Santos Limited (STO) Earnings Call Transcript & Summary

Well, good morning, everyone and thank you for coming along to this year's Investor Day. Hopefully, that video gave you an appreciation of the scale of the business that we have today, the diversity of the business we have today, the very different environments. I often speak to a lot of our graduates about the great career opportunities you have at Santos now that you can be working in the North Slope of Alaska, to the Outback and the Cooper Basin, the highlands of PNG, it's quite a diverse business, on offshore FPSOs, LNG plants, gas plants, oil facilities, et cetera, et cetera. So very diverse organization. And while that's growing our Energy Solutions business, you'll see some of the new business opportunities that we're creating across the company as well. I have to laugh though that last scene when you saw all of our operators working in slowmo, walking into the camera, it reminds me of a scene of the movie Armageddon, before they go in the space shuttle to save the world. So very heroic shot. But anyway, lets' take you've all read in detail our normal disclaimer, very detailed disclaimer. And it's important that you do understand that the forecast and stuff we do -- that we have in the pack today, of course, are qualified. So I'll go -- and the next slide, please. This morning, we've got a busy morning, 2 sessions. I'm going to kick off in a minute with an intro and an overview of strategy and where the business is at. And then Anthony is going to give us an update from a marketing and a markets perspective, before we go through our 3 regions. In 2022, we reestablished a regional operating model where we -- because of the diversity and the size of the company now, we've got regional operating centers, 3 regions. We've got Eastern Australia and PNG, which is all of our onshore business in Australia, run by Brett Darley and Brett is going to talk to you about the operations across that region or those regions. And then Vince Santostefano, who's rejoined the company post his COVID break is -- not that he had COVID but he went back to WA during COVID. He's rejoined us and he'll talk about Western Australia, Northern Australia and Timor-Leste, that's the other region, that offshore region. And then, of course, Bruce isn't with us this morning. Bruce is back in Alaska. We've got Mark Ireland over here, one of Bruce's deputies who's going to talk to us about Alaska. And that's our 3 operating regions. And then Alan, Alan is going to talk to us about the Energy Solutions business and what he's doing with that business. Now that's really maturing and starting to hit its stride now. And we'll go through that before Anthea will then finish up in the financials before I'll coordinate a Q&A session. So there are 2 sessions, a busy morning. And so on that and we want to leave a bit of time for Q&A at the end. I'm sure there's lots, lots to talk about. So on that, we'll move forward. And I think we start with the acknowledgment to country. And it's very important that Santos acknowledges that we are meeting on the traditional lands of the Gadigal people of the Eora Nation and pay respect to elders past, present and emerging. We would also like to extend our respect to all of our First Nations people here today and to all the First Nations people across all the Santos operations, whether that be in Australia, Timor-Leste, Papua New Guinea and Alaska. All righty, let me kick off with the first session. I wanted to start by revisiting strategy. So we go to the first strategy slide, please. So in 2022, we rolled out our new strategy. So you'll recall back in 2016, our strategy was very much transform, build and grow. And we've evolved into a much broader organization. Of course, we've got a transition to take care of as well. And that's going to be very volatile and there's going to be a lot of winners and a lot of losers during that transition. And we're seeing what that's doing to energy markets worldwide. So we spend a lot of time with the Board and with our external advisers, developing a strategy, really aim to take us through that next sort of 10-year period as an organization. And it's a 3-horizon strategy with backfill and sustain, really focusing on backfilling those existing assets, maximizing the value we can get from existing infrastructure. Infrastructure, we've already spent billions of dollars installing. Brownfield projects predominantly, really trying to leverage off that existing infrastructure position, trying to evolve the business to a lower capital intensity business and shorter cycle CapEx focus, like we see in our onshore business. So moving away from these big multibillion-dollar, multiyear projects with all the risks and exposures they normally bring to more of a shorter cycle, more flexible type of business going forward. Like we see in the Cooper Basin, like we see in Queensland, like we see even onshore, to a lesser extent in PNG. Reducing emissions intensity across the portfolio. We have quite an ambitious road map and plan to reduce our emissions across our portfolio and really get that emissions intensity of the portfolio down. You'll see some of the plans in the LNG space, in particular, where we think we're really well positioned to have a world-class portfolio of LNG assets but very importantly, low emissions intensity LNG assets, which we think will separate them from the pack. And continually improving that free cash flow generation from the portfolio. It's not accidental and we'll share some of that with you today. The work that we've been doing over the last 6, 7 years is continually focused on increasing that cash flow yield, that free cash flow yield out of the asset base and driving synergies through the acquisitions that we've made but also just through operating excellence centers, where we can share resources across a broader portfolio of assets to drive down those operating costs. And you can see the journey in production costs, which has been a very, very positive journey and it's continuing to maximize the margin, if you like, in every single barrel we produce across the company. The second horizon, which is our decarbonization horizon, that sort of centers on -- focuses on, I should say, developing 3 decarbonization hubs across those midstream assets within our Energy Solutions business. And of course, that's leading with the Moomba CCS project, which should go online middle of next year. And -- but we are looking to develop Bayu-Undan and Darwin. You would have seen some developments in that space in the last few weeks where we got the London Protocol approved by the Senate. And so that's now been approved by Parliament and Senate. So we now have the London Protocol happening, which means we can transport CO2 across borders. So that -- what that means. That leads to that legislation and ultimately, regulatory framework that will support the transport of CO2 across borders. And I kind of want to talk a little bit about that today because it's a bit like the journey we had with Moomba CCS. When we started off in that journey, it did not qualify for ACCUs. CCS didn't qualify for ACCUs. Moomba didn't qualify for ACCUs. There was no CCS regulatory frameworks in place in South Australia or Australia generally. A lot of people were questioning, well, why are you doing that? Well, we were doing that because we saw demand for carbon and for CCS building. We believed in that. And so we had to then take a leap of faith and say we're going to commit to the journey and we're going to work with governments to put those frameworks in place so we can build these projects in the future because we believe it's essential to our social license, to our license to operate and of course, to unlocking value across the oil and gas assets. 4, 5 years forward, here we are. The CCS project is almost online and with good news last week on injectivity test. So developing those and then building new revenue streams over the longer term, not only from our carbon management services but from the low carbon fuels business. And we got some -- Alan will talk to you about some of the things we're doing in that space today. And then with low carbon fuels, we see that as longer dated. We see that as longer dated, market led, really, it's the same customers that are buying LNG from us today that are going to buy lower carbon fuels in the future, whether they be synthetic LNG, e-methane or whether they be hydrogen. My view is more likely to be e-methane or synthetic methane in the longer term than green hydrogen liquefied and transported across the oceans because of the advantage that you can use all of the existing infrastructure to do that. And we'll talk a little bit about that today. So it's a backfill and sustained decarbonization, low-carbon fuels 3-horizon strategy. And that's all designed to deliver on our purpose as an organization, which is to provide reliable and affordable energy to help create a better world for everyone. So if we move to the next slide. Our capital management framework. You've seen this 100 times. Nothing really new here. Over that longer term, we're targeting operating within a gearing range of between 15% and 25%. And we want to do the work to maintain that credit rating. We've improved that credit rating over the years very considerably from where we started back in 2016. 40% of our free cash flow from operations, we've promised to give back to shareholders and we want to live up to that promise going forward. And of course, those shareholder returns will either be distributed through dividends or share buybacks, depending on what the Board decides on an annual basis. Of course, that cash flow we're generating from our operations is then used to also invest in major projects. And it's important we stay disciplined. And we face those opportunities. We don't want to build everything. It's value over volume. It's very important that we stay focused on value and we're not just chasing barrels. Less worried about production numbers and more worried about the margin per barrel as an organization. And that's a culture we want to create at Santos and drive that discipline. Prioritizing investments in support of regulatory jurisdictions. That's become more important in the last few years. You've seen the regulatory and the legislative challenges we have here in Australia on the Barossa project. Santos is very fortunate to have a portfolio of opportunities that allows us to pivot, allows us to -- if Australia becomes tough for a while, to look at other opportunities in other jurisdictions. We've got PNG. We've got Alaska opportunities. And the portfolio allows us to flex and to pivot if we have to do that. And so that is really it's now more prominent than ever in our decision-making that sort of a risk aspect of future growth opportunities. And as I said earlier, increasingly prioritizing shorter cycle CapEx projects. I'd say, D&C led projects, drilling and completions led projects, versus big major construction. And by focusing on backfilling existing infrastructure that allows us to do that. And of course, we have our energy solutions stuff that we want to fund. But very importantly, we're not going to fund stuff that loses money, right? We only want to do projects that have returns. And if we can't create those projects, we don't do them. And will be the biggest threat to that part of the strategy, will be the economics. Because if it doesn't work, we're not going to invest in them. And so for us, being disciplined means that, it means getting projects with the right hurdles and working with our Japanese and Korean and our Asian customers to find ways to make them work. But they've got to work and they've got to satisfy our investment hurdles. And we have maintained the same investment hurdles for our [ SCS ] projects as we have for our oil and gas projects. We haven't set different hurdles. So the next slide, please. In terms of backfill and sustain, this gives you a feel for what that looks like over the next few years. So we're taking a 5-year view here. Now we have this out to 2045. And most of our projects, particularly the big backfill projects, we're looking to backfill a lot of the infrastructure over the longer term. We're taking a 5-year view here and you can see a little bit natural decline in the base assets here from sort of end of this year onwards over the sort of 5-year period. And then we have some of our big projects coming in. We've got Barossa, we've got Pikka. Papua LNG is coming in just at the very end. That's where you see the green just jumping up, the green bar jumping up just at the end of this phase. But that should take us to somewhere between 100 -- we want to operate our portfolio over the longer term between 100 - 104 mmboes. And I think in this time frame, we're looking to get up to about 110 - 115 mmboes from that portfolio. So that's based on those major projects there. It's based on continuing to grow production in the Cooper Basin. So we've turned that corner in the Cooper now. You'll see -- Brett will show you some great stuff about the Cooper and how we're managing to inject new life in the Cooper Basin with some new plays, some very new significant plays, very significant plays, coming into play in the Cooper Basin. And how we're continuing to grow our indigenous gas in Queensland and that's ramping up nicely. And a lot of that is down to the technology, the lower drilling costs and the production cost environment across those assets. In terms of future opportunities, we've got a bucket load of opportunities. And so the discipline is in not rushing to do everything, right? We've got a lot on our plate over the next 5 years. As you can see, we've got a few big projects here. There is no rush to do that. But you can see a lot of optionality in the portfolio. We've got Dorado. We got Narrabri. Well, we've always had Narrabri, it feels like we've always had Narrabri, right? But it's still there and it's getting to be a better project every year, even though it's not progressing, right? We get one legislative challenge after another. But we're continuing to push on, on that without spending any significant capital, really only spending to maintain license, no more than that at this point in time until we get the final approvals, which are really centered around the pipeline and the native title award that we did get but has subsequently been challenged. Pikka Phase 2 and 3. And you'll see a little bit of it, Pikka and the growth opportunities there. Pikka is going really well. We're on the fifth well. We'll talk a little bit about that today and how that project is going. And Quokka Phases 1 and 2. And you'll see a lot of interest picking up in the North Slope. You may have seen the farm down to Apache in the U.S. on the exploration assets here. So there's a lot more interest around some of those plays now, on the North Slope. And of course and longer-term stuff in Queensland and in PNG. And even in P'nyang, the economics are starting to look better in the longer term. Next slide, please. So that's the backfill and sustain. In terms of decarbonization, I talked about the focus primarily being on Santos first. So really building CCS projects on the back of our own infrastructure to take care of our own emissions initially, right? And so that's Moomba. Moomba is, it will be one of the largest in the world today. It won't be the largest but it'll be one of the largest. But it will be the lowest cost, by a [indiscernible] mile, the lowest-cost CO2 sequestration project globally. Life cycle breakeven around the $24 mark, operating costs around $7 to $8 per tonne. So very low-cost CCS project, should take somewhere between 1.5 million to 1.7 million tonnes. Basically, it takes all the reservoir emissions that come to Moomba today that currently get vented. They'll all be captured and they'll be stored in the reservoirs at Moomba. The project is going well, it's about 75% complete. And that project will generate ACCUs. And it's the only one of its kind in Australia that currently qualifies to generate ACCUs, significant ACCUs for up to 25 years. So it's a really solid project. We're very excited about that project coming online next year and it will be a bit of a game changer for us in pushing the Energy Solutions business forward. We've got a number of MOUs signed up already, Memorandums of Understanding, with potential domestic and international suppliers of CO2 covering all of our projects, whether that be at Moomba, whether that be offshore at Bayu-Undan and in the East through our Devil Creek facilities using the Reindeer Reservoir, offshore Western Australia. So we've got 2 or 3 parties over in the West signed up. We have a number of parties signed up for offshore Darwin and we've got pretty advanced discussions about the next phase in the Cooper Basin and importing CO2 into the Cooper Basin as well. I talked about London Protocol legislation. We've been working hard on progressing regulatory and legislative frameworks everywhere that we operate. We need them to progress in Australia. We need them to progress in Timor-Leste. We've seen a lot of good positive comments on CCS from Penny Wong and from our Timor-Leste counterparts more recently and you saw the London protocol. I take my hat off to the government and the opposition for working together to get that through the Senate last week. That's what we need to do to get these projects up. Technically, they look excellent. The technical work and FEED for both the Western Australian hub and for the Bayu-Undan and Darwin project are almost completed. That FEED work is almost completed for Bayu-Undan though, technical work. It's really just the regulatory and the approval side that we need to progress there to get that -- those projects up. And of course, direct air capture technology. There's a lot of different direct air capture technologies out there. We've been trialing 2 or 3. We've got 1 on trial at Moomba now. So I think the last time I spoke to you, I talked about it, going out to a carpark in Perth and being trialed in a car park in Perth and it did and it worked. And so we then moved to the next phase of the trials, which are field trials and it's out in Moomba just now and that's a very different environmental test for the technology. Now we are targeting capture cost of less than AUD 100 per tonne, right? They'd be world-leading direct air capture costs. And if we can get this technology to work, this decade, that is a game changer. The Cooper Basin has 20 million -- has more than 1 billion tonnes of storage capacity. We see 20 million tonnes per year for 50 years but it's 1 billion tonnes of storage capacity across the depleted reservoirs and aquifers in the Cooper Basin, very significant storage capacity. You may have seen [ Oxy ] sign up in the last few weeks some buyers of credits from their direct air capture projects in the U.S., at very significant costs. We see a huge opportunity here. Not only do they provide offsets but to support us in a low-carbon fuels business aspirations. So you can see the 3 hubs there and you can see all the different routes to bring in CO2 back to those hubs. And as I say, a lot of interest from third parties in us capturing their CO2. That's decarbonization. If we talk about low-carbon fuels, if I can go to the next slide, please. I guess the one that I want to talk about most is the one that we've got the most activity going on in, which is our e-methane. E-methane is a term that our Japanese partners like to use for what we would refer to as synthetic methane. So what is synthetic methane? It's basically making green hydrogen, capturing CO2 either from the atmosphere or from customers and bringing that CO2, putting it together with the hydrogen to make methane. There's a lot of easier ways to get methane, I have to say but this makes methane. And of course, you can never release more CO2 back into the atmosphere when it's consumed than you put in, right? So at worst, it's carbon neutral. If any of that CO2 is captured in the end product, then it's carbon negative, right? So we see that as being advantageous to try to change the entire value chain of the technology, whether it be shipping technology, pipelines and of course, combustion technologies. At the other end, we see something that can use all the existing infrastructure, has been an easier way to go than changing all the infrastructure. Given how successful we've been over the last 7 years in building the infrastructure for the gas networks, which is still incomplete, right, I just can't see us changing that out to a new energy system anytime soon. So we think that that's a player. And the Japanese have got very ambitious targets. So they want 1% of [indiscernible] gas to be e-methane by 2030. They've set that as a target, a government policy target. And we're working -- we've got studies in place with Japanese partners right now working to feed into that by 2030. And for us, I think that's around a 50 terajoule per day equivalent project. So that's the sort of main one. As you can see, well, it schematically shows you how that works. We're bringing the CO2 back to Moomba. The great thing about Moomba, as Moomba is the best location in all of Australia for solar efficiency. So that wouldn't surprise you, it is in the middle of Australia, lot of blue skies, lot of good weather. What might surprise you is the second best location in all of Australia for wind efficiency, the second best. And it's a sort of a 24-hour wind cycle most days of the year, right? Again, if you fly over the Cooper Basin and look at the movement in the sand dunes, you'll see the effects of that wind. The third thing that might surprise you is, there's lots of water there, good quality water, which you need to make hydrogen, no shortage of water supply. And the other thing that may surprise you, probably not, has got potential for geothermal. So a lot of things going for in the Cooper Basin. And of course, the other thing, of course, it has got pipelines that then connect to every state and territory, except Western Australia. So if you can make it economic, you've got all the ingredients to bake the cake. And so we're pretty excited about what that can do. Much, much longer term, it's towards the end of this decade or maybe even next decade but we are investing a little bit in that. We're pushing that pretty hard with our Japanese partners. We do see the potential for that. And of course, with us being connected to LNG facilities, we see the opportunity for this in a much longer term to offer additional backfill potential much further down the line. Next, please. In terms of our business overview, this is an important slide because in 2022, we set the organization in 2 key divisions. So we've got 3 regions that execute and we've got 2 divisions that effectively are the functions behind the operations in the company. And that's our Upstream Gas and Liquids division and our Santos Energy Solutions division. Of course, following the merger with Oil Search, I think my direct reports went to 15 or 16 and so that was very much about embedding everything down, getting. Now it's too many direct reports for anybody to have, of course but it's short term. We've got a few planned retirements and stuff that will occur over the course of probably the next 12 months and you'll see them come through the system. But it was really about bringing everybody together and getting that organization set up to deliver on this new portfolio and it's going well. It's going well. The Upstream Gas and Liquids business consists of 4 world-class LNG projects. Two that are in development, Barossa and Papua, of course, Gladstone and PNG LNG. What is really impressive about these and we'll talk about in the next slide is the location to markets. All 4 are very close to the market, which is the biggest gas growth market globally over the next 20 to 30 years. Our energy -- sorry, we then have our 3 natural -- natural pipeline gas and liquids businesses in West Coast, Australia, East Coast of Australia and of course, Alaska, which should come on stream early 2026. And then our Santos Energy Solutions business, which effectively is made up of 5 midstream assets namely Varanus Island, Devil Creek, Darwin LNG and Bayu-Undan, Moomba and Port Bonython. And so they get the revenue streams that come from some of those assets today. And we've done a lot of work, silent work over the last few years, separating some of those assets out. So structurally separating those assets from the upstream projects. So for example, Varanus Island, Devil Creek and Darwin LNG are now all separated from their upstream assets, structurally separated. And we've got work ongoing right now to structurally to separate Moomba and Port Bonython from the upstream. That's really important to give us additional strategic flexibility in the future with those assets as we move forward in the future in terms of how we set our business up for longer term. And those businesses really are looking at 3 things. First of all is, processing solutions to Santos, our joint venture partners and third parties through those midstream assets. That's what they do today and really driving emissions down across that portfolio to provide low emissions intensity gas and liquids processing solutions. In addition to that, developing those 3 CCS hubs around that infrastructure that I talked about already this morning. And then finally, working on where appropriate at developing those low-carbon fuel solutions for the future, which will be a range from offsetting fuel. So fuels with credits attached to them. So that just may be gas today that we attach carbon credits to them, to give a customer a lower carbon solutions offset opportunity or it might actually be something like e-methane in the future. And of course, as a foundation to all of this is the Santos Foundation itself. So a lot of you will be familiar with the great work the Oil Search Foundation done but we've now taken that on and we're kind of pumping that up on steroids, if you like and applying that right across our group. And that's looking a lot -- after a lot of those community and indigenous sort of community investments and projects to support those local communities everywhere we operate, from Alaska, PNG Highlands and to the regional and indigenous communities supporting our Australian operations, all over Australia. Next slide, please. I talked about the LNG portfolio, a few really important points to make about this. 4 world-class LNG assets with a capacity of around 7.7 million tonnes per annum. Our production is increasing over the next few years through these LNG assets. It's important to note that, that infrastructure footprint provides a great foundation for lower cost backfill opportunities in the future. And we have good equity stakes in all of these projects. We're developing a low emissions intensity LNG portfolio. I believe that will be very important in the future. The lower the emissions intensity of your LNG is, the more valuable that LNG will be in the future, in my view. Some of the things that point to that. First of all, Bayu-Undan and Papua will have CCS projects attached to them. Now with Barossa, Barossa is now effectively one of the lowest net emissions intensity LNG projects in the plan. I think it's in the best 3 projects worldwide because we will be offsetting all reservoir emissions from day 1 until CCS comes online. So as much as that's a legislative requirement now because of the safeguard mechanism, what it does from an emissions intensity point of view, is make Barossa a very low emissions intensity LNG project, one of the lowest in the world. Another thing though, that gives all of our projects an advantage is the Scope 3 emissions from shipping, which results in the emissions being 2.5x, which is an awkward way of saying it, 2.5x lower than our U.S. LNG peers. And so that's not the fuel for the ships. That's part of it. It's a boil off. So when you take you can see on the map, an average of 8 days to get to your customers versus 20-odd days for your customers, that's a lot of boil of gas that goes out into the atmosphere. And that's allowing us to then have a low Scope 3 shipping emissions advantage over our peers. That's very significant over the life of a project, over a 15-, 20-year period. It's very significant in terms of emissions reduction. So when you look at all of those things together, that helps us work towards what we think will be a very low emissions intensity portfolio by the end of this decade, LNG portfolio by the end of this decade. And we have good long-term contracts with good terms that provide a lot of flexibility for us to manage spot exposure. And we've said previously, we're targeting around 25% spot exposure. But we have the ability to call back and recontract volumes when the conditions are right to do that. And it's quite flexible terms we have in those contracts. Next, please. Our Upstream Gas and Liquids business. Well, I'm not really going to spend a lot of time on this because you know this business pretty well. But on the East Coast, we have our Cooper Basin and our Queensland and New South Wales are operational. Queensland is predominantly CSG and GLNG and there's not a lot of domestic gas out of those fields, a little bit, not a lot. Cooper Basin, of course, comprises mainly of supplying the Horizon contract which goes to GLNG and some into domestic market. It's on a very exciting decarbonization journey. So steadily over the last couple of years, and Brett will talk a bit about electrification in the Cooper Basin. We've been doing a lot of work in that space for 2 reasons. One is, we need to decarbonize. Two is to, by decarbonizing those upstream assets, all those satellites around the Cooper Basin of which there are many, if you've never done it, by the way, I'd encourage you to get a map of the Cooper Basin and put it over Europe. And it'll give you a feel of the scale of the Cooper Basin. It's quite incredible how big the Cooper Basin is. And it helps you then appreciate the challenge and I would say the enormity of the challenge, I should say, of keeping those production costs where we keep them year-on-year given the geographic expanse of that. I don't think anybody would ever design it like that, if you got to design it from day 1 now. But that decarbonization journey is a very exciting journey. Electrification that allows us then to bring the CO2 back from those