Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (October 2016)
103 slides from Bhp's investor presentation, Oct 5, 2016
Slide 1: News Release: Rich set of opportunities to drive valuable growth
NEWS RELEASE Release Time IMMEDIATE For personal use only Date 5 October 2016 Location London, United Kingdom Number 23/16 RICH SET OF OPPORTUNITIES TO DRIVE VALUABLE GROWTH BHP Billiton today outlined the broad range of opportunities within its Petroleum business to grow value, returns and cash flo
Slide 2: News Release (continued)
gas wells that generate a minimum 15 per cent internal rate of return (IRR) at US$50 per barrel of oil and US$3 per MMbtu. “In the Permian, we have access to over one billion barrels of oil equivalent (boe) meaning this field has the potential to become the largest production and free cash contribut
Slide 3: Media and Investor Relations contacts
Media Relations Investor Relations Australia and Asia Australia and Asia Matthew Martyn-Jones Tara Dines Tel: +61 7 3227 5816 Mobile +61 419 418 394 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 Email: Matthew.Martyn-Jones@bhpbilliton.com Email: Tara.Dines@bhpbilliton.com For personal use only Paul H
Slide 4: An exciting outlook for our Petroleum business
For personal use only BHP Billiton Petroleum An exciting outlook for our Petroleum business Steve Pastor President Operations, Petroleum
Slide 5: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 6: Statement of Petroleum Resources
Statement of Petroleum Resources Petroleum Resources The estimates of Petroleum Reserves and Contingent Resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employed by For per
Slide 7: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business For personal use only • Petroleum is core to BHP Billiton Value accretive production potential over the next decade1 (BHP Billiton production, MMboe) – strong financial and operating performance 300 – oil and US gas markets expected to rebalance first •
Slide 8: Experienced leadership driving value and returns
Experienced leadership driving value and returns For personal use only • Deep experience across leadership team – average industry and functional experience of over 25 years President Operations Petroleum Steve Pastor – operating experience across six continents 27 years • Operating model supports i
Slide 9: Petroleum is core to BHP Billiton
Petroleum is core to BHP Billiton For personal use only • Significant contributor over the last five years Strong and stable margins (Underlying EBITDA margin2, %) – over 20% of Group production1 100 – over 30% of Group Underlying EBITDA 75 – average Underlying EBITDA margin of 66% 50 • Differentiat
Slide 10: Global energy needs are rising
Global energy needs are rising For personal use only • Emerging economies will drive energy demand Primary energy demand by commodity1,2,3 (Btoe4) – global population to increase by 1.5 billion and GDP to double 16 Thousands by 2035 – world must pursue the twin objectives of providing access to 14 a
Slide 11: Attractive crude oil fundamentals
Attractive crude oil fundamentals For personal use only • Oil market is rebalancing Oil mass balance: global (MMbbl/d) (Supply/Demand, MMbbl/d) – robust demand growth underpinned by developing countries 2 98 – supply growth slowing as capital investment is deferred 1 96 • Continue to see positive lo
Slide 12: Robust gas demand growth
Robust gas demand growth For personal use only • US market expected to rebalance at the end of this year Gas mass balance: North America (bcf/d) (Supply/Demand, bcf/d) – mild winter, industry-wide productivity gains and resilient 2 100 supply resulted in record inventory levels earlier this year 1 9
Slide 13: Australia and the US are our core regions
Australia and the US are our core regions …underpins our major producer position in core regions For personal use only Our high-quality resource base… (BHP Billiton resource, FY16, Bboe)1 (BHP Billiton production, Mboe/d, CY15, net) 4 300 2nd 6th 9th 4th Rank2 200 2 100 0 0 Australia Eagle Ford Hayn
Slide 14: Operating safely and sustainably is our priority
Operating safely and sustainably is our priority For personal use only • The health and safety of our people is paramount Lost-Time Injury Frequency (LTIF) (number of recordable injuries per million hours worked1) – record and reputation as one of the safest companies in the 1.5 petroleum industry –
Slide 15: Onshore US well placed as prices recover
