Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (November 2001)
39 slides from Bhp's investor day presentation, November 2001
Slide 1: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 2: High Margin Exploration
High Margin Exploration • Gulf of Mexico - United States - exploration - development • Angola/Gabon - West Africa • Other Deepwater Basins - screening activity
Slide 3: Green Canyon Area
Green Canyon Area Mahogany EB 947 EWING BANK EB 910 Agate Arnold Graupel EB 991 Sunday Silence EB 1006 GC 18 Boxer ’ Navarro GC 650 El Toro 00 00 ’ GC 60 15 20 GC 82 Bullwinkle Stellaria Marquette Bison Shasta Natasha Rocky Angus Popeye Brutus Monsoon Rio Genesis Jolliet Mayday Simpatico Troika Glid
Slide 4: Gulf of Mexico - Exploration Strategy
Gulf of Mexico - Exploration Strategy FOCUS TECHNICAL CAPABILITY • Define key high potential • Competence in key technologies play fairways • depth imaging • Petroleum systems analysis • lithology & fluid prediction • Build material positions with • pressure prediction/drilling follow-up potential •
Slide 5: Gulf of Mexico Deepwater Potential
Gulf of Mexico Deepwater Potential 40 35 Cumulative Resource (BBOE) 30 25 20 Shelf 15 Deepwater (WD >2500ft) 10 5 0 1 101 201 301 401 501 601 701 801 901 1001 1101 Number of Fields
Slide 6: Gulf of Mexico Exploration - Industry Deepwater Wells
Gulf of Mexico Exploration - Industry Deepwater Wells All Deep Water Wells 1281 Total Wells Salt Canopy
Slide 7: Gulf of Mexico Exploration - Play Types/Exploration Focus
Gulf of Mexico Exploration - Play Types/Exploration Focus Deepwater 600’-5,000’ Water Ultra Deepwater Established Shelf Plays 5,000’-10,000’+ Water Established Plays 0-600’ Water New Plays New Plays Pleistocene Pleistocene Pliocene Pliocene U Miocene U Miocene L Miocene Oligocene LM Oli iocen Cretac
Slide 8: Gulf of Mexico Deepwater Leasehold Ranking – September 2001
Gulf of Mexico Deepwater Leasehold Ranking – September 2001 Number of Leases 800 700 600 500 400 300 200 100 0 Chevron BP Exxon Shell Kerr Conoco Ocean Unocal Agip/BB BHP Amerada Total Fina Texaco Mobil McGee Energy Hess Elf
Slide 9: Gulf of Mexico Exploration - Program Result FY94 - FY02 to Date
Gulf of Mexico Exploration - Program Result FY94 - FY02 to Date Discoveries Typhoon • 18% commercial Atlantis success to date MadDog Pluto • 32% if tieback 22 opportunities under Exploration Boris Neptune evaluation are included Bass Lite 34 Wells 12 Projects Appraisal • 1 sanctioned Drilling Levera
Slide 10: Gulf of Mexico Exploration Current Inventory
Gulf of Mexico Exploration Current Inventory Prospect Size KESTRAL DEEP MMboe 100 to 250 KOMODO OASIS/TRAPPERS Mississippi Canyon 250 to 500 SHENZI >500 TEMBO PARIS CARVER PUMA Atwater Valley Green Canyon BASS DEEP SUMATRA REDWOOD/ GREEN KNOLL Gas Field KANSAS Walker Ridge Oil Field HEADROOM BHP Acr
Slide 11: Mad Dog and Atlantis - Areal Extent - Miocene Depth Map
Mad Dog and Atlantis - Areal Extent - Miocene Depth Map
Slide 12: Deepwater Production Systems – Gulf of Mexico Progression 1989 - 2000
Deepwater Production Systems – Gulf of Mexico Progression 1989 - 2000 Platform Compliant Mini-TLP FPS SPAR TLP SUBSEA Tower Water Depth (ft) 0 1000 Bullwinkle Baldpate 2000 1700 ft 1380 ft -1989 Morpeth Petronius 1700 ft GB 388 3000 1750 ft Allegheney 2150 ft Genesis (~1000 m) 2500 ft 3300 ft Neptun
Slide 13: Mad Dog SPAR Facility
