Annual Report 20044
Managing Director’s Review
OUR 50 YEARS OF EXPERIENCE:
AN INVESTMENT IN THE FUTURE 
Fifty years ago, the founding
fathers of Santos, led by the 
late John Bonython, took the
Company's first brave steps in the
search for oil and gas. It was a
risky move but, with the limited
information available, they
identified the far north-east of
South Australia as having great
potential. This judgment would
later be justified and the Cooper
Basin would become a prime
Australian source of energy for
decades to come.
With 2004 marking the 
50th anniversary of Santos’
incorporation, we have been
reminded of how much the world
of commerce, technology and
regulation has changed since
those pioneering days of the
1950s and 1960s. 
Complicated corporate entities
trade oil around the world 
at the touch of a button. With
sophisticated seismic technology
and three-dimensional computer
images we can more clearly ‘see’
the structures that might hold the
oil and gas for which we search. 
But some things never change
and it is interesting as we reach
this milestone period to reflect
on the Santos story – not in an
indulgent way as we celebrate our
progress and achievements, but
rather as a means of learning
from the past as we look forward
to the challenges ahead.
RETAINING AN
ENTREPRENEURIAL SPIRIT
Santos' founders were the
entrepreneurs of their day –
among them Sir Douglas Mawson
and Reg Sprigg – people with the
drive and commitment required 
to create an entirely new
industry. It was hard work in 
a hostile environment but they
persevered and delivered the
discoveries that have sustained
the energy needs of Adelaide,
Sydney and beyond for the 
past 35 years.
Today, we have knowledge and
technology injected into the
exploration equation that the
early prospectors could not 
even dream about. But it is 
vital that we retain their
entrepreneurial spirit. Our aim is
to foster a working environment
in which we encourage and
support people and build the
confidence required to make 
bold but informed decisions
throughout our business.
A culture change program is
currently underway in Santos
which is all about making sure
that we work together in a way
that enhances our team spirit 
and ability to be successful.
VALUES ARE IMPORTANT
There is another attribute 
of our forefathers that is still very
relevant today, even though our 
working environment is a vastly
different place. People matter. 
Values are the essential building
blocks for any successful
company. If the basic building
blocks are not in place then 
it doesn't matter whether you
have a vision for change, a
business will not go in the
direction you want without them.
In that context, the progress 
we have made under the
restructuring program is most
pleasing and there is an ongoing
role for all of us to play in Santos'
continuous improvement program.
This includes striving to 
operate our business in the 
safest possible manner. I applaud
the great commitment and
performance of everyone who rose
to the challenges posed by the
fire at the Moomba liquids
recovery plant on New Year's Day
2004. The effort by everyone
involved to repair and return 
the plant to full production was
first class and a credit to their
cooperation and professionalism.
JERUK STANDS OUT
The Jeruk oil discovery in
Indonesia, our most exciting
drilling success for many years, 
is the result of deliberately
targeting this area as part of the
growth strategy put in place 
in 2001.
We were in Indonesia by design,
identifying East Java as an
attractive area in which to
expand Santos' exploration effort
internationally and to establish a
new core area. We were looking
for excellent drilling targets and
found one with Jeruk. 
Further, we took a strategic
approach towards gaining access
to the area, acquiring the
surrounding exploration acreage
to ensure that we manage the
evaluation of the entire play
trend, giving Santos maximum
drilling flexibility and keeping
upfront costs down.