Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (October 2016)
100 slides from Bhp's investor day presentation, Oct 6, 2016
Slide 1: An exciting outlook for our Petroleum business
bhpbilliton BHP Billiton Petroleum An exciting outlook for our Petroleum business Steve Pastor President Operations, Petroleum
Slide 2: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 3: 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 BHP Bil
Slide 4: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business Petroleum is core to BHP Billiton strong financial and operating performance oil and US gas markets expected to rebalance first Petroleum strategy focused on value over volume Concentrated resource base and proven operating capability Onshore US – captu
Slide 5: Experienced leadership driving value and returns
Experienced leadership driving value and returns Deep experience across leadership team average industry and functional experience of over 25 years operating experience across six continents Operating model supports improved returns operations enabled to focus on safety, volume and cost globally int
Slide 6: Petroleum is core to BHP Billiton
Petroleum is core to BHP Billiton Significant contributor over the last five years over 20% of Group production1 over 30% of Group Underlying EBITDA average Underlying EBITDA margin of 66% Differentiated diversification technical, operational and functional economies of scale talent, ideas and best
Slide 7: Global energy needs are rising
Global energy needs are rising Emerging economies will drive energy demand – global population to increase by 1.5 billion and GDP to double by 2035 – world must pursue the twin objectives of providing access to affordable and reliable energy while limiting climate change Fossil fuels will remain an
Slide 8: Attractive crude oil fundamentals
Attractive crude oil fundamentals Oil market is rebalancing robust demand growth underpinned by developing countries supply growth slowing as capital investment is deferred Continue to see positive longer-term fundamentals demand growing ~1% per annum natural field decline will continue at 3-4 MMbbl
Slide 9: Robust gas demand growth
Robust gas demand growth US market expected to rebalance at the end of this year mild winter, industry-wide productivity gains and resilient supply resulted in record inventory levels earlier this year strong demand from the power sector and increasing exports Long run demand growth driven by multip
Slide 10: Australia and the US are our core regions
Australia and the US are our core regions Our high-quality resource base… (BHP Billiton resource, FY16, Bboe)1 4 2 0 Australia Eagle Ford Permian Haynesville Fayetteville Gulf of Mexico RoW …underpins our major producer position in core regions (BHP Billiton production, Mboe/d, CY15, net) 300 2nd 6t
Slide 11: Operating safely and sustainably is our priority
Operating safely and sustainably is our priority The health and safety of our people is paramount – record and reputation as one of the safest companies in the petroleum industry – number of recordable injuries reduced by 60% during period of significant market change Meaningful contribution to the
Slide 12: Onshore US well placed as prices recover
Onshore US well placed as prices recover Operating in the heart of some of the best shale plays – large resource base in Eagle Ford – significant potential in Permian Continuing to reduce costs with technical excellence Improving economic inventory Monetising multi-decade gas resource through forwar
Slide 13: Stable volumes and high margins in Conventional
Stable volumes and high margins in Conventional Our Conventional business is low cost and high-margin – unit cash costs expected to be ~US$10/boe over the next two years1,2 Comprehensive portfolio of options to arrest field decline – >40 brownfield projects with total capex of ~US$2.5 billion and an
Slide 14: Targeting Tier 1 liquids growth opportunities
Targeting Tier 1 liquids growth opportunities Organic growth is the priority – targeting frontier basins with Tier 1 potential – program aimed at conventional deepwater oil plays that complement our operating expertise and core portfolio – investing through the cycle and extending reach with counter
Slide 15: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business Petroleum is core to BHP Billiton – strong financial and operating performance – oil and US gas markets expected to rebalance first Petroleum strategy focused on value over volume Concentrated resource base and proven operating capability – Onshore US –
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Slide 17: Petroleum Marketing: Rebalancing markets, positive long-term fundamentals
bhpbilliton Petroleum Marketing Rebalancing markets, positive long-term fundamentals Michiel Hovers Vice President Marketing, Petroleum
Slide 18: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 19: Rebalancing markets, positive long-term fundamentals
