Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (October 2008)
42 slides from Bhp's investor day presentation, Oct 27, 2008
Slide 1: BHP Billiton Petroleum - Analysts Tour 2008
For personal use only BHP Billiton Petroleum Phil Byrne Australia Country Manager Analysts Tour 2008 26 October 2008
Slide 2: Disclaimer
Disclaimer For personal use only Reliance on third party information The views expressed here contain information that have been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of
Slide 3: Agenda
Agenda For personal use only Overview of BHP Billiton Petroleum Petroleum in Australia Projects & Opportunities Exploration Slide 3
Slide 4: Overview of BHP Billiton Petroleum
Overview of BHP Billiton Petroleum For personal use only • A significant oil and gas exploration and production business • Large and diverse portfolio of operating assets, development opportunities and exploration permits – Operations in six countries – Currently exploring in nine countries – Seven
Slide 5: Global operational focus
Global operational focus For personal use only Slide 5
Slide 6: Maintenance of a deep diversified inventory of growth options
Maintenance of a deep diversified inventory of growth options For personal use only Maruwai NWS NWS Angola Angola CMSA Heap Cerrejon CW CW Africa Africa DRC DRC CMSA CMSA Heap Heap Olympic Dam Olympic Dam & DRC Macedon CMSA Macedon Leach Heap 11 Opt Exp Stage 2 T5 T5 WA WA Iron Iron Ore Ore Leach Le
Slide 7: Our core strategy and competitive advantages
Our core strategy and competitive advantages • The core strategy For personal use only – Large, long-life upstream assets with multiple options – that we operate – Target organic growth opportunities that are material to BHP Billiton – Balanced proven plays and frontier exploration – Functional orga
Slide 8: Agenda
Agenda For personal use only Overview of BHP Billiton Petroleum Petroleum in Australia Projects & Opportunities Exploration Slide 8
Slide 9: Australia - A key contributor to growth
Australia - A key contributor to growth • Australia’s largest oil and gas For personal use only producer (Operated and Non-operated assets) • Petroleum’s largest contributing assets based in Australia • Five major projects delivered since 2001 • Outstanding growth options located in Australia • Five
Slide 10: Australia production profile
Australia production profile Production For personal use only (mmboe) 25 24 22 22 20 20 19 Crude & 9 6 condensate 9 7 15 8 10 13 Natural gas 12 11 11 9 5 3 3 NGLs 2 2 2 0 Q1 FY 2008 Q2 FY 2008 Q3 FY 2008 Q4 FY 2008 Q1 FY 2009 Slide 10
Slide 11: Operated Assets
Operated Assets • Moving to operated assets For personal use only 113°E 114°E 115°E 21°E • Successful delivery of Stybarrow ry e da tat WA-255-P Griffin Venture un / S Bo lth (2) rs e a • Sanction of Pyrenees WA-155-P ate w W mon Stybarrow (1) m Co • Portfolio of steady performers WA-12-R Ningaloo •
Slide 12: Stybarrow, Western Australia
Stybarrow, Western Australia • BHP Billiton (Operator, 50%) For personal use only • Start-up ahead of schedule – November 2007 • Cost approximately US$760 million (net approximately US$380 million) • Producing 80,000 bbl/day (gross)– at capacity – produced more than 10 mmboe to date (net) • Australi
Slide 13: Minerva, Victoria
Minerva, Victoria • BHP Billiton (Operator, 90%) For personal use only • Gas and condensate producing approximately 93.5 TJ\d gas and approximately 252 bpd condensate Brisbane • First production January 2005 Sydney Adelaide • Two subsea wells, onshore gas plant Melbourne MINERVA Longford • Max gross
Slide 14: Griffin, Western Australia
Griffin, Western Australia • BHP Billiton (Operator, 45%) For personal use only • Commenced production in January 1994 • Gas exported to shore via pipeline • Water depth 130 metres • Currently producing approximately 5,500 boe/d • Field life 2013+ Griffin Venture FPSO Slide 14
Slide 15: Non-operated assets
Non-operated assets • North West Shelf Project and Bass Strait are world class assets and material to For personal use only Petroleum’s business North West Shelf Project – Currently Australia’s largest gas producer – Increasing production – Train 5, Angel Bass Strait – Supplies gas to SE Australia –
