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Review of Performance Production Santos’ production grew by 11.0% in 1998 reflecting the commencement of production from new areas of interest, in the Carnarvon Basin, Timor Gap, Papua New Guinea and the supply of gas to Mt Isa. Production increased by 4.5 million boe to a record 45.6 million boe in 1998. This reflected completion of a number of major projects during the year, which are described on page 16 of this report. A full year’s production from each of these projects will contribute to a further increase in production in 1999. Group Production 1998 1997 Sales Gas and Ethane (PJ) 184.9 172.2 Crude Oil (million barrels) 8.5 6.9 Condensate (million barrels) 3.1 2.5 LPG (‘000 tonnes) 285.7 263.6 Total (million boe) 45.6 41.1 Just over half of this increase was associated with oil and liquids production (2.3 million boe increase). The remainder (2.2 million boe) reflected increased sales gas and ethane production. Production increased in all Business Units except for Santos USA. (A table detailing Group production is located on page 29). Santos’ production has increased from 36.3 million boe per annum in 1993 to 45.6 million boe during 1998. Santos’ Production Growth MMboe 46 44 42 40 38 36 34 32 30 1993 1994 1995 1996 1997 1998 Major Oil Projects Profile Stag Development Project Elang/Kakatua/Kakatua North Development Project SE Gobe Development Project Project: Oil field development. Floating storage and offloading facility. Project: Oil field development. Floating production, storage and offloading facility. Project: Oil field development. Location: Papua New Guinea 20 Location: Carnarvon Basin Santos interest: 54.17% Production: Commenced May 1998 Location: Timor Gap Santos interest: 21.43% Production: Commenced July 1998 Santos interest: 6.975% Production: Commenced April 1998
Review of Performance Environment The Santos Australian Environmental Management System provides a comprehensive system of environmental management. This section of the report describes the Santos Australian Environmental Management System, which has been progressively developed over the past decade and a half. Review of Performance Environmental management at Santos is conducted in accordance with a formal environmental management system, based originally on the British Standard for Environmental Management (BS 7750), and then on the International Standards ISO 14000 series. The System has been progressively refined since its inception in 1991 and is currently being utilised by the Company’s Business Units to not only meet the specific legislative and regulatory requirements in which operations occur, but also to go beyond mere compliance wherever appropriate. The foundation of the Santos Australian Environmental Management System (SAEMS) is the Company’s environmental policy. The key element of the policy is that Santos is committed to conducting all its onshore and offshore exploration and production activities in an environmentally responsible manner. The policy also states that Santos has established and will maintain environmental standards consistent with developments in technology, industry codes of practice and all relevant statutory requirements. To test the Company’s compliance with its stated environmental objectives, Santos conducts regular environmental audits which are undertaken by its own environmental staff, as well as by specialist external environmental advisers. State and Territory regulatory authorities also conduct environmental audits and undertake field visits to the Company’s operational sites. Further details are provided on pages 35 and 39. The Company’s Environmental Management System has been refined and tailored to suit the specific nature of the Company and the environments in which operations occur. Individual responsibility for the environment has been promoted by the Santos Board and the Company’s senior management, with line management clearly charged with being the primary “champions” of responsible environmental behaviour. In order to achieve the Company’s environmental objectives in the field, particular emphasis has been placed on the process of environmental training and induction for both the Santos and contractor workforce. The total process of environmental management within the Company is overseen by the Environmental Committee of the Santos Board (chaired by the Chairman of the Board) which was formed in 1994. The Company’s Business Units present a detailed overview of their environmental management practices and procedures, together with performance, to the Committee. Santos strives to attain a balance between achieving standards of environmental excellence and maintaining a cost efficient and integrated approach to safe, technically proficient exploration and production activities in the many areas of the Company’s operations. Production/Environment Coongie Lakes Before seismic survey 3 months after seismic survey 12 months after seismic survey These photographs provide visual documentation of the environmental management process as applied to the 1997 Western Prospects Seismic Survey at Coongie Lakes. 21
Page 1 and 2: s nt os a Santos Annual Report 1998
Page 3 and 4: Although the majority of the Compan
Page 5 and 6: Strategy Santos aims to generate in
Page 7 and 8: Chairman’s Overview 1998 The Boar
Page 9 and 10: 1998 was a record year for Santos p
Page 11 and 12: Santos’ employees made a signific
Page 13 and 14: In 1998 Santos achieved an explorat
Page 15 and 16: Operating Profit After Tax A net pr
Page 17 and 18: 1998 Exploration Highlights ■ A s
Page 19 and 20: Further longer-term growth opportun
Page 21: Santos’ Australian Gas Business S
Page 25 and 26: Michael Anthony O’Leary DipMinE,
Page 27 and 28: OABU USABU SEABU Offshore Australia
Page 29 and 30: Offshore Australia Business Unit 19
Page 31 and 32: Production Statistics Field Units S
Page 33 and 34: Licence Area % Interest Licence Are
Page 35 and 36: Corporate Governance The purpose of
Page 37 and 38: Risk Management The Board has in pl

snto - Santos

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