Rebalancing markets, positive long-term fundamentals 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 energy demand driven by no
Slide 20: Global oil market is rebalancing
Global oil market is rebalancing Global demand expected to surpass global supply in 2017, inventories to decline - demand growth in 2017 expected to be 1.2 MMbbl/d - non-US production to remain relatively flat - estimated 2-3 days of demand cover in excess commercial inventory New US supply needed t
Slide 21: Positive long-term oil demand fundamentals
Positive long-term oil demand fundamentals Robust demand growth underpinned by developing countries - China and India expected to account for half of global demand growth over the next decade - OECD demand has peaked and is expected to decline Demand will rise, despite gains in energy efficiency and
Slide 22: ~30 MMbbl/d of new supply required by 2025
~30 MMbbl/d of new supply required by 2025 Compelling supply opportunity - natural field decline and demand growth drive need for new supply - new supply required equates to approximately one third of current demand by 2025 - upstream spending is down significantly over the last two years Higher pri
Slide 23: North American gas: strong demand, abundant supply
North American gas: strong demand, abundant supply Strong demand growth underpinned by multiple sectors - total North American demand CAGR of ~3% to 2025 - gas is a reliable, economic and a low emission fuel for power generation - gas displaces coal and provides flexible generation to support the ri
Slide 24: Hedging price and input costs accelerates Haynesville gas volumes
Hedging price and input costs accelerates Haynesville gas volumes Gas and iron ore production profiles1 comparison (Production as % of peak rate) 100 80 60 40 20 0 0 2 4 6 8 10 12 14 16 18 20 Years from first production Gas (1 rig for 12 months) Iron ore Source: BHP Billiton analysis. 1. Indicative
Slide 25: Rebalancing markets, positive long-term fundamentals
Rebalancing markets, positive long-term fundamentals 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 energy demand driven by no
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Slide 27: Petroleum Financial Performance: Driving productivity and capital discipline
bhpbilliton Petroleum Financial Performance Driving productivity and capital discipline Michelle Turner Vice President Finance, Petroleum
Slide 28: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 29: Driving productivity and capital discipline
Driving productivity and capital discipline 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 productivity in all price environmen
Slide 30: Leading EBITDA margins
Leading EBITDA margins Consistently strong margins over the last five years - contributed ~US$40 billion Underlying EBITDA - peer leading Underlying EBITDA margin of 66% Productivity supported FY16 financial performance - ~US$3/boe reduction in cash costs - US$3.6 billion Underlying EBITDA in lower
Slide 31: Depreciation ~US$18/boe in FY17
Depreciation ~US$18/boe in FY17 Conventional unit depreciation increases ~US$1/boe in FY17 reflecting project completions and timing of resource additions Onshore US depreciation increases ~US$1/boe in FY17 - the unit rate decline following the FY16 impairment is expected to be partially offset by p
Slide 32: Driving capital and operating productivity
Driving capital and operating productivity Productivity underpinned efficiency in FY16 - controllable cash costs fell US$677 million - working capital management decreased inventory by 25% Right sizing our organisation - overhead costs decreased by 22% during FY16 - offshoring work to Trinidad and M
Slide 33: Capital allocation provides discipline and transparency
Capital allocation provides discipline and transparency Globalised finance function oversees capital allocation - co-located finance teams support operations - competition for capital focused on value over volume Flexibility to adjust Onshore US development - cost efficiencies continue to increase i
Slide 34: Driving productivity and capital discipline
Driving productivity and capital discipline 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 productivity in all price envi
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Slide 36: Onshore US: Capturing full resource value
bhpbilliton Onshore US Capturing full resource value Alex Archila Asset President, Shale
Slide 37: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 38: 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 BHP Bil
Slide 39: Capturing full resource value
Capturing full resource value 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 wells deliver at least 15
Slide 40: Approximately 850k net acres across four large fields
Approximately 850k net acres across four large fields Eagle Ford largest component of current production liquids-rich acreage in Black Hawk mix of condensate and dry gas acreage in Hawkville Permian liquids-rich with multiple productive horizons clear line of sight to full pad development within 2-3