upstream assets back to Moomba, which, of course, we've now got a kit to capture and store and generate ACCUs for. And so it changed the economics of electrification because we have the benefit of the ACCUs at the other end. And so that helped encourage the electrification of those upstream assets and we've got some new plays. The guys laugh when I say it with my Scottish accent but the Patchawarra play is really quite exciting because we've never really developed Patchawarra, say that again, over the years in the Cooper Basin because we couldn't get the economics to work. But because we've been driving drilling costs down year-on-year and Brett will take you through that journey, we're now unlocking that. And that is a very, very a big potential opportunity. I think we're talking about something like more than 1 Tcf of gas in place across the place that we're unlocking because of the work that Brett and the team are doing in the Cooper Basin right now. And then the Granite Wash. Granite Wash gives us an opportunity to do something we've not been able to do ever in the Cooper Basin and that's to drill horizontal gas wells that actually work. And what I mean by that is that by driving up strong tail production and reducing the rate of decline across those wells, the more of those sort of wells that we can put into the field then the less wells we need to drill to maintain whatever our [indiscernible] production is in the Cooper Basin year-on-year, which means that sustaining CapEx drops significantly to maintain production in the future. And that's -- we've seen other operators do that in the Marcellus and other parts of the world and drive those annual costs down. And Brett will share some of the really exciting developments in that space this year. Needless to say, it works, or I wouldn't be introducing it, right? And in Western Australia, of course, the challenge there has been that Reindeer has been ending now for about 1.5 years. It's still going. I think it's still producing around 50 terajoules per day right now. I think we told you last year, we finished in the first half of 2023. Not sure how long that's going to keep going forward but it's going. The guys are doing a great job of cycling wells and continue to manage the waterflood there. We've seen Spar Halyard cut water, of course. We reported that last year. We're seeing decline at Spar Halyard. We've got some decommissioning coming up. And so Vince, who is now running the operations over there and really focused on ensuring that WA is a cash flow positive asset for the next few years, while it funds its decommissioning, provides a little bit back to the corporate center, stays cash flow positive. And then we bring on some -- I think we're going to drill an infill well next year but then bring on some bigger production a few years down the line, once we're through some of the other big growth opportunities. And of course, Barossa, we'll talk about in a bit more detail in a moment. But Barossa is a great project. It's a low-cost LNG project. It doesn't feel like that right now with some of the challenges we're having on it and we'll be frank with that. There's limited what we can say, obviously, because some matters are before the court. We just have to work through that process. But that's the Australian part of the gas and liquids. I think next slide is really on Alaska. Project is 29% complete. We're on the fifth well, world-class resource. This project will deliver very significant free cash flow when it comes online in 2026. I think we said FID was an IRR of around 19% on a $60 oil price. Well, that's only got better. That's only got better. Mark will share some really good performance information with you. We see the drilling is going really well. We're on the fifth well. We've got a very experienced team. Some of you were on -- hopefully, some of you in the room were on the investor trip this year and got the opportunity to go over and meet the team and see what they're doing, the great work they're doing. All the work programs that they had planned for this winter have got off to a good start. So very good team, stable regulatory environment, strong regulatory and government support at state level, very strong. Even at federal level, even the senators, very strong support for the project. Community projects are essentially complete. And I have to say the community relationships we have on the ground are absolutely first class, with the indigenous communities, particularly. And this will be a low emissions intensity project. This will be a net zero Scope 1 and 2 from first production and the plans for that are going well as well. You can see here how it shows you it has a very significant growth potential. Our focus is on demonstrating that it works for Phase 1 before we commit to any of that growth but it's very significant growth. And you can see, when you look at Pikka and in Phase 1 and that's 80,000 barrels a day I think nameplate that we're producing at Pikka Phase 1. What you can see from that scale, just how significant that could be and how quickly that could be. That could be a game changer for us, if and I say if we're successful in achieving Phase 1. But all the indications are looking really positive. The well logs look good. We just need some well test results in the next few months. And hopefully, that will give us the -- all the assurance we need for that. That project is going well. Next slide, please. Australian regulatory environment update. And I think it's important just to take a moment to make a comment on this -- the environment. The industry needs a regulatory regime that we can rely on, that provides reasonable upfront certainty on the rules required to obtain approvals. We've got to be able to rely on those approvals given when we make these investment decisions and when we commence activities. We can't be contracting rigs and vessels and then finding we're getting held up in court like we are today. That is going to drive investment away from Australia. Nothing will drive investment away from Australia faster than this environment. We're working with other industry participants because this is affecting all of us. I think only 5 EPs have been approved by the regulator in the last 14 months or so, and 1 of them has subsequently being turned around again following a legal challenge. So that uncertainty is killing us right now in Australia. We are working. I'm not really talking about the pipeline case, because I can't. It's in front of the court and we will defend our case vigorously, as we've said publicly. We have a valid EP and then we'll defend that. But we'll see how that plays out. The drilling, I guess, all I can say on that really is that we're waiting for that approval to come through. If and when that comes through, we'll get back to drilling and then provided we're drilling around the end of this year, provided we run the pipeline to plan, then guidance remains. And the reason for that is that I have never seen a project that was executed so well in terms of cost and schedule as the Barossa project. Now it makes me think maybe the guys were [indiscernible] the budget a little bit when they took it through FID, if I'm being frank. But all we've done for the last year is eat up contingency in this project. And it's nearly all gone. And so if we don't get going again by the end of this year, we will have to review guidance. And I think I've communicated that to all of you previously. And so that's where we'll be early in the new year, if we don't get going. The way to think about the drilling is that the drilling was never really on critical path. It is on critical part now. And so if we start drilling by the end of this year, we will be able to start up mid-2025 at capacity, LNG capacity. For every sort of 4 months or so, we slip on that drilling, it would be one of our wells that would be late. And so you'd be 75%, 50% capacity starting up if it was delayed much longer, say, 6 months or so. So that's the way to think of that but we're very focused. We're very committed to getting Barossa online as a world-class project. Our partners are committed and we're still optimistic we'll navigate our way through this in the months ahead. So that's all I really want to see on the regulatory stuff at this point of view. We're working with government. We're working with industry stakeholders to try and get these things fixed. But my call to government is, they need to be fixed. If they're not fixed, investment in Australia is going to dry up for offshore. And indeed, it would be very difficult for us to FID any other offshore projects here in Australia until we get a more certain regulatory regime than we have today. If I may then move to Energy Solutions. Our Energy Solutions business that we talked about is a separate division that consists of those 5 midstream assets. Alan will take you through this in more detail. But effectively, I just wanted to run through quickly how we've structured this. We've got the midstream infrastructure of those 5 assets. We've got the carbon capture and storage hubs we're developing at Moomba, Bayu-Undan and Reindeer CCS. Our Carbon Solutions group that sits within Energy Solutions. Carbon Solutions is a group that's based on nature-based projects, investing in developing nature-based projects. Santos has an incredible access to land. We have thousands of landholder agreements in Australia. We've got landholder agreements in PNG. We've got land access arrangements in Alaska and relationships. And through all of that, that gives us the opportunity to work with local stakeholders to develop nature-based projects that generate high-quality offsets and credits -- credit units. And so that part of the business is going very well already and we expect to start seeing yield from that business this year and generating very significant credits. Low carbon fuels is what we talked about. That's the guys in the white coats that are looking at this stuff well in the future. Looking at direct air capture and how that can help support the development of e-methane or synthetic methane. And of course, all of those are sort of lining up to help us to achieve our asset decarbonization targets, our Scope 1 and Scope 2 targets that we've set for 2040 and those 2030 interim targets that we've set as well and on track to deliver on. Next, please. These are the midstream assets. You know about it. I'm not really going to say too much around those other than all of them are on their own decarbonization journey as well as part of that overall plan. And if I go to the Carbon Solutions, which is the next slide, I talked about the vast land access opportunities that we have across that business. We've already got projects going. So for example, in Queensland, we've got a [indiscernible] industry generation project registered this year with the regulator. In PNG we've got a project that's planned to deliver us more than 8 million tonnes of credits over the next few years, over the next decade or so from a project that's almost up and running. And in fact, 1 is up and running in PNG. And in Alaska, we should start to get credits from one of our projects this year as well by the end of this year. So you can start to see that these projects are building momentum. And we think there's significant potential. What's really quite excited about this. These are developing projects in partnership with the local communities that are sustainable, that are profitable and they create jobs for local communities, significant jobs for these local communities, some of which are indigenous partnerships as well. So we're very excited about what that -- and it really comes down to your view on the price of carbon. Your view on the price of carbon longer term, if we can generate millions of tons of credits from these projects each year, that gives our marketing and trading guys the opportunity to set up new revenue streams for Energy Solutions. And so if I think then -- so how is the company performing? It's very important from a reliability point of view, that we're safe, we're reliable and our base business keeps performing. And so what I'm really pleased about, if you look at lost time injury rates and our moderate harm -- lost time injuries are very well-known metric and you can see we're performing better than benchmarks there. And I'm glad to see that after the aberration of 2021, the post-COVID impact that we saw industry-wide where incidents went up and I think it was COVID fatigue was really kicking in, a lot of slips, trips and falls. We saw globally fatality rates go through the roof in the last 2 years. That's a really sad indication, I think, of where the industry has sort of got to post COVID. Fortunately, touchwood, we've avoided that so far. And I have to say, I started touching on my organization earlier on. This is the strongest operational leadership group I've had in all my time at Santos. If I just think of the 3 regions, with Bruce Dingeman in Alaska; Brett Darley, Eastern Australia and PNG; and Vince Santostefano in the West looking after Northern, we have never had stronger operational leadership than that. That is the strongest the company has ever had. And what's really exciting, as much as I said, about 14, 15 direct reports today, there will be some consolidation as people retire and stuff over the next few years and I'll get that down to a more manageable level. But what is actually really exciting about that is the talent we've got just below the leadership level pushing through. The young talent we've got. We've never had a rich a talent pool as we have in the organization today. So I'm really quite excited about that. That's important when it comes to managing things like integrity and safety, asset integrity and safety. So you can see that playing through and the safety performance, getting back on track pretty quickly after COVID. Harm is an indicator of the incidents that matter, not that getting a band-aid on a cut in your finger doesn't matter but that can often -- that's a TRIR, right? But the harm is when someone's injured to the point where it causes them harm for a period of 3 months or more, right? Permanent or temporary harm for 3 months or more. So that could be breaking a leg or breaking a bone or something like that. They're more serious incidents. Of course, there's the more extreme incidents as well. So it's really important that we're on top of that. And you can see by focusing on that, we have really driven that down with that same uptick in 2021 but I'm pleased to see that that's going the right way. In terms of process safety, so this is like what we call LOCIs, loss of containment incidents, gas, oil, getting out of the pipe or the vessel. You can see there, we've been pretty flat for the last few years, better than benchmark but flat. So we want to see that going to the next level. To put that in context, though, as much as it's flat, we've taken on a lot of new equipment and new assets in the last couple of years. And Brett will tell you a great story about reliability in PNG and how we have taken the reliability of those assets from the 70% into the 90s and what that's meant for production outcomes in PNG. And that's about using good asset integrity processes and standards to drive that reliability of those assets up. It's important we stay on this too. We want that to be even lower. Every loss of containment is potentially a serious, serious event. And of course, environmental performance. And this is what I'm pleased about. So this is when we benchmark against our peers worldwide on spills. This is environment of spills of a barrel or greater, which is the kind of standard global industry benchmark. You can see we're top class here compared to our peers. Cultural heritage management. I want to share this one with you. So for all of our operations onshore, we conduct cultural heritage assessments. We walk out in the land with our cultural heritage officers. We have close to 100 of those on our books and we inspect for any cultural heritage. And quite exciting, we often make finds. So we've made a lot of finds here in Australia. You can see the -- I think it's the light blue bar is the finds, So we made a lot of finds to help our indigenous partners identify new cultural heritage sites that they hadn't previously mapped and some of those are quite rare finds as well. So that's a very valuable part of our business because that allows us then when we're going to drill a well, for example, not to put the rig in the wrong place. And I'm pleased to say that you can look at the hundreds of assessments and hundreds of programs we executed there out in the Cooper Basin, particularly but in Queensland as well. We have not any serious breaches there in decades. So really working well as an organization doing that. And you can see how we're driving that indigenous and local spend across our community as well. And that's very important to us. We want to be a more local company, get away from [indiscernible] as much as we can, be part of those communities. It's important the community supports us and the more jobs, the more investment that we can direct in the direction of those local communities, the more community support we will have. And if you -- if you struggle to sleep, I encourage you to read our sustainability report or [indiscernible] report and that will help you see the trends and the activities that we're doing in these spaces. Now I believe from a social license to operate point of view, that's going to be really valuable for us over the longer term. In terms of financial performance, I think on the balance sheet, you see the interesting journey since 2016. So we've come a long way. And really, you can see how we flex back up to do acquisitions from time to time or to invest in growth. So that's what those bumps represent. But it's been a pretty positive journey over that time frame. The one I'm really pleased about is the next one, the upstream unit production cost. No, no, not the next chart. I mean, the next chart on that slide, sorry. The production cost chart. You can see here with the production costs, how we've managed to drive them down over the years. And that's a really important point because that's the scale benefits of the mergers and the acquisitions that we've made, right? So what we're able to do there is, everybody talks about synergies, right? Very few companies ever delivered them, truly delivered them. We've held our management to account to the synergy promises they made before every acquisition. And then what we do is, we keep measuring it. And so by putting that onshore Center of Excellence in Brisbane, where all the drilling completion and connection activities are run out of Brisbane. The Cooper Basin remote site operations are now being run out of the operating center in Brisbane. Queensland operations being supported out of the operating center in Brisbane. That drives synergies and drives unit production costs down. And by continuing to do that, you can see we'll buck the trend and Anthea has got a great chart on this later on, show you how that compares to peers over the same time period. And very importantly, that's all part of the operating model, which is designed to drive that cash flow yield from our portfolio up. Now I know I've really blown my time limit here but I'm enjoying myself, really drive that cash flow yield up. And you can see on the next chart how that has worked over time, ignore 2022. It's a bit of an aberration because of the very high commodity prices. But you can just see more average prices, what that trend line looks like. And it's a pretty positive trend line. And I think that's going to -- actually, if we go to the next slide, the next slide shows it better, I think, this is my favorite slide. So this is -- our whole operating model is designed to deliver this. This is what we want to deliver. Now I have to acknowledge, it ain't coming through in the share price, right, very frustrating. But from 2016 onwards, we have been focused on driving or talking up that cash flow yield from the portfolio, right? And you can see that will be -- what that journey is like. And I think ultimately, if you look forward, if you go back to -- I think back in 2017, 2018, it was about $250 million or $230 million for every $10 above our operating free cash flow breakeven. That was the sort of cash flow yield of the business. 2021, that went to $330 million, 2022, that was $450 million. And that's not to do with the oil price, that's just to do with our breakeven, right? And then if you look at the forecast going forward, 2025 with Barossa coming on, that goes to $550 million. It goes to over $600 million in 2026 onwards, '28. So it's about continuing this journey and that's where asset portfolio management and optimization is critical. Because we want to be focusing on the investments in the assets that keep talking that up and generating as much cash flow out of these assets as we can. And that's why it's important to maintain strong discipline around production costs, so that every $1 or $2, we can squeeze out of every barrel enhances these numbers. And that's very much the operating philosophy or the operating model philosophy that we're driving through the business. You can see we're targeting ROACE of around 15% to 20% by 2028. Now that's all based on, I think, the $75 oil price. So just using the forward curve as a proxy for oil price during that period. So you can see very, very strong cash flow generation. If I go to the next slide, what has that meant? Well, even just in the last year and a bit since the Oil Search merger, we've generated USD 5.2 billion out of the operating cash flow from the business, then you think back to where the company was in 2015 and '16, I think 54 million boes was the production back then, dropping in to 40s, hadn't generated any free cash flow for 9 years, genuine free cash flow for 9 years. So in the last -- since 1st of January 2022, USD 5.2 billion, USD 2 billion returned to shareholders, reduction in net debt of USD 1.4 billion. At the same time, we've been able to invest in things like CCS to develop that license to operate, the low-carbon intensity business of the future. 75% complete. In fact, I heard yesterday that's 77% complete. Just throw that out there. I just heard yesterday; 2 more percent in the last few weeks. I thought I'll look forward over a 5-year outlook. We're talking about a 6% compound annual growth rate in production, that at $75 oil that should generate around USD 14 billion in free cash flow from operations, of which 40% should go back to those who need it most, to our shareholders or want it most, I should say, want it most. And importantly, by 2028, we are targeting CO2 injection of around 10 million tonnes per annum by 2028, right? That's Bayu-Undan coming online with Moomba CCS and hopefully, Reindeer as well. So more than 10 million tonnes per annum. And we haven't really factored in revenue streams from that yet because it depends on that mix between our own CO2 and third-party CO2. So if I then think, well, what does that mean in terms of investment proposition. Of course, I would say and I do say we've got a diversified and very cash-generative portfolio. We've built a portfolio that prints cash now. It's a very different business. And this next part of growth is really critical to execute well and get it on stream because it takes us to the next level. And it takes us to the next level for a sustainable period of time into the future. That's very important. Allows us then to move to a lower CapEx intensity business, a much lower CapEx intensity business. I saw a Wood Mac chart that has us as one of the highest capital-intensive businesses in 2024, '25 and one of the lowest globally by 2028, 2030. And so that's a real flip because the big projects are sort of behind us by 2028, the big mega projects. And that gives us a geographic and product differentiated asset base. It gives us, as I said, 6% production compound annual growth rate. And with that disciplined cost management model, we should be able to get extra dollar, extra margin out of all of those barrels. Very significant cash flow from operations during that 5-year period and with a strong balance sheet in that 15% to 25% range. And you saw on the chart, the difference when we talk about our gearing, I've got to make this point because I know I say it all the time, and I know only 1 or 2 of you were there, right? But we look at gearing, we look at IFRS gearing and we look at our gearing, excluding operating leases. And that's very important because all of our drilling rigs that are on short-term leases now are in there, right? And you can see how that's 4%, 5% and then the difference in the next couple of years. So if you think of your gearing without those leases, it's 4%, 5% lower, right, than what we have to report through to meet our accounting standards. And it's a good way to think about the strength of the balance sheet. Look, we've got net zero Scope 1 and 2 targets for 2040. But importantly, we've got significant targets for 2030, including a 40% reduction, which is not on this slide, of emissions intensity by 2030 across our portfolio. And when you think of that in terms of 4 world-class LNG assets, close proximity to market, Scope 3 shipping CO2 advantages and CCS projects to make them low emissions intensity, we see that as a really valuable business, that LNG business. And then of course, developing new earnings streams in the form of third-party carbon management services, which we think will be a combination of CCS services, carbon capture to use for clean fuels or low carbon fuels. And of course, the carbon solutions stuff I talked about, those nature-based projects, which help us generate units that we can sell and/or use for ourselves. And so in 2024, my last slide, really just wrapping up key priorities for our business in '24 is deliver safe and reliable production within our base business. We must never forget the value of the base business. You've got to be able to reliably produce. We had outages at Varanus Island last year, which cost us 3, 4 months of production from some of our wells there. That's expensive when that happens. It's not good when that happens. Now sometimes unexpected outages occur. And so it's about how quickly we can return from those. But the best way is to prevent them. And so having really strong operational and asset integrity management is important. Progressing our major projects, Barossa is the sticking point with that one right now that has you all concerned. We're going to work hard to progress that but also Pikka and Papua. Papua expected to take LNG probably second half of '24. Backfill and sustain production on the East Coast, so continuing to turn around and it's really good to see that after the CapEx cuts in 2021 in the Cooper Basin. And I always hate when people cut CapEx in the Cooper Basin because it drops like a stone. Then you're going to build a few years turning that around. And we're now growing it again. It's now growing. Brett will share that with you. And of course, in the West Coast, I shouldn't forget GLNG is growing as well, right? Indigenous production is growing year-on-year, there too, some great drilling breakthroughs there. And of course, in the West Coast, we've got Spar Halyard infill well we want to drill in 2024 and give that little sugar hit until we bring bigger projects on a few years down the line. Delivering Moomba CCS that's very important. It's a bit of a game changer for the company. We know -- I think we're very -- some of you might have been on the financing and bankers trip out to see the assets last week, I think it was. And that -- we got very, very positive feedback from that. One of the great advantages of CCS in our SCS business is not just new revenue streams but it's access to capital in the future. We believe that's going to be critical and earning us access to capital. Progressing Bayu-Undan and Reindeer CCS and by making those MOUs into binding offtake agreements that will support FID decisions on those projects in the future. And then progressing those low carbon fuel studies and e-methane projects; and finally, continuing to assess structural alternatives across our portfolio. Looking at how we can optimize our portfolio and strategic opportunities. Now I know I've spoken to a lot of you in the last few weeks about some of those alternatives, what they look like. I'm not going to say what they might look like because there's all different, there's variations but we are looking at those. We do have a bunch of internal and external advisers who work with us on that. We've appointed them. We did that earlier this year to look at that. And if I can call out, James, and I really appreciate James and the team coming forward with their proposal more recently. That's one we looked at. So that was not -- I would never dismiss that as a good opportunity. It's one we had looked at earlier this year, and we're continuing to evaluate. That's why we're doing the work we're doing to structurally separate certain assets out to give us that optionality for the future. And we will announce as we achieve some of those things. But we will continue to do that, working with our advisers looking at structural options. The share price is very frustrating. I think it was [indiscernible] peers in this part of the world, we're all very frustrated with how undervalued we're for the business that I've just taken you through. You look at the cash flow generation from this business, you look at the opportunities in front of us and you look at the track record of discipline, it's cheap. I encourage you to buy more by the way. I encourage you all to buy more. It's cheap, right? But we have to look at every alternative because if the market is not going to value, we've got to find a way to value and get value from it and we will do that. And we'll continue to talk with you and update you as we progress any opportunities along those lines. So that's my section. I'm going to wrap up there. I think I blew my time by about double, so I'm going to ask everybody else to stick to your time, right? And so maybe I'll invite -- I think it's Brett -- no, it's not Brett, Anthony, sorry -- if Anthony wants to come up and take us through the marketing, Anthony. No, you do it mate, you do it. Come up. We're all excited to see you. So thank you. Thanks very much. Thank you. I'll be back up at the end.

