Operating in a variable climate

Assessing the impact of climate variability and change on mining in South Australia

CSIRO Workshop June 2015

Paul Claydon, Carbon Commercial Adviser

ADAPTING TO CLIMATE CHANGE

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Global Challenge

Experience of Climatic Events

Our Integrated Approach

─ Case study 1: Heatwaves

─ Case study 2: Flooding

Questions

GLOBAL CHALLENGE Santos’ vision is to be a leading energy company in Australia and Asia

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We are proud to be part of the solution by fuelling a cleaner energy future

Delivering our transformational LNG portfolio

Building a focused, exploration-led portfolio

Growing our strong domestic base business

ROLE OF NATURAL GAS The increased use of natural gas in place of coal-fired electricity generation is a scientifically recognised and demonstrated abatement option

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*13% = 198Mt coal to gas switch and 116Mt due to an increase in renewable and nuclear generation

Australia’s emissions reduction task to 2020 RECOGNISED: “Greenhouse gas emissions from energy supply can be reduced significantly by replacing current world average coal-fired power plants with modern, highly efficient natural gas combined-cycle power plants …” IPCC Fifth Assessment Report, 2014

DEMONSTRATED: The carbon intensity of electricity production in the USA fell by 13% from 2007-2012 * Of this reduction 198MtCO2 is due to fuel switching from coal to gas US Energy Related Carbon Dioxide Emissions, 2012 (EIA, 2013)

EXPERIENCE OF CLIMATIC EVENTS

Santos operates in locations within Australia and regionally which already experience impacts from climatic events

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Otway Basin

Phu Khanh Basin

Nam Con Son Basin

South Sumatra

Papua New Guinea

Carnarvon Basin

Browse Basin

Timor Sea Bonaparte Basin

Amadeus Basin

Cooper Basin

Surat/Bowen

Basins

Gippsland Basin

Gunnedah Basin

East Java Basin

Bay of Bengal

McArthur Basin

Santos assets

West Natuna Basin

Port Bonython

Patricia Baleen

Experienced and future climatic events include…

Heat waves

Flooding

Cyclones

Storm surges

…and the IPCC says with “virtual certainty” that globally there will be an increase in the frequency of climatic events in the future…

MANAGING CLIMATE RISK

Santos has integrated climate risks and opportunities into business as usual

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The Oil and Gas industry requires the management of risks including…

Safety

Environmental

Community

Commercial

Legal

Financial

Reputational

…climate risk is integrated into the risks above and addressed by Santos’ existing risk framework…

LIK

ELIH

OO

D

CONSEQUENCE

IDENTIFY HAZARD

ASSESS RISK

CONTROL RISK

REVIEW CONTROL

MEASURES

OUR INTEGRATED APPROACH

Understand, manage and monitor climate change risk and develop appropriate adaptation strategies for business

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Santos’ integrated governance approach:

Policies

Management standards

Engineering standards

Risk assessments

Centralised carbon and sustainability team

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12 Jan 2013: +49.6°C

13 Jul 1997: -0.5°C

CASE STUDY 1: HEATWAVES

Santos’ operations in Central Australia have experienced temperatures approaching +50ºC…

Our operations are already exposed to extreme temperatures…

…increases to average temperatures

may increase the likelihood and duration of heatwaves…

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CASE STUDY 1: HEATWAVES

Impacts:

Potential for adverse health effects such as:

Heat stress Heat exhaustion Heat stroke Heat cramps

Extreme heat events are identified by apparent temperatures in excess of 40ºC

“No job too important it can’t be done safely” 9 |

CASE STUDY 1: HEATWAVES

Controls:

Mandatory Heat Stress Training

Appropriate PPE - wide brim hats, sunscreen, sunglasses

Heat stress management plan with teams

Reschedule work (e.g. start work earlier)

Acclimatisation

Hydration

Installation of shaded work areas

Insulation of radiant heat sources

Minimising the manual nature of the task

Increased air movement by fans or evaporative systems

Monitoring symptoms - perspiring, headaches, stress

Santos has a number of controls to adapt to the risks of extreme temperature

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ANY QUESTIONS?

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