Expert Skills Panel.Former directorships in the last 3years:Director of Australian Broad

63、casting Corporation(2017 to 2021).PETER HEARLBComm(UNSW with Merit),FAICD,MAIM,MAMAMr Hearl is an independent non-executive Director.He joined the Board on 10 May 2016 and is Chair of the Environment,Health,Safety and Sustainability Committee,a member of the People,Remuneration and Culture Committee

64、 and the Nomination Committee,having earlier served on the Companys Audit and Risk Committee.During an 18-year career in the oil industry with Exxon in Australia and the USA,he held a variety of senior marketing,operations,logistics and strategic planning positions.Mr Hearl joined YUM Brands(formerl

65、y PepsiCo Restaurants)as KFC Australias Director of Operations in 1991 and subsequently had several senior international leadership roles as well as being President of Pizza Hut USA,before assuming the global role of YUM Brands Chief Operating and Development Offjcer in 2006,based in Dallas,Texas an

66、d Louisville,Kentucky,and from where he retired in 2008.Other current directorships*:ChairofEndeavour Group Ltd(since 2021)(having been Chair-Elect from 2019 to 2021),Trustee of the Stepping Stone Foundation,a Sydney-based NFP(since 2020)and Member of its Investment Committee(since 2018).Former dire

67、ctorships in the last 3years:Director of Telstra Ltd(2014to2021).Board of DirectorscontinuedSantos Annual Report 2021/9JANINE MCARDLEBS(Chemical Engineering),MBAMs McArdle is an independent non-executive Director.She joined the Board on 23 October 2019 and is a member of the Audit and Risk Committee

68、 and the Environment,Health,Safety and Sustainability Committee.Ms McArdle has more than 30 years experience in the global oil and gas industry.She most recently spent 13 years with Apache Corporation in the United States,where she held roles including Executive Offjcer,Senior Vice President of Glob

69、al Gas Monetization,President of Kitimat LNG CO,and Vice President,Worldwide Oil and Gas Marketing.Prior to joining Apache,she worked with Aquila Energy for nine years in the United States in senior leadership positions and in the United Kingdom,as managing director,with P&L responsibilities across

70、trading,mergers and acquisition and e-commerce.Ms McArdle is also the Founder,CEO and President of Apex Strategies,a global consultancy business providing advisory services to companies engaged in midstream and downstream operations within the energy industry.Other current directorships:Member of Un

71、iversity of Nebraskas College of Engineering Advisory Board(since 2017),non-executive Director of Antero Midstream Corp(since 2020)and committee member of TruMarx Data Partners LNG Advisory Committee(since2020).Former directorships in the last 3years:Director of Halcon Resources(2018 to 2019)and Pal

72、mer Drug Abuse Program in Houston,Texas(2003 to 2018).MUSJE WERRORBSc(Chem),MBA,MProfAccMr Werror is an independent non-executive Director.He joined the Board on 17 December 2021 and brings over 20 years of leadership experience in the mining and resources sector in Papua New Guinea.In June 2020,he

73、was appointed as Managing Director and Chief Executive Offjcer of Ok Tedi Mining Limited.He was formerly Deputy CEO and General Manager External Relations.Mr Werror commenced his long career at Ok Tedi as a graduate in 1988 and previously held various roles and responsibilities including leading com

74、munity relations in Western Province,PNG.Mr Werror is currently Chairman of Ok Tedi Development Foundation and the Western Province Health Authority.He is also a former Director of Oil Search Limited.Other current directorships:Managing Director and CEO of Ok Tedi Mining Ltd(since 2020),Chair of Ok

75、Tedi Development Foundation(since 2020)and Chair of Western Province Health Authority(since2019).Former directorships in the last 3years:Oil Search Limited(2021).10/Santos Annual Report 2021Santos Leadership TeamKEVIN GALLAGHERManaging Director and Chief Executive OffjcerBEng(Mechanical)Hons,FEIAust

76、Mr Gallaghers biography can beread on page 6.DAVID BANKSChief Technical and Marketing OffjcerBE(Hons),MBA,GAICDMr Banks joined Santos in 2018 and is Santos Chief Technical and Marketing Offjcer.Mr Banks previously led the Onshore Operating Division as Executive Vice President Onshore Oil and Gas.Mr

77、Banks has 30 years of international and domestic experience in the oil and gas industry.He started his career with Schlumberger in southeast Asia before joining BHP in Australia in 1994.Whilst at BHP,Mr Banks roles included operational,technical and functional leadership roles including General Mana

78、ger Shale Oil,Vice President HSE,Vice President Shale Drilling and Completion and Bass Strait Asset Manager.Beyond business and function leadership,Mr Banks led BHPs Petroleum Transformation and was Integration Manager for USshale assets.BRETT DARLEYChief Operating Offjcer,Upstream Oil and GasBEng(C

79、ivil),FIEAust Eng ExecMr Darley joined Santos in December 2018.Mr Darley previously led the Ofgshore Operating Division as Executive Vice President Ofgshore Oil andGas.He has 30 years of experience in the upstream oil and gas industry,both in Australia and overseas,with technical,operational,commerc

80、ial and management experience across varied assets,onshore and ofgshore.Before moving to Santos,MrDarley held senior leadership roles including Chief Executive Offjcer of Quadrant Energy,Managing Director and Region Vice President for Apache Energy Limited,Vice President of Drilling and Completions

81、at Woodside Energy and Drilling Manager at Santos.Mr Darley holds a Bachelor of Civil Engineering degree from the University of Queensland and is a Chartered Engineer.He is a current member of the Curtin Business School Advisory Council and an elected member of the General Council of the Chamber of

82、Commerce and Industry of WA.BEVERLEY EASTVice President People,Culture and Corporate AfgairsBA English,GDip Employee Relations,GAICDMs East joined Santos in September 2020 as Head of Government Afgairs.She began her career as a journalist in print media and also went on to work in radio.Ms East then

83、 worked in state and federal politics before joining Woodside Energy Ltd where she spent nearly 10 years.While there she led corporate afgairs and government relations activities including during construction of Pluto LNG and as General Manager of Community was responsible for all stakeholder engage

84、ment activities across projects and operating assets as well as sustainability reporting and community development funding.Prior to joining Santos,Ms East was CEO of St John of God Health Cares Social Outreach Services providing community-based mental health and support services in WA,Victoria and N

85、SW.She has served on not-for-profjt boards including as Deputy Chair of Volunteering WA and Chair of Barking Gecko Theatre in WA.She is an alumni of Leadership WA.Santos Annual Report 2021/11JODIE HATHERLYVice President ESG andLegalBA,LLB,GAICD Ms Hatherly joined Santos in 2019.She is responsible fo

86、r Environment,Social Responsibility and Governance.She is also the General Counsel and Company Secretary of the Santos Group,overseeing the Companys Legal,Company Secretariat and Risk,Audit and Compliance functions.Ms Hatherly joined Santos from INPEX Australia,where she was General Counsel and Gene

87、ral Manager Legal for the Ichthys LNG project and INPEXs Australia business.MsHatherly brings to the table a demonstrated history of delivering some of the biggest projects in the oil and gas industry.Ms Hatherly commenced her career in the legal private sector,working in the UK and Australia,before

88、 taking on senior in-house roles in the oil and gas industry.Ms Hatherly has served on the advisory board of the Curtin University Law School as well as Muscular Dystrophy WA.Ms Hatherly was recognised on The Legal 500 GC Powerlist Australia in2018.ANGUS JAFFRAYGroup Executive Transformation,Integra

89、tion and Corporate ProjectsBA(Hons)Geography,MBAMr Jafgray joined Santos in 2016,and was appointed Group Executive Transformation,Integration and Corporate Projects in May 2021.He previously held the roles of Executive Vice President Strategy,Business Development and Technology,Executive Vice Presid

90、ent Organisational Integration and Executive Vice President People and Sustainability.Mr Jafgray has over 25 years of leadership and consulting experience as a Director of Azure Consulting,a Partner at The Boston Consulting Group(BCG)and a Supply Chain Manager with the global packaging group Crown C

91、ork and Seal.At Azure Consulting,Mr Jafgray supported companies in developing strategy and driving organisational change.At BCG,he set up the Perth offjce,led the Australian Operations practice and was a core member of both the Mining and Metals practice and the Energy Practice.He served clients in

92、Australia,New Zealand,Asia,Europe and North America building strong capabilities in strategy,operational effjciency and running transformation programs.As a Supply Chain Manager,Mr Jafgray was accountable for procurement,planning,logistics and product delivery.ANTHEA MCKINNELLChief Financial Offjcer

93、BComm Accounting and Taxation,FCA,GAICDMs McKinnell joined Santos in 2019 as Deputy Chief Financial Offjcer,before commencing in the Chief Financial Offjcer role in 2022.With more than 15 years experience in the oil and gas industry,Ms McKinnell held several senior executive roles at Woodside Energy

94、 including SVP Finance and Treasury,VP Global Operations Planning and Performance,and Acting CFO prior to commencing withSantos.As Santos Deputy Chief Financial Offjcer,she led the successful US$1 billion US144A bond transaction and played a key role in the integration of the ConocoPhillips asset pu

