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that is unique for a company of our size. We
now have a significant involvement in four
It is underpinned by our cornerstone
interest in GLNG, and by our significant
interest in PNG LNG.
Darwin has been in production since 2006,
and last year we added our fourth project with
Another highlight of our LNG portfolio is
the company we keep -- our partners in these
projects include PETRONAS, ExxonMobil,
ConocoPhillips and GDF SUEZ. All are major
players in the global gas industry.
We have been making steady and
substantial progress with our GLNG project. As
a snapshot of where we are today, here are a
3 We are 90 percent through our downstream
FEED, conducted by Bechtel.
3 For the upstream component, we are 75
per cent through dual FEED conducted by
Foster Wheeler and Flour.
3 We have a binding offtake agreement in
place with PETRONAS for 2 mtpa, plus a
further 1 mtpa at GLNG's sole option, valid
3 We are in detailed and advanced
discussions with a number of Asian LNG
buyers for train one and train two offtake
and equity in the project.
3 We are setting the pace in terms of the
environmental approvals process.
Submissions closed on our supplementary
EIS on Monday and we are the first project
to reach that point.
3 We are building our project team with over
400 staff now dedicated to GLNG -- and we
are continuing to create a job a day -- 7
days a week.
3 Our cultural heritage management plans
are well advanced with six of seven
Indigenous Land Use Agreements already
3 Our water management activities are
approved and in place, with almost 1
million trees planted.
3 I reiterate that we remain confident that
GLNG remains economically robust across
the range of our CAPEX estimates.
In short, GLNG is on track for an FID
decision in the middle of this year and first
LNG cargoes in 2014.
Let me now turn to a macro perspective
again to outline what I believe is necessary to
deliver these projects and indeed to keep
As we all know Australia's resources
industry has enormous potential to fuel Asian
economic growth and by doing so further
assure Australia's economic wellbeing.
But to deliver this, Australia must stay
The most important factors impacting the
Australian resources industry over next 5 years
3 Attracting and retaining skilled labour,
including in meeting challenges such as:
3 The retirement of experienced staff
3 Technical training
3 Attracting talent to remote areas
3 Managing labour costs with multiple
3 Stable fiscal regimes are also essential to
the continued development of our
industry. Our message here is fairly simple
-- Don't mess with success! We are all
aware the Henry tax review is now being
considered by Government. We would urge
a cautious approach to making any
changes to the way royalties and resources
taxes are levied in this country.
3 Regulatory certainty. To continue to
deliver major projects in Australia,
industry requires sensible policy decisions
to deliver regulatory certainty, in
particular in areas such as carbon pricing,
foreign investment and environmental
Everyone in this room faces similar
challenges -- surviving and growing in highly
competitive Asian markets.
At Santos we are excited about the future.
It is simply a great time to be in the gas
business and a great time to be CEO of Santos.
As part of the transformation of the
company from a Cooper Basin gas producer
sheltered behind shareholding restrictions to a
competitive regional energy player we are
placing far greater emphasis on telling our
story.As part of that we sponsored the Santos
Tour Down Under two weeks ago.
The energy of cyclists like the Tour's
winner Andre Greipel was truly inspiring.
We find ourselves in a world where
challenges and opportunities abound.
Rest assured that like Andre, we have the
energy to succeed.
Big Lake site, Cooper Basin, South Australia.
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