Slide 41: Responding to market while improving capital efficiency
Responding to market while improving capital efficiency Production growth over FY12 to FY15 (14% CAGR) demonstrates rapid growth potential with new investment Reduction in capital investment since FY15 highlights flexibility to dynamically respond to changing market conditions Productivity has furth
Slide 42: 3 Bboe 2P reserves including ~500 MMbbls of oil
3 Bboe 2P reserves including ~500 MMbbls of oil Onshore US reserves and resources1, 2, 3 (as at 30 June 2016, Bboe, BHP Billiton share) 2.5 2.0 1.5 1.0 0.5 0.0 Haynesville Permian Hawkville Fayetteville Black Hawk Reserves Contingent resources 1. Total Proved reserves: 0.3 Bboe, Probable reserves: 2
Slide 43: Continuing to deliver material well cost savings
Continuing to deliver material well cost savings Well costs down ~40% over the past two years with further reductions in FY17 Large portion of drilling cost reductions will be maintained independent of price environment - drilling rate increased up to 50% - rig move time reduced by ~50% Similar cost
Slide 44: Operating productivity delivering significant savings
Operating productivity delivering significant savings ~30% reduction in field operating costs relative to FY15 - embedded tools and practices originally developed by Minerals business - rapid progress enabled by reduction in activity levels Absolute cost reductions continue in FY17 ~20% reduction in
Slide 45: Superior well performance in core liquids-rich fields
Superior well performance in core liquids-rich fields Condensate production in the first 12 months outperforms peers in both Black Hawk and Permian First-mover position and reservoir/fluid quality in both basins provide an advantage over the competition Continuous incremental completion optimisation
Slide 46: Black Hawk: expanding inventory
Black Hawk: expanding inventory Current production of ~55 Mboe/d (net) 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) trial with encouraging results from nearby operator
Slide 47: Hawkville: encouraging results from recent trials
Hawkville: encouraging results from recent trials Current production of ~30 Mboe/d (net) 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/bbl Majority of drilling obligations successfully d
Slide 48: Permian: clear line of sight to development
Permian: clear line of sight to development Current production of ~30 Mboe/d (net) - one rig focused on ~100 remaining obligation wells (gross) - recent acreage swaps to enable longer laterals Progressing toward full pad development in FY19 with six rigs - potential ~150 Mboe/d (net) within four yea
Slide 49: Haynesville: recommenced high-return drilling program
Haynesville: recommenced high-return drilling program Current production of ~50 Mboe/d (net) Commenced drilling 16 well (gross) program in October with >30% returns1 - production hedged at ~US$3/MMbtu - supply contracts locked for key services - executing long laterals and optimised completion desig
Slide 50: Fayetteville: low technical risk, long-term option
Fayetteville: low technical risk, long-term option Current production of ~45 Mboe/d (net) Extensively drilled with low geological risk Investment limited to minimal OBO1 elections Working with partners to assess new potential Moorefield horizon 1. Operated by others. Fayetteville acreage BHP Billito
Slide 51: Large and improving investable inventory
Large and improving investable inventory Attractive investment options at relatively low prices - ~1,200 net liquids-rich wells deliver at least 15% IRR at US$50/bbl - ~220 net dry gas wells deliver at least 15% IRR at US$3/MMbtu Ongoing trials to confirm improved productivity at Lower Eagle Ford (L
Slide 52: Price scenarios
Price scenarios A range of possible price scenarios derived from analysts’ forecasts. West Texas Intermediate crude oil consensus prices (US$/bbl, nominal) 100 90 Scenario 2 (High consensus) 80 Scenario 1 (Average consensus) 70 Scenario 3 60 (Low consensus) 50 40 30 FY17e FY18e FY19e FY20e FY21e FY2
Slide 53: Operational capability to respond to market conditions
Operational capability to respond to market conditions Scenario 11, 2, 3 Mid activity based on consensus average prices Gross operated rigs Capital investment (annual average) (US$ billion, net, nominal) 21 3.5 18 3.0 15 2.5 12 2.0 9 1.5 6 1.0 3 0.5 0 0.0 FY17e FY18e FY19e FY20e FY21e FY22e Black Ha
Slide 54: Ability to quickly adjust production response
Ability to quickly adjust production response Potential response in a range of price scenarios - annual average base decline of ~15% in FY18-22 - volumes broadly flat in low price scenario from FY18 with key acreage retained - volumes could more than double within five years in high price scenario w
Slide 55: Maximising value and cash flow
Maximising value and cash flow Potential to remain cash flow positive under the three price scenarios outlined Flexibility remains to pivot toward higher or lower activity levels in any given year in response to market conditions Progressing development with a commercial mindset - disciplined capita