95、rchase.As CFO,Ms McKinnell has oversight of fjnance,tax,treasury,planning,investor relations and IT functions within Santos.Ms McKinnell is a Fellow of Chartered Accountants Australia and New Zealand,holds a Master of International Tax from the University of Melbourne and a Bachelor of Commerce from

96、 Curtin University.ANTHONY NEILSONChief Commercial OffjcerBComm,MBA,FFin,FCAMr Neilson joined Santos in 2016 and was appointed Chief Commercial Offjcer in January 2022.Mr Neilson previously held the role of Chief Financial Offjcer,with responsibility for the fjnance,tax,treasury,strategy,business de

97、velopment,commercial,investor relations and IT functions.He brings over 25 years of experience in chartered accounting,banking and corporate fjnancial roles including over 15 years experience in the upstream and downstream oil and gasindustry.Prior to joining Santos,MrNeilson was CEO of Roc Oil Comp

98、any Ltd(ROC),which was acquired in 2014 by Hong Kong-listed investor Fosun International Limited.Previously,Mr Neilson was Chief Financial Offjcer of ROC(ASX listed)and has held commercial,fjnance and business services roles at Caltex Australia,Credit Suisse First Boston(London)and Arthur Andersen(S

99、ydney).Mr Neilson holds a Masters of Business Administration from AGSM and is a Fellow of the Financial Services Institute of Australasia and a Fellow of Chartered Accountants Australia and New Zealand.12/Santos Annual Report 2021JANE NORMAN Vice President Strategy and Business DevelopmentBSc,BEng(C

100、hemical)Hons,GAICDMs Norman joined Santos in 2005 and has responsibility for developing Santos corporate strategy and leading business development.Ms Norman has previously led roles in Santos Strategy and Planning and Gas Commercialisation functions,where she had responsibility for the Companys econ

101、omics analysis and market analysis for oil,LNG and domestic gas.Ms Norman has over 25 years experience in the international oil and gas industry,starting her career as Process Engineer in the North Sea with Shell International Exploration and Production.Ms Norman held various technical and commercia

102、l roles with Shell UK,based in both Aberdeen and London.She subsequently worked in various corporate fjnance and equity capital market roles in the City of London with Cazenove&Co(now JP Morgan Cazenove)and Goldman Sachs,where she specialised in the oil and gas sector.TRACEY WINTERSStrategic Adviser

103、 External AfgairsBSc(Australian Environmental Studies)Ms Winters joined Santos in 2017 and is responsible for government engagement and strategic communications.Ms Winters joined Santos with 30 years of experience in the oil and gas industry,in diverse roles including government and regulatory afgai

104、rs,media and communications,environment,land access,project commercialisation,construction and asset management.Ms Winters held a senior role in federal resources and energy policy and politics for seven years and over more than a decade built and ran a successful consultancy serving some of Austral

105、ias biggest resources companies and delivering major project approvals for some of the nations biggest gas and pipeline projects.From 2011 to 2016,Ms Winters drove the environmental approvals and land access processes to deliver the QCLNG project.Prior to joining Santos,MsWinters was an adviser to C

106、altex on public afgairs and strategic issues management,in particular wage underpayment by franchisees.BRETT WOODSChief Operating Offjcer,Midstream Infrastructure and Clean FuelsBSc(Hons)Geology and GeophysicsMr Woods joined Santos in 2013 and is accountable for the Midstream Infrastructure and Clea

107、n Fuels Division.His remit includes overseeing Santos midstream gas processing facilities at Moomba,Port Bonython,Varanus Island,Devil Creek,GLNG and Darwin LNG,our Energy Solutions capabilities and Carbon Capture and Storage project.At Santos,Mr Woods has previously held senior leadership roles as

108、Executive Vice President Developments,Executive Vice President Onshore Upstream,and Vice President,Eastern Australia.Other roles Mr Woods has held within Santos have included responsibilities for exploration in Western Australia and the Northern Territory,and leading the Western Australian ofgshore

109、operations including development of Fletcher Finucane and the domestic gas business.Mr Woods has over 25years of oil and gas industry experience including senior management,technical and business development roles at Woodside Energy and as CEO and Managing Director of Rialto Energy.Mr Woods is a gra

110、duate of the Harvard Business School Advanced ManagementProgram.Santos Leadership TeamcontinuedSantos Annual Report 2021/13RESERVES AND RESOURCESProved plus probable(2P)reserves increased by 835 million barrels of oil equivalent(mmboe)before production in 2021.The annual 2P reserves replacement rati

111、o(RRR)was 907 per cent and the three-year RRR 355 per cent.The merger with Oil Search added 416 mmboe of 2P reserves while the fjnal investment decision on Barossa added a further 373mmboe.Santos has booked Barossa reserves at a 50 per cent working interest following the execution of a binding Sale

112、and Purchase Agreement to sell a 12.5 per cent interest in Barossa to JERA,completion of which is expected in the fjrst half of 2022.Consistent application of Santos disciplined operating model also delivered reserves increases in the onshore assets in 2021.GLNG achieved greater than 100 per cent 2P

113、 reserves replacement for the second year in a row,while reserves were also added in the CooperBasin before production.2C contingent resources increased by 41 per cent to 3,219 mmboe at the end of 2021,primarily due to the Oil Search merger partially ofgset by the commercialisation of Barossa 2C res

114、ources to reserves at FID.The Oil Search merger added 819 mmboe 2C in Papua New Guinea and 401 mmboe in Alaska.The gross 2C contingent resource in Alaska is unchanged from that previously reported by Oil Search,but in accordance with the 2018 Petroleum Resources Management System(PRMS),Santos has ad

115、justed its net share Alaska 2C resource to remove royalties.An initial booking of 100 million tonnes of 2P plus 2C CO2 storage capacity was made in the Cooper Basin in accordance with the CO2 Storage Resource Management System(SRMS)sponsored by the Society of Petroleum Engineers.This booking represe

116、nts a subset of the total prospective storage resource in the Cooper Basin and follows FID on the Moomba carbon capture and storage project in 2021.RESERVES AND 2C CONTINGENT RESOURCES(SANTOS SHARE AS AT 31 DECEMBER)Santos shareUnit20212020%changeProved reservesmmboe1,009496103%Proved plus probable

117、reservesmmboe1,67693380%2C contingent resourcesmmboe3,2192,28241%RESERVES AND 2C CONTINGENT RESOURCES BY PRODUCT(SANTOS SHARE AS AT 31 DECEMBER 2021)Santos shareSales gas PJCrude oil mmbblCondensate mmbblLPG 000 tonnesTotal mmboeProved reserves5,43632414421,009Proved plus probable reserves8,96759711

118、,0461,6762C contingent resources14,4695601523,4403,219KEY METRICSAnnual proved reserves replacement ratio656%Annual proved plus probable reserves replacement ratio907%Three-year proved plus probable reserves replacement ratio355%Organic annual proved plus probable reserves replacement ratio464%Organ

119、ic three-year proved plus probable reserves replacement ratio187%Developed proved plus probable reserves as a proportion of total reserves45%Reserves life118 yearsReserves life214 years1 2P reserves life as at 31 December 2021 using Santos 2021 production.2 2P reserves life as at 31 December 2021 us

120、ing pro-forma Santos and Oil Search 2021 production.Reserves Statementfor the year ended 31 December 202114/Santos Annual Report 2021Reserves Statementfor the year ended 31 December 2021 continuedPROVED RESERVESSantos share as at 31 December 2021AssetSales gas PJCrude oil mmbblCondensate mmbblLPG 00

121、0 tonnesAll products mmboeDevelopedUndevelopedTotalCooper Basin23783419441256Queensland&NSW1988-11555170PNG2,3711119-272164436Northern Australia&Timor-Leste1,278-13232230232Western Australia562135-9818115Total 1P5,43632414425314781,009Proportion of total proved reserves that are unconventional17%1 Q

122、ueensland proved sales gas reserves include 807 PJ GLNG and 175 PJ other Santos non-operated Eastern Queensland assets.Proved reserves reconciliationProductUnit2020ProductionRevisions and extensionsNet acquisitions and divestments2021Sales gasPJ2,650(464)1,6431,6075,436Crude oilmmbbl22(6)61132Conden

123、satemmbbl16(5)171341LPG000 tonnes466(203)178-442Total 1P mmboe496(92)3052991,009Santos Annual Report 2021/15PROVED PLUS PROBABLE RESERVESSantos share as at 31 December 2021AssetSales gas PJCrude oil mmbblCondensate mmbblLPG 000 tonnesAll products mmboeDevelopedUndevelopedTotalCooper Basin62716798287

124、52139Queensland&NSW11,937-122211333PNG3,2312028-370231601Northern Australia&Timor-Leste2,074-26644377381Western Australia1,0982410-17448222Total 2P8,96759711,0467579191,676Proportion of total proved plus probable reserves that are unconventional20%1 Queensland proved plus probable sales gas reserves

125、 include 1,522 PJ GLNG and 405 PJ other Santos non-operated Eastern Queensland assets.Proved plus probable reserves reconciliationProductUnit2020ProductionRevisions and extensionsNet acquisitions and divestments2021Sales gasPJ4,960(464)2,3102,1618,967Crude oilmmbbl39(6)62059Condensatemmbbl33(5)26187

