Annual Report 200482
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2004
Consolidated Santos Ltd
2004 2003 2004 2003
29. Commitments for Expenditure $million $million $million $million
The Santos Group has the following commitments for expenditure:
(a) Capital commitments
Capital expenditure contracted for at balance date for which no amounts 
have been provided in the financial statements:
Due not later than one year 253.5 237.7 93.9 84.3
Due later than one year but not later than five years 13.4 33.2 8.2 0.2
266.9 270.9 102.1 84.5
Santos Ltd has guaranteed the capital commitments of certain controlled entities 
(refer note 31 for further details).
(b) Minimum exploration commitments
Minimum exploration commitments for which no amounts have been provided 
in the financial statement or capital commitments:
Due not later than one year 42.1 108.2 10.3 36.5
Due later than one year but not later than five years 118.8 207.7 61.2 70.9
Due later than five years 11.6 31.4 – –
172.5 347.3 71.5 107.4
The Santos Group has certain obligations to perform minimum exploration work and expend
minimum amounts of money pursuant to the terms of the granting of petroleum
exploration permits in order to maintain rights of tenure. These commitments may be
varied as a result of renegotiations of the terms of the exploration permits, licences or
contracts or alternatively upon their relinquishment. The minimum exploration
commitments are less than the normal level of exploration expenditures expected to be
undertaken by Santos Ltd and its controlled entities.
(c) Lease commitments
Operating leases:
Due not later than one year 54.7 39.1 8.4 18.7
Due later than one year but not later than five years 102.9 140.1 21.1 115.1
Due later than five years 0.1 19.0 – 18.9
157.7 198.2 29.5 152.7
30. Superannuation Commitments
Santos Ltd and certain controlled entities participate in a number of superannuation funds and pension plans in Australia and the United States of
America. From 1 February 2002, three of the more significant employee benefit plans were combined into a single plan which provides benefits either
on a defined benefit or cash accumulation basis for employees or their dependants on retirement, resignation, temporary or permanent disablement
or death. The employers and employee members make contributions as specified in the rules of the plan.
In the case of the defined benefit component of the combined plan, employer contributions are based on the advice of the plan’s actuary. The most
recent actuarial assessment of the plan was undertaken as at 1 January 2004.
The following is a summary of the Santos Superannuation Plan:
Type of benefit Defined benefits and cash accumulation
Basis of contributions Percentage of member’s salary contributed by member and employer. The employer’s percentage
reflects the amount to provide an accumulation and the amount recommended by the actuary to
provide the defined benefit.
Last actuarial assessment:
Balance date 1 January 2004
Date issued 20 December 2004
Name of valuer and qualifications Kathryn Daniels FIAA
SAN165 WWW Fins  30/3/05  11:55 AM  Page 82