Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Scotia Capital Basic Materials Conference 2003
18 slides from Bhp's conference presentation, February 2003
Slide 1: Outlook for the Oil and Gas Industry in the Deepwater Gulf of Mexico
BHP Billiton Outlook for the Oil and Gas Industry in the Deepwater Gulf of Mexico Scotia Capital Basic Materials Conference February 2003
Slide 2: BHP Billiton – World's largest metals & mining company
Market Cap. on 31/12/02 (US$B) 0 5 10 15 20 25 30 35 February 2003 BHPB Source: Scotia Capital Conference Rio Tinto Anglo Source: Datastream Datastream Alcoa Newmont CVRD Alcan Barrick Amplats Anglogold Gold Fields Placer Dome Norilsk Impala Inco Harmony Alumina Pechiney Phelps Dodge BHP Billiton –
Slide 3: BHP Billiton – A medium sized player in the energy industry
0 50 100 150 200 250 EXXON/MOBIL February 2003 BP RD/SHELL (US$ Billion) TOTALFINAELF CHEV-TEXACO Scotia Capital Conference ENI PETROCHINA E.ON CONOCO BHP BILLITON ENEL 10th TOKYO ELEC SCHLUMBERGER SOUTHERN Market YUKOS STATOIL RWE 10thininterms MarketCapCap GAZPROM SUEZ termsofof DUKE EXELON REPSOL
Slide 4: Our current operations and exploration
Our current operations and exploration AMERICAS UK / AFR / ME AUSTRALIA/ASIA North Sea Liverpool Bay London Hague Houston Pakistan Tokyo Gulf of Mexico Algeria Trinidad Brunei Gabon Singapore Laminaria Bolivia Brazil North West Shelf Griffin/Cossack South Africa Melbourne Minerva Bass Strait Main Of
Slide 5: Gulf of Mexico (GoM) - Location
Gulf of Mexico (“GoM”) - Location Fort Dallas Mississippi Worth Jackson Alabama Georgia er i Riv sipp Louisiana s ssi Mi Texas Baton Lafayette Rouge Tallahassee Beaumont Houston Jacksonville New Orleans Tampa Eastern Gulf Florida Planning Area Western Gulf Central Gulf Planning Area Planning Area Mi
Slide 6: Deepwater
Deepwater Gulf of Mexico Shelf Mississippi Canyon a ter e p w De Atwater Foldbelt Ultra-Deepwater Scotia Capital Conference February 2003
Slide 7: Gulf of Mexico – Multi Play and Multi Trap
Gulf of Mexico – Multi Play and Multi Trap Shelf Deepwater Ultra Deepwater 0-600’ Water 600’-5,000’ Water 5,000’-10,000’+ Water Pleistocene Pleistocene Pliocene Pliocene U Miocene U Miocene L Miocene Oligocene LM Eocene/Paleocene Oli ioce Eocene/Paleocene goc ne ene Cretaceous Cretaceous S S S Scoti
Slide 8: Competitors decreasing – increasing land costs
Competitors decreasing – increasing land costs GoM Lease Sale Statistics Water Depths > 1500 ft. 70 1,750,000 60 1,500,000 Avg. High Bid / Block (US$) 50 1,250,000 Number of Bidders 40 1,000,000 De c 30 to reas 750,000 17 e Me in p r ge ar t rs d si n ue 20 ce ‘97 500,000 10 250,000 0 0 1992 1993 19
Slide 9: Gulf of Mexico deepwater leasehold ranking
Gulf of Mexico deepwater leasehold ranking Number of Leases 700 600 500 400 300 200 100 0 PB BP I ell l s ee o ps gy il EN co a es ob rk oc Sh cG BH er lli xa da H nM Un hi En rM Te da a oP xo An on an a r c Ke er Ex no vr e Am Oc e Co Ch Scotia Capital Conference February 2003
Slide 10: Deepwater Field Distribution
1000 0 100 200 300 400 500 600 700 800 900 MMBoe February 2003 GC 29 Manta Ray (EW 1006) Rocky (GC 110) Black Widow (EW 966) Diamond (MC 401 & MC 445) Cooper (GB 388) Scotia Capital Conference Southeast Tahoe (VK 784) Mississippi Canyon 441 (MC 441) Pluto (MC 718) Einset (VK 873) North Marlin (VK 82
Slide 11: U. S. Natural Gas Supply / Demand
U. S. Natural Gas Supply / Demand Tcf / year 25 25 Demand 20 Imports 20 15 15 Rest of U.S. 10 