Slide 56: Capturing full resource value
Capturing full resource value 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 wells deliver at least 15
Slide 57: Appendices
FY] bhpbilliton Appendices
Slide 58: Key well parameters: Black Hawk
Key well parameters: Black Hawk <$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 5.62 5.32 Total producti
Slide 59: Key well parameters: Hawkville
Key well parameters: Hawkville <$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 5.52 n/a Total productio
Slide 60: Key well parameters: Permian
Key well parameters: Permian <$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) 6.52 7.12, 3 6.12, 4 T
Slide 61: Key well parameters: Haynesville
Key well parameters: Haynesville <$3/MMbtu wells1 $3-3.50/MMbtu wells1 $3.50-4/MMbtu wells1 Total acreage (thousand acres) 275 Rig line efficiency 12 wells / year2 Future well locations (gross)3 305 615 25 Average WI/NRI 72% / 55% 76% / 59% 86% / 71% Gross well capex (real US$ million) 7.52 7.12 7.3
Slide 62: Key well parameters: Fayetteville
Key well parameters: Fayetteville <$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) n/a 2.92 2.82 Total p
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Slide 64: Conventional Petroleum: Extending the production runway
bhpbilliton Conventional Petroleum Extending the production runway Geraldine Slattery Asset President, Conventional
Slide 65: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 66: 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 BHP Bil
Slide 67: Extending the production runway
Extending the production runway 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 provides competitive advanta
Slide 68: Quality assets concentrated in Australia and GoM
Quality assets concentrated in Australia and GoM Conventional production outlook (FY17e, BHP Billiton share) 4th largest producer in GoM Gulf of Mexico 33-35 MMboe Trinidad & Tobago 5-6 MMboe International other 3-4 MMboe Crude & Condensate NGL Gas LNG Note: Based on FY17 forecast production. Size o
Slide 69: 1.3 Bboe 2P reserves including ~500 MMbbls of oil
1.3 Bboe 2P reserves including ~500 MMbbls of oil Conventional reserves and resources1 (as at 30 June 2016, Bboe, BHP Billiton share) 2.5 2.0 1.5 1.0 0.5 0.0 Australia Gulf of Mexico Rest of World Proved Probable Contingent Resources 1. Total Proved reserves: 1,005 MMboe, Probable reserves: 307 MMbo
Slide 70: Strong cash flow through the price cycle
Strong cash flow through the price cycle Attractive business at consensus prices over the next two years1: - EBITDA margin of >70% - EBITDA of ~US$3.5 billion per annum - pre-tax free cash flow of ~US$2.7 billion per annum - Return on Capital Employed of ~15% Low unit cost legacy assets High-margin
Slide 71: Industry leading operating and development capabilities
Industry leading operating and development capabilities Competitive with majors in deepwater drilling performance Industry leading operating uptime and unit costs Relentless focus on safety and productivity improvements continuous improvement culture latent capacity utilisation supply chain, technol
Slide 72: Brownfield and greenfield options to mitigate base decline
Brownfield and greenfield options to mitigate base decline Protecting margins from existing assets maintain industry leading operating and development performance productivity and capital efficiency protect margins and cash flow base and brownfield production robust across range of consensus prices
Slide 73: Rich portfolio of brownfield opportunities
Rich portfolio of brownfield opportunities High-return brownfield projects in execution North West Shelf (NWS) GWF-A first production achieved Q4 CY15 with all wells producing within FY17 Angostura Phase 3 first production achieved in September 2016 Bass Strait Longford Gas Conditioning Plant 99% co
Slide 74: Greenfield developments provide longer term optionality
Greenfield developments provide longer term optionality Mad Dog Phase 2 Capital estimate halved since 2013 – field development plan optimisation – standardisation – design simplification – capture market deflation Wet tree subsea development supported by a floating semi-submersible production and wa
Slide 75: Accelerating development schedule post discovery
Accelerating development schedule post discovery Leveraging deepwater development capabilities positioned to capitalise on industry leading geological, development and operating capabilities Accelerating discovery to production cycle targeting ~20% reduction in development time evaluating developmen
Slide 76: Extending the production runway
Extending the production runway 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 provides competitive advantage foc
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Slide 78: Appendices
FY] bhpbilliton Appendices
Slide 79: Australia non-operated focus areas