126、1LPG000 tonnes1,269(203)36(56)1,046Total 2P mmboe933(92)4274081,67616/Santos Annual Report 2021Reserves Statementfor the year ended 31 December 2021 continued2C CONTINGENT RESOURCESSantos share as at 31 December 2021AssetSales gas PJCrude oil mmbblCondensate mmbblLPG 000 tonnesAll products mmboeCoop

127、er Basin1,27326181,784277Queensland&NSW2,886-496PNG4,764154-871Northern Australia&Timor-Leste4,206-633782Western Australia1,341131181,653393USA(Alaska)-401-401Total 2C14,4695601523,4403,2192C Contingent resources reconciliationProduct2020ProductionRevisions and extensionsDiscoveriesNet acquisitions

128、and divestments2021Total 2C(mmboe)2,282-(402)601,2803,219 CO2 STORAGECapacity and 2C contingent resources as at 31 DecemberSantos shareUnit20212020%changeProved capacityMtCO26-N/AProved plus probable capacityMtCO29-N/A2C contingent resourcesMtCO291-N/ASantos Annual Report 2021/17Notes1.This reserves

129、 statement:a.is based on,and fairly represents,information and supporting documentation prepared by,or under the supervision of,the qualifjed petroleum reserves and resources evaluators listed in note 14 of this reserves statement.Details of each qualifjed petroleum reserves and resources evaluators

130、 employment and professional organisation membership are set out in note 14 of this reserves statement;and b.as a whole has been approved by Paul Lyford,who is a qualifjed petroleum reserves and resources evaluator and whose employment and professional organisation membership details are set out in

131、note 14 of this reserves statement;and c.is issued with the prior written consent of Paul Lyford as to the form and context in which the estimated petroleum reserves and contingent resources and the supporting information are presented.2.The estimates of petroleum reserves and contingent resources c

132、ontained in this reserves statement are as at 31 December 2021.3.Santos prepares its petroleum reserves and contingent resources estimates in accordance with the 2018 Petroleum Resources Management System(PRMS)and CO2 Storage capacity and contingent resource estimates in accordance with the 2017 CO2

133、 Storage Resources Management System(SRMS)sponsored by the Society of Petroleum Engineers(SPE).4.This reserves statement is subject to risk factors associated with the oil and gas industry.It is believed that the expectations of petroleum reserves and contingent resources refmected in this statement

134、 are reasonable,but they may be afgected by a range of variables which could cause actual results or trends to difger materially,including but not limited to:price fmuctuations,actual demand,currency fmuctuations,geotechnical factors,drilling and production results,gas commercialisation,development

135、progress,operating results,engineering estimates,loss of market,industry competition,environmental risks,physical risks,legislative,fjscal and regulatory developments,economic and fjnancial markets conditions in various countries,approvals and cost estimates.5.All estimates of petroleum reserves,con

136、tingent resources and CO2 Storage reported by Santos are prepared by,or under the supervision of,a qualifjed petroleum reserves and resources evaluator or evaluators.Processes are documented in the Santos Reserves Policy which is overseen by a Reserves Committee.The frequency of reviews is dependent

137、 on the magnitude of the petroleum reserves and contingent resources and changes indicated by new data.If the changes are material,they are reviewed by the Santos internal technical leaders and externally audited.6.Santos engages independent experts Gafgney,Cline&Associates,Netherland,Sewell&Associa

138、tes,Inc.and RISC Advisory Pty Ltd to audit and/or evaluate reserves,contingent resources and CO2 storage.Each auditor found,based on the outcomes of its respective audit and evaluation,and its understanding of the estimation processes employed by Santos,that Santos 31December 2021 petroleum reserves

139、,contingent resources and CO2 storage quantities in aggregate compare reasonably to those estimates prepared by each auditor.Thus,in the aggregate,the total volumes summarised in the tables included in this reserves statement represent a reasonable estimate of Santos petroleum reserves,contingent re

140、sources and CO2 storage position as at 31 December 2021.7.Unless otherwise stated,all references to petroleum reserves,contingent resources and CO2 storage quantities in this reserves statement are Santos net share.Barossa is carried at 50 per cent share refmecting the binding SPA to selldown 12.5 p

141、er cent equity to JERA announced 8 December 2021 with completion expected in the fjrst half of 2022.8.Reference points for Santos petroleum reserves and contingent resources and production are defjned points within Santos operations where normal exploration and production business ceases,and quantit

142、ies of produced product are measured under defjned conditions prior to custody transfer.Fuel,fmare and vent consumed to the reference points are excluded.9.Petroleum reserves,contingent resources and CO2 storage are aggregated by arithmetic summation by category and as a result,proved reserves may b

143、e a very conservative estimate due to the portfolio efgects of arithmetic summation.10.Petroleum reserves,contingent resources and CO2 storage are typically prepared by deterministic methods with support from probabilistic methods.11.Any material concentrations of undeveloped petroleum reserves that

144、 have remained undeveloped for more than 5 years:(a)are intended to be developed when required to meet contractual obligations;and(b)have not been developed to date because they have not yet been required to meet contractual obligations.12.Petroleum reserves replacement ratio is the ratio of the cha

145、nge in petroleum reserves(excluding production)divided by production.Organic reserves replacement ratio excludes net acquisitions and divestments.13.Information on petroleum reserves,contingent resources and CO2 storage quoted in this reserves statement is rounded to the nearest whole number.Some to

146、tals in the tables may not add due to rounding.Items that round to zero are represented by the number 0,while items that are actually zero are represented with a dash“-”.14 Qualifjed Petroleum Reserves and Resources Evaluators NameEmployerProfessional organisationP LyfordSantos LtdSPEN PinkSantos Lt

147、dSPE,SPEEA WhiteSantos LtdSPED NicolsonSantos LtdSPES LawtonSantos LtdSPEC WinterfjeldSantos LtdSPEA JudzewitschSantos LtdSPEM IrelandSantos LtdSPE,SPEEJ HattnerNSAISPE,AAPG SPE:Society of Petroleum Engineers SPEE:Society of Petroleum Evaluation Engineers AAPG:American Association of Petroleum Geolo

148、gistsAbbreviations1Pproved reserves2Pproved plus probable reservesGJgigajoulesLNGliquefjed natural gasLPGliquefjed petroleum gasmmbblmillion barrelsmmboemillion barrels of oil equivalentMtCO2million tonnes of carbon dioxideNGLsnatural gas liquidsPJpetajoulestcftrillion cubic feetTJterajoulesConversi

149、on factorsSales gas and ethane,1 PJ171,937 boeCrude oil,1 barrel1 boeCondensate,1 barrel0.935 boeLPG,1 tonne8.458 boe18/Santos Annual Report 2021Directors ReportDIRECTORS REPORTThe Directors present their report together with the consolidated Financial Report of the consolidated entity,being Santos

150、Limited(“Santos”or“the Company”)and its controlled entities,for the fjnancial year ended 31December2021,and the Auditors Report thereon.Information in the Annual Report referred to in this report,including the Remuneration Report,or contained in a note to the fjnancial statements referred to in this

151、 report,forms part of,and is to be read as part of,this report.DIRECTORS,DIRECTORS SHAREHOLDINGS AND DIRECTORS MEETINGSDirectors and Directors shareholdingsThe names of Directors of the Company during the year ended 31 December 2021 and up to the date of this report and details of the relevant inter

152、est of each of those Directors in shares in the Company at the date of this report are as set out below:SurnameOther namesShareholdings in Santos LimitedAllenYasmin Anita48,883CowanGuy Michael 45,487DoyleEileen Joy 33,567GallagherKevin Thomas(Managing Director and CEO)2,195,9681GohHock67,215GuthrieV

153、anessa Ann39,188HearlPeter Roland48,808McArdleJanine Marie18,000Spence Keith William(Chair)105,688ShiYujiang(Eugene)WerrorMusje Moses 1 Includes shares received as a result of the 2018 LTI vesting.The above-named Directors held offjce during the fjnancial year.Mr Eugene Shi resigned as a Director on

154、 10 March 2021.Dr Eileen Doyle and Mr Musje Werror were appointed as Directors on 17 December 2021.There were no other persons who acted as Directors at any time during the fjnancial year and up to the date of this report.All shareholdings are of fully paid ordinary shares.No Director holds a releva

155、nt interest in a related body corporate of Santos Limited.At the date of this report,Mr Gallagher holds 2,404,027 share acquisition rights(SARs)and 199,819 restricted shares.No other Director holds options or SARs.Details of the qualifjcations,experience and special responsibilities of each Director

156、 are set out in the Directors biographies on pages 6 to 9 of this Annual Report.This information includes details of other listed company directorships held during the last three years.Directors ReportSantos Annual Report 2021/19Directors meetingsThe number of Directors meetings and meetings of comm

157、ittees of Directors held during the fjnancial year and the number of meetings attended by each Director are set out below:Table of Directors meetingsDirectorDirectors meetingAudit&Risk CommitteeEnvironment Health,Safety&Sustainability CommitteePeople,Remuneration&Culture CommitteeNomination Committe