Slide 16: North West Shelf Project, Western Australia
North West Shelf Project, Western Australia • Australia’s largest resource For personal use only project Perseus North Rankin Lambert/Hermes Goodwyn • Gas supplies to the WA Echo/Yodel Angel Sculptor market Cossack/Pioneer Wanaea/Cossack • LNG exported to Japan, Keast/Dockrell China and Korea Wilcox
Slide 17: North West Shelf Project - Scope
North West Shelf Project - Scope For personal use only LNG 1 LNG 2 LNG LNG 3 LNG 4 Export LNG 5 Heavy Ends LPG Gas Fractionation 1 LPG Trunklines Fractionation 2 Fractionation 3 Export Heavy Ends LPG Domgas 1 Gas Sales Slugcatcher Domgas 2 Domestic Gas Stabiliser 1 Stabiliser 2 Condensate Stabiliser
Slide 18: North West Shelf Project - Train 5 LNG Expansion
North West Shelf Project – Train 5 LNG Expansion For personal use only • Train 5 production capacity 4.4 mtpa (100%) • Capital cost BHP Billiton share approximately US$350 million • Total system capacity (Trains 1-5) expected to be ~16.3 mtpa (100%) • First LNG production from Train 5 delivered ahea
Slide 19: North West Shelf Project - Angel
North West Shelf Project - Angel • On-line 3 October 2008 For personal use only • Capital cost BHP Billiton share approximately US$200 million • Delivered ahead of schedule and within budget • Will boost offshore production capacity to underpin LNG sales going forward • Produces up to 800 mscf of ga
Slide 20: Gas and LNG contracts price reopener mechanisms
By 2012, ~60% of gas and LNG production contracts are expected to have price reopener mechanisms available BHP Billiton Gas and LNG contracts pricing structure For personal use only (%) 100% • Most current long-term gas contracts contain regular price 80% reopeners • Old gas contracts were negotiate
Slide 21: LNG Market Development
LNG Market Development • With Train 5 recently operational, North West Shelf Venture expected to produce For personal use only additional cargoes above contracted • LNG demand in Asia region has been strong, driven by growth in emerging markets, oil displacement, nuclear outages and environmental is
Slide 22: Bass Strait Overview
Bass Strait Overview Gippsland Basin JV & Kipper Unit JV Infrastructure For personal use only WAG Pipeline C+C Gas NGL Ethane Proposed Pipelines Non-GBJV Pipelines Producing Oil & Gas for almost 40 years to date and still for another 30 years to come Slide 22
Slide 23: Bass Strait Production
Bass Strait Production (FY08, Gross 100% Basis) (50% working interest) For personal use only Product Quantity Revenue Crude & ~ 72,000 bbl/d 60% Condensate ~ 755 TJ/d Domestic Gas 20% (~ 700 MMscf/d, ~ 115,000 boe/d) ~ 1,175 tonnes/d Butane 8% (~ 13,000 bbl/d) ~ 1,560 tonnes/d Propane 10% (~ 20,000
Slide 24: Eastern Australia Gas
Eastern Australia Gas • BHP Billiton supplies gas to Eastern For personal use only Australia from Bass Strait and Minerva gas fields • Bass Strait directly supplies gas under Brisbane long term contracts to three markets – Victoria via the Principal Sydney Adelaide Transmission System Melbourne MINE
Slide 25: Agenda
Agenda For personal use only Overview of BHP Billiton Petroleum Petroleum in Australia Projects & Opportunities Exploration Slide 25
Slide 26: Australian projects in execution
Australian projects in execution For personal use only OIL GAS UK Bass Strait Kipper (32.5% - 50%) Pakistan • 80mmcfd gas / 10 kbpd condensate Algeria development Petroleum HQ Gulf of Mexico • Subsea contracts executed Trinidad • Start-up anticipated CY11 North West Shelf Turrum (50%) North Rankin B
Slide 27: Pyrenees Project, Western Australia
Pyrenees Project, Western Australia For personal use only Stybarrow Slide 27
Slide 28: Pyrenees Project, Western Australia
Pyrenees Project, Western Australia • BHP Billiton (Operator, 71.43%) For personal use only • Sanctioned July 2007 • Project costs approximately US$1.7 billion (BHP Billiton share approximately US$1.2 billion) • Double hulled • 96,000 barrels of oil processing capacity • Water depth 170 -250 metres
Slide 29: Bass Strait - Kipper
Bass Strait - Kipper (32.5% working interest, non-operated) • BHP Billiton share approximately For personal use only US$500 million • Subsea tie-back • 10,000 bpd condensate (100%) • Processing capacity 80mmcfd gas (100%) • Line pipe delivered, engineering and procurement progressing • Water depth a
