Bhp Group Ltd · ASX:BHP

Bhp — BHP Billiton Petroleum — Howard Weil Energy Conference 2011

24 slides from Bhp's conference presentation, Mar 29, 2011

  1. Slide 1: BHP Billiton Petroleum

    BHP Billiton Petroleum Howard Weil Energy Conference J. Michael Yeager Chief Executive, BHP Billiton Petroleum 29 M March h 2011

  2. Slide 2: Disclaimer

    Disclaimer Reliance on Third Party Information The views expressed here contain information that has 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 the information. This

  3. Slide 3: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 2

  4. Slide 4: A global upstream portfolio

    A global upstream portfolio Petroleum: a 500mbd oil and Base Metals: #3 global Metallurgical Coal: largest Other: Aluminium, Diamonds & Iron Ore: one of the world’s gas exploration producer of copper, global supplier of seaborne SP, Stainless Steel Materials, premier suppliers of iron ore and p prod

  5. Slide 5: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 4

  6. Slide 6: Clear strategy

    Clear strategy  Be functionally strong where we compete  Fundamentals focus – safety, volume, l costt  Take large, operated positions with multiple long life opportunities  Explore p globally, g y but with an emphasis on proven basins Petroleum HQ Exploration  Pursue commercial Production and A

  7. Slide 7: Outstanding metrics

    Outstanding metrics Industry-Leading Volume Growth 100% Reserve Replacement Net Production (Mboe/d) Proved Reserve Additions / Volumes Produced 450 150% 400 100% 350 50% 300 250 0% FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 Low Unit Operating Costs Highly Competitive Non-Cash Costs FY08-10 Average Net

  8. Slide 8: Excellent financial returns

    Excellent financial returns EBIT Margins Greater than 60% FY08-10 Average EBIT Margin (% of Revenue) BHP Billiton  High margins from a large Apache proportion of liquids-priced Murphy Devon barrels, combined with low Hess unit costs Anadarko  Efficient capital investment Talisman 0% 10% 20% 30% 40

  9. Slide 9: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 8

  10. Slide 10: Proven project development capability

    Proven project development capability Pyrenees  World-class operated projects consistently delivered on schedule h d l and dbbudget d t  Pyrenees (WA) – One of Australia’s largest subsea projects; ramped Shenzi up to nameplate capacity (96 Mboe/d) in 11 days  Shenzi (GOM) – One of the world’s dee

  11. Slide 11: Deep inventory of projects

    Deep inventory of projects Oil Gas LNG UK Liverpool Bay • Beginning gas blowdown Onshore US Shale Fayetteville • Transition of operations Pakistan • Major, long-term development program Zamzama • Front-end Compression North West Shelf North Rankin B Gulf of Mexico • New compression platform Atlantis

  12. Slide 12: Major exploration program underway

    Major exploration program underway Gulf of Mexico  Material to BHP Billiton; primarily operated positions Extended Genesis  Balance of proven plays and frontier Miocene K tt Head Knotty H d Shenzi Core Miocene East Gulf exploration l i withi h running-room i and d the h Neptune of Mexico Atlantis

  13. Slide 13: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 12

  14. Slide 14: Unique opportunity to acquire a leadership position in a major North American shale play

    Unique opportunity to acquire a leadership position in a major p j North American shale North American Shale Gas Plays  100% of Chesapeake’s upstream and midstream F Fayetteville tt ill iinterests t t acquired i d ffor $4 $4.75 75 billi billion  Largest U.S. shale gas asset transaction, expected t

  15. Slide 15: Major resource addition

    Major resource addition Net Resources (MMboe) 6,000  45% increase to current Proved Reserves resource base Probable Reserves 5,000 g & Contingent Resources  Large percentage of 4,000 non-proved resources remain to be developed 3,000  Major Fayetteville 2,000 development program ahead with $800 mi

  16. Slide 16: Excellent strategic fit

    Excellent strategic fit  World-class accessible resource, material to BHP Billiton – Large, long-life, low cost, with significant future development  Access to the world’s largest gas market  Lower risk due to adequate production history and extensive delineation drilling  Long term investment m

  17. Slide 17: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 16

  18. Slide 18: GOM moratorium impacts

    GOM moratorium impacts Shenzi Atlantis  Significant near-term impact due to the deferral of high-rate producers  Shenzi: 3 wells deferred – first new producer now permitted  Atlantis: 6 wells deferred and no Neptune Mad Dog new production wells expected until 2H CY11, pending permit approvals  N

  19. Slide 19: Return to work in the Gulf of Mexico

    Return to work in the Gulf of Mexico Development Driller I CR Luigs  Both operated rigs re-certified and safely back to work  First to resume deepwater drilling under new regulations (Shenzi water injector)  First to resume deepwater production well drilling under new regulations g ((Shenzi infil

  20. Slide 20: Near-term volume impacts offset by Fayetteville acquisition

    Near-term volume impacts offset by y Fayetteville acquisition q Net Production Volumes (MMboe) 200 Fayetteville Acquisition 3 months production  Production volumes reduced ~12 MMboe in 150 FY11 due to the GOM moratorium 100  Fayetteville acquisition offsets majority of FY11 50 impact and delivers

  21. Slide 21: Sustained, long-term growth

    Sustained, long-term growth Net Production Rates (Mboe/d)  Development plans to triple 700 65 Mboe/d current Fayetteville production 600  Builds upon existing pipeline 500 of major projects including WA LNG and Mad Dog Phase II 400  Fayetteville volumes 300 positively impact unit cost and EBIT ma

  22. Slide 22: Agenda

    Agenda  BHP Billiton Corporation p  BHP Billiton Petroleum overview  Major projects and exploration activities  Fayetteville Shale acquisition  Volume outlook  Summary BHP Billiton Petroleum, Howard Weil Energy Conference, 29 March 2011 Slide 21

  23. Slide 23: Summary

    Summary  Strong functional capability with focus on the fundamentals  Highly competitive performance metrics  Driving investment in multiple development projects and a material, focused Exploration program  Fayetteville acquisition increases total resources by 45%, positively impacts key metrics

  24. Slide 24: BHP Billiton: resourcing the future

    él ohpbilliton resourcing the future

BHP Billiton Petroleum — Howard Weil Energy Conference 2011 on 6ix