158、eAttended/Held1Attended/Held1Attended/Held1Attended/Held1Attended/Held1AllenYasmin Anita19 of 19 3 of 4n/a5 of 53 of 3CowanGuy Michael17 of 194 of 4n/an/an/aDoyle2 Eileen Joy n/an/an/an/an/aGallagherKevin Thomas 19 of 19n/a5 of 5n/an/aGohHock19 of 194 of 45 of 5n/a3 of 3GuthrieVanessa Ann 18 of 19n/

159、a5 of 55 of 5n/aHearlPeter Roland19 of 19n/a5 of 55 of 53 of 3McArdleJanine Marie 18 of 194 of 45 of 5n/an/aSpence Keith William 19 of 19 n/an/an/a3 of 3Shi3Yujiang(Eugene)0 of 2n/an/an/an/aWerror4Musje Moses n/a n/an/an/an/a 1 Refmects the number of meetings held during the time the Director held o

160、ffjce,or was a member of the Committee,during the year.2 Dr Eileen Doyle was appointed as a Director on 17 December 2021.3 Mr Eugene Shi was appointed to the People,Remuneration and Culture Committee efgective 16 February 2021 and retired as a Director on 10 March 2021.4 Mr Musje Werror was appointe

161、d as a Director on 17 December 2021.20/Santos Annual Report 2021Directors ReportOPERATING AND FINANCIAL REVIEWSantos principal activities during 2021 were the exploration for,and development,production,transportation and marketing of,hydrocarbons,and the development of technologies such as carbon ca

162、pture and storage.Revenue is derived primarily from the saleofgas and liquid hydrocarbons.In December 2021,Santos completed a merger with Oil Search Limited(“Oil Search”)following approvals by Oil Search shareholders and the National Court of Papua New Guinea.The merger combined two industry leaders

163、 to create a company with a diversifjed portfolio of assets and cash fmows to successfully navigate the transition to a lower carbon future.The Oil Search assets are included in the results of the consolidated group from 11 December 2021.A review of the operations and of the results of those operati

164、ons of the consolidated entity during the year is as follows:Summary of results table 2021 mmboe2020 mmboeVariance%Production volume 92.189.03Sales volume104.2107.1(3)US$millionUS$millionProduct sales 4,7133,38739EBITDAX12,8051,89848Exploration and evaluation expensed(126)(59)(114)Depreciation and d

165、epletion(1,243)(1,015)(22)Net impairment loss(8)(895)nmChange in future restoration assumptions(6)(1)(500)EBIT11,422(72)2,075Net fjnance costs(217)(234)7Taxation expense(547)(51)(973)Net profjt/(loss)for the period and attributable to equity holders of Santos658(357)284Underlying profjt for the peri

166、od1946287230Underlying earnings per share(cents)144.313.82211 EBITDAX(earnings before interest,tax,depreciation and depletion,exploration and evaluation expensed,net impairment loss and change in future restoration assumptions),EBIT(earnings before interest and tax)and underlying profjt are non-IFRS

167、 measures that are presented to provide an understanding of the underlying performance of Santos operations.Underlying profjt excludes the impacts of asset acquisitions,disposals and impairments,as well as items that are subject to signifjcant variability from one period to the next,including the ef

168、gects of fair value adjustments.Please refer to page 24 for the reconciliation from net profjt to underlying profjt for the period.Underlying earnings per share represents underlying profjt for the period divided by the weighted average number of shares on issue during the year.The non-IFRS fjnancia

169、l information is unaudited,however the numbers have been extracted from the fjnancial statements which have been subject to audit by the Companys auditor.Directors ReportcontinuedSantos Annual Report 2021/21Sales volume mmboe201920182020202183.4201778.394.5107.1104.2Sales volumes of 104.2 million ba

170、rrels of oilequivalent(mmboe)were 3 per cent lower than the previous year,primarily dueto lower Cooper Basin production and third-party volumes,partially ofgset by higher sales volumes in Western Australia and completion of the Oil Search merger in December 2021.Product sales revenue$million20192018

171、2020202120173,1003,660 4,033 3,3874,713Sales revenue was up 39 per cent compared to the previous year to a record$4.7 billion,primarily due to higher realised prices for all products and inclusion of the Oil Search assets from 11 December 2021.The average realised oil price increased 60per cent to U

172、S$76/bbl and the average realised LNG price increased 45 per cent toUS$9.25/mmBtu.Production volume mmboe2019201820202021201759.558.975.589.092.1Production was up 3 per cent to a record 92.1 mmboe primarily due to inclusion of theOil Search assets from 11December2021 and higher gas production in Wes

173、ternAustralia,partially ofgset by lower Cooper Basin volumes.Review of operationsSantos operations are focused on fjve core,long-life asset hubs:Cooper Basin,Queensland and NSW,Papua New Guinea,Northern Australia and Timor-Leste,and Western Australia.The merger with Oil Search added assets in Papua

174、New Guinea(additional equity in PNG LNG and operated oil fjelds)and North America(Alaska)to Santos portfolio.Cooper BasinThe Cooper Basin produces natural gas,gas liquids and crude oil.Gas is sold primarily to domestic retailers,industry and for the production of liquefjed natural gas,while gas liqu

175、ids and crude oil are sold in domestic and export markets.Santos strategy in the Cooper Basin is to deliver value by being a low-cost business,increasing reserves,investing in new technology to lower development and exploration costs,reducing emissions and increasing utilisation of infrastructure in

176、cluding the Moomba and PortBonython plants(Santos 66.7 per cent interest).Santos is also focused on reducing emissions by investing in carbon capture and storage(CCS).The 1.7 million tonne per annum Moomba CCS project took a fjnal investment decision in November 2021 with fjrst injection expected in

177、 2024.Cooper Basin20212020Production(mmboe)15.316.8Sales volume(mmboe)20.224.2Revenue(US$m)1,000919Production cost(US$/boe)9.357.80EBITDAX(US$m)423390Capex(US$m)329313Cooper Basin EBITDAX was$423 million,8 per cent higher than 2020 primarily due to higher realised prices,partially ofgset by higher c

178、osts,and lower volumes.Santos share of Cooper Basin sales gas and ethane production of 63.8 petajoules(PJ)was 7 per cent lower than the previous year(68.5 PJ)due to lower drilling activity as a result of the impact of COVID-19 on joint venture budgets.Santos share of oil production was also lower du

179、e to lower drilling activity and natural fjeld decline.A fourth drilling rig was added to the program in the middle of 2021.22/Santos Annual Report 2021Directors ReportQueensland and NSWThe GLNG project in Queensland produces liquefjed natural gas(LNG)for export to global markets from the LNG plant

180、at Gladstone.Gas is also sold into the domestic market.Santos has a 30 per cent interest in GLNG.The LNG plant has two LNG trains with a combined capacity of 8.6 mtpa.Production from Train 1 commenced in September 2015 and Train 2 in May 2016.Feed gas is sourced from GLNGs upstream fjelds,Santos por

181、tfolio gas and third-party suppliers.The LNG plant produced a record 6.3 million tonnes of LNG in 2021 and shipped 109 cargoes.Annual LNG production was higher than the previous year(6.0 million tonnes)due to the ramp-up in GLNG upstream equity gas supply.Santos aims to build GLNG gas supply through

182、 upstream development,seek opportunities to extract value from existing infrastructure and drive effjciencies to operate at lowest cost.Santos is also progressing the proposed Narrabri domestic gas project in NSW.The project received environmental approvals from the state and federal governments in

183、2020,and Santos plans to commence an appraisal program in 2022.Queensland and NSW20212020Production(mmboe)13.713.4Sales volume(mmboe)22.122.0Revenue(US$m)973793Production cost(US$/boe)5.795.70EBITDAX(US$m)525428Capex(US$m)195193Queensland and NSW EBITDAX of$525 million increased by 23 per cent compa

184、red to 2020.This was a result of higher realised prices and higher volumes,partially ofgset by higher costs.Papua New GuineaThe merger with Oil Search,which completed in December 2021,substantially increased Santos asset position in PNG.Santos interest in the PNG LNG project increased to 42.5 per ce

185、nt,and the merger also added interests in the proposed Papua LNG project and PRL3(Pnyang)to the portfolio.Santos also became operator of all of PNGs oil fjelds.PNG LNG produces LNG for export to global markets,as well as sales gas and gas liquids.The LNG plant near Port Moresby has two LNG trains wi

186、th the combined capacity to produce more than eight million tonnes per annum.Production from both trains commenced in 2014.The PNG LNG plant produced 8.4 million tonnes of LNG in 2021 and shipped 110 cargoes.Annual LNG production was lowerthan the previous year(8.8 million tonnes)due to the COVID-19

187、 impact of deferral of planned maintenance activities from 2020into2021.The Papua LNG project(Santos 22.8 per cent interest before PNG government back-in)is a proposed two-train LNG expansion with a planned capacity of 5.6 million tonnes of LNG per annum.In 2021,the project continued to progress tec

188、hnical,commercial,regulatory,social and environmental planning activities.A decision to enter front end engineering and design(FEED)is planned for 2022.Following the merger with Oil Search,Santos operates the Kutubu,Agogo,Moran and Gobe fjelds,which produce all of PNGs oil and supply raw gas to PNG

189、LNG.Net production from the operated fjelds was inline with the previous year.PNG20212020Production(mmboe)14.213.2Sales volume(mmboe)13.412.5Revenue(US$m)736451Production cost(US$/boe)4.694.21EBITDAX(US$m)615354Capex(US$m)3439PNG EBITDAX of$615 million increased 74 per cent compared to 2020,mainly d

190、ue to higher realised prices and increased volumes following the merger with Oil Search.Directors ReportcontinuedSantos Annual Report 2021/23Northern Australia and Timor-LesteSantos business in northern Australia and Timor-Leste is focused on the Bayu-Undan/Darwin LNG(DLNG)project(Santos43.4percent

191、interest).In operation since 2006,DLNG produces LNG and gas liquids for export to global markets.The LNG plant near Darwin has a single LNG train with a capacity of 3.7 mtpa.The plant produced 3.2 million tonnes of LNG in 2021,5per cent higher than 2020,and shipped 45 cargoes.The Bayu-Undan fjeld in

192、 Timor-Leste,which supplies all the gas to DLNG,is currently expected to reach end of fjeld life in 2022 or 2023.Santos is assessing the potential of repurposing Bayu-Undan into a carbon capture and storage hub after production ceases.In March 2021,Santos announced the fjnal investment decision to p

193、roceed with the Barossa gas and condensate project to backfjllDLNG.The project was 20 per cent complete at the end of 2021 with fjrst gas production expected in the fjrst half of 2025.Santoscurrently has a 62.5 per cent interest in Barossa,which will reduce to 50 per cent following the sale of a 12.

194、5 per cent interest toJERA,which is expected to complete in the fjrst half of 2022,subject to customary consents and regulatory approvals.Northern Australia and Timor-Leste20212020Production(mmboe)15.214.5Sales volume(mmboe)15.314.6Revenue(US$m)903466Production cost(US$/boe)15.3719.59EBITDAX(US$m)72

195、8205Capex(US$m)37793Northern Australia and Timor-Leste EBITDAX of$728 million was$523 million higher than 2020 primarily due to signifjcantly higher realised pricing for LNG cargoes sold into the spot market,partially ofgset by the 25 per cent sell-down to SK E&S in April 2021.Western AustraliaSanto

196、s is the largest producer of domestic natural gas in Western Australia and is also a signifjcant producer of oil and natural gas liquids.Santos assets include 100 per cent ownership and operatorship of the Varanus Island and Devil Creek domestic gas hubs,a28.6percent interest in the Macedon gas hub

197、and a leading position in the highly prospective Bedout Basin.Santos share of Western Australia domestic gas production of 168 PJ was 6 per cent higher than the previous year,primarily due tothe commencement of a new 12-year contract with Alcoa in June 2020.Santos share of crude oil production was 3

198、.5 mmbbl,higherthan the previous year due to the Ningaloo Vision FPSO(Van Gogh,Coniston and Novara fjelds)returning from planned shipyardmaintenance combined with initial production from two infjll wells drilled on the Van Gogh fjeld.A FEED-entry decision for the initial phase of the proposed Dorado

199、 integrated oil and gas project(Santos 80 per cent interest)was taken in June 2021.Dorado opens a new basin with high prospectivity in permits where Santos has high equity positions.Further drilling is planned on the Apus and Pavo prospects in 2022.Western Australia20212020Production(mmboe)33.731.1S

200、ales volume(mmboe)33.231.1Revenue(US$m)1,105742Production cost(US$/boe)6.386.34EBITDAX(US$m)851546Capex(US$m)316171Western Australia EBITDAX of$851 million was 56 per cent higher than 2020,predominantly driven by higher realised prices and volumes.24/Santos Annual Report 2021Directors ReportNorth Am

201、ericaThe merger with Oil Search brought assets in Alaska to Santos portfolio,including the Pikka Unit located on the North Slope,a world-class oil province with more than 50 years of oil and gas development and extensive existing infrastructure.Located within the Pikka Unit,the Pikka Phase 1 project

202、(Santos 51 per cent interest)is targeting a gross production rate of approximately 80,000 barrels of oil per day with top quartile performance for emissions intensity.FEED and assurance activities were nearing completion at the end of 2021,and all major regulatory and environment approvals have been

203、 received.Net profjtThe 2021 net profjt attributable to equity holders of Santos Limited of$658 million is$1,015 million higher than the net loss of$357million in 2020.This increase is primarily due to higher realised pricing and lower impairment losses of$6 million after tax($653million in 2020),pa

204、rtly ofgset by higher depreciation and depletion.Net profjt includes items before tax of$343 million($288 million after tax),as referred to in the reconciliation of net profjt to underlying profjt below.Underlying profjt was$946 million,$659 million higher than 2020.Reconciliation of net profjt/(los

205、s)to underlying profjt12021 US$million2020 US$millionGrossTaxNetGrossTaxNetNet profjt/(loss)after tax attributable to equity holders ofSantos Limited 658(357)Add/(deduct)the following:Net gains on sales of non-current assets(12)(32)(44)Impairment losses8(2)6895(242)653Fair value adjustments on embed

206、ded derivatives and hedges(2)(2)2(1)1Fair value adjustments on commodity hedges249(74)175(45)14(31)Costs associated with acquisitions and disposals100(20)8071421One-ofg tax adjustments7373343(55)288859(215)644Underlying profjt19462871 Underlying profjt is a non-IFRS measure that is presented to prov

207、ide an understanding of the underlying performance of Santos operations.Themeasure excludes the impacts of asset acquisitions,disposals and impairments,as well as items that are subject to signifjcant variability from one period to the next,including the efgects of fair value adjustments.The non-IFR

208、S fjnancial information is unaudited,however the numbers have been extracted from the fjnancial statements which have been subject to audit by the Companys auditor.Financial positionSummary of fjnancial position2021 US$million2020 US$millionVariance US$millionExploration and evaluation assets3,1821,

209、8181,364Oil and gas assets and other land,buildings,plant and equipment18,46511,1737,292Restoration provision(3,817)(3,021)(796)Other net assets1 2,1998151,384Total funds employed 20,02910,7859,244Net debt2(5,157)(3,664)(1,493)Net tax(liabilities)/assets3(1,262)106(1,368)Net assets/equity13,6107,227

210、6,3831 Other net assets comprises trade and other receivables,prepayments,inventories,contract assets,other fjnancial assets,share of investments in equity accounted associates and joint ventures,and goodwill,ofgset by trade and other payables,contract liabilities,provisions and other fjnancial liab

211、ilities.2 Net debt refmects the net borrowings position and includes interest-bearing loans,net of cash,commodity hedges and interest rate and cross-currency swap contracts.3 Net tax(liabilities)/assets comprises deferred tax assets and tax receivable,ofgset by deferred tax liabilities and current t

212、ax payable.Directors ReportcontinuedSantos Annual Report 2021/25Impairment of assetsDuring the Companys regular review of asset carrying values,Santos undertook an impairment review as part of the preparation of its 2021 full-year accounts.At 31 December 2021,non-cash after tax impairment losses of$

213、6 million were recognised.The total after-tax impairment losses relate tothe impairment of exploration and evaluation assets.Exploration and evaluation assets Exploration and evaluation assets were$3,182 million compared to$1,818 million at the end of 2020,an increase of$1,364 million,due to the mer

214、ger with Oil Search,2021 capital expenditure,including Dorado and Barossa Caldita FEED;ofgset by transfer of the Barossa project to oil and gas assets in development following FID in March 2021,impairment losses before tax of$8 million and exploration and evaluation expenses of$126 million.Oil and g

215、as assets and other land,buildings,plant and equipmentOil and gas assets and other land and buildings,plant and equipment of$18,465 million were$7,292 million higher than in 2020,mainly due to the merger with Oil Search,2021 capital expenditure across Cooper Basin,GLNG,WA Ofgshore and PNG;partially

216、ofgset by depreciation and depletion charges of$1,243 million and the 12.5%interest in Barossa to be sold to JERA classifjed as held for sale.Restoration provisionRestoration provision balances have increased by$796 million to$3,817 million mainly due to the merger with Oil Search,and revised restor

217、ation cost estimates;partially ofgset by change in discount rates,and favourable exchange difgerences.Net debtNet debt of$5,157million was$1,493 million higher than at the end of 2020,driven by the merger with Oil Search and major growth capital expenditure;ofgset by over$1.5 billion in free cash fm

218、ow generated.Net tax(liabilities)/assetsNet tax liabilities of$1,262 million have increased by$1,368 million in comparison to 2020 following the merger with Oil Search.Net assets/equityTotal equity increased by$6,383 million to$13,610 million at year end.The increase primarily refmects the additiona

219、l shares issued as part of the merger with Oil Search of$6,038 million,combined with net profjt after tax attributable to owners of Santos of$658 million;ofgset by payments of dividends to shareholders of$221 million.Future commitmentsDue to the nature of Santos operations,the Company has future obl

220、igations for capital expenditure,for which no amounts have been provided in the fjnancial statements.Santos also has certain requirements to perform minimum exploration work and spend minimum amounts of money pursuant to the terms of the granting of petroleum exploration permits in order to maintain

221、 rights of tenure.The minimum exploration commitments are less than the normal level of exploration expenditures expected to be undertaken by theCompany.Oil price hedgingThe objectives of Santos oil price hedging policy are to reduce the efgect of commodity price volatility and support annual capita

222、l expenditure plans.The Company will continue to monitor commodity market conditions and will enter hedging transactions as appropriate.As at 31 December 2021,the Company has hedged 4.0 million barrels of 2022 production,using zero premium collars with an average fmoor price of$50.00/bbl and an aver

223、age ceiling price of$66.14/bbl,and 2.0 million barrels,using reparticipating 3-way swaps,with an average fmoor price of$50.00/bbl,an average ceiling price of$60.00/bbl,and a reparticipating price of$65.05/bbl.26/Santos Annual Report 2021Directors ReportBusiness strategy and prospects for future fjna

224、ncial yearsBusiness strategySantos clear and consistent Transform,Build,Grow strategy drives shareholder value by utilising a disciplined,low-cost operating model to deliver strong cash fmows through the oil price cycle.The successful execution of the strategy since 2016 has transformed Santos into

225、a safe,reliable and low-cost producer positioned for disciplined growth and sustainable shareholder returns.Disciplined execution combined with targeted acquisitions have reduced the Companys breakeven oil price,which was less than US$25per barrel before hedging in 2021,and delivered operated intere

226、sts in long-life,low-cost assets and strategic LNG infrastructure.The merger with Oil Search strengthens the Companys asset portfolio and cash fmows,and positions Santos to navigate the transition to a lower carbon future.With a disciplined growth portfolio including the Barossa,Moomba CCS,Dorado Ph

227、ase 1,Pikka Phase 1 and Papua LNG projects,Santos is well positioned to leverage existing infrastructure.The Company is also focused on generating new revenue through maximising utilisation of its infrastructure and implementing emissions reduction projects such as carbon capture and storage.Santos

228、aspires to be a global leader in the transition to cleaner energy and clean fuels,by helping the world decarbonise to reach net-zero emissions in an afgordable and sustainable way and has set ambitious emission reduction targets.Further information is available in the Companys 2021 Climate Change Re

229、port.Prospects for future fjnancial yearsSantos has a clear strategy and a solid platform for growth.The business focus is aligned with the strategy as the Company continues to drive effjciencies through the low-cost operating model and progress growth opportunities.This focus will enable Santos to

230、remain a low-cost and high-performing business with signifjcant upside opportunities across the portfolio.Natural gas is expected to supply around a quarter of the worlds total energy needs until at least 2050,according to forecasts from theInternational Energy Agency.Santos remains confjdent in the

231、 long-term underlying demand for energy and particularly natural gas due to Asian economic growth,the rising global population,rapid urbanisation in developing economies and growing demand for lower-emissions fuels.Santos is also investing in projects to lower emissions such as Moomba carbon capture

232、 and storage in the Cooper Basin.2022 production is expected to increase to a range of 100 to 110 million barrels of oil equivalent(mmboe)primarily due to higher production from PNG following the Oil Search merger.This is expected to be ofgset by a lower share of Bayu-Undan production,which isexpect

233、ed to be approximately 10 mmboe less than 2021,due to a lower average working interest following the 25 per cent sell-down to SK E&S in 2021,lower gross production as the fjeld approaches end of fjeld life and lower net entitlement under the Production Sharing Contract due to higher forecast LNG pri

234、ces.Sales volumes in 2022 are expected to be in the range of 110 to 120 mmboe.Capital expenditure in 2022 is expected to be approximately US$900 million for sustaining capital,approximately US$200 million for restoration and approximately US$1.15 billion to US$1.3 billion for major growth projects.A

235、 contingent amount of up to approximately US$400 million may be added should the Dorado and Pikka projects take fjnal investment decisions.Guidance assumes current Santos interest in all projects.Material business risksThe achievement of Santos purpose and vision,business strategy,production growth

236、outlook and future fjnancial performance is subject to various risks including the material business risks summarised below.Santos undertakes steps to identify,assess and manage these risks and operates under a Board-approved enterprise-wide Risk Management Framework.This summary is not an exhaustiv

237、e list of all risks that may afgect the Company,nor have they been listed in any particular order of materiality.COVID-19 Pandemic RiskThe COVID-19 pandemic has created new challenges in managing the health and safety of our workforce,with potential impact to both their physical and mental wellbeing

238、,in the fjeld and offjce locations.Our operations may also be disrupted by government,regulatory or health authority actions,which could result in the shutdown of operating sites and offjces,lockdowns in certain regions,border closures,travel restrictions and quarantine requirements.Supply chain dis

239、ruption by COVID-19 of suppliers,logistics partners,products,services and third-party providers has the potential to impact Santos production and operations.Roster adjustment and travel management for the fjeld-based workforce has implications for the rotational workforce,including workforce fatigue

240、,family separation for extended periods and mental health issues.To mitigate the risk,Santos continues to employ its Operational Continuity Plans with particular emphasis on pre mobilisation testing,the safe movement of employees,contractors and supply chain materials to operate the business.Strict

241、hygiene,social distancing in the workplace,personal protection,testing protocols and case management have further been enhanced and embedded in all locations.Santos has increased mental health support programs and strongly encouraged employee take-up of available vaccines to protects themselves and

242、their families.Directors ReportcontinuedSantos Annual Report 2021/27Strategic risksVolatility in oil and gas pricesSantos business relies primarily on the production and sale of oil and gas products(including LNG)to a variety of buyers under a range of short-term and long-term contracts.The Barossa

243、LNG project ofgtake volumes have been marketed on a price based on the Platts Japan Korea Marker(JKM)with favourable seller fmexibilities,which improves portfolio balance to our existing oil-linked LNG ofgtake agreements from GLNG and PNG LNG.The majority of oil and gas produced(or to be produced)in

244、 Santos portfolio will be sold under sales contracts where the sale price is linked to the global price of oil.Lower global oil prices will therefore reduce Santos revenues and the profjtability of its operations.Global oil prices are afgected by numerous factors beyond the Companys control and hist

245、orically these have fmuctuated widely.Santos three-tiered strategy,operating model and Hedging Policy introduced in 2016 directly address oil price risk to build resilience to oil price fmuctuations.This includes a clear focus on cash fmow management,operational and cost effjciencies,debt reduction

246、and production growth opportunities.Santos also has conventional domestic natural gas assets backed by medium-to long-term CPI-linked ofgtake contracts to complement and balance Santos oil-linked revenues.Oil and gas reserves developmentCalculations of recoverable oil and gas reserves and resources

247、contain signifjcant uncertainties,which are inherent in the reservoir geology,seismic and well data available and other factors such as project development and operating costs,together with commodity prices.Afailure to successfully develop existing reserves may impact Santos ability to fully support

248、 LNG,gas or oil under customer contracts.Santos has adopted a reserves management process that is consistent with the Society of Petroleum Engineers Petroleum Resource Management System.The Companys reserves and resources estimations are subject to independent audits and evaluations on a rolling bas

249、is.Santos applies an integrated management system across all aspects of business performance,including reserves estimation and delivery.Progress against key reserves metrics is routinely reviewed by senior management and the Board,and reserves estimates arepublishedannually.Exploration and reserves

250、replacementSantos long-term prospects are also directly related to the success of efgorts to replace existing oil and gas reserves as they are depleted through production,from either exploration or acquisition.Exploration activities are subject to geological and technological uncertainties and the f

251、ailure to replace utilised reserves is a risk inherent in the industry.Exploration risks are managed through an established exploration prospect evaluation methodology and risking process.In addition,business development processes identify,review and progress opportunities to build reserves through

252、acquisition in support of the Companys strategy to Transform,Build and Grow the business.Demand and marketThe demand for oil,gas,LNG and other products Santos markets may be adversely afgected by a range of external factors including global events such as the COVID-19 pandemic,competition from alter

253、native suppliers or other sources of energy supply,and changes in consumer behaviour or government policy.A robust business strategy development and review process considers independent oil,gas and LNG market forecasts,and other relevant macro-economic factors,to assess the Companys portfolio under

254、a range of scenarios,to enable the delivery of plans in support of the Companys purpose and vision.Project developmentInvestment is undertaken in a variety of oil and gas projects to extract,process and supply oil and gas to a variety of customers,including long-term high-volume contracts to supply

255、feedstock gas to Santos portfolio of midstream infrastructure assets.Failure to deliver or protracted delays in delivering projects may occur for various reasons,including unanticipated economic,fjnancial,operational,engineering,technical,environmental,contractual,regulatory,community and/or politic

256、al events.Delays,changes in scope,cost increases or poor performance outcomes pose risks that may impact the Companys fjnancial performance.Santos has comprehensive project management and governance,risk management and reporting practices in place.Progress and performance of material projects is reg

257、ularly reviewed by senior management and the Board.28/Santos Annual Report 2021Directors ReportJoint venture arrangementsMuch of Santos business is carried out through joint ventures.The use of joint ventures is common in the oil and gas exploration and production industry and serves to mitigate the

258、 risk and associated cost of exploration,production and operational failure.However,failure of agreement or alignment with joint venture partners,or the failure of third-party joint venture operators,could have a material impact on Santos business.The failure of joint venture partners to meet their

259、commitments and share costs and liabilities can result in increased costs to Santos.Santos has defjned critical expectations and requirements for participation in and operation of joint ventures in order to optimise theCompanys commercial and operational interests.The Company works closely with its