Good morning. I'll try and keep it quick. Thanks for coming. Believe it or not, it's actually a good time to have oil and gas projects. And I know a lot of people in this room probably think that. But the geopolitical tensions over the last 2 years have brought the world's attention back to energy security through basically reliable and affordable fuels. Asian customers are very focused on energy security from reliable suppliers and trading partners such as ourselves. The U.S. Energy Information Administration, EIA, lots of acronyms in this, in their 2023 international energy outlook actually showed that oil and gas would grow out to 2050, particularly from the Asian customers. Total annual demand for natural gas in the EIA scenario reached to 197 Tcf by 2050, which was up from 145 Tcf in their 2021 report. So it's growing. The graph up on the board, on the other hand, by the International Energy Agency. This is their announced pledges scenario, so a 1.7-degree Celsius scenario, shows that there's a small decline in oil and gas by 2050. However, gas still contributes -- oil and gas still contributes approximately 20% of the total primary energy demand in 2050. And you can see from the bottom dark blue area, the gas remains relatively flat over the next 2 to 3 decades. Coal is what switches out, as you can see from that graph. Oil and gas demand remains a very key component of the energy mix in the Asia Pacific region out to 2050. Demand for energy in the region is driven by forecast growth in population and GDP as non-OECD countries strive to grow their economies and improve their standards of living. It's all about cost of living, and that's what oil and gas can provide a low cost of living standard for Asian customers. The Intergovernmental Panel on Climate Change, the IPCC in their AR6 report published over 3,000 scenarios, representing potential future climate states. We've shown a subset of those scenarios on the right-hand graph, particularly for Asian customers such as Japan, Korea, China and India. And you can see from that, the median of those scenarios shows gas grows out to 2050. Moving to the next slide. The long-term view for LNG is supportive of our world-class portfolio. We see strong Asia Pacific demand growth to 2040 with limited Pacific Basin supply coming online. Santos has a proximal advantage to Asia to supply into a growing market and a competitive cost for our secured trade routes that Kevin touched upon. We've got strong appetite for long-term contracts from our traditional buyers. Demand is diversifying as nations such as India, Vietnam and Thailand, in particular, all plan gas-led economic and energy transition as coal switches out of their energy system. We have increased European LNG demand, which has diverted supply from the U.S. and the Middle East, further tightening APAC supplies. 70% of the U.S. volume is delivered to Europe in 2022 versus 35% to 40%, which happened in the 2 years previously, 2019 to 2021. So a massive shift in that geopolitical tension that's occurred. Supply growth is limited in the short term. Historical underinvestment and project delays have limited supply with no new supply expected to reach the market until 2026 and beyond. Lack of investment and COVID construction delays have led to these supply growths, and it's maintained today's tight balanced market. Existing and low-cost backfill and brownfield LNG projects positions Santos well in a tightly balanced market. Any cost inflation or delays in these competing greenfield projects that are coming up across the globe will strengthen Santos' position even further. With limited new supply not expected to reach the market until 2026 or later, the balance is supportive for strong prices and demand in the short to medium term. Next slide, please. Slide 27 touches on domestic gas supply. Energy security for domestic markets, both in the East and West is a high priority with no new supply coming to the market quickly. On the domestic gas markets, these graphs show that both the West and the East Coast markets need new supply this decade. The fundamentals of the market is supportive of Narrabri and our WA backfill projects we have in our portfolio with strong prices and long-term demand still expected. The latest outlooks from AEMO show that further investment is required to increase gas supply. Australian domestic gas plays a critical role in the transition of the energy grid. Natural gas demand by industrial users will remain strong as an affordable and reliable source. The majority of Santos' contracts are with C&I, commercial and industrial customers, not power. And these C&I customers rely on gas, not renewables to run their business. Domestic gas demand is forecast to remain strong with new gas supplies required to meet this demand. In the West Coast, the WA gas market has changed significantly with supply deficits through to 2026. The potential for incremental gas power generation demand if coal supply the issues persist. So in other words, there's pressures in the energy grid in WA and as a result, gas prices have reached record highs of approximately $9 recently per gigajoule. In the East Coast, we have great uncertainty without new supply, shortfalls are forecast to begin later this decade with decline across mature fields and limited new supply coming online. The market is currently tight, but balanced with prices higher than its pre-COVID levels and prices are currently in the market settling around the government price cap level of approximately $12 a gigajoule. Santos is well positioned to provide both supply and -- in both markets to East and West. We've got Narrabri in the East, and we've got our WA backfilling our potential Bedout Basin gas projects in the future to supply these markets. Next slide, please. In terms of oil demand, the graph on the right is showing oil demand through this decade, and it holds consistent through to 2050. Investment in new supply is required to meet demand as base crude declines. This underpins the strong pricing conditions, which are shown on the graph on the left. And you can see this is from S&P, but oil prices are range bound between $80 to $100 for the remainder of this decade. Santos' low-cost and low emission growth projects, such as our Alaskan oil development and Dorado are well positioned to take advantage of this oil schematic. Next slide. The Australian carbon market is interesting. The graph on this page is data from RepuTex and shows the annual ACCU cancellation demand for facilities that are covered by the safeguard mechanism along with the issuance of total ACCUs in the market. Based on the RepuTex central case scenario modeling shown on the graph, accounting only for issuances for registered projects, you can see the market is expected to remain in surplus for the next few years with ample supply to cover demand until compliance liabilities under the safeguard mechanism increase later this decade. The market, however, is expected to be short from 2027, as can be seen from the blue dashed line as supply from existing ACCU method slows, that is mainly from landfill gas and avoided deforestation, and ACCU compliance cancellations begin to grow as we reach the second half of this decade despite new sources of supply scaling up. As a result, we see the demand for ACCUs for compliance purposes, really increasing later this decade. The market will potentially be short of new issuances from projects, ignoring any surplus credits that the government may release from their bank of credits that they do hold. Next slide. Slide 30. So in summary, the fundamentals of the market is supportive of our strategy and the demand for products we produce will continue for decades. We view gas as critical to the energy transition and our products are essential to support energy, social and economic security. Asia Pacific energy market demand remains strong for this decade and the domestic markets we supply will require new sources of gas. Santos is a low cost and lower carbon LNG portfolio. Asia Pacific is a net importer of LNG with demand continually outpacing supply until 2040. We're focused on backfilling our existing infrastructure, that's DLNG, GLNG and expanding our LNG production in PNG with Papua LNG to supply these Asian demand centers. Customers worn out products and market contracts currently are supportive of 10-plus years with the change in the energy security thematic that's occurred. There's also a growing interest from customers in abated fuels and decarbonization opportunities, which Kevin touched on and Alan Stuart-Grant will go through. We're currently marketing some of our PNG LNG volumes, and we're also in the market for our Papua LNG volumes to support FID in 2024 and there is extremely strong demand from all Asian customers who like the rich gas qualities of our LNG in those projects. Rich gas means less spiking of LPG and a lower cost to customer. We're building capability in our LNG and carbon trading through setting up a Singapore trading hub, which complements our already existing Tokyo office, and we have extremely strong access into the region. In domestic gas, the latest AEMO outlooks that I showed you show that investments required now to meet the gap between supply. If something doesn't happen, we could be short later this decade in both East and West Coast markets. We have committed much of our needed supply from our Narrabri project to the domestic market in the East Coast. And in the West Coast, we will continue to look at investment opportunities to backfill our portfolio with WA existing assets and our Bedout Basin potential future gas projects. For liquids, our oil demand continues to grow this decade and remains strong through to 2050, and we're developing world-class assets in our Alaskan oil project and Dorado project that can supply these oil markets. Finally, as can be seen from the graph, as we move forward post our growth phase to 2028, you can see that Santos will have a well-diversified portfolio with approximately 60% LNG, 25% liquids and 15% domestic gas. We'll be spread nicely across our 3 operating countries of Australia, Papua New Guinea and Alaska, which all are advantaged by close proximity to the strong growth required by the Asian demand. On that note, I think I've gone through everything I can as quickly as I could, and I will hand over to Brett to go through the East Coast. Happy to catch up later.