Mad Dog SPAR Facility Wells • 16 well slots • 13 producers Capacity • ~80 Mbbl/d • ~40 MMcf/d • ~50 Mbbl/d produced water Drill Rig • ~5250 ton rig payload Accommodation • 130 (drilling & operations) Subsea System • 3 - 4 wells Reserve Range • 200 - 450 MMboe
Slide 14: Atlantis Development Concept
Atlantis Development Concept Host Faci lity - Semi FPS DC 2 4,409 ' W D Flow li ne s 1 2 3 4 15 16 14 13 DC 1 6,6 83' W D E xport P ipelines 5 12 6 11 7 10 8 9
Slide 15: Gulf of Mexico Deepwater Producers >1,500' WD
Gulf of Mexico Deepwater Producers >1,500’ WD BOE per day * 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Shell BP Exxon Mobil ChevronTexaco Marathon Agip/BB BHP Forecast FY02 Conoco Devon Santa Fe Dominion Typhoon on production Kerr McGee Amerada Hess EEX Burlingt
Slide 16: Gulf of Mexico Production Forecast Range
Gulf of Mexico Production Forecast Range BHP Billiton Net Mboe/day 200 150 100 50 0 FY01 FY02 FY03 FY04 FY05 FY06
Slide 17: Indicative Margin Analysis
Indicative Margin Analysis WD 6,500 ft, Field Reserve 500 MMboe $US/bbl Nominal 27.00 24.00 21.00 8.02 Profit 18.00 4.24 Profit 2.92 Quality & Gas Content 15.00 2.92 2.06 Government Take 12.00 2.92 6.94 9.00 4.22 2.40 OPEX & Transportation 6.00 2.47 2.47 2.47 Appraisal & Development 3.00 3.65 3.65 3
Slide 18: Angola & Gabon
Angola & Gabon Angola Tolo Libreville North Gabon • Deepwater GABON Otiti • Block 21: BHP Billiton 30% Operator • Block 22: BHP Billiton 15%, non- CONGO operator Atlantic • First Block 21 exploration drilled Ocean South Gabon September 2001 ZAIRE • Further drilling requirements under evaluation ANGO
Slide 19: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 20: Gas
Gas • Eastern Gas - Australia • North West Shelf - Australia • Zamzama - Pakistan • Aripo/Angostura/Kairi - Trinidad
Slide 21: Bass Strait Resource Position
Bass Strait Resource Position Oil Remaining Reserves 11% • Historical focus on oil production Cumulative • Most gas sold under Production contract in Victoria 89% • Cumulative sales gas Gas Contracted 4.7 Tcf Future Uncontracted Production Gas Reserves 31% 15% • Increasing focus on commercialisation
Slide 22: Eastern Gas
Eastern Gas Gove • BHP Billiton will Bonaparte DARWIN Basin compete and win new customers QUEENSLAND NORTHERN Mt. Isa Townsville • Bass Strait will TERRITORY Eromanga Basin continue as a Bowen WESTERN Amadeus Basin Basin Gladstone competitive gas USTRALIA Cooper CooperAdavale Basin Basin supplier fo
Slide 23: Eastern Gas Today - 2001
Eastern Gas Today - 2001 • Links to new markets Qld – New South Wales in place SA Cooper Basin – Tasmanian contract NSW – South Australian term Proposed ProposedPipeline Pipeline sheet Vic • Capacity investment Proposed EGP Pipeline • Reserves development Minerva Bass Strait – Minerva, Turrum, TGP K
Slide 24: Bass Strait Potential Revenues
Bass Strait Potential Revenues Production Revenue 2000 1500 A$M 1000 Crude Oil Condensate 500 LPG/Ethane Gas 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 BHP Billiton year
Slide 25: North West Shelf
North West Shelf • Uncommitted reserves for: – contract extensions – 5th Train • LNG market focus: – Japan, China, Korea, Taiwan • Domestic Gas focus: BHP Billiton equity 16.67% – feedstock opportunities
Slide 26: Zamzama
Zamzama • Good prospectivity and growing domestic gas demand • Brownfield development based on existing production asset • Further gas sales agreements currently being negotiated • Full field development of 300-400 MMcf/d gross with first gas in 2003 Page 63