Onshore US well placed as prices recover For personal use only • Operating in the heart of some of the best shale plays Black Hawk drilling cost performance (US$ million/well, 100% basis) – large resource base in Eagle Ford 6 – significant potential in Permian 4 • Continuing to reduce costs with tec
Slide 16: Stable volumes and high margins in Conventional
Stable volumes and high margins in Conventional For personal use only • Our Conventional business is low cost and high-margin High margins in Conventional2 (Conventional production, MMboe) (EBITDA margin, %) – unit cash costs expected to be ~US$10/boe over the next 150 90 two years1,2 • Comprehensiv
Slide 17: Targeting Tier 1 liquids growth opportunities
Targeting Tier 1 liquids growth opportunities For personal use only • Organic growth is the priority Significant potential in oil exploration over the next three years (value1, BHP Billiton share) – targeting frontier basins with Tier 1 potential – program aimed at conventional deepwater oil plays t
Slide 18: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business For personal use only • Petroleum is core to BHP Billiton Value accretive production potential over the next decade1 (BHP Billiton production, MMboe) – strong financial and operating performance 300 – oil and US gas markets expected to rebalance first •
Slide 19: For personal use only
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Slide 20: Petroleum Marketing
For personal use only Petroleum Marketing Rebalancing markets, positive long-term fundamentals Michiel Hovers Vice President Marketing, Petroleum
Slide 21: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 22: Rebalancing markets, positive long-term fundamentals
Rebalancing markets, positive long-term fundamentals For personal use only • Oil market is rebalancing – near-term demand growth of more than 1 MMbbl/d per annum – inventory drawdown as supply growth slows considerably • Long-term positive outlook for oil underpinned by strong fundamentals – rising
Slide 23: Global oil market is rebalancing
Global oil market is rebalancing For personal use only • Global demand expected to surpass global supply in 2017, Total US crude oil production and rig profile inventories to decline (MMbbl/d) (Oil rigs) 11 1,750 – demand growth in 2017 expected to be 1.2 MMbbl/d – non-US production to remain relati
Slide 24: Positive long-term oil demand fundamentals
Positive long-term oil demand fundamentals For personal use only • Robust demand growth underpinned by developing countries Long-term liquids demand forecast (MMbbl/d) – China and India expected to account for half of global demand 80 growth over the next decade 60 – OECD demand has peaked and is ex
Slide 25: ~30 MMbbl/d of new supply required by 2025
~30 MMbbl/d of new supply required by 2025 For personal use only • Compelling supply opportunity Potential new oil supply1 by 2025 (US$/bbl, real Jan 2016) – natural field decline and demand growth drive need for new 100 supply US Shale Non-core – new supply required equates to approximately one thi
Slide 26: North American gas: strong demand, abundant supply
North American gas: strong demand, abundant supply For personal use only • Strong demand growth underpinned by multiple sectors North America gas demand (bcf/d) – total North American demand CAGR of ~3% to 2025 120 – gas is a reliable, economic and a low emission fuel for power generation 80 – gas d
Slide 27: Hedging price and input costs accelerates Haynesville gas volumes
Hedging price and input costs accelerates Haynesville gas volumes For personal use only Gas and iron ore production profiles1 comparison Henry Hub monthly futures and spot pricing (Production as % of peak rate) (US$/MMbtu, nominal) 100 8 80 6 60 4 40 2 20 0 0 0 2 4 6 8 10 12 14 16 18 20 2010 2011 20
Slide 28: Rebalancing markets, positive long-term fundamentals
Rebalancing markets, positive long-term fundamentals For personal use only • Oil market is rebalancing – near-term demand growth of more than 1 MMbbl/d per annum – inventory drawdown as supply growth slows considerably • Long-term positive outlook for oil underpinned by strong fundamentals – rising
Slide 29: For personal use only
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Slide 30: Petroleum Financial Performance
For personal use only Petroleum Financial Performance Driving productivity and capital discipline Michelle Turner Vice President Finance, Petroleum
Slide 31: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 32: Driving productivity and capital discipline
Driving productivity and capital discipline For personal use only • Petroleum supports cash flow stability – average Underlying EBITDA margin of 66% over the last five years – Conventional provides stable volumes and cash flow – Onshore US provides flexibility to capture price cycles • Focus on prod