Slide 30: Bass Strait - Turrum
Bass Strait - Turrum (50% working interest, non-operated) • BHP Billiton share approximately US$625 For personal use only million • New platform Marlin B linked by new bridge to existing Marlin A platform • Gas sales expected to commence in 2015 at approximately 200 mmcfd (100%) • 11,000 bpd condens
Slide 31: North West Shelf Project - North Rankin B
North West Shelf Project - North Rankin B • BHP Billiton share approximately For personal use only US$850 million • NRB designed to recover remaining lower pressure gas from the North Rankin and Perseus gas fields • New gas compression gas platform connected by 100 metre bridge to existing North Ran
Slide 32: Australian projects – pre-execution
Australian projects – pre-execution For personal use only GAS LNG UK North West Shelf Petroleum HQ Algeria Pakistan NWS CWLH Gulf of Mexico Replacement of FPSO and Trinidad associated subsea facilities NWS WFGH Gas field development W Australia Macedon Subsea wells and gas plant Thebe LNG developmen
Slide 33: Gas Development - Macedon, Western Australia
Gas Development - Macedon, Western Australia • BHP Billiton (Operator, 71.43%, For personal use only 113°E 114°E 115°E Apache 28.57%) 21°E Griffin Venture • Shallow gas development in Western WA-255-P (2) WA-155-P Australia, retention lease WA-12R Stybarrow (1) Pyrenees • Gas is very lean with predo
Slide 34: Gas Development - Scarborough, Western Australia
Gas Development - Scarborough, Western Australia • Initial gas supply will be from For personal use only Scarborough ~8 tcf (BHP Billiton 50%, ExxonMobil 50% - operator) Thebe-2 NWSV • Other BHP Billiton owned gas in the Thebe-1 Jupiter Jansz-Io Wheatstone vicinity includes Thebe and Jupiter + Scarb
Slide 35: Gas Development - Thebe, Western Australia
Gas Development - Thebe, Western Australia • During FY08, BHP Billiton discovered For personal use only and further appraised the Thebe gas field Thebe-2 Thebe-1 NWSV Jupiter Jansz-Io Wheatstone – Similar gas composition to Scarborough Scarborough Pluto – Evaluating the reservoir Gorgon WA-351-P – L
Slide 36: North West Shelf Project - CWLH Life Extension Project
North West Shelf Project - CWLH Life Extension Project • Cossack Pioneer production greater For personal use only than 60,000 bbl/d (100%) • Evaluating option to extend field lives of Cossack, Wanaea, Lambert and Hermes • Cossack Pioneer replacement studies currently underway with final investment d
Slide 37: Agenda
Agenda For personal use only Overview of BHP Billiton Petroleum Petroleum in Australia Projects & Opportunities Exploration Slide 37
Slide 38: Key exploration and appraisal wells anticipated over coming years
Key exploration and appraisal wells anticipated over coming years For personal use only Canadian Laurentian 1 well planned Gulf of Mexico 8 wells planned Malaysia Colombia 4 wells planned 2 wells planned NW Australia 6 wells planned Falklands Exploration Strategy Gippsland 2 wells planned 1 well pla
Slide 39: Carnarvon Basin - exploration and appraisal activity
Carnarvon Basin - exploration and appraisal activity • Underwrote acquisition of large multi-client For personal use only 3D seismic surveys over Exmouth Plateau Keystone 3D seismic Nereus & Lambert Hermes oilfield appraisal West exploration acreage (~2400km2 on block) • Exploring for additional res
Slide 40: Browse Basin – exploration and appraisal activity
Browse Basin – exploration and appraisal activity • Located approximately 400 km north For personal use only west of Broome Crux • Browse complex of fields (Torosa / Argus Calliance/ Brecknock): P 302- WA- – Recent drilling and acquisition of Torosa Ichthys new seismic data on Torosa and Brecknock C
Slide 41: Concluding Remarks
Concluding Remarks • Significant assets For personal use only • Continued production growth • Commercialising gas opportunities in the region • Major exploration focus • Australia a major contributor to current and future Petroleum production Slide 41
Slide 42: For personal use only
For personal use only Slide 42