260、joint venture partners to reduce the risk ofmisalignment in joint venture activities.Operational risksTechnical and engineeringSantos is exposed to risks in relation to its ongoing oil and gas exploration and production activities,such as failure of drilling and completions equipment,pipeline and fa

261、cilities integrity failures,major processing or transportation incidents,release of hydrocarbons or other substances,security incidents and other well control and process safety risks,which may have an adverse efgect on Santos profjtability and results of operations.An integrated management system i

262、s applied across all operational activities to manage and monitor operations performance and material risk controls.The management system includes all relevant technical,operational,asset reliability and integrity standards and incident management standards and competency requirements.The system is

263、designed to ensure the Company meets regulatory and industry standards in all operations.Access and licence to operate Santos has interests in areas that may be subject to claims by communities and landowners who may have concerns over the social or environmental impacts of oil and gas operations or

264、 the distribution of oil and gas royalties and access to mining-and petroleum-related benefjts.This has the potential to impact on land access or result in community unrest and activism and may adversely impact on the Companys reputation.A number of Santos interests are subject to one or more claims

265、 or applications for native title determination.In Australia,compliance with the requirements of the Native Title Act 1993(Cth)can delay the grant of mineral and petroleum tenements and subsequent timing of exploration,development and production activities.Santos and its operating joint venture part

266、ners work closely with all relevant stakeholders,including governments,communities,landowners and Indigenous groups,to ensure all concerns are fairly addressed and managed,and Santos operations benefjt from their support.In addition,Santos and its operating joint venture partners develop and employ

267、security and risk management plans,and are committed to conducting operations in a way that protects the security of personnel,facilities,operations and surrounding communities.Santos has a long history of safe and sustainable operations working with communities and landholders acrossthe country.Lan

268、d access agreements are in place and a team ofexperienced community and land access representatives workwith Indigenous stakeholders,landholders and communities to ensure that issues are understood and addressed appropriately.Maintaining ongoing dialogue and conducting open,transparent engagement ha

269、ve allowed us to benefjt from the ongoing support ofallstakeholders.Human rightsHuman rights risks include the use of force by public and private security forces,interference with Indigenous community land access or cultural heritage and the labour practices of suppliers and contractors.These are pa

270、rticularly relevant where operations,or the operations of business partners,occur in high-risk jurisdictions,including PNG.The occurrence of any of these risks may result in the loss of social licence to operate,litigation or reputational damage.Oil Searchs practice prior to integration has been to

271、incorporatehuman rights risks into acompany-wide risk management framework andforrisksto beregularly assessed and updated.Training and awareness covering key human rights topics such as responsible security and modern slaverywasconducted for employees in key functions including Security and Contract

272、s and Procurement.Site-level and company-level grievance mechanismshave beenin place and overseen by Board Committee level.Santos is committed to respecting human rights and is currently reviewing the human rights-related controls described above as part of the integration process in order to establ

273、ish a consolidated approach to managing its human rights risks.Directors ReportcontinuedSantos Annual Report 2021/29Cyber securityCyber security risks,including threats to information and operational systems from computer viruses,unauthorised access,cyber-attack and other similar disruptions,have ev

274、olved rapidly and can impact all sectors of the economy,including the energy sector.The increasing technological advances in operations require monitoring and protection to ensure cyber security threats are appropriately managed and prevented.Cyber security risks may lead to disruption of critical b

275、usiness processes,a breach of privacy and theft of commercially sensitive information.A cyber event may lead to adverse impacts on Santos profjtability and reputation.Focused cyber security risk management is incorporated into Santos risk management and assurance processes and practices across the C

276、ompanys business and operational information management systems.WorkforceSantos future success is signifjcantly infmuenced by the expertise and continued service of certain key executives and personnel.Aninability to attract or retain such personnel,caused by a range of factors,including global even

277、ts such as the COVID-19 pandemic,could adversely afgect business continuity and,as such,employment arrangements and succession plans are designed to secure and retain the services of key personnel.Key workforce metrics,succession and business continuity plans are routinely reviewed by senior managem

278、ent and the Board.Environmental,safety and sustainability risksHealth,safety and environment The size,nature and complexity of Santos operations pose risks in relation to the health and safety of employees and contractors,and a range of environmental risks exist when carrying out exploration and pro

279、duction activities.Environmental incidents,and real or perceived threats to the environment or the amenity of local communities,could result in a loss of Santos licence to operate,leading to delays,disruption or the shut-down of exploration and production activities.Santos has a comprehensive approa

280、ch to management of health,safety and environmental risks.The Companys management system integrates technical and engineering requirements with personal health and safety requirements to comprehensively manage health,safety and environmental risks within Company operations.Climate changeSantos antic

281、ipates its activities will be subject to increasing regulation and costs associated with climate change and the management of carbon emissions.Risks are identifjed and managed in two broad categories:Physical,relating to acute and chronic efgects of climate change and Transitional,arising from the m

282、ove into a lower carbon economy.Operational,legal,technological,reputational,funding,workforce and community risks and opportunities associated with climate change are incorporated into policy,strategy and risk management processes and practices.The Company actively monitors current and emerging cli

283、mate change risk and proactively takes steps to prevent and mitigate any impacts on its objectives and activities.Santos net-zero Scope 1 and Scope 2 emissions 2040 target remains a strong focus in the delivery of its strategic commitments.Along with specifjc projects focused on reducing emissions,a

284、n emissions reduction and minimisation focus forms part of the Companys routine operations.Financial risksThe fjnancial risk management strategy seeks to ensure that Santos is able to fund its corporate objectives and meet its obligations to stakeholders.Financial risk management is carried out by a

285、 central treasury department that operates in line with a Board-approved policy and framework.The framework and principles for overall fjnancial risk management address specifjc fjnancial risks,such as commodity price risk,foreign exchange risk,interest rate risk and credit risk,approved derivative

286、and non-derivative fjnancial instruments,and liquidity management.An oil price hedging policy is in place with the objective of reducing the efgect of commodity price volatility and to support annual capital expenditure plans.Santos continues to monitor commodity market conditions and will enter hed

287、ging transactions as appropriate.Foreign currencyForeign exchange risk arises from commercial transactions and valuations of assets and liabilities that are denominated in a currency that is not the entitys functional currency.Exposure to foreign currency risk arises principally through the sale of

288、products denominated in currencies other than the functional currency,and capital and operating expenditure incurred in currencies other than US$,principally A$.Santos also holds investment interests in domestic operations whose net assets are exposed to foreign currency translation risk.A foreign c

289、urrency hedging policy is in place with the objective of reducing the efgect of foreign currency exchange rate volatility and to support annual capital expenditure plans.Santos continues to monitor foreign currency market conditions and will enter hedging transactions as appropriate.30/Santos Annual

290、 Report 2021Directors ReportCreditCredit risk represents a potential fjnancial loss if counterparties fail to perform as contracted,and arises from investments in cash and cash equivalents,derivative fjnancial instruments and deposits with banks and fjnancial institutions.Credit exposures exist to c

291、ustomers in the form of outstanding receivables and committed transactions.Access to capital and liquidity Santos business and,in particular,the development of large-scale projects,relies on access to debt and equity fjnancing.The ability to secure fjnancing,or fjnancing on acceptable terms,may be a

292、dversely afgected by volatility in the fjnancial markets.These efgects may be global or afgecting a particular geographic region,industry or economic sector.Access to debt and equity funding may also be negatively afgected by a downgrade in its credit rating.Santos had$5.6 billion in liquidity(cash

293、and undrawn committed bank facilities)available as at 31 December 2021.Contract and counterparty risksAs part of its ongoing commercial activities,Santos is party to a number of material contracts including fjnance agreements,infrastructure access agreements,agreements for the sale and purchase of h

294、ydrocarbon,transportation agreements,joint venture agreements,and engineering,procurement and construction(EPC)contracts.Santos also enters into sale and purchase contracts with third parties for the sale and purchase of natural gas,LNG and other products.The economic efgects of these contracts over

295、 their term may be impacted by fmuctuations in commodity prices,price reviews,operational performance and other market conditions.Failure to perform material obligations under these contracts by Santos and/or the applicable counterparties,or to secure any extensions or amendments to these contracts,

296、may result in a material impact on Santos operations and fjnancial results.Santos tracks key contractual obligations and monitors performance across its material contracts.Political and legal risksPolitical,legal and regulatorySantos business is subject to various laws and regulations in each of the

297、 jurisdictions in which it operates that relate to the development,production,marketing,pricing,transportation and storage of its products.A change in the laws which apply to the Companys business,or the way in which it is regulated,could have a materially adverse efgect on Santos business,on the re

298、sults of operations and the Companys fjnancial performance.For example,a change in government regime,taxation laws,environmental laws orland access laws could have a material efgect on the Company.The domestic gas business and GLNG project,including its ability to purchase gas,develop future growth

299、projects and meet supply commitments,may also be adversely impacted by any governmental intervention,including limitations on LNG export volumes and the redirection of gas from export to domestic markets.Any such intervention may also have broader implications for the future of the gas industry in A

300、ustralia.Continuous monitoring of legislative and regulatory changes and associated risks is undertaken and regular engagement with regulators and governments supports the management of risks arising from these changes.Litigation and disputesThe nature of Santos business means that it is likely to b

301、e involved in litigation or regulatory actions arising from a wide range of matters.Santos may also be involved in investigations,inquiries or disputes,debt recoveries,commercial and contractual disputes,native title claims,land tenure and access disputes,environmental claims or occupational health

302、and safety claims.Any of these claims or actions could result in delays,increase costs or otherwise adversely impact Santos assets and operations,and adversely impact Santos fjnancial performance and future fjnancial prospects.Santos has an experienced legal team that monitors and manages potential

303、and actual claims,actions and disputes.Material prejudice As permitted by sections 299(3)and 299A(3)of the Corporations Act 2001(Cth),Santos has omitted some information from the above Operating and Financial Review in relation to the Companys business strategy,future prospects and likely developmen

304、ts in operations and the expected results of those operations in future fjnancial years on the basis that such information,if disclosed,would be likely to result in unreasonable prejudice(for example,because the information is premature,commercially sensitive,confjdential or could give a third party

305、 a commercial advantage).The omitted information typically relates to internal budgets,forecasts and estimates,details of the business strategy,and contractual pricing.Directors ReportcontinuedSantos Annual Report 2021/31Forward-looking statementsThis report contains forward-looking statements,inclu

306、ding statements of current intention,opinion and predictions regarding the Companys present and future operations,possible future events and future fjnancial prospects.While these statements refmect expectations at the date of this report,they are,by their nature,not certain and are susceptible to c

307、hange.Santos makes no representation,assurance or guarantee as to the accuracy of,or likelihood of,fulfjlling any such forward-looking statements(whether express or implied)and,except as required by applicable law or the ASX Listing Rules,disclaims any obligation or undertaking to publicly update su

308、ch forward-looking statements.SIGNIFICANT CHANGES IN THE STATE OF AFFAIRSThe Material Business Risks section(pages 26 to 30)refers to risks which,if materialised,may have a signifjcant efgect on the state of afgairs of the Company.DividendsOn 15 February 2022,the Directors resolved to pay a partiall

309、y franked fjnal dividend of US8.5 cents per fully paid ordinary share on 24March 2022 to shareholders registered in the books of the Company at the close of business on 22 February 2022(“Record Date”).This fjnal dividend amounts to approximately US$288 million.The Board also resolved that the Divide

310、nd Reinvestment Plan(DRP)will not be in operation for the 2021 fjnal dividend.In addition,a fully franked interim dividend of US5.5 cents per fully paid ordinary share was paid to members on 21 September 2021.TheDRP was not in operation for the interim dividend.Environmental regulationThe consolidat

311、ed entitys Australian operations are subject to various environmental regulations under Commonwealth,state and territory legislation.Applicable legislation and requisite environmental licences are specifjed in the consolidated entitys EHS Compliance Database,which forms part of the consolidated enti

312、tys overall management system.Environmental compliance performance is monitored on a regular basis and in various forms,including audits conducted by regulatory authorities and by the Company,either through internal or external resources.On 21 April 2021,Santos received a penalty infringement notice

313、 and$13,345 fjne from the Queensland Department of Environment and Science due to an administrative error where monitoring data was not appended in an annual return as required by approval conditions.On 26 July 2021,Santos received a penalty infringement notice and$13,345 fjne from the Queensland De

314、partment of Environment and Science relating to a risk assessment report and associated Environmental Authority conditions.The consolidated entity undertook corrective measures in respect of the infringements to prevent re-occurrences.POST BALANCE DATE EVENTSOn 15 February 2022,the Directors of Sant

315、os Limited resolved to pay a fjnal dividend on ordinary shares in respect of the 2021 fjnancial year.The fjnancial efgect of these dividends has not been brought to account in the full-year Financial Report for the year ended 31December 2021.32/Santos Annual Report 2021Directors ReportSHARES UNDER O

316、PTION AND UNVESTED SHARE ACQUISITION RIGHTS(SARS)OptionsThere are no unissued ordinary shares of Santos Limited under options at the date of this report.Unvested SARsUnissued ordinary shares of Santos Limited under unvested SARs at 31 December 2021 are as follows:Date SARs grantedNumber of shares un

317、der unvested SARs21 March 20182,625,73512 April 201830,0007 May 2018520,18315 March 20192,191,31221 March 201924,88618 April 2019285,7769 May 2019637,6317 June 201949,77216 July 2019516,68418 July 201910,73420 August 201926,36430 August 20191,179,6084 October 2019238,02320 December 201911,59219 Marc

318、h 20202,066,82626 March 20207,3289 April 2020442,29811 June 2020377,50731 August 20201,589,0513 December 20209,65826 March 2021514,91730 March 202114,08611 April 2021847,45815 April 2021577,03312 May 20212,524,44927 August 2021285,65717 December 2021129,558 17,734,126Since 31 December 2021,no SARs h

319、ave been granted over unissued ordinary shares of Santos Limited.No amount is payable on the vesting of SARs.SARs do not confer an entitlement to participate in a bonus or rights issue,prior to the vesting of the SAR.Further details regarding the SARs(including when they will lapse)are contained in

320、the Remuneration Report commencing on page 34 of this report and in note 7.2 to the Financial Report.Directors ReportcontinuedSantos Annual Report 2021/33SHARES ALLOCATED ON THE EXERCISE OF OPTIONS AND ON THE VESTING OF SARSOptionsNo options were exercised during the year ended 31 December 2021 or u

321、p to the date of this report.Vested SARsThe following ordinary shares of Santos Limited were allocated during the year ended 31 December 2021 on the vesting of SARs granted under the Santos Employee Equity Incentive Plan(SEEIP)(formerly known as the Santos Employee Share Purchase Plan(SESPP)and Shar

322、eMatch Plan(ShareMatch).No amount is payable on the vesting of SARs and accordingly no amounts are unpaid onany of theshares.Date SARs grantedNumber of shares allocated17 March 20172,995,60719 May 2017609,34512 April 2018442,75729 June 2018395,57615 March 201919,34012 April 20199,11718 April 201988,

323、87916 July 201914,40020 December 201972010 January 202014,46131 August 202030,43527 August 20214124,621,049Since 31 December 2021,2,956,404 ordinary shares of Santos Limited have been allocated on the vesting of SARs granted under the SEEIP and ShareMatch.DIRECTORS AND SENIOR EXECUTIVES REMUNERATION

324、Details of the Companys remuneration policies and the nature and amount of the remuneration of the Directors and senior management(including shares,options and SARs granted during the fjnancial year)are set out in the Remuneration Report commencing on page 34 of this report and in notes 7.2 and 7.3

325、to the Financial Report.34/Santos Annual Report 2021Directors ReportMESSAGE FROM YASMIN ALLEN,PEOPLE,REMUNERATION AND CULTURE COMMITTEE CHAIRDear fellow Shareholders,On behalf of the Board,I am pleased to introduce Santos Remuneration Report for 2021 and to summarise key elements of Santos performan

326、ce and the impact on remuneration outcomes.Record production and generation of free cash fmowThe 2021 year was a remarkable year for your Company.The ongoing and consistent delivery of the Transform,Build and Grow strategy and the Companys disciplined low-cost operating model continues to deliver va

327、lue for shareholders.Highlights from 2021 include:Strong base business performance delivering record annual production of 92.1 mmboe Record free cash fmow generation of US$1.5 billion in 2021,more than double the level in 2020 Record annual sales revenue of US$4.7 billion,up 39 per cent on 2020 Fina

328、l Investment Decision for the Barossa project,which is on track for fjrst production in the fjrst half of 2025 Final Investment Decision for Phase 1 of the Moomba carbon capture and storage development,which is on track for fjrst injection of carbon dioxide in 2024 Successful merger with Oil Search

329、in December,creating a true regional champion with the size and scale to deliver strong performance and fund the transition to a lower carbon futureThese strong achievements contributed to a Company Scorecard outcome of 135.6 per cent of target(out of a possible 167 per cent).Outcomes against indivi

330、dual measures are detailed later in the report in Table 3 on pages 4245.Outstanding performance on Long-Term Incentive measures leads to high vesting outcomesLong-Term Incentive(LTI)awards granted in 2018 were tested following the end of their four-year performance period at 31 December 2021.The San

331、tos share price increased from A$5.45 at the start of the performance period to A$6.31 at 31 December 2021.Total Shareholder Return including the reinvestment of dividends during the performance period was 30.3 per cent.Santos TSR growth ranked 11th in the S&P Global 1200 Energy Index,placing it at

332、the 84th percentile against this group.Santos performance was at the 55th percentile against the ASX100 comparator group.The Companys average Free Cash Flow Breakeven Point over 2018 to 2021 was US$20.98,34 per cent lower than at the start of the performance period(US$31.90).Return on Average Capita

333、l Employed over 2019 to 2021 was 129.8 per cent of Weighted Average Cost of Capital.These outstanding long-term performance outcomes contributed to an overall 89.5 per cent vesting outcome for the 2018 LTI awards.Performance-related long-term equity makes up a signifjcant component of Realised RemunerationRealised Remuneration outcomes for 2021 are shown in Table 11 on page 52.Realised Remuneratio