Australia non-operated focus areas Bass Strait Delivery of Longford Gas Conditioning Plant project in Q4 CY16 Progressing multiple investment opportunities – West Barracouta – Kipper – Snapper – Tuna Targeted divestment of mature Bass Strait oil assets North West Shelf Executing brownfield projects
Slide 80: Australia operated focus areas
Australia operated focus areas 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 spot gas sales • Assessing timing o
Slide 81: Gulf of Mexico focus areas
Gulf of Mexico focus areas Atlantis • Executing high-return multi-year infill program Mad Dog • Executing high-value multi-year Spar A infill program • Progressing Mad Dog 2 for FID Shenzi • Maintaining industry leading production and water injection uptime Atlantis Operator • BP BHP Billiton Owners
Slide 82: Rest of World assets
Rest of World assets Angostura Angostura Phase 3 completed Supporting exploration in the region Algeria Production Sharing Contract 10 year extension signed Progressing government approval of extension Executing infill program North Sea End of field life planning Angostura Operator BHP Billiton BHP
Slide 83: Petroleum Exploration: Finding the next wave of conventional growth
bhpbilliton Petroleum Exploration Finding the next wave of conventional growth Niall McCormack Vice President Exploration, Petroleum Deepwater Invictus
Slide 84: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 85: Multi-billion barrel risked potential in current program
Multi-billion barrel risked potential in current program 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 from three wells in 12 months multi
Slide 86: 2012: countries, continents, prospects
2012: 12 countries, 5 continents, over 100 prospects Canada Onshore US Gulf of Mexico (US) India Vietnam Trinidad & Tobago Philippines Colombia Malaysia Brunei Australia South Africa Falkland Islands BHP Billiton Investor Briefing, Exploration 5 October 2016 4 bhpbilliton
Slide 87: 2016: just three focus areas
2016: just 3 focus areas 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 bhpbilliton
Slide 88: Focused footprint offers large prospective upside
Focused footprint offers large prospective upside Upside is being de-risked by recent drilling successes Gulf of Mexico (US) Mexico Trinidad & Tobago Barbados Significant potential in oil exploration over the next three years (value1, BHP Billiton share) Gulf of Mexico Trinidad and Tobago Western Au
Slide 89: Testing three basins, six plays in three years
Testing three basins, six plays in three years 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 Increased investment to appra
Slide 90: Gulf of Mexico: Miocene success and Paleogene potential
Gulf of Mexico: Miocene success and Paleogene potential Oil discoveries in central GoM Miocene leverages our understanding from Shenzi, Mad Dog and Atlantis oil discovered in multiple horizons at Shenzi North and Caicos accelerating investment to follow-up on success – drilling Wildling in Q4 CY16 E
Slide 91: Mexico: a natural extension of our Perdido position
Mexico: a natural extension of our Perdido position Early entrant opportunity for potential Tier 1 positioned to bid if prospects and fiscal terms are attractive significant potential (>10 Bbbl unrisked) pre-qualified as deepwater exploration operator Perdido Trend an extension of the US sub-salt Pe
Slide 92: Encouraging early results in the Caribbean
Encouraging early results in the Caribbean Tier 1 potential in Trinidad large structures, world-class source rock at least 12 significant leads and prospects Accelerated program from acreage access to first well in 3 years 8 well campaign at industry leading pace Miocene1 LeClerc (65% operator, Shel
Slide 93: Maximising value through operational excellence
Maximising value through operational excellence Industry average ~60 months1 36 months Industry average 75 months2 First Oil 14 years Explore Appraise Select Define Execute Produce Technology Right Data Work flows BHP Billiton 40 months 36 months Industry average 75 months2 First Oil 12.5 years Expl
Slide 94: Multi-billion barrel risked potential in current program
Multi-billion barrel risked potential in current program 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 from three wells in 12 months multi
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Slide 96: Closing remarks
bhpbilliton BHP Billiton Petroleum Closing remarks Steve Pastor President Operations, Petroleum
Slide 97: Disclaimer
Disclaimer 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 commodities; plans, strategi
Slide 98: 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 BHP Bil
Slide 99: An exciting outlook for our Petroleum business
An exciting outlook for our Petroleum business Petroleum is core to BHP Billiton strong financial and operating performance oil and US gas markets expected to rebalance first Petroleum strategy focused on value over volume Concentrated resource base and proven operating capability Onshore US – captu
Slide 100: Signatures
bhpbilliton SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: October 5, 2016 By: /s/ Rachel Agnew Name: