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              [html]<thead><tr><tdcolspan="2">decline reduced n by a furthern boe.</td><tdcolspan="2">to effectively control its casts in the face of significant external pressures in the form of rising</td></tr></thead><tbody><tr><tdcolspan="2">these factors, Santos ’ ojects are starting to jine and have bequn to</td><tdcolspan="2">Examining production costs in detail. reveals :</td></tr><tr><tdcolspan="2">edecline experienced oast three years. Two vere commissioned in Bayu - Undan liquids</td><tdcolspan="2">▪ the start - up of Bayu - Undan and acquisitions added $ 16 million to Santos ’ cost base</td></tr><tr><tdcolspan="2">and the Minerva gas n addition, acquisitions</td><tdcolspan="2">▪ changes in our accounting added a further $ 16 million to Santos ’ production costs</td></tr><tr><tdcolspan="2">production is expected</td><tdcolspan="2">• higher insurance premiums ($ 8 mllion ) and one - off stock res.</td></tr><tr><tdcolspan="2">The impact of the ncident. Santos now roduction to be around boe in 2005. This</td><tdcolspan="2">offset by $ 17 million in cost savings largely as a result of Santos ' continuous improvement initiatives</td></tr><tr><tdcolspan="2">s largely driven by the oning of Mutineer - Exeter 2005 and the 3ohn</td><tdcolspan="2">the Moomba incident resulted in $ 17 million of one - off costs in 2004.</td></tr><tr><tdcolspan="2">as field in the middle ar.</td><tdcolspan="2">Piecing this together, the key themes in our financial performance were :</td></tr><tr><tdcolspan="2">ION COSTS DNTROL</td><tdcolspan="2">costs in 2004 were lon, up $ 45 million or 003. Analysis shows os was able to continue</td></tr><tr><td>▪ cost savings in established production areas more than offset increases in the price of services and materials</td><td>Mean definition</td><td>ε0</td><td>Santos ’ cost : base rose as production from new developments and acquisitions were added to the Company ’ s expanding portfolio of producing assets.</td></tr><tr><td>0.465</td><td>Table</td><td>40</td><td>30</td></tr><tr><td>zo</td><td>327</td><td>10</td></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr></tbody>
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