So yes, good morning, everyone. I'm Brett Darley. So I lead the Eastern Australian PNG region, as Kevin said. So what's my role. My role is to ensure that we've got a really strong backfill and sustained pipeline as part of the strategy. My role is also to make sure we've got a decarb pathway that's consistent with our strategy and commitments and to generate low emissions products like LNG, and it's also to continue unlocking value from the portfolio. And it's not rocket science. We lower our development costs, we create more resource. We lower our operating costs, we create more margin and more cash. And I'll show you some examples across each of the assets where we're continuing to do that. And again, I'd just like to reflect on what Kevin said in his opening, a very good safety, probably our best safety year ever. Our best daily reliability year, our lowest maintenance backlog year and our lowest operating cost year. So those things generally come together. You will never see a bad safety year and a good operating performance. They come together. And I think you're seeing real performance come from the base and allowing us to generate value in our growth projects, provide the cash for us to grow. So briefly on each asset, PNG, world-class asset, low CO2. We have a very strong backfill, and I'll show you that in a minute. From our current fields, Angore and our associated fields, but also with Papua LNG and P’'nyang. GLNG, a really well-performing asset now, a reliable asset, daily production, very constant and we continue to drive cost down. And that part of the business is bleeding into the Cooper and into PNG. We're using that factory style, absolute focus on getting costs down and not through just discipline but through innovation, and I'll show that as well. And the region with all of that senate in Brisbane now, you can see that just permeating through the building, and I'll show you some of the results from that. In the Cooper, we had continued to unlock value. I think 39 years ago, so 1984, I first went out to the Cooper Basin and I have been involved in it ever since. And ultimately, every year, I see us being able to unlock value, and I'll show you some really exciting stuff where we continue to really sweat that mature asset, and it always surprises me just how much value is in the Cooper. We talked about Moomba CCS, and I'll do a very quick update on that. Kevin mentioned that 75% complete and Narrabri, a 100% domestic gas option into a supply-constrained market. So quickly, just for the next one, Moomba CCS, so you can see 77% complete, very recent reinjection or injection trial that went on for one of our injection wells as per plan I think last week. So very confident about that. We're around the $220 million mark as far as the project spend goes, but still a very low cost of injection, so $24 per tonne. So again, lowest worldwide as far as a CCS project goes. We will get our certification later in '24. It's a new process, so it will take us a little while to get that certification. We have a huge capacity out here. This is Phase 1. There's Phase 2, Phase 3, if we want to do it. And at the moment, we have 100 million tonnes of CO2 storage booking in the equivalent 2P and 2C for CCS storage reserves. And not only that, we're growing that in -- and we're growing that in the near term as well. So let's go to Papua. Quickly on Papua, it's scheduled for FID in 2024 with first production in '28 scheduled. 6 million tonnes, of which we're using 2 million tonnes from the existing PNG LNG facility. So we're using our infrastructure position to get value on -- out of Papua as well. It leverages our position and delivers a lot of value to us, not just through the additional gas that's coming through the Papua or the additional gas that we produce, our equity share of the Papua production but also through tolling. So we will get an access fee, OpEx sharing and ongoing processing toll revenue that compensates PNG LNG for the capacity it gives up to Papua. Now for us, we -- it creates a higher margin business for us. So we're getting value over volume in this instance. It's a really high productivity carbonate reservoir, and we've designed it, and it's being designed by the operator to have CCS injection from day 1. So with that, it's going to have very, very low carbon metrics and again, be a supplier of really low emission LNG into the Southeast Asian market. We're doing something different or the operator in Exxon is looking at e-trains. So the expansion trains will be electric trains and then ultimately opens up for renewable penetration later. So it's future-proofing those trains for the LNG energy consumption. Let's go to PNG. So really large, enormous reserve base there, about 33% of it is operated. If you look again at this out past 2040, very, very good pathway or backfill here that we already have. I mean this is already projects that have been talked about, if not ready to be FID-ed. Also, we have the optionality in this portfolio. There are some really large scale volumes out there, exploration volumes including Wildebeest that we have the option on in the future. So ultimately, those things would be game changers. Again, it wouldn't just be backfill in that case. These sorts of success at Wildebeest would be expansion in PNG on top of this. And then what Kevin alluded to, reliability in the last 2 years. So we talked about the synergies that we've delivered through the -- through merger of the companies. Those are -- this is over and above those synergies. We continue to deliver those synergies. They're baked into our budgets. We can't hide from them. Kevin make sure that we actually have to deliver on the promises of the synergies. We're doing that and more. So in the last couple of years, in the last 2 years, you can see that is reliability that is actually linked to gas production that we're putting into PNG LNG and that's about 1.6 million barrels Santos share in the last 2 years of additional production that we've extracted from these facilities. We have about 4 aging machines up there in the Cooper Basin. We have 120 of the same or very similar aging machines. And our ability to send our folks have been working on that up to the Cooper -- sorry, up to PNG, the PNG folks down to the Cooper to learn how to run these machines more efficiently, have maintenance strategies in place. That is real value that's been unlocked through the fact that we're able to leverage our expertise, again into PNG. So a fantastic story there. GLNG. So record field performance. You can see this year is our record indigenous performance or indigenous gas production, and we're forecast to grow that year-on-year. From that perspective, we had less reliance on third-party gas and more margin for us. Large reserve base here that we're progressively developing through our current 4 fields, and if I run through the fields, Fairview has been -- which is the jewel in the crown, has been going down over the last couple of years, we've reversed that trend. And in fact, we've added 20 TJs a day to our production this year. So we're doing that through horizontal drilling, accessing parts of the field we haven't been able to access previously because we're able to drill under infrastructure and drill basically under hills that we weren't able to access before. So that's opening up new resource and also reducing unit cost and I'll show you that in a minute when we talk about the drilling performance. And you can see long-scale LNG production out there. We have a future for GLNG and on top of that, the joint ventures are now aligned at looking outside the 4 fields as well. And we have an acreage team currently looking to see -- that's actually jointly run with the GLNG joint venture partners, which is really positive. Scotia, outperforming expectations again. I think I drilled Scotia 4 in 1997, and I think we've got a couple of hundred wells out there. This field is a fantastic field. It was the only CSG field in Australia with a natural gas cap, and it's still outperforming expectations. So this is the highest rates we've ever seen at Scotia, and we're now facility constrained. So next year, we're going to put some more compression in, and we're going to get that up again. And Roma remains flat, and we're continuing to optimize Roma as we go forward. Next one, thanks. So look, just on the drilling performance. And again, you just see this coming from GLNG and you'll see what's happening in Cooper, and we're pushing that into PNG. But from a performance point of view, this is what we've done over the last few years. We're now pushing laterals out to 4,000 meters or that will be the plan for the one in 2024. And we're doing 2 laterals a well, so it will be 8 kilometers of CSG reservoir exposure in these wells. But we just finished this one, so 2,600 meters, great result. And you can see what that means for our productivity. So say for Arcadia, our 4-kilometer step out that we want to do, we're looking to see a result of around 5.1 million a day from that, and we'll be drilling that next year. From a cost point of view, our unit development cost is about -- we get an uplift of about 2.5x on -- compared to a vertical well. So again, we're able to access less disturbance and also a better productivity outcome. And you can see we've been really busy making sure that we can deliver on that pathway going up, our increasing production at GLNG through our well count. So this has been our busiest year ever, 450 wells to be drilled and connected in 2023, which is absolutely massive. There's a lot of moving parts to get that done and the cost focus on this, delivering it as per cost reliably, safely, it's actually incredible performance. So let's go to the next one. So Cooper. So what are we doing in the Cooper? A lot of our reserves remain around the central fields, which is great from an infrastructure point of view, close to Moomba. So we have about 40% of our total gas production coming out of central fields. We drilled about 50% of our wells this year in central fields. So it's a place that's been drilled previously, obviously, targeting the Toolachee, which is the more conventional the shallower reservoir. We're targeting the Patchawarra, the deeper the harder, the one that's actually harder to make economic in 2023. So this is recent. We've a large campaign in Moomba Central, and we've been able to do that successfully, and I'll talk about that, what that means for further Patchawarra resource plays. But fantastic effort. And that really comes down to just getting the cost down. If you can get the cost down, you generate more resources for our producing -- for our economic fields. If you get the cost down, you generate more cash. Granite Wash. So this is a play we've had for a while. This is the first time we've actually drilled a long horizontal and stimulated it. And in fact, this is very hot off the press only in the last few months. That well was drilled successfully with very little issue and it was producing at 9 million a day. So a great result coming from the Granite Wash. So it's deeper again, very, very hot in the basin and a lot of the limitations, the temperature limitations of our drilling tools. What we're able to do in this campaign, which prove that the tools aren't just going to work in this green area, which is what we had been targeting. We've actually opened up this entire yellow area. So there's just a thermal gradient there, but that whole yellow area is now accessible with this technology. So this is fantastic. So potential double or triple that opportunity size, and we're going to be drilling there again next year. And then on the really short cycle part of it, oil still plays an important part. If you look at the economics here, we drilled 15 wells at the end of '22, start of '23 and they're basically nearly or close to doubling expectation as far as oil production goes. And if you look at those development costs, $21 a barrel, we have another 15. We continue to fill the hopper with really short cycle oil programs, that if we've got the money, I can go to Kevin, and we can turn that off and on to generate cash in the short term. Keep going. So the results this year, 50% of our drilling in the central fields being able to get the well cost down and just look at this, this is -- it's -- again, it's not very complicated. You get the well cost down, resource becomes economic. And that is a massive thing to do in the Cooper Basin, where you've already spent 30, 40 years of actually grinding costs out of the business to be able to get that step change and it really was a commitment to factory-style drilling absolutely going out there, connecting wells while we're still on the pad, pad drilling and a focus on days to sale as well. So really get these things drilled, the capital we deploy, get it producing as soon as possible. And it's opened up that play. So a couple of things that come out of that. We added 80 million this year from the Patchawarra play in central fields. And that's good. It's around our central area, and I'll show you we're putting in infrastructure and modernizing it. So a lot of our reserves are close to infrastructure, which will see the first waves of our modernization. And then we can unlock other volumes. So where else in the basin have we got Patchawarra that was either we haven't looked at because of the economics, and it's in Southwest Queensland. And these plays are really low risk, so when we go and drill these resource plays, virtually, our success rate is 100%. We take away the reservoir risk. It just becomes a cost equation, get your costs down, the well will come in, will produce and we'll get money. And we -- and then ultimately, here in Southwest Queensland, this is a substantial number if we can add Southwest Queensland Patchawarra to our resource volumes, a significant number there. And then Kevin pointed to the fact that these wells, as we start to drill more and more of these wells in our inventory, our decline rates will be slower. So they are stronger for longer these wells. They're more like an unconventional well. So the more of these we have in our portfolio, the less sort of decline we'll have going forward or the slower decline. And then on decarb, what are we doing? So low CO2 assets, PNG and our Queensland CSG assets are low CO2 assets. And for Moomba, we've got Moomba CCS. So from mid-next year when it comes on, we will inject all of our reservoir emissions into the ground. So we'll have 0 reservoir emissions. And then ultimately, we have a sync 4, and I'll talk a little bit about the power lines you see there, bringing our field emissions back to Moomba as well where, again, we're centralizing our emissions. And you can see here, we've just finished our Phase 1 of electrification in the Cooper. So it's about 80 kilometers of poles and wires leaving the Moomba facility. We've got about 30 megawatts of power. That's at Moomba, centralized power that we can send to our central fields, where we've got 6 large machines that we're converting to electric power. And not only are we saving sales gas that we can sell. We're reducing emissions by centralizing power and having more efficient machines in a centralized location. What was the last one I was going to talk about? Yes, we're generating ACCUs. Thank you, Kevin. So basically, we're generating ACCUs here, which is great for Moomba. And then ultimately, the renewable part of it, if we can bring all of our electricity consumption back to a single point, then we can do whatever we want, penetration with renewables at a central location is certainly something in the future. Queensland. We're already well down the path of electrifying the upstream. So we currently take about 110 megawatts of our 160 megawatts off the grid. So that is more sales gas that goes out the door that we can sell as LNG. And we're continuing to do that. So by next year, it'll probably be around 75%. And that ultimately is the Queensland grid greens than from our emissions point of view or at least from a Scope 2 -- our Scope 2 comes down. But very much on the pathway there. I won't talk -- there's a couple of small projects we're doing with solar and even Narrabri is a low CO2 project. So Narrabri, we'd look at a couple of options. But again, we're not starting from a high base. PNG CCS at Papua and also there's a few initial reduction activities and initiatives that Exxon is looking at for the PNG facility. Also, leveraging up what we've done in the last couple of years in CSG, when, in fact, across all of the assets in operations efficiency, so reducing flaring, getting out some of our fuel gas back through the system, using waste heat recovery, a few other options like that. We've been able to use the things that we've done in our other assets in PNG very quickly, and we've deployed them in the last year. So 32,000 tonnes per year of emission reductions op-efficiency projects delivered in 2023 into PNG. So using our experience to help them quickly get up the curve. So look, from a closing point of view really, I just want to make sure we've got the -- if we look at here, Tier 1 asset in PNG, material backfill opportunities to sustain production. And I like the growth opportunities there as options with our exploration are certainly something that's worth talking about. Papua LNG, very high margin expansion for us, given that we're using infrastructure as well as getting gas production through those facilities. GLNG, every year, unlocking more and more value from GLNG, getting more resources and getting costs down. We're continuing that journey. Cooper continues to be able to unlock opportunities there and a lot of that driven through costs, get our costs down, do things smarter, and we can unlock value there. And Narrabri again, 100% domestic gas option into a supply-constrained market. So a really good portfolio of assets, really clear strategy as far as keep these facilities full in the areas that we currently operate, make sure we've got a decarbonization pathway that not only meets our commitments but adds value to the products we sell and continue to unlock value. And from a regional perspective, we're doing that. And I think we're well set up to continue delivering on that not only this year but in the years to come. So that's all I had to say.

Look, I'll begin by saying what a great base business we have in WA and Northern Australia in both oil and gas. It's a very different business to what Brett runs, but I thought, as he was speaking, is that we have a lot of exchange between the groups. It is a very different business. Offshore is very different, much more lumpy, not as fast loop, but there's a lot to learn, and we do exchange. And I think that's a very powerful thing in the way the Santos business is structured at the moment. When I was here before, up till 2020 before my COVID break, there was a lot in the onshore business that was really good and transferable to offshore, if you only could think about it and vice versa. There was a lot in the offshore that I was personally able to translate into the onshore. So these different ways of thinking are very compatible actually, when you think about it. So it's a great part of the way Santos operates these days. So look, we've got an exciting growth profile with sanctioned projects like Barossa, as Kevin has mentioned, and new developments that are in the select phase at the moment like Dorado. Now the left-hand picture here, which you've seen already is Varanus Island, and that has a capacity of about 400 TJs a day, and we're actively adding to our production in line with our backfill and sustained approach. Spartan came on this year and goes directly to the WA domgas market. It can supply about 80 TJs a day and is very advantaged being close to existing infrastructure and compatible with the processing plant that we have at Varanus. Spartan is the first new offshore WA gas development in 10 years. I'd like to say that again, but that shows our commitment to the market. So turning to the center picture. Barossa supply and gas to DLNG is a high-value project, and I'll talk through Barossa project progress shortly. But suffice to say here, this project is a key part of our LNG portfolio. The right-hand picture shows drilling at Dorado, and Dorado is a 2-phase development with a liquids first phase and a gas second phase. This project is targeted to be FID-ready at the end of next year. It's currently in select phase as we optimize the project for value by examining various facility sizes and phasing scenarios. That's very important work. Timing of new developments such as Dorado are, of course, contingent on regulatory approvals. Also of note is our current liquids production of circa 11,000 barrels a day, Santos share. This year, the infill well Pyreness 4 was brought online, and we're actively looking at life extension options for the Ningaloo Vision FPSO for Van Gogh, Coniston and Novara fields. Next slide. What a chart. This chart shows the long-term outlook for our gas and oil production in the WA and Northern Australia business. As depicted, there will be significant growth with the startup of Barossa and future developments in the Bedout Basin from Dorado and Pavo. We will be further supplementing this production with exploration wells in the Bedout to find additional gas resources for the Phase 2 gas export. It's a great picture. Next slide. There are 3 specific topics I'll cover here. First, Halyard. We're the leading supplier into the WA domgas market, and we have ongoing work to maintain a strong position. Similar to Spartan, Spar-Halyard is a high-value project. It's an infill well aimed at maximizing recovery from an existing field through the installed infrastructure. Halyard has both low incremental OpEx and a low breakeven price. It's key to our backfill and sustained strategy. It's highly cash flow accretive with a fast payback and will add 8 million barrels of oil equivalent. Supplying the domgas market, the water and gas purchase started in September this year for 20 TJs a day, and this trip of gas helps diversify our supply in addition to DC and Varanus Island production. With Devil Creek nearing into field life, this adds to our reliability in the event of unplanned supply disruptions. Kevin mentioned some of that with Varanus, and we're actively working on improving Varanus reliability as well. On DCOM, we aim to safely and efficiently deliver our decommissioning activities in line with regulations. We're taking a phased approach in liaison with the regulators. We're staging work to optimize execution efficiency and to ensure we take advantage of rigs and equipment that are in country. For example, Mutineer-Exeter is being managed in 3 stages: floating assets, that's been completed, wells scheduled and subsea equipment is in planning and sourcing. The floating equipment removal was a large-scale campaign involving the FPSO disconnect, the riser turret mooring removal and safe storage of the risers. All this work was executed safely and with extensive diving and other high-risk activities. We will remove the Campbell platform next year and continue with preparations for additional removal scopes of the Harriet JV assets. So in summary here, we're unlocking value in WA through capital discipline, phasing our decommissioning spend to ensure we can deliver strong cash flows into the future. Next slide. Just a few words about Barossa. So leaving aside the regulatory issues for a moment, Barossa remains a world-class project. We're working with top-tier contractors, Allseas, Technip, BW Offshore and Subsea 7. We're overall 64% complete with the FPSO now in Singapore, readying to commence topside integration. The topside fabrication in Singapore is on track. The turret and mooring system are progressing to plan. Loadout of risers and the umbilical in Europe is completed. All subsea equipment and flow lines are ready for collection and have been delivered to meet the project schedule. All our overseas construction scopes are on track. We're somewhat delayed in our secondary approvals as mentioned by Kevin. But assuming that drilling recommences before the end of this year and the export pipeline also commences installation this year, the Barossa project remains on target to commence production in the first half of 2025 as Kevin has already mentioned. So despite the local challenges, we're continuing to progress what is a great project and key to our business. Next slide. So a couple of things I've not spoken to as yet, but which I'll cover now. We're actively implementing new operating and maintenance strategies and new technologies to improve our cost performance and unlock value across the business. We have transitioned the Devil Creek plant to remote operations, saving millions of dollars in OpEx. We're planning the same for Varanus Island, again saving millions in OpEx. We're using advanced downhole technologies to make our well decommissioning more cost efficient, saving up to 10 days per well compared to previous approaches, again, saving many millions per deployment. We're using remote surveillance technologies to inspect our offshore pipelines, saving OpEx and making our operations inherently safer. We're also moving to campaign-based maintenance strategies, which reduced our spend for the same activity set. I think this is very important. It's not about cost cutting. It's about being smarter with the money that we have and spending wisely. And as I mentioned, we learn from our fast loop brothers onshore. We will be utilizing our existing sites for CCS opportunities, and this will be discussed more fully by Alan shortly. So in summary, we're a leading domgas supplier in WA, and we have plans to maintain our position. The Dorado, Bedout Basin will be a major contributor to our WA business in the future years. And Barossa remains a world-class long-life LNG project. And now we can have a coffee break. So please join us for a coffee. [Break]