Slide 33: Leading EBITDA margins
Leading EBITDA margins For personal use only • Consistently strong margins over the last five years Peer leading EBITDA margins1 (Underlying EBITDA margin, %) – contributed ~US$40 billion Underlying EBITDA 80 – peer leading Underlying EBITDA margin of 66% 60 • Productivity supported FY16 financial p
Slide 34: Depreciation ~US$18/boe in FY17
Depreciation ~US$18/boe in FY17 For personal use only • Conventional unit depreciation increases ~US$1/boe in FY17 Petroleum depreciation rates1 reflecting project completions and timing of resource (US$/boe) additions 30 • Onshore US depreciation increases ~US$1/boe in FY17 25 – the unit rate decli
Slide 35: Driving capital and operating productivity
Driving capital and operating productivity For personal use only • Productivity underpinned efficiency in FY16 Annual supply savings Petroleum headcount (US$ million) (count) – controllable cash costs fell US$677 million down 28% 400 4,000 – working capital management decreased inventory by 25% 300
Slide 36: Capital allocation provides discipline and transparency
Capital allocation provides discipline and transparency For personal use only • Globalised finance function oversees capital allocation Capital and exploration expenditure1 (US$ billion) – co-located finance teams support operations 5 – competition for capital focused on value over volume • Flexibil
Slide 37: Driving productivity and capital discipline
Driving productivity and capital discipline For personal use only • Petroleum supports cash flow stability – average Underlying EBITDA margin of 66% over the last five years – Conventional provides stable volumes and cash flow – Onshore US provides flexibility to capture price cycles • Focus on prod
Slide 38: For personal use only
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Slide 39: Onshore US: Capturing full resource value
For personal use only Onshore US Capturing full resource value Alex Archila Asset President, Shale
Slide 40: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 41: Statement of Petroleum Resources
Statement of Petroleum Resources Petroleum Resources The estimates of Petroleum Reserves and Contingent Resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employed by For per
Slide 42: Capturing full resource value
Capturing full resource value For personal use only • Large, quality resource supports returns and optionality – 3 Bboe 2P1 reserves including ~500 MMbbls of oil – up to 1,200 net liquids-rich wells deliver at least 15% IRR at US$50/bbl, contingent upon trials in Eagle Ford – up to 220 net dry gas w
Slide 43: Approximately 850k net acres across four large fields
Approximately 850k net acres across four large fields For personal use only • Eagle Ford Outline of BHP Billiton Onshore US acreage by play – largest component of current production Fayetteville – liquids-rich acreage in Black Hawk New Mexico Oklahoma – mix of condensate and dry gas acreage in Hawkv
Slide 44: Responding to market while improving capital efficiency
Responding to market while improving capital efficiency For personal use only • Production growth over FY12 to FY15 (14% CAGR) demonstrates Onshore US production1 Onshore US capital1 rapid growth potential with new investment (MMboe, BHP Billiton share) (US$ billion, BHP Billiton share) 150 6 • Redu
Slide 45: 3 Bboe 2P reserves including ~500 MMbbls of oil
3 Bboe 2P reserves including ~500 MMbbls of oil For personal use only Onshore US reserves and resources1, 2, 3 Onshore US resources by product1, 2, 3 (as at 30 June 2016, Bboe, BHP Billiton share) (as at 30 June 2016, Bboe, BHP Billiton share) 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Haynesvi
Slide 46: Continuing to deliver material well cost savings
Continuing to deliver material well cost savings For personal use only • Well costs down ~40% over the past two years with further Reduction in Black Hawk well costs1 reductions in FY17 (US$ million, 100% basis) 10 • Large portion of drilling cost reductions will be maintained 8 independent of price
Slide 47: Operating productivity delivering significant savings
Operating productivity delivering significant savings For personal use only • ~30% reduction in field operating costs relative to FY15 Reduction in upstream field operating costs (US$ million, BHP Billiton share) – embedded tools and practices originally developed by 60 Minerals business FY15 averag