Slide 27: Trinidad
Trinidad BRAZIL BENI BASIN Bolivia PACIFIC OCEAN ATLANTIC OCEAN • Previous gas discoveries Aripo and Angostura • Recent drilling success • Local gas market • Exploration acreage extended • Core exploration potential
Slide 28: Trinidad - Blocks 2(c) and 2(ab) Drilling Results
Trinidad - Blocks 2(c) and 2(ab) Drilling Results Block 24(b) Kms 2000 Aripo-1 2001 Canteen-1 l 0 10 20 30 40 50 Gas discovery tested at Currently drilling, hydrocarbon 21.6 MMcf/d bearing sands encountered Block 25(a) l 1999 Angostura-1 Gas discovery tested at Block 2(ab) Block 25(b) Block 2(c) Blo
Slide 29: Trinidad Block 3(a) Awarded
Trinidad Block 3(a) Awarded W 62 o W 60 o W 61 o Block 23(a) Block 23(b) LL8 BLOCK 2(c) Block 9 Block 23(c) Poinsetta Orchid KK7 BHP Billiton (Operator) 45% KK6 KK4 KK5 Chaconia Block 24(a) TotalFinaElf 30% Patao Mejillones BLOCK 3(a) Dragon Talisman 25% Angostura N 11 o Block 24(b) BHP Billiton (Op
Slide 30: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 31: Access to Discovered Resources
Access to Discovered Resources • Algeria – 401/402 (ROD Development) – Ohanet • Other Middle East opportunities – Under evaluation – Iran : Gas Export : Foorozan advanced – Syria : Buy back opportunities
Slide 32: Algeria
Algeria • BHP Billiton entry 1989 SPAIN Skikda Algiers • Successful exploration Arzew • Oil development July 2000 TUNISIA BHP Exploration • Excellent relationship with MOROCCO Blocks 401a/402a SONATRACH • Successful bid for wet gas field ALGERIA development • Algeria’s first Risk Service Boukhechba
Slide 33: ROD Integrated Development
ROD Integrated Development • Central process facility at BRN • Production 80,000 bbl/d • First oil FY 2003 • Capital Expenditure: US$500 million BRN Facilities BRN Facilities • Partners – BHP Billiton 35% (45% in 401/402) – AGIP/ENI – SONATRACH
Slide 34: Ohanet Development
Ohanet Development • Wet gas development 1 3 • 700 MMcf/d processing facility In Adaoui Dimeta West • First gas target: FY 2004 • Capital Expenditure: US$1,030 million • JV partners: 4 – BHP Billiton (45%) Gas Treatment Plant – JOOG Ohanet 2 – Petrofac – Woodside* 5 *subject to government approval
Slide 35: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 36: Summary - Petroleum Projected Capital Expenditure
Summary - Petroleum Projected Capital Expenditure US$M 1200 1000 Ohanet ROD 800 LNG Train 4 Bream US$M Maddog 600 Atlantis LNG Train 5 400 Minerva Kipper 200 Zamzama 0 2002 2003 2004 2005 2006 2007
Slide 37: Summary: Business Focus
Summary: Business Focus • Maximise existing value (now) – Bass Strait – North West Shelf/Laminaria – Liverpool Bay • Deliver projects in progress (1-3 years) – Algeria – NWS Train 4 – Bream pipeline
Slide 38: Summary: Business Focus
Summary: Business Focus • Sanction and develop (3-4 years) – Mad Dog – Atlantis – Trinidad – Zamzama • Create new opportunities (4+ years) – Maintain portfolio quality – Meaningful size (potential >US$1 billion) – Maintain geographic focus
Slide 39: Summary
Summary • BHP Billiton is a significant global resources company • BHP Billiton Petroleum is a well established oil and gas business with: – strong producing assets; and – substantial growth opportunities • BHP Billiton Petroleum is a significant contributor to the new BHP Billiton.