Hello, everyone. A lot of great conversation going on in the room, but I think we'd like to try to get started, so we can get through the second session and on to our lunch break. Okay. Again, my name is Mark Ireland. I'm here representing the Alaska business. And on behalf of Bruce Dingeman, our leader as well as my peers, I'm excited to be here and talk to you about the opportunities that we see in Alaska going forward. Particularly, I want to share the success of Pikka Phase 1, that's our initial cornerstone project that we have laser focus on to deliver those barrels that we've talked about in 2026. But I also want to talk about the future projects that Kevin gave a glimpse of on his introductory slide. We've got a series of phases of development similar to Phase 1 that we can bring within the cash flow that we'll generate from Phase 1, while at the same time, returning that 40% to investors that Kevin mentioned as well, so really exciting opportunities. We've got a lot of flexibility and optionality in the program that we'll take advantage of as we go forward. So if I could go to the first slide. This is a summary. There's a lot of detailed information on here. The left-hand slide is something we've talked about previously. I won't go into too much detail there. Except to mention, it has 29% completion for Pikka Phase 1, as of the end of last month. So as we stand here today, call that 30% complete, tremendous milestone for us here just a bit over a year after FID. And we see continued success in this area is critical. As Kevin mentioned, to building our foundation for these future phases as well. But important to point out, as far as contracts go, that's a gross number shown $2 billion. So $1 billion net in contract commitments have already been let that's out of $1.3 billion necessary to get us to capacity, nameplate capacity for the field. So as you can tell, well on the way there. 60% of those contracts are EPF-type contracts that have locked in great pricing that we were able to achieve due to the timing just after coming out of COVID, and to eliminated some of those inflation risks that are out there as well. Other costs for the project are also well established such as drilling day rates and that sort of thing. Also, the drilling schedule, so I talked about the facility, overall project being 30%, getting into more details about drilling completion, Kevin mentioned as well that we're on our fifth well now. I'll go into some more detail on a slide coming up about the progress and the learnings we've had in our drilling program. Also, the results have been excellent. So we're headed towards maintaining all our commitments for Phase 1 in terms of cost, schedule, reservoir performance. It's early days, but very encouraged that, that's where we're headed that so far, things are looking really great. And we'll continue to build on that success, enthusiasm. One of the next steps in construction is going to be this upcoming winter season. It's going to be very busy. We're preparing for that now and have all our plans in place. We've mobilized many people to the slope. We'll have 1,000 -- over 1,000 people working on the slope this winter. You can see some of the other steps, the pipeline orders in place. Importantly as well, besides the project delivery is our commitments in terms of net zero. So we will be net zero for our working interest share at start-up of Phase 1, and that's the commitment we'll continue to deliver on as we go through these additional phases. You can see we've got agreements in place with the Alaska Native landowner to secure nature-based offsets, as well as a consortium working on direct air capture that we hope to take some of the learnings, some of the technology that's being tested here by Santos in Australia and take that to Alaska as well. So on the next slide, I'll point out some of the continuous improvements we've been able to do. And so learning is a key part for our organization. We want to make sure that as we go each step of the way with drilling that we see these improvements in performance, and that will help leverage our long-term delivery of this project. So we don't want to just hit target, we want to do better than target. We challenge ourselves to do that each and every day. What's displayed on the right-hand side of this plot, is drilling depth versus days and days is also a proxy for cost. So you can think about this as debt versus cost as well. The curves in light blue to the right are all the individual well results for the first 4 wells. You can see that we're improving performance. The green curve is meant to be our best technical case that we're always pushing ourselves to achieve. And the solid curve shows the current well that's in progress, building on all of these learnings getting us even farther down the road towards improved drilling and completion performance. This just shows drilling. We're taking the same lessons from completions as well. We've only got one well completed so far, but we've got another one in process as we speak here today. So we're expecting to see further gains, some of the things just for any technically based folks in the audience, we've adjusted our drilling mud properties, our drilling practices, these are improving whole stability, which is one of the challenges we faced and overcome. Also, our targeting of the landing zone within the reservoir. We've adjusted that to give us better performance. And I mentioned the frac operations. We continue to optimize the frac operations themselves to deliver better performance in that area. And that's where the rubber meets the road, what is the well rate going to be to deliver the reserves that we've premised in. As I said, all indications from the geology and from the well performance to date gives us good confidence that we're going to deliver the premises that we set out at FID. So if we can go to the next slide. I'm going to get into now the -- what are we going to do with the cash flow coming out of Phase 1. So it's going to be very robust. This is going to be the cornerstone project for the Alaska business. And from that robust cash flow, we'll be able to fund the 40% returns that Kevin mentioned to shareholders, but we'll also be able to generate and pay for these future opportunities. So you can see on the production plot on the bottom left that these are staggered out in time. So one of the concepts we're utilizing here is to take the same team, the same designs, roll those over from one phase to the next and take those lessons learned at that macro level and apply them and get further improvements in things like cash flow for the subsequent investments. On the right-hand side, you can see that where our resources, both discovered resources in the Pikka unit as well as reserves, 2P reserves for Pikka, these are all our net numbers. I'd like to speak sometimes in terms of growth. If you take our 2C and 2P numbers on a gross basis for Pikka, we're going to be somewhere around 1 billion barrels of total production out of that unit on a gross basis. And those are all already discovered. We have additional prospects that will touch on that are meant to be Pikka Phase 3 that's embedded in those prospective resources. Then when we move to the east to Quokka, you can see that we've got 170 million net. That's 450 million barrels gross discovered to date. We've got further appraisal drilling, and it's important to note this appraisal drilling that you see in our core area here is not new field wildcat exploration wells. This is extensions of discovered trends that we're chasing. So relatively low risk and high opportunity to develop that. We think long term, with continued success with our appraisal program, Quokka has the same type potential that Pikka has. And then as we look to the south, a little bit longer dated, but still very important. You can see the Horseshoe unit, we have other lease holdings that are not in units at the current time that we have plans for as well. But Horseshoe is another unit that with continued appraisal success, could reach that same billion-barrel type production long term. So that's the kind of scale I want you to be thinking about that these are multi -- it's a multibillion-barrel growth opportunity for long-term development in a very flexible, optional basis going forward. Next slide, please. So how do we do even better with future phases than we've done already. That's a tall order, I know, but we've got a plan for that. So first is key to that is our scalable, modular, standardized kit for our surface facilities. That gives us the chance to design those once, build them a number of times, and learn as we go to drive those costs down. We also have established infrastructure with Phase 1, the roads and pipelines, the seawater treatment plant and just the pad space where our facilities sit and so on. And off to the right, you can see a mockup of our production facility pad, where Phase 1 is being installed currently. And the basic concept that we'll be evaluating for Phase 2 is to duplicate those facilities as a mirror image on the other side of the pad. And so you can imagine the cost savings without having to build the road infrastructure, pads and so on that we'll be able to achieve there. So what are we doing to advance these other projects were, as I said, laser-focused on Phase 1. That's the vast majority of our time and energy and capital investment. But while we're laying these cornerstones for Phase 1, we're preparing then stones for these future levels of production, these future phases in a low-cost measured approach. We've just entered concept select for Phase 2. So as we go through next year, we'll be looking at exactly what is the scope of Phase 2 meant to be -- could be somewhat different than what we're representing here but facility expansion, drill sites to a similar scope to what we're looking at now, but it will be at lower cost and higher value. Part of that is the expansion plans, as I mentioned. And also high-grading the well stock. We do have a number of opportunities, as you can see. We want to make sure we do the best project next in the best possible manner, with flawless execution. And getting outside of Pikka, we have a well-planned in Quokka, an appraisal well south of our Mitquq discovery well from 2020. We'll be drilling that in the winter season since that's not off gravel. That will be late '24, early '25, roughly just over a year from now that we'll go forward with it. Next slide. I just want to wrap up here. Alaska. It's a world-class Tier 1 jurisdiction. I mentioned the scope and scale that we're dealing with just in the area of our core Nanushuk development, that I showed you on the map. Our resources, we've got 2P reserves of 165 million barrels, that's only Phase 1, another 438 million in 2C. And those numbers, I expect to grow continuously since Santos entered the project through the Oil Search acquisition, 5 years ago, Oil Search's acquisition was based on 500 million barrels of 2C resources. Since then, we've effectively tripled that number through drilling of 4 wells, additional studies, and progress in terms of promoting on a gross basis, 400 million barrels of those to 2P. So my expectation is we'll see similar kind of growth again over the next 5 years. That's our plan. Those opportunities are very flexible. We talked about the free cash flow, how we'll be able to fund all these through free cash flow from Phase 1, and also return the 40% to shareholders that's so important. We'll be leveraging the infrastructure in place that we've already built and continue to build for Phase 1. We've got a lot of experience, I can say safely that the team Bruce has put together is the strongest team I've worked with in Alaska or worldwide. But also, it's the broader Santos team, the support we get from corporate from the other regions that have already spoken to be able to get their ideas and thoughts, we reach out and try to develop the best ideas and put those into practice. We're not proud of ownership in terms of where the ideas come from. We just want to deliver the maximum value we can for all involved. And of course, we have a very stable regulatory regime and supportive stakeholders. So we've got alignment with the landowners who we've got a great relationship with the State of Alaska, the acreage, all the surface development I talked about, those opportunities that's all on state acreage, not federal acreage, which is really important in terms of the regulatory regime. We've got a very positive one at stringent, but we know how to work and get those approvals that we'll need going forward. So I think I'll stop there, but thank you all very much, and I'll turn it over to Alan to talk about SES.

Morning, all. I'm going to speak to you today about some of the themes, the strategy behind the Santos Energy Solutions business and where that stands today. But probably more importantly, also about the products and services that we are developing that over time, are going to lead to us to be able to develop pretty serious value. I'll start by maybe just saying why did I join Santos in the last 3 or 4 months because I think it's actually quite relevant for how we'll position the business today. Firstly, when I look at the assets that Santos has, they are absolutely ripe for repurposing as we think about energy transition. And when you compare them to some of the other energy businesses out there and frankly, industrial ones as well, they are genuinely in a good position to be able to generate new earnings streams over time. The second one is really about scale. Energy transition in all its forms is going to require a lot of capital, and it's going to be really important for businesses that are successful in that in that field to be able to operate at scale, which clearly Santos has. First slide, please. So I'll start off just by noting some of the policies globally and the themes that we're seeing. We split them up into global, regional and then domestic. In a way, the regional ones, and in particular, Japan, is arguably the most important. And the reason for that is that a lot of what we're doing in SES is going to be customer-driven. And when you've got a very large and well-established customer base in Japan and Korea, whose government is mandating what they need to do to decarbonize, that's a very good starting point, and we'll tap into that. From a global perspective, Mark mentioned that we're already from -- on the DAC side of things in Alaska tapping into some of those federal funds. But clearly, the Inflation Reduction Act is creating a lot of development around technology that we can actually tap into in our markets as well. And then domestically, I think 12 months ago, we stood here and said that there were tailwinds behind Australian transition, people might have questioned that. But actually, with the safeguard mechanism and the clarity that, that brings, that actually brings a lot of opportunity for companies like Santos, where we're going to, over time, build a significant third-party business, and we plan to be very organized to help others with that as well. Similarly, with the London protocol now having passed the Australian Parliament, that is a very good step in the right direction for our CCS business. Next slide, please. So this is the SES strategy. And the first thing I'd say is that what we're really dealing within SES is the second and third horizons of the group strategy. So decarbonization and then ultimately, low carbon fuels as well. The three elements there in the middle, CCS, carbon solutions, and low carbon fuels, are all very complementary. These are products and services that can both decarbonize our assets and those of others, but also activities that can generate earnings over time as well. When you look at our climate change report, which we'll update in Q1 of next year, and it's quite aligned with what others are saying as well. Fundamentally, what decarbonization requires is avoidance, reduction, and then if you can't do those two, offsetting. So we are positioning the business very much such that we can tap into that opportunity to help decarbonize both on an absolute, and as others have said, on an intensity basis as well. Kevin showed a slide, which shows some of the forecast for the carbon price over the next few years. All of those forecasts are upward sloping. And really that drives the demand for some of the products that we're developing because that's a cost for emitters. So if we can develop products and services that actually can allow for either sequestration or new products that are below that price, then that allows us to make a margin. One of the big things that underpins the strategy is the fact that we've got Santos as an anchor customer. Now that isn't -- doesn't give you a God-given right to build a profitable business, but it's very important, because as mentioned, scale is key. So if we've got already access to volumes around some of these products, that's a good start. But the main game really is around third-party business. So if I start from the left-hand side here on the midstream infrastructure, that is a very high free cash flow generating high return on asset, long contracted business and it's a really good basis for having a capital envelope that we can then recycle into these newer areas. I should point out at this point and perhaps it was clear, but just to be really clear, what is not in that midstream infrastructure is the midstream from our integrated LNG businesses. So this is the ones that are contracted as shown in previous slides. The CCS part of the strategy really is the first cab off the rank. And whilst that is domestically focused initially, we do see a very large international opportunity there, and I'll show some numbers around that in a minute. And on carbon solutions, building those nature-based projects where we already have a couple underway, but many, many more in the pipeline, what we're looking to do here is to access that developer margin, which if anyone has looked at that market is actually very lucrative. So we continue to build a scale there. On the low carbon fuels space, I'll speak about this a bit more in later slides. But what that really is, is playing to the Japanese and Korean government requirements and policies, in what is very much a long-term game, as we've said, in order to position to sell different products and services over time, when traditional LNG demand reduces. So we'll be using the cash flows from the left-hand side of the page, effectively the checkbook to recycle capital into developing our climate transition action plan. And since I've come in, one of the things I've been really impressed about is actually the number of projects and quality projects that are in the pipeline, and if anything, the challenge is to wade through those and actually work out which ones are the ones to prioritize and candidly, the ones to say no to. Because, as we said, we're going to be really disciplined about where we deploy capital here, and not do things that don't hit the hurdles that we've set elsewhere in the business. All of this is going to be done with partners. No doubt about that, and in particular, customers who can also be partners. You're all familiar with how the LNG markets developed 3 or 4 decades ago. Those were underpinned by long-term contracts and concessionary financing, we will be positioning for that here, too. Next slide, please. So the three hub arrangement, which has been referred to already, is very deliberate. These are all sets of assets that have quite different characteristics actually when you dig into them, but all of them are profit centers in their own right. Don't think of these as assets that have costs associated with them to decarbonize and reposition. They are genuinely assets that you can go and spend capital on and actually generate new earnings streams from both above ground and below ground. These pictures are showing what is there in terms of terminals and tanks and processing units. But actually, one of the biggest ones is below ground, the fact that we've got these depleted gas reservoirs, which we know better than anyone that we can then build new businesses off, is sometimes forgotten, especially when sometimes confused with other types of CCS projects which use saline aquifers. We're using depleted gas reservoirs, which are very well known and understood. So to start with Moomba in East Australia, I would say this is really the blueprint of how we would see asset repurposing work. What we'll do there initially is reinject our own CO2 emissions into the depleted reservoirs there via CCS. And over time, we'll develop third-party customer business. You may have seen that, we've this morning announced an MOU with APA, who's been a partner of Santos for many, many years, to explore how we will get CO2 from emission centers domestically out to Moomba. And clearly, that's a very important part of the chain. But ultimately, Moomba can also be a low carbon fuels hub as well. We're investigating the production of hydrogen there and also e-methane, which I'll talk about more in a moment. In the North and in the West, you've got Bayu-Undan and Reindeer CCS, both of which we plan to hit FID in the next 2 years, as has been mentioned already, and by 2028, have very significant injection and, therefore, earnings from those businesses. But to call out the different characteristics of each the WA business initially will really be one of third-party business. So as you can see on the slide there, that is not about reinjecting volumes that we have at CO2 there. It's about landing customers and we already have some of those under MOU, which will transition to binding arrangements in the next year or so. In terms of the low carbon fuel piece, at the moment, it's about identifying which assets and which locations have the best characteristics and the best options in order to do that. It often goes unnoticed some of the resources that we Santos have. And at the moment, we're establishing exactly what those are, how they can be deployed and create competitive advantage. The thing that I would say about all of these hubs is that we are moving from being a price-taker and delivering into long-term oil and gas contracts to one of being a price-maker. So setting up these businesses is going to require the setting up of new business models with customers and not doing something that is vanilla, or in some cases, straightforward, so it will take time. Next slide, please. So this is to give you a sense of the explosive growth that we and almost every forecaster expects in CCS in the coming years. The extent of that growth from the small left-hand bubble there, and to the one slightly further to the right is huge. These are Wood Mac numbers, I believe, and you're talking 25x the demand for CCS products and services between now and the end of the decade. And that number is 4x again by 2050. So you're talking huge, huge numbers of growth. And those are the sort of numbers that are often associated with businesses that are using new or novel technology whereas actually, we've got -- what we've got here is an established technology, something that's been used around the world for a number of decades. We're now using it in greater scale and in different forms. The great thing about this, again, for us is that a lot of the customers for this are going to be from the Asian region. So we're able to go and have the conversations with the people who are going to be demanding these products and services, and they are people we've already worked with, in some cases, more than a decade. So that's a conversation that actually flows very, very naturally. And when you are developing new supply chains, you want to be doing that with someone who you have established relationship and establish trust with. On the right-hand side, you can see the CCS projects that are actually in operation or under construction. And I don't think we're pushing the boat out too much by saying that Moomba CCS is a global trailblazer. It's, as Kevin mentioned, one of the lowest, if not the lowest cost CCS project globally. And as you can see, they're one of a very small number that has actually progressed through to construction today. So it's real. Next slide, please. So to talk a little bit more about how we translate that market opportunity into one of actually getting customers into the assets. We're going to be offering a physical sequestration service for Santos and then ultimately for third parties as well. The schematics here and the fund size is pretty small, so I may be looking in your books instead, but you can see the steps that we need to go through in order to capture transport and then sequester the carbon. But these are established steps. These are not new things. So really referring back again to the studies that we're doing with customers and how we're working through that value chain together in order to make a profitable business. I should also mention here that we're looking internationally around how we can deploy the capability that Santos is developing and frankly, in some cases, IP that we're developing as well, to actually collaborate with others internationally. We have announced this morning that we -- we've got an MOU with ADNOC out of the Middle East who are developing a very large CCS project domestically in the UAE, and that MOU captures global opportunities. So we'll look at other markets that we can deploy our skills and capabilities into subsequently as well. Next slide, please. So in terms of the value drivers, what we're trying to do here is give you a sense of the different elements of the cost structure that will go to building this business. And you can see there on the chart on the left-hand side, a very large element of that is the capture. Actually, the transportation and the storage is a more modest element of that. And given where our Moomba CCS project is located in fairly close proximity to the wells that we're using, the reservoirs that we're using, it is a very, very low breakeven cost. And as you can see there, an IRR well in excess of 20%. So we're really proud of that. And what it does allow us to do is then think, okay, what's the business model that we need for the other projects that we're going to develop, which you can see on the right-hand side, really starting with Bayu-Undan, where we have arrangements already in place for potential customers and also in Reindeer. So we'll take the learnings from Moomba into those other projects. And in time, we have very, very large upside potential there, which you can see, which doesn't include other GHG blocks that we are winning in license rounds at the moment, both in the Cooper Basin and elsewhere. So there is very substantial upside there over time. What I would also say is that there are two elements to the value that we generate here. The first is the tolling revenue. So people will pay us in long-term contracts for the physical sequestration that we're doing. So that is a ratable number that we can put into our business models, but also access to accuse in the case of Moomba, which we think have very substantial upside opportunity. And for other projects, we anticipate that there'll be exposure to that carbon price upside as well, albeit depending on the project that could look different depending on how we structure that. Next slide, please. So on low carbon fuels. This is very much the third horizon of the group strategy, and it is a long lead time effort, and we need to bring together multiple elements in order for that to be a success. Kevin had in his pack the schematic there, which shows, we are working through this with Japanese customers at the moment. We've been working with a Osaka Gas for some time. And you may have seen yesterday, we also announced a further study in the Cooper Basin with Tokyo Gas, an established partner of ours on the LNG side. And we'll work in the next year or so to seek some of the concessional funding that's available from the Japanese government in order to get these projects up. But what I've got on this slide is just a demonstration of the different items that we need to bring together in order to make one of these projects a success. So in terms of the gathering of the CO2, which is an input into the production of e-methane, we're working with aggregators and shippers to get the sort of volumes that we need. Direct air capture, which has been mentioned, we've got the arrangement with the CSIRO and their CarbonAssist technology, which is under trial at the moment. Green power. This is one that we are understanding the scale of how much we are going to need in order to be able to produce hydrogen. Electrons in effect of the new feedstock for this program. And when you couple the availability of very low-cost green power, water and then land, as Kevin mentioned in his slide, we are actually in a very strong position in order to do that manufacturing. And then finally, around CCS, which goes hand-in-hand with the production of clean fuels as well. Next slide, please. So here, we tried to summarize the order of magnitude of the earnings opportunity that we see for SES between now and 2030, and then beyond. So the run rate of our midstream infrastructure business in the first half, I think, was about USD 120 million. So you can -- that will give you a sense of the left-hand side bar there. And in terms of our target for 2030, the majority of that is from CCS earnings. And those are projects that are already established and at various stages between construction for Moomba and then FEED for Bayu-Undan and Reindeer. So those are identifiable earnings streams, if you will. Over time, low carbon fuels will leak into that as well. It is more of a 2030 plus play, but the bridge to that is the activities that we'll have in carbon solutions, which is a nature-based business today that can generate that developer margin that I mentioned but also something that gives us a right to go and have discussions with third-party emitters as well and earn additional margin through that in time. So what I would sort of conclude on this slide is that we're in very strong preparation mode. This is going to be a patient gain for some of these activities, but the earnings are very identifiable and the policy that sits underneath a lot of them is clear as well. Next slide, please. So just to try and bring that together, we've got a very strong policy backdrop. Yes, there'll be uncertainty, governments change, regulators change, we'll learn more about the energy transition as we go. That is not going to be a straight-line effort. But nonetheless, there is momentum behind the shift to net zero, and one that actually supports the SCS business very strongly. Our strategic infrastructure is in the right location. It has strong earnings for a long period, and it is there and available in order to fund the transition that we're going to be making. So that's a very good base to build from. The asset repurposing point, which I've made a couple of times now, I would encourage anyone who hasn't been to Moomba to go and take a look. I spoke to a few people in the room over the morning break. If you go there and you see how interconnected these assets are with what we've had there for many decades, and the way the teams work together and the pride and the passion that they have of increasing the numbers that we've now got -- people that we've now got in the basin building these new activities, it's not new. We're re-purposing stuff that's there, and we'll continue to do that. Earnings are real. As I've said, CCS first and then carbon solutions and low carbon fuels subsequently. And ultimately, what we believe this allows us to do is put new contracts in place, which have greater growth and also have a green [ tinge ] to them, which we believe should have a cost of capital benefit to Santos Group as well. Thank you very much, and I think I'm handing over to Anthea.

Awesome. Alan, thanks very much, and good morning, everyone. It's really great to see you all here today. If we just go to the next slide, I've got five key themes, I want to talk through today, starting off with disciplined capital allocation and our capital management framework. As Kevin mentioned, we have a capital management framework, which sees us balance the intention to provide compelling returns to shareholders, with managing our balance sheet and deploying capital into both our backfill and sustain horizon activities as well as the decarbonization and in the future, the low carbon fuels as well. This also works within the constraints of our capital discipline, our disciplined operating model, which sees us targeting free cash flow of less than $35 in each of our core asset producing hubs as well as across the portfolio. And that discipline is really evident in all of the conversations you've seen today, and it flows into the second theme, which is really around our production cost, the way we manage our costs as well. Very important to have a very robust cost management because that allows you to generate maximum free cash flow from your assets, which is our third kind of free cash flow theme. And then flowing into what does that mean with our current portfolio and then growing that portfolio with the assets that we're seeking to bring online from 2025 with Barossa, '26, with the Pikka project, and then '28 with the yet-to-be-sanctioned, Papua LNG project. What do these provide growing over time, free cash flow to generate shareholder returns, which is the fourth theme there, and making sure that we have a balance sheet that's supportive of that strategy. So if we just turn to the next slide. If we're looking at the cost structure, this is a very, very strong story. What we've done is compare the chart on the left-hand side of our production cost performance versus our peers. This is a mid-cap and large-cap peer group internationally. You can see we do from a median perspective, benchmark very well just from an underlying perspective, but also if you look at the last 18 months or so of production cost performance, we've really kept a hold of our production cost base, where we've seen significant inflation flow through principally to our U.S. peers and a strong tick up in their production costs. So it's really a testament to the way we work across the business. Our unit production costs, we've -- on the right-hand side, we've done year-by-year, just noting '22 and '23, we've removed Bayu-Undan as a late-life asset from that cost base, but it does show a very compelling story. And just having the benefit of going through our 5-year budget process, over the last months or so. We plan to see that flat to declining trajectory continue over the coming years as well, which is the way we run our business. So also just from an FX perspective, we've got some -- we had a benefit of FX, the lower Australian dollar in the current year. We've managed some risk in future years by hedging some of our 2024 exposure at $0.644. Not all of that will flow into production costs, of course, that's our overlying portfolio exposure, which also is sustaining and major growth capital has Aussie dollar exposure in there as well. From a free cash flow breakeven point, as I said earlier, we run our business at less than $35 for each core asset producing hub and the portfolio, and we're certainly on track to deliver that in 2023. If we just turn to the next page. What I want to show you here is really the transition of the business. We are in a CapEx-heavy phase at the moment. We are transitioning to a lower CapEx phase, as Kevin referred to in his opening comments. What I've got here is the annual average CapEx per plan for our committed projects plus Papua LNG project, for '24, '25, and then for the 3 years out of that '26, '27 and '28. And what you can see is we do transition from a higher capital period to a lower capital period, and you've got a commensurate tick up in your free cash flow generation as you see the benefit of that investment we're making across '23, '24, '25, principally the Pikka, the Barossa and also the Papua LNG project. If we turn to the next slide, if we just look at this. So this is the same data set, and this is really around showing in aggregate over 5 years, the amount of surplus cash that this business would generate over and above our capital commitments, which is our committed projects plus Papua LNG. For Papua LNG, we've assumed a project financing of 60% debt, 40% equity. Obviously, that is yet to be worked through. It's just an assumption that we've made for the purposes of the modeling because we needed to make an assumption there. What that does show is you've got sufficient running room and to deploy capital into some of the opportunities we've got in the portfolio. So if we look forward, there's a number of lower and higher CapEx projects that we can work through. We phased and sequence our investment in these projects, consistent with our capital management framework. And as Kevin mentioned, we've got options as to where we would deploy that capital to produce the best returns, risk-adjusted returns if we put it that way. If we just turn to the next page. We've continued to build out our debt profile in 2023. We did a 144A issuance in September, which was very well supported by the market. We raised USD 850 million. The thing that I was really comforted by was the strong support that -- by the capital markets. It was significantly oversubscribed. We had about $5 billion in the book at the top of the book which enabled us to really tighten the pricing of that issuance. So the strong support from the debt capital markets was very important. And it's going to be very important as we continue to go forward, fund our projects through the energy transition. That support from the debt capital markets is mirrored also by the support we received from our banking group. So we've got a very strong and diversified banking group, which provides not only term loans, bilaterals and syndicated facilities that we use for standby liquidity as well as to draw down on a periodic basis. One of the things I think is absolutely key to our retaining access to bank debt and debt capital markets is our strategy. So we don't have a bolt-on transition strategy. We have a transition strategy net zero, Scope 1 and 2 by 2040. We have interim targets by 2030. We have a strategy that's integral to that energy transition, and really showing that we have a plan, we also have targets that we're meeting on the way through, will be important at the moment and into the future to retaining access to bank capital, and we've got very strong support from our banking group from that perspective. We just look at 2024, and as I've said before, we are going through a higher CapEx period before that comes off from 2025 onwards. We entered into a hedging program over the last couple of months just to take a bit of the 2024 commodity price risk off the table. So we've got 18 million barrels hedged, 13 million barrels at a $75 for 0 cost collar, and about a $91 cap, and $80 -- at 5 million barrels at $80 floor, and just over $90 cap. So that just gives us -- the portfolio a little bit of resilience should [indiscernible] full during a high CapEx period. We continue to target a strong liquidity position with nearly $5 billion at October. And again, the strong investment grade credit rating. Our gearing at the end of the third quarter was 22.6%, including leases and 19.3%, excluding our operating leases. If we just turn to the next page, I'll spend a little bit of time on guidance and then we can go back to Kevin for the Q&A session. What we've got here is our production guidance. We expect it to be slightly lower than 2023. The main drivers of that is end of field life at Bayu-Undan and also continued decline in WA associated with principally the Reindeer field. Sustaining CapEx, we've pulled sustaining CapEx down a little bit. So we revised our year-end target to be around about 1.1. It's come down from 1.2. We generally try and stay around the $1.2 billion from a sustaining capital as a rule of thumb, a couple of hundred million dollars of decommissioning and $900 million of sustaining capital across the business. That's a little out of balance between '23 and '24. We've had a bit of scope move into '24 from '23. So that's increased the exposure for decommissioning costs, as Vince talked about in 2024. Part of the slippage in the $1.1 billion sustaining capital in '23 is associated, it's a good news story, associated with the deferral of some of the decommissioning costs for Bayu-Undan because the asset continued to produce beyond our expectations when we set that plan at the beginning of the year. From a major project CapEx perspective, we're forecasting $1.6 billion major project CapEx in 2024. This is all around -- it's the Barossa story, the Pikka story, our pre-FID cost -- pre-FEED cost, sorry, for Papua LNG and then some other smaller infill projects, but it's principally around funding our major capital projects. And on that note, I will hand back to Kevin for closing comments. Thank you very much.

Okay. Thank you, Anthea. Anthea if you could just stay in the stage, maybe everybody else, all the presenters come up and just grab a series because we'll go straight to Q&A. We're straight to Q&A in a minute in a minute. So we'll go straight to Q&A or nearly go straight to Q&A. I just want to kind of wrap up. So if I can just wrap through these slides. So you hear a lot from across the business. You've seen the operating businesses. They've given you summary of what they have got going on. You've heard from Alan in terms of our new business opportunities in Santos Energy Solutions, you can see where -- yes, we just want to grab a seat guys. Just grab a seat, we'll go to Q&A. I'm just killing time where you get up here. And if I can go to the next slide, please. The next slide, yes, there you go, thanks. As we talked about earlier on that in terms of how we're building the business, how we'll be -- the journey we've been on since 2016 is to really try and drive a business that generates a higher cash flow yield from those operations, wherever those operations are. So driving synergies across the business through scale, through complementary assets, complementary projects utilizing infrastructure more efficiently to try and keep driving, we call it, taking up that free cash flow generation out of those operations. The plan, as you can see in terms of that cash flow sensitivity is to continue with that journey over the next 2 or 3 years, taking that sensitivity from what was only in 2021, $330 million for every $10 above our breakeven up to $600 million. So that's almost doubling that in a sort of 4-, 5-year period. And what's important about that is then maintaining that operating free cash flow breakeven at that $30, $34, $35 level and fighting inflation through efficiency, through technology, all of those things so you can continually and maximize that margin. And so that's the operating business strategy that we run the company on. And that's what we have been doing since 2016. In terms of the other slides, I'm not going to go through this again. We talked about the Santos investment proposition. And then I think I finished on the strategic priorities for 2024. So I'd rather go through them again. I think in the interest of time because I know some of you have got some questions you want to ask. I've got all the presenters up here, so I'll try and throw as much as I can to these guys and get them involved, but I'll open up for questions. Thank you. You got mic? Someone roll the mic. And if you could just say who you are, please. So everybody in the room.

James Byrne from Citigroup. Okay. First question actually for Anthea. This is just around balance sheet capacity to fund growth. And we had a bit of a conversation around this up in the slope but kind of want to open it up in this forum. Now in the Alaska slides, there was a Phase 2 profile for production that kind of infers you'd be taking a rather timely FID on that project probably around the time of first oil. But I also remarked that you talk and spoken about only taking FIDs once you actually degeared the balance sheet and had an opportunity to get it down to or towards that 15% IRR. Now at your kind of $75 oil deck that's probably, call it, early 2027 once you've sufficiently degeared and therefore, would be later than what's inferred by the business units. So perhaps a bit of healthy tension between your self, in Adelaide and your business units. How do you think we should think about when you're ready to take FIDs on growth in the context of the balance sheet?

What we've consistently said is that we will phase and sequence our development projects, consistent with our balance sheet target gearing range, so 15% to 25%. I'm not -- was it 15% gearing you were talking about an IRR you said IRR?

Correct. Yes.

Yes. So phase and sequence will manage the equity interest in our projects. We don't have a target to degear before we invest in the next project. It's really around managing within those constraints between 15% and 25% gearing, and we'll manage that balance sheet accordingly.

Okay. That's clear. And then secondly, Obviously, Kevin, like you as a CEO, your direct reports and the Board, obviously, think can test the strategy on a regular basis, it is just a part of doing business. But at the moment, if you've got advisers on board thinking about the strategy, then presumably, you've taken a bit of a step up in how you're thinking about the structure of the business. And perhaps that's early days, but I just wanted to understand like what's the terms of reference for this strategic review? And how might it vary to business as usual?

Well, look, it's just ongoing strategy. I mean I have advisers advising me for 6, 7, 8 years, and we work with different advisers at different times, they all have different skills. That's how we arrived at some of the acquisition decisions that we arrived over the years. We saw opportunities. We're working them through. We get them ahead of time and then we execute them when the window of opportunity arose. So there's no kind of deadline or sort of target date to kind of get to any particular outcome. I think that's really important to make that point because the world is changing and it's changing fast. For me, it's about ensuring you have the optionality. And so the structural reform we'll be looking at through the business, we've been looking at now for a couple of years. We continually look at opportunities. That's why I welcome anybody coming forward. As I've said, I think I've said to you, have said to others, I said to people in the industry, my doors open 7 days a week for anybody to walk in and offer to buy any asset, any collection of assets, any group of assets or all of the assets, the business if they want at any time, and it always is open for that, and as it should be. The kind of structural stuff we've been looking at is to provide us with the optionality of being able to look at how we can unlock value, either through splitting the business into different components. And they may be something like an LNG business and everything else or they may be an LNG business and different bits of whatever is left in separate structures or they may be something else altogether. And it's about being open to whatever those structural options are in terms of portfolio optimization. And there may be other solutions as well. Right? I mean, I don't think anybody saw the oil search opportunity coming when it came in 2021. And one of the things that is probably lost on a lot of people is that from announcement of that -- wasn't an announcement, but from the awareness in the public domain of that opportunity being muted to completion of that deal was less than 6 months, less than 6 months. So an international M&A transaction was completed in less than 6 months, I think, 5, just over 5 months, which for the people who have done transactions [ room ] will know that's a remarkable achievement across border acquisition like that, which was necessary because I'd like -- I would imagine that deal would have been very much at risk 3 months later with $120 oil. And so speed of being able to execute these things when you decide to execute them is really important. And we could only do that because we'd work that to tremendous levels of detail over about 1 year, 1.5 years and advance of ever being in a position to execute that. So biggest mistake of my career at Santos is probably right after that coming out and saying we're going to do some sell downs, right? And we made that very public announcement, and 2 years later, we're still trying to do that deal because of all the things that happen in that sort of external environment that complicate these things, right, whether that be the regulatory environment in Australia, whether that be approvals in country and P&G or whatever it might be, the things that complicate these deals and that can be very difficult when you play these things out in the public domain. And so I don't want to get myself caught and trapped into something like that. But what I do want to give you the assurance is that we are looking at every avenue to unlock shareholder value. We're very frustrated by our share price. We know where our business is performing well. This business nobody could have contemplated 5, 6 years ago, our business generating cash flows like we're generating and yet look where the share price is, right? It's stalled, and we need to unstall it. So of course, we're looking at every option to do that, and we'll continue to do that and I want to get the best advice I can get to help me with that, to test it because a lot of it is about how you think the external environment might value whatever you do, right? I mean from an NPV valuation point of view, we haven't found anything yet that we think can deliver more value than the whole, right? They're executing successfully on the strategy that we have, whether that be access to capital. An oil and gas company without a CCS or without a carbon solution is going to be struggling to get access to capital. I can tell you, Anthea talks up the relationships we have with the banks and the support we got but the support from the banks wasn't there until we did the capital raise in the U.S., right? The banks were retreating, they were retreating from oil and gas. When they saw the level of support we got for that bond rate in the U.S. that changed and gave them confidence to come back to the table. When we took them out and we showed them the CCS projects we can see the appetite changing to support Santos because they see physically doing these things. And it is real. The decarbonization journey is real. And so it's a very fast shifting fast-changing external environment. And we've got to be flexible to that. One strategy doesn't last 10 years and I think it was Alan who said that the transition -- he's up here. I'm sorry, I'm looking for him in the crew. So it's not going to be a straight line transition. It will not be a straight line transition. There will be many victims of this energy transition. There will be a lot of losers in this energy transition. And we've got to make sure that we're disciplined through that, so we're not one of those. And so having a really solid base business that gets the value of the synergies, and that's one of the things that breaking up the company on paper can look very attractive. One of the challenges with it is that you then -- you are descaling, if that's a word. I know it's a word, but I'm not sure if it's the right application of the word, but descaling the business. And there are challenges with that. There's no way any of these assets individually that we have today, we have the production costs we have if they were operating stand-alone. It's just not possible. They all have their engineering and maintenance groups, they all have their exploration groups, they all have the other costs that we have associated with those smaller businesses, right? But by bringing them together, we've been able to really deliver on those synergies, and that's how we've been able to keep increasing that free cash flow generation. However, the point is, the markets aren't valuing that today, and we've got to find a way to get that value for that. And if that's a structural solution, then and we believe that, that would deliver the value, then we're open to that.

So you might be coy on talking about sell-downs, but you do also talk about looking at every avenue. This is very interesting footnote on slides...

I think you've had your 2 questions. Sorry, go ahead.

Can I -- well, just a very quick comment on GLNG. You talk about the forecast being at current working interest, which is an odd thing to say. Are you suggesting that...

Did I say that or was that Brett. That was Brett who said that, wasn't it? Brett, that was an odd thing you said. What were you meaning?

Should we expect you to do something around GLNG?

You want me to answer that?

Yes.

Right. I got asked that question 3 weeks before we announced the Oil Search deal, not that I'm tempting fear or predicting anything, so there's no relationship between the 2 conversations. I don't want to make that really clear. And I said to the person that asked the question, and I'm going to tell you in a public forum what I'm planning to do, right? So I couldn't -- even if I was thinking about anything, I couldn't say it. But what I can say right now is I am not planning to do anything with GLNG. I think it's a wonderful asset. It's an asset that's got better over time. There was a flawed investment case at the time. But we've turned that into a really good asset. The team have done an amazing job, particularly in the upstream. I mean, actually, I shouldn't separate from the downstream part of that project. They run that plant superbly well. If you look at their operating costs and the reliability numbers, they are top quartile for a plant that's nowhere near full capacity, right? And so they don't get the benefits of volume in terms of driving the unit cost down, yet they're competitive. They're in top quartile for all global benchmark. That's an amazing, amazing. And they've had to do that because they've had to run with lean supply, right? They've had to learn how to operate really, really efficiently. And the upstream though, that journey has been transformational. When you look at what they're doing in well cost, well reliability is way out in front of any of our peers in Queensland in terms of the workover rates and stuff like that, that drives your OpEx numbers down. And that's why we're starting to see those margins increasing over time at GLNG. And it's a fantastic journey. But no plans to do anything if you're talking about buying origin share or something like that, there's no plans to do anything like that.

Dale Koenders from Barrenjoey. A question, Kevin, maybe for you and Anthea. When we look at Slide 67 and look at the free cash flow forecast, I just wanted to check my math firstly, if you're talking about $3 billion of free cash flow at $75 a barrel in '26 to '28, is that implying that you're reducing the breakeven cost of the business from your $34 to $35 towards '25, is that sort of part of this transformation of the business?

Anthea.

Model is...

Do you want to use the mic, Anthea.

Sorry, this [indiscernible] model is to run the business at free cash flow breakeven of less than $35. Now within that, we include the cost to sustain the business, but also decommissioning costs. And so you will see fluctuation year-on-year within that $35 because in the years of lower decom, that will come down as well. So I'd say we look forward, we run our business at a minimum -- at below $35 but that can come in and out depending on what the particular profile of the year that we're talking about is.

Well, what I can say to add to that is the answer is, sorry, yes, it's lower. So production costs will come down over the next few years, and there's a couple of bumps in that journey. But over that 5-year period, they come down. And subsequently, all things being equal, free cash flow breakeven, the operating business, free cash flow breakeven should come down as well. And particularly once Barossa comes online, that really drives it down.

Yes. So then, I guess, second part of the question, Kevin, for yourself. You've presented both an outlook for a lot of free cash flow generation from the business. But every one of your generalist has presented a compelling case for growth within their business units. If you were to have a spare dollar or I don't know, a spare [ AUD ] 1 billion from a Comal petroleum turn up. Where does that money get allocated towards? Do you have a favorite child sitting on the desk at the stage at the moment?

No, I don't have...

Or even you said you think your stock is cheaper. Is that a better use should we...

Even at home deal, I've got 3 kids, and they all argue the other ones a favorite, right? So there's no clear favorite. No, there's no favorite. It's basically returns, right? So they're competing for capital. So it's really interesting. You go back 3 or 4 years, we were planning to spend more capital today in Western Australia than we are. We've taken a conscious decision to let that drift down in production and not go with a lot of resource around WA. A lot of backfill we could be chasing right now. Now maybe given the regulatory environment, that's been a good decision in hindsight for other reasons. But that's our lowest margin hydrocarbons. And we've made a conscious decision because we've got Barossa, because we've got Pikka ongoing right now that we will stay disciplined, and we'll let WA decline and manage that decline as efficiently as we can, take costs out, all the rest of it where we deliver these other projects. And so they're competing for capital. And I think somebody used to phrase healthy tension. Whether it's healthy or not, there's a tension, it's not just between the business units and the corporate, they know they're competing for capital now. They're all competing for capital. So the best projects will win. And there's a lot of different factors we will take into consideration when we take an FID decision on something. But obviously, returns and the best returns are going to be a big driver in that.

So maybe just to be a bit more direct, is the P&G proceeds still on track for the 31st of December this year, and isn't a buyback still an active and considered decision for the Board from...

Well, it's always an active and considered decision for the Board. It's a Board decision. And they'll make that decision at the full year anyway, right, when it comes to dividends and any other sort of returns to shareholders. Anthony, would you like to comment on the buybacks?

At present, the restated announcement that we made in September is on track for December at present.

[indiscernible] really qualified, Anthony, are present. That probably comes from experience.

Nik Burns here. Just a follow-up maybe on that question. [ Kumas ] also has an option to acquire another 2.4% interest in PNG LNG by middle of next year, hypothetically, with all of these growth opportunities on the table if they didn't take that option up, would the business consider finding another buyer for a stake in PNG just as a means to accelerate investment in other parts of the business.

Do you want to answer that first then I'll come in the back.

Yes. Thanks, Nik. Look, the 2.4% is purely an option at the moment. We're focusing on the 2.6%, as [ Dale ] said, to get that completed this year. I think the beauty of that option is that it gives us flexibility if -- whatever they do with that option next year. And then it comes back to how Kevin just answered the previous question around that flexibility and optionality then works out -- gives us sort of ability to flex within the portfolio and work out what we want to do.

And I think there's 2 other aspects to that decision. One is that 2.6% higher value than what you'd be recycling the capital into, right? Because if it's not, then that's not a good decision to sell to invest in something with lower rate return and/or the regulatory environment we're in. So one of the things that the strategy work that we are continually reviewing and evolving is considering very actively right now is over the next 5, 7 years, what the pivot opportunities are if the regulatory framework in Australia remains as tough as it is today, right? And we have challenges for regulatory approvals here in Australia. We can't hide from that. We were dealing with it real time on Barossa as we can see. And so what P&G and Alaska give us, of course, is pivot opportunity for growth elsewhere and what would be very development-friendly, much more supportive jurisdiction at this point in time. So all of those would be considerations. If you're asking, are there interested parties out there who would like to buy that 2.6, the answer is yes. Absolutely.

Got it. And you touched on the regulatory environment in Australia with Barossa. Just on that, there was no update today on timing or costs for the for the project. I understand it's probably a challenge for you to give any meaningful guidance on that given the uncertainty around how long getting the approvals will take. But just maybe on -- if you can talk through the risks from here, if it does take longer recontracting risk with contractors, what cost exposure is there. You've got an FPSO release that will start at some point. Can that be pushed to the right. And also on your LNG contract as well, what flex there is around that.

So I think the big one. So when it comes to sort of drilling pipeline, these are fixed execution costs. So the materials, everything is there, right? So we've done all that, all the wellhead and subsea kits bought. If we get delayed in execution that our recontracting risk. You're paying for slots you didn't use and you've got to recontract. So you have those recontracting risk. It's not really possible to say what that is today for a number of reasons. One is it's hypothetical until we know. Right? And so I wouldn't want to get down that path. But if we end up having to recycle some of this stuff in Barossa, that will lead to a schedule delay. That's a fact of life, and there'll be a cost impact to that. And we will come out as soon -- if that's the case, we'll come out as soon as that is -- we'll clarify that to market. Ironically, [ help ] mean a CapEx reduction in '24, right, if that was to occur. But it would be a delay. So it will be a recycling of those approvals and recontracting. I've never done it before, but what I'd call a post-FID recycle of our project. We've never experienced that before. So it will be a first for us, not a good first, right? So that's that. On the FPSO, yes, there are some contractual issues there. That in itself is not that material, but there's an issue there, maybe you want to slow that down. That is going remarkably well. that is going remarkably well. You saw the picture of the hill. It's now in Singapore. The modules are all constructed. And if any of you are going through Singapore, any of you going through Singapore reach out, happy to take you through and show you what we've got there. It's a pretty impressive vessel. We'd like to think we could be using it by mid-2025. But whether we use it or not, it's still a pretty impressive vessel and it's cost us a lot of money. So if you ever want to see it, please reach out. But really, beyond that, I can't really give any guidance yet until we know what the outcomes of the various processes are. And you can see, we're not an orphan in this journey right now that the entire industry is kind of caught up with us. And we are working together as an industry to talk to government and to try to get government to understand this is much broader ranging than consultation. This is activism that's found its way in to stop our projects here in Australia, and we need regulatory and legislative fixes in order to be able to move things forward. Now I don't mind where this is all heading legislatively provided it's not holding up preapproved projects. And the problem we have is we've got a couple of big projects in Australia right now that have been approved by the regulator now the corp with these secondary approvals. But for new projects, fine, if the rules are going to change and all of that is good. We won't take FID in Dorado until we get through whatever the new system is going to be. But right now, it's impacting projects have been FID'd. And we've got pretty frustrated partners as well as ourselves who are suffering as a consequence.

Just sorry, just Kevin, on the LNG contract, Nik the LNG contract is fully flexible. Yes. The LNG contract is fully flexible. We can call it off annually or we can call off the total volume.

Yes. So there is no take-or-pay rest of Santos for those LNG contracts. They are the quite unique contracts.

It's Mark Busuttil from JPMorgan. I was just interested in some of your forecasts for upstream supply GLNG. You indicated that this year, you will see the greatest activity in well connections and you've got an increasing supply of production from the upstream facilities there. So I was just wondering, does it depend on similar levels of well activity going forward to see that production grow and also how you think about the potential price caps impacting some of those forecasts?

Brett?

Yes. So look, I mean, this year is a very busy year. We don't expect the next few years to be as busy, but to actually increase and have an incline in indigenous production, we're going to actually need to drill a lot of wells to build that up. But again, it's -- we're taking control of our own gas supply. So we're not having to be reliant on third parties and hopefully, we'll grow the margins on that considering we're developing our own gas. But we will have to have a pretty busy few years going forward. But we have about 650 wells currently connected, still dewatering. So we've got a big inventory of wells that we've drilled in the last 2 years that will be part of that pathway going forward, and they're just waiting for the timing for the gas to break through. So 650 wells, which is the largest number we've ever had online actually, which gives us confidence in that ramp going forward.

But it does actually ramp off after a few years, come down the drilling activity 2 or 3 years out, as the base production gets stronger. So the good thing about the CSG wells is -- the bad thing is like Cooper Basin had declined pretty fast initially, but the good thing is they've got very strong tails. The unconventional very strong tail, so you're building that base production all the time.

And then the implications of the price cap?

Well, price cap doesn't really impact GLNG domestic price cap because it's LNG, it's all LNG sales. So it's just that we've got very good contracts at GLNG, as you'd be aware, they'd be amongst the best in the industry right now, the GLNG contracts, and they go out to 2030 and 2035. So we're pretty good from a GLNG point of view. Is that what you meant?

Yes. And then secondly, just on Granite Wash, I mean some of the information there was pretty interesting in terms of the opportunity that provides. 9 million scuffs seems very, very high compared to Cooper Basin wells. I mean, is that normal? I mean, is that an outlier? Can you give us a sense of whether that is...

It's [indiscernible] -- it's good for our Cooper basin well. [indiscernible] actually forecast, I think, unconstrained production was just under 10%, wasn't it, if you could open that thing right up. I'll let Brett talk more about it. But what would the average be for the Cooper 1.5?

I think we've only got 1 data point for horizontal well in the Granite Wash, so you could probably draw the trend line through it any which way you want. But I think the pleasing thing is that with a lot of pressure behind it as well. So we're seeing good pressure behind this well. So early days, we only just put it online in the last few weeks, but it's been rock solid. So it's -- we're very pleased. And given the sort of type curves that you would expect from an unconventional reservoir like this, we don't expect it to be the sort of well that blows out quickly. There's a 10-stage track over a horizontal stimulation over horizontal wellbore. So again, it's not just poking its head into a reservoir. It's got a fair amount of coverage.

And I think what you're starting to see now across the onshore operations is that same sort of trend you saw in the U.S. with the shale where we're really learning how to make these wells bigger, bigger fracs, bigger frac spreads, bigger rigs. We're getting well cost down. We're getting much better ultimate recoveries from these wells. And if this play opens up, as Brett said, this offers the ability to get a much, much stronger and more consistent baseline production in the Cooper Basin. The vertical wells in the Cooper Basin, I remember when I first came to Santos, I learned that they deplete around 19% per annum. So if you think about that, you drill 100 wells a year or whatever, you're chasing your tail just to stand still, you are going to drill bunch of wells just to maintain production. If we can get that baseline production up steady with very little decline for a big chunk of it going forward, that takes the pressure off to drill as many wells every year to stand still. And so that could have a huge sustaining CapEx upside for the Cooper Basin in the year's end. And that's particularly important as we get to 2029, 2030 because that's when the Horizon contract rolls off, right? And so that's a real opportunity for the Cooper Basin to ramp up its value as well. But as Brett says, one of the things, it's only taken us 7 years. So when you talk about structural challenges stuff, 7 years it's taken us, but the GLNG partners are now aligned, and they're a working group on looking at new acreage or new opportunities for gas to come in and backfill and try eventually to fill that plant up.

And if I could just ask one more. A couple of years ago in the Investor Day, you talked about potential sales of the infrastructure assets, and I'm probably going to get this number wrong, but I think it was about $300 million of annual EBITDA. I mean given interest rates have gone up, have you kind of missed the boat in terms of selling infrastructure assets? Or was your comment about structurally separating Port Bonython meaning that you're still on track or are you...

So what we've talked about, Mark, was separating them out from the upstream business. I don't think I ever said to anybody I was looking to sell them. Everybody else joined those dots. So I'm going to throw that to the Anthony because he caused that forest fire. So Anthony, you answer that question.

Thanks, Mark. We basically did that for optionality. As Alan said in his -- it's about getting the structure right to set it up for SES. So that was even before I think we announced SES at the time, that was the beginning of as we were moving internally into that optionality that Kevin spoke about, the structural relook of what the portfolio looked like. And Kevin is correct, we put a number of $300 million to $400 million EBITDA out there in the market to show the optionality that, that sort of business could create with strong base of earnings. And now it's flowing into the SES portfolio and it gives the optionality into Alan's group.

Now interestingly, DLNG creates a lot of value when Barossa comes online for that portfolio as well because of the toll. And so if you think about what SES will create it's revenue from, it's going to create revenue from tolls, whether that be for processing oil and gas, whether it be tolls for taking people's carbon and storing it. And it will be from [ Arcus ], generating [ Arcus ] from CCS projects and/or from our nature-based projects and ultimately from other fuels, lower carbon fuels. So there's a range of revenue sources for that business going forward. Those commercial models, we are still working through because particularly around the CCS structures, whether they tie to carbon price, the tolls or whatever, whether fixed tolls, not so sure. I think it will be a better horses for courses sort of thing as we go forward. As Alan says, that is still developing. But I believe that can be very lucrative. You just have to do the math, right? I mean we're saying that we're assuming a carbon price of around USD 50 right now, right? So if you think by 2030, if you're generating 10 million carbon credits a year from your business, about at USD 50, it's a pretty significant revenue stream coming in, that we're not getting today, that we do not get today. And so we're pretty excited about that business. So the structural separation work that we're doing there was to separate those midstream assets out so we can have a very separate SES business, and we're still doing that work. Now if we want to put those assets somewhere else, by separate in the mount it gives you the optionality to do that, whether that's a domestic versus an LNG player, whatever gives you the optionality to do that. So we are doing that work. And we will announce that work as it is done, right? We will announce that work as it's done. The South Australian ones have been complex because some legislative changes required to break them out, but I think it's very important. It's even to the point where it's important to get a lot of complications to that, for example, the union arrangements we have in the Cooper Basin have all integrated it all over the years, right? So we're working with the unions right now to separate upstream from midstream. So there are 2 different agreements. Because they recognize, as we do, the midstream will have a very different access to capital in the future than the upstream oil and gas business will have. They are a very different appetite with banks to support decarbonization business or a decarbonization focused business and our low carbon fuels business. So all of the work that we're doing here and then we've been doing for some time is about structuring this business for that future environment that we get into. Now I think that makes the company more attractive. I think it makes it more attractive. So that optionality is known. It's understood, then you're right. Somebody could walk in and offer to buy this because they know it's easy to take it out. Obviously, we've got to clean up things like Barossa. We've got to get Barossa back on track. That would be a complication in any of those sort of things. And I think that is weighing very heavily on our share price. But I do genuinely believe that when Moomba CCS comes online next year, that is going to be a monkey offer back, so to speak, because once Moomba's up and running, if it's up there and it's producing -- sorry, injecting 1.5-plus million tonnes per annum of CO2, nobody can tell us CCS doesn't work anymore, right? I mean it's as simple as that. And if it doesn't work, you probably won't find me anywhere, but I'll be hiding somewhere. But it will work. We've just done our injectivity test and it was very, very successful. And then we'll come down so I'll hand down here next, I think.

Mark Wiseman from Macquarie. Just a question on the Bedout basin. Anthony's comments on the WA gas market were fairly clear. The state needs gas put out could be part of the solution. But you've also been very clear that you won't invest in Dorado until there's clarity on the approvals and permitting. You also mentioned Concept Select on Dorado. So really a couple of questions. Is it still a liquid stripping first phase followed by a gas platform second phase? And secondly, are you willing to drill some of the exploration targets that are quite large up there for oil and gas in the interim? Or is it really tools down until...

I'm going to let -- Vanessa want to add to this. But all I'll say upfront is that it's Bedout Basin, not Bed-out, right? So I just thought I'd say that French, French, right? I think it's Bedout -- is that right -- saying that, the Scottish accent. So the Bedout Basin. Now we are really excited by that basin. We think the prospectivity across that basin is huge. If you look at the success rate to date with Pavo and other wells, we've drilled very high success rate. Fortunately, unfortunately, it depends where you look at it. We kept finding a liquids we're going to look for gas, [indiscernible] for gas, we found within [indiscernible] we look for liquids reform gas. So it's a kind of a base, lots of different kitchens, lots of different systems going on there, which complicates it a little bit. Phase 1 will be a liquid stripping has to be to maximize the value from the project. We think it's a world-class project. We think it only gets bigger. From a capital discipline point of view, what I'm saying is we want to work up the concept here, which will be an integrated concept. It would be liquids than gas because there's a lot of gas here, and we know that WA is going to need that gas. And we think we've got the best new gas supply and the most doable new gas supply for WA. What we need to do is get all those secondary regulatory approvals in place before we take FID, right? So we're not going to take FID anymore and then be subject to what we're seeing today. And we need to have confidence that when we contract rigs and vessels, we're going to get to execute. So we need that certainty. That wouldn't be there right now. So some regulatory change will be required to give us that. And I'm confident that will happen and we'll work with our partners to do that. But we think it's a very valuable project. We're excited by the project. It will only get bigger, not smaller. It will get bigger as you drill those prospects up. But that comes down to capital discipline. So what we have said WA, you've got a big decommissioning burden. We can't put that off anymore. Let's get on with that. Let's smooth that out, as Vince was talking about, smooth that out, optimize that decommissioning and run WA for the next few years, cash flow positive including its decommissioning, right? You got to pay for your own decommissioning, return a little bit cash to the center, get over this couple of years hump and cake, where we're investing elsewhere because our other projects took priority, there were better projects. Then we'll turn a mine back to drilling and developing the resources we have in WA. Unless there's another way that we can unlock capital beforehand in WA, another way to fund that off balance sheet or whatever, then we would be sticking to our discipline of working within 15% to 25% gearing balance sheet. So that slows down the ability of us to go and fund any more activity in WA until we get the CapEx burden off our back. Now what you will see is the CapEx, the all-in CapEx for this company drops considerably 25%, 26%. The minute Barossa comes online and we're all-in breakeven for the company drops like a stone, right? So Barossa is a big -- it's a big burden from a CapEx point of view for the next 1.5 years or so, and then our CapEx demands drop off very considerably.

Just another question on the SES...

Do you want to add anything to -- sorry.

No, [indiscernible].

Just on the SES business. I've been asking this question for the last couple of years. How close are customers to signing third-party CO2 storage. It seems like it's been a journey for a lot of heavy emitters, but it does sound like you're getting closer. Could you just talk a little bit more around the APA deal? Is that repurposing existing pipelines like the ethane pipe or is it about new greenfield? And how close are customers to signing some of those big deals.

Alan?

Yes. So maybe take the APA one first. So they've been a partner of ours for a long period on the gas pipeline side. They've got a stated strategy of getting into CO2 pipelines around Australia. So we're going to work with them on the various different options there are for getting CO2 to Moomba. It's not around a particular route. And at the end of the day, we'll work out which one is cheapest and can be built. So that is an exercise over the next 24 months in effect to land that.

But Alan, it does include possible repurposing of existing pipelines.

Nothing is off the table for that. So we're trying to find a low-cost way to get the product to Moomba. And as you saw from there, the transportation is a reasonable chunk of the overall cost of doing that. In terms of the customers, it's a different story across each of the hubs, as I alluded to in the presentation. The -- we have MOUs signed, which are nonbinding, but they are, in effect, they're subject to CPs. And those CPs really amount to taking FID. So it's a chicken and egg situation, but we're at the stage where we have term sheets. We have numbers in those term sheets, which show that there's a viable pathway to landing those customers. So whilst they're nonbinding, they allow us to go forward with confidence around feed and then into FID. Kevin, I don't know if you want to add.

Well, the challenge for FID is just like you wouldn't want an FID an LNG project without an offtake agreement, you wouldn't want to build a CCS project without an offtake or intake agreement or you call it -- intake agreement. And so likewise, we'd want to do that. The FID decision, so the CP that's subject to FID, all that's really holding that up in these projects from really around the end of this year as the regulatory regimes that are being developed, right? So the regulations for offshore, particularly offshore CCS projects but even onshore in different states. The only state that I think is a fully fledged regulatory system now in South Australia which we have been able to kind of work with the South-Australian government to put in place in the last few years. The other states are still in the process of preparing and developing theirs. And I think that will happen quite quickly and in most of the states. But the international ones, there will be various agreements that need to be put in place between different countries, bilateral agreements for the transfer of CO2 across borders and the accounting that goes with that. But again, we're working to help progress that because we need those things to be in place before we could FID a project. Thanks, Mark. And there was one over here, I think.

Henry Meyer from Goldman Sachs. Just a first one on the PNG production profile. Just to talk a bit about how that development schedule has changed since picking up from Oil Search. I think the plan originally might have been for the associated gas expansion next after Angora. That's obviously been pushed out to support Papua trolling. And if you got this dip in production now and I guess a bit of a risk if Papua was delayed, how do you think about managing that risk and other optionality you have in the development plan to maintain stable PNG production if Papua doesn't come online '28, '29?

Go for it Brett.

Yes. Look, so -- you're right. So we did have the associated gas field project happening in between. But looking at it, looking at what the Angora is going to produce and then also looking at Papua timing. We didn't want to spend that capital upfront, and it may not have got into the facilities, right? So spending that capital upfront, not being able to produce it. That's obviously something we don't want to do either. I think you can see from the reliability, we're able to produce up to 25% of the PNG LNG feedstock at the moment. So the confidence that we can actually bring our existing fields in and provide more production far more than we're actually contracted or we have agreed to put in even in this time frame will help allay some of that risk. But ultimately, from a capital point of view, investing a certain amount of money in AGO with those -- with Papua coming on and with Angore coming on also would have been a decision, I think that from a capital perspective, wasn't very efficient. So I think it's a balance of risk. But I think the reliability increase, we've got the ability to actually ramp our facilities up to produce well over what the PNG LNG project requirement was from our fields pre AGO gives us confidence we can mitigate some of that risk if it occurs.

But I think that's a very good example of what someone talked about earlier on about value over volume, right? So by getting the value through the [indiscernible] the 3 components to that. There's an access fee on first gas from par that we get paid in. And at current equity levels, we get 42.5% of that. Then there's an OpEx sharing. So we get lower unit cost for our PNG LNG volumes as well. And then thirdly, we've got the tolls itself. So you put those 3 things together, we're satisfied that with that, sure, we'll miss out and a little bit of the upside from the additional volumes from giving that 2 million tonnes capacity away to a lower equity position project. But we get a lot of value back through those tolls and through that upfront payment. And for us, that's a really good hedge and a good balance for the longer term. And when we look at our long-term LNG price assumptions, I think we estimated that added about 2% IRR to that decision. And it pushed off the CapEx as well for AGO, but only by a couple of years, right?

Yes. And actually, Anthony raise a good point, AGO was taken to a point where we basically put a bow on it. So it's on the shelf. If we do need to actually reactivate it, it's in a good position to reactivate and do relatively quickly. So the cheaper part of getting the project ready. So the engineering and getting it to a point where we could actually pull the trigger on that, we've got it in a good position. But I think it's value over volume, as we've been talking about, we actually want to make sure we get higher margins as well and not spend capital. And again, I have to compete for capital with a few folks Europe...

That was pretty good though, right?

That one is good? All right.

And no problems with approvals. Maybe one more question.

It's Rob Co here from Morgan Stanley. Just a question on your CCS portfolio that you're building and the massive global opportunity that you're trying to catch there. Can you talk about your ability to scale up this portfolio? I think you you've got supply chain, you'll have some shipping advantages. The marketing access to finance. Can you maybe just talk to anything else in the scaling up phase of that? I know that's off in the distance. And also, can you talk about the optionality that you're trying to preserve in thinking about both DAC and repurposing of infrastructure because one might strain the other?

Well, Alan, why don't you start? And maybe I'll just complement anything that you say.

Sure. Maybe I'll take the DAC one first. I mean that is a technology that has a way to run, both on the ones that we're looking at here in Australia and globally. And that's -- if we -- I think Kevin used the term game changer. So we're right behind that, and we don't see that as mutually exclusive with what we're trying to achieve given the scale of the decarbonization task. In terms of the portfolio, it's really, really simple steps. Firstly, land Moomba and get our own volumes into that, then bring Bayu-Undan and Reindeer online with our own volumes and third-party volumes, continue to win other licensed blocks, which are being made available by the various governments to add to our storage capacity and in parallel, look at international options as well. We'll be sensible around how we attack that. But I would say that there's a window of opportunity at the moment for people who are skilled and versed in what we're trying to do. And part of the reason for teaming up with ADNOC and some of the opportunities that they have globally is to try and get a seat at the table as that market grows.

So yes, and all I'd say is I think you've got to walk before you run in this space. We're really excited about the portfolio that we have and the opportunity we have to repurpose assets at relatively low cost. Remember, CCS coming online in 2024 as a major catalyst that underpins the future strategy for SES. And so that coming online, I think, really should be the catalyst that builds the belief, if you like, and the other two assets as well. And I suspect the spotlight will very much then move to Bayu-Undan, and, of course, Reindeer as well as Moomba Phase 2 and 3. So I'm very excited by that. When it comes to DAC, DAC works, technically it works. And the technology we are testing is technology we use on our facilities in the mean, right? It's whether it works economically and at scale. And if we can get this to work at scale and capture multimillion tons per annum. We have the basins where we can take that CO2 and that's quite unique about the portfolio Alan has. Alan has the Cooper Basin. Very few basins can take tens of millions of tonnes, right? And I'd hope by year-end that we will be increasing that 100 million tons of book capacity, we've just been awarded. We received an award announced recently by the South Australian government give us more storage acreage, we're just evaluating what that means in terms of new capacity for us, and we'll announce that as always, with our reserve report at the end of the year. So we're really excited by that. But I'd say our focus right now, myopic focus, deliver member Phase I, CCS Phase I and then we'll take it from there. I don't think anybody knows how to value this business yet. But when you look at government policies for emission reduction, what else are they going to do? We can talk about shutting down oil and gas all we want. The world is not shutting it down, is growing. Right? So unless we get on and decarbonize oil and gas, you're going to be using a lot of oil and gas in 2050, and we'll have missed the opportunity to decarbonize it on the way through. So I think CCS is one of the most certain growth markets I've ever had the opportunity to play in. And we're in a very good position to do that at relatively low cost and we have a lot of interest in our region, which also happens to be the region that has the biggest gas growth between now and 2050. So as much as there are a number of scenarios, and we've looked at about 100 scenarios out there. They all have different ranges of how much gas we'll be seeing in 2050. None of them have no gas, but nearly all of them, if you break them down and look at the Asia specific subset of that data show gas growing in Asia, growing in Asia. Because Asia has got a lot of enough a lot of coal to displace -- enough a lot of coal to displace between now and 2050, and it does not have the land mass and the availability of renewable solutions that we have here in Australia. We don't have that same luxury. So we see CCS as a massive growth opportunity, and Alan showed you those numbers, and those numbers will probably get bigger, right, worth time. It's a case of how do we liquidate that? How do we turn that into revenue streams? And I hope over the course of the next year or so you're going to see some clarity on that as we move towards FID readiness in some of those projects.

Great. I'm starting to think I should have asked that question a second because...

Oh, I thought that was your final question. All right. Maybe a quick one then.

But we -- I really do appreciate the answer.

The best thing we should be turning on the funds to blowing the smell of the pies, right?

All right. Also my final question, a number of times today, you asked -- you mentioned that your sustainability activities help your access to capital. And I just wondered if we could maybe drill into that a little bit. You're talking about the corporate finance facilities with the credit -- investment-grade credit rating. You're talking about nonrecourse and concessional finance all of the above. Is there a particular metric that lenders are focused on in that regard?

Maybe I'll turn that to Anthea first.

Yes. No worries. So I think it's both. So thematically, what lenders are looking at. As they look at their portfolio, they're looking at transitioning their portfolio to a lower carbon portfolio. So having a plan and demonstrating progress against that plan is important, almost as a check box to say, okay, well, this is someone that I want to bank because they have a transition plan. So I think that's one very important element. And important for us, we have a plan and we're showing progress towards it. It's not an aspirational target. So we are showing -- and we're deploying capital into that plan as well. And I think that's also very important from the point of view of various emissions projects, but also decarbonization plan we have. The second element of that is there is a lot of capital out there that is looking for a home to deploy into the type of business that Alan is running. So that could be limited recourse that could be partnership-type arrangements that could just be straight lending into a CCS project. For example, there's a lot of optionality out there and there's a lot of interest. And really, what we're looking at doing is what is the best fit for us as a business going forward. There's also options to partner with capital providers as well. And you've seen some of the big capital providers like BlackRock, et cetera, lean into funding the energy transition, that kind of provider also does throw opportunities for us.

And what I would say is we're working with all of our customers as well to -- customers and supply chain to understand our Scope 3 world, much, much better, at much more granular level to understand what we can do in that space to help them reduce their emissions as well. And that's been a very interesting journey. You'll probably see some of that in our climate report this year. Well, you will see some of that work in our climate report this year, and that throws up opportunities as well, not only just to take their carbon but to help them with carbon reduction strategies for themselves because, of course, that is their Scope 1 -- Scope 1 or Scope 2 emissions. So look, on that, I just want to say thank you to everybody for taking the time to come and join us this morning. We've got food outside. The management team will be happy to mingle, talk, answer any questions that you may have over lunch, and please join us for some lunch. It's been a long morning. I do appreciate it's a long morning, but we had a lot to get through. We wanted to share a lot of the good things that the company is doing and been doing. And I think, as I said earlier at the start of the day, I may have a big butt management team, but I think this is the strongest operational management team. I have had all of my time at Santos. I have absolutely no doubt about that. You can see some of the great things coming through the organization from that focus on operations, the reliability improvements, the operational, the drill complete Connect model really starting to yield results in the onshore business, and I'm very confident we'll lock value from that. In addition, as I say, at a corporate level, we are very focused on locking value. We will work and we will work with shareholders, and we will continue to communicate with you how that work is progressing on other ways of unlocking value, whether that's structural portfolio optimization, whatever that might be, we will be looking at all as we go forward over the next year or 2. We've got some priorities. We've got to get clarity on Barossa. Barossa is a big overhang on the company right now, and we want to get that clarification on how that's looking going forward and get that progressing again. And I'm really excited about what this business looks like in 2 or 3 years from now with Barossa, with Pikka and with our CCS projects online. So thank you very much for your time. I really do appreciate it. Sorry, it went on. I probably going to be carried away in the first session this morning, but it's been a real while since I've been here talking to you all so I was enjoying myself. But I look forward to talking to some of you over lunch. Thank you very much. Thanks.