Slide 48: Superior well performance in core liquids-rich fields
Superior well performance in core liquids-rich fields For personal use only • Condensate production in the first 12 months outperforms peers in Black Hawk well performance relative to peers1, 2, 3 both Black Hawk and Permian (cumulative production, gross condensate Mbbls) 200 • First-mover position
Slide 49: Black Hawk: expanding inventory
Black Hawk: expanding inventory For personal use only • Current production of ~55 Mboe/d (net) Black Hawk field acreage • De-risking future development areas through ongoing trials – ongoing Lower Eagle Ford (LEF) trials in Southwest and upcoming trials in Northeast – ongoing Upper Eagle Ford (UEF)
Slide 50: Hawkville: encouraging results from recent trials
Hawkville: encouraging results from recent trials For personal use only Hawkville acreage • Current production of ~30 Mboe/d (net) Oil • Evaluating encouraging results from new completions designs trialled by both BHP Billiton and other operators • ~230 net wells delivering at least 15% IRR at $50/b
Slide 51: Permian: clear line of sight to development
Permian: clear line of sight to development For personal use only • Current production of ~30 Mboe/d (net) Permian core acreage and producing wells – one rig focused on ~100 remaining obligation wells (gross) – recent acreage swaps to enable longer laterals New Mexico • Progressing toward full pad d
Slide 52: Haynesville: recommenced high-return drilling program
Haynesville: recommenced high-return drilling program For personal use only • Current production of ~50 Mboe/d (net) Haynesville acreage and core development area • Commenced drilling 16 well (gross) program in October with >30% returns1 – production hedged at ~US$3/MMbtu – supply contracts locked f
Slide 53: Fayetteville: low technical risk, long-term option
Fayetteville: low technical risk, long-term option For personal use only • Current production of ~45 Mboe/d (net) Fayetteville acreage • Extensively drilled with low geological risk • Investment limited to minimal OBO1 elections • Working with partners to assess new potential Moorefield horizon BHP
Slide 54: Large and improving investable inventory
Large and improving investable inventory For personal use only • Attractive investment options at relatively low prices Liquids-rich portfolio delivering 15% returns at flat price bands1, 2, 3 (net working interest wells, US$/bbl) – ~1,200 net liquids-rich wells deliver at least 15% IRR at 1,250 US$
Slide 55: Price scenarios
Price scenarios For personal use only A range of possible price scenarios derived from analysts’ forecasts. West Texas Intermediate crude oil consensus prices Henry Hub natural gas consensus prices (US$/bbl, nominal) (US$/MMbtu, nominal) 100 4.50 Scenario 2 4.25 90 Scenario 2 (High consensus) (High
Slide 56: Operational capability to respond to market conditions
Operational capability to respond to market conditions Scenario 11, 2, 3 Scenario 21, 2, 3 Scenario 31, 2, 3 For personal use only Mid activity based on consensus average prices High activity based on consensus high prices Low activity based on consensus low prices Gross operated rigs Capital invest
Slide 57: Ability to quickly adjust production response
Ability to quickly adjust production response For personal use only • Potential response in a range of price scenarios Onshore US potential production response1, 2 (MMboe, BHP Billiton share) – annual average base decline of ~15% in FY18-22 250 – volumes broadly flat in low price scenario from FY18
Slide 58: Maximising value and cash flow
Maximising value and cash flow For personal use only • Potential to remain cash flow positive under the three price Onshore US potential pre-tax free cash flow1, 2 scenarios outlined (US$ billion, BHP Billiton share, nominal) 4 • Flexibility remains to pivot toward higher or lower activity levels in
Slide 59: Capturing full resource value
Capturing full resource value For personal use only • Large, quality resource supports returns and optionality – 3 Bboe 2P1 reserves including ~500 MMbbls of oil – up to 1,200 net liquids-rich wells deliver at least 15% IRR at US$50/bbl, contingent upon trials in Eagle Ford – up to 220 net dry gas w
Slide 60: Appendices
For personal use only Appendices
Slide 61: Key well parameters: Black Hawk
Key well parameters: Black Hawk For personal use only <$50/bbl1 $50-60/bbl wells1 $60-70/bbl wells1 Total acreage (thousand acres) 97 Rig line efficiency 30 wells / year2 Future well locations (gross) 4893 70 67 Average WI/NRI 54% / 41% 50% / 37% 57% / 43% Gross well capex (real US$ million) 5.22 5.
Slide 62: Key well parameters: Hawkville
Key well parameters: Hawkville For personal use only <$50/bbl wells1 $50-60/bbl wells1 $60-70/bbl wells1 Total acreage (thousand acres) 248 Rig line efficiency 30 wells / year2 Future well locations (gross)3 233 376 0 Average WI/NRI 98% / 73% 97% / 73% n/a Gross well capex (real US$ million) 5.42 5.
Slide 63: Key well parameters: Permian
Key well parameters: Permian For personal use only <$50/bbl wells1 $50-60/bbl wells1 $60-70/bbl wells1 Total acreage (thousand acres) 123 Rig line efficiency 15 wells / year2 Future well locations (gross) 790 1523 3713 Average WI/NRI 84% / 63% 90% / 68% 83% / 63% Gross well capex (real US$ million)
Slide 64: Key well parameters: Haynesville
Key well parameters: Haynesville For personal use only <$3/MMbtu wells1 $3-3.50/MMbtu wells1 $3.50-4/MMbtu wells1 Total acreage (thousand acres) 275 Rig line efficiency 12 wells / year2 Future well locations (gross)3 305 615 25 Average WI/NRI 72% / 55% 76% / 59% 86% / 71% Gross well capex (real US$
Slide 65: Key well parameters: Fayetteville
Key well parameters: Fayetteville For personal use only <$3/MMbtu wells1 $3-3.50/MMbtu wells1 $3.50-4/MMbtu wells1 Total acreage (thousand acres) 625 Rig line efficiency 31 well / year2 Future well locations (gross)3 0 21 275 Average WI/NRI n/a 52% / 43% 55% / 46% Gross well capex (real US$ million)
Slide 66: For personal use only
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Slide 67: Conventional Petroleum: Extending the production runway
For personal use only Conventional Petroleum Extending the production runway Geraldine Slattery Asset President, Conventional
Slide 68: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 69: Statement of Petroleum Resources
Statement of Petroleum Resources Petroleum Resources The estimates of Petroleum Reserves and Contingent Resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employed by For per
Slide 70: Extending the production runway
Extending the production runway For personal use only • Quality assets provide strong foundations – low cost assets in stable political environments – material player in chosen production heartlands – strong free cash flow and returns through the price cycle • Operating and development excellence pr
Slide 71: Quality assets concentrated in Australia and GoM
Quality assets concentrated in Australia and GoM For personal use only Conventional production outlook (FY17e, BHP Billiton share) 4th largest International other producer 3-4 MMboe in GoM North West Shelf 2nd largest 28-30 MMboe producer in Gulf of Mexico Australia 33-35 MMboe Trinidad & Tobago 5-6
Slide 72: 1.3 Bboe 2P reserves including ~500 MMbbls of oil
1.3 Bboe 2P reserves including ~500 MMbbls of oil For personal use only Conventional reserves and resources1 Conventional reserves and resources by product1 (as at 30 June 2016, Bboe, BHP Billiton share) (as at 30 June 2016, Bboe, BHP Billiton share) 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 A
Slide 73: Strong cash flow through the price cycle
Strong cash flow through the price cycle For personal use only • Attractive business at consensus prices over the next two years1: EBITDA1 EBITDA margin1 (US$ billion) (%) – EBITDA margin of >70% 4 80 – EBITDA of ~US$3.5 billion per annum – pre-tax free cash flow of ~US$2.7 billion per annum 2 70 –
Slide 74: Industry leading operating and development capabilities
Industry leading operating and development capabilities For personal use only • Competitive with majors in deepwater drilling performance Operating uptime3 (%) • Industry leading operating uptime and unit costs 100 • Relentless focus on safety and productivity improvements 75 – continuous improvemen
Slide 75: Brownfield and greenfield options to mitigate base decline
Brownfield and greenfield options to mitigate base decline For personal use only • Protecting margins from existing assets Conventional brownfield extension and greenfield growth1 (MMboe, net) – maintain industry leading operating and development 150 performance – productivity and capital efficiency
Slide 76: Rich portfolio of brownfield opportunities
Rich portfolio of brownfield opportunities For personal use only • High-return brownfield projects in execution Brownfield growth capital1 (US$ million nominal, net, FY17-21 forecast) – North West Shelf (NWS) GWF-A first production achieved Q4 1,600 CY15 with all wells producing within FY17 ~US$0.25
Slide 77: Greenfield developments provide longer term optionality
Greenfield developments provide longer term optionality For personal use only Mad Dog Phase 2 Mad Dog 2 concept • Capital estimate halved since 2013 – field development plan optimisation – standardisation – design simplification – capture market deflation • Wet tree subsea development supported by a
Slide 78: Accelerating development schedule post discovery
Accelerating development schedule post discovery For personal use only • Leveraging deepwater development capabilities Project development timeline Industry average – positioned to capitalise on industry leading geological, BHPB 40 months 36 months Industry75 Average months75 months # development an
Slide 79: Extending the production runway
Extending the production runway For personal use only • Quality assets provide strong foundations – low cost assets in stable political environments – material player in chosen production heartlands – strong free cash flow and returns through the price cycle • Operating and development excellence pr
Slide 80: For personal use only
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Slide 81: Appendices
For personal use only Appendices
Slide 82: Australia non-operated focus areas
Australia non-operated focus areas For personal use only Bass Strait • Delivery of Longford Gas Conditioning Plant project in Q4 CY16 • Progressing multiple investment opportunities – West Barracouta – Kipper – Snapper Bass Strait NWS – Tuna • • • Targeted divestment of mature Bass Strait oil assets
Slide 83: Australia operated focus areas
Australia operated focus areas For personal use only Pyrenees Pyrenees • Phase 3 infill program executed in FY16 • Phase 4 infill opportunities being assessed • Supporting Exmouth basin seismic appraisal of the region Macedon • Optimising value through utilisation of plant capacity by capturing Mace
Slide 84: Gulf of Mexico focus areas
Gulf of Mexico focus areas For personal use only Atlantis Mad Dog • Executing high-return multi- year infill program Mad Dog • Executing high-value multi-year Spar A infill program Atlantis Shenzi • Progressing Mad Dog 2 for FID Shenzi Operator • BP Operator • BP Operator • BHP Billiton • Maintainin
Slide 85: Rest of World assets
Rest of World assets For personal use only Angostura • Angostura Phase 3 completed • Supporting exploration in the region Algeria • Production Sharing Contract 10 Angostura Algeria (ROD) North Sea year extension signed • Progressing government Operator • BHP Billiton Operator • Groupement Sonatrach
Slide 86: Petroleum Exploration: Finding the next wave of conventional growth
For personal use only Petroleum Exploration Finding the next wave of conventional growth Niall McCormack Vice President Exploration, Petroleum Deepwater Invictus
Slide 87: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 88: Multi-billion barrel risked potential in current program
Multi-billion barrel risked potential in current program For personal use only • Refocused portfolio on Tier 1 opportunities – from 12 countries to three focus areas – dominant acreage position in each basin and operatorship – prospective multi-billion barrel risked potential • 100% success rate fro
Slide 89: 2012: countries, continents, over prospects
2012: 12 countries, 5 continents, over 100 prospects For personal use only Canada Onshore US Gulf of Mexico (US) India Vietnam Trinidad & Philippines Colombia Tobago Malaysia Brunei Australia South Africa Falkland Islands BHP Billiton Investor Briefing, Exploration 5 October 2016 4
Slide 90: 2016: just focus areas
2016: just 3 focus areas For personal use only Gulf of Mexico (US) Mexico Trinidad & Tobago Barbados Australia Current exploration acreage position Potential exploration position BHP Billiton Investor Briefing, Exploration 5 October 2016 5
Slide 91: Focused footprint offers large prospective upside
Focused footprint offers large prospective upside For personal use only Upside is being de-risked by recent drilling successes Significant potential in oil exploration over the next three years (value1, BHP Billiton share) Gulf of Mexico (US) Mexico Trinidad & Tobago Barbados Gulf of Mexico Trinidad
Slide 92: Testing three basins, six plays in three years
Testing three basins, six plays in three years For personal use only Exploration program timed to minimise cost while maximising value FY16 FY17 FY18+ Reduced cycle time from access to drill through technology, right data, workflows Explore Shenzi North LeClerc Burrokeet Scimitar T&T T&T T&T Increas
Slide 93: Gulf of Mexico: Miocene success and Paleogene potential
Gulf of Mexico: Miocene success and Paleogene potential For personal use only Green Canyon and Perdido US Gulf of Mexico • Oil discoveries in central GoM Miocene A Houston – leverages our understanding from Shenzi, Central Gulf of Mexico Mad Dog and Atlantis (Caicos, Shenzi N, Wildling) USA A – oil
Slide 94: Mexico: a natural extension of our Perdido position
Mexico: a natural extension of our Perdido position For personal use only Mexican deep water bid round blocks • Early entrant opportunity for potential Tier 1 Houston – positioned to bid if prospects and fiscal terms are attractive – significant potential (>10 Bbbl unrisked) USA – pre-qualified as d
Slide 95: Encouraging early results in the Caribbean
Encouraging early results in the Caribbean Geoseismic images of LeClerc and Burrokeet Material operated Caribbean position For personal use only • Tier 1 potential in Trinidad A Southern Trinidad &Tobago – large structures, world-class source rock (LeClerc) – at least 12 significant leads and prospe
Slide 96: Maximising value through operational excellence
Maximising value through operational excellence For personal use only Industry average ~60 months1 36 months Industry average 75 months2 Explore Appraise Select Define Execute Produce Technology Right Data Work flows BHP Billiton 40 months 36 months Industry average 75 months2 Explore Appraise Selec
Slide 97: Multi-billion barrel risked potential in current program
Multi-billion barrel risked potential in current program For personal use only • Refocused portfolio on Tier 1 opportunities Significant risked future production potential to be tested by – from 12 countries to three focus areas current drilling program1 (risked potential future production, MMboe, B
Slide 98: For personal use only
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Slide 99: BHP Billiton Petroleum: Closing remarks
For personal use only BHP Billiton Petroleum Closing remarks Steve Pastor President Operations, Petroleum
Slide 100: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: reserves and resources and the production, revenues and costs relating thereto, trends in commodity prices and currency exchange rates; demand for commod
Slide 101: Statement of Petroleum Resources
Statement of Petroleum Resources Petroleum Resources The estimates of Petroleum Reserves and Contingent Resources contained in this presentation are based on, and fairly represent, information and supporting documentation prepared under the supervision of Mr. A. G. Gadgil, who is employed by For per
Slide 102: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business For personal use only • Petroleum is core to BHP Billiton Value accretive production potential over the next decade1 (BHP Billiton production, MMboe) – strong financial and operating performance 300 – oil and US gas markets expected to rebalance first •
Slide 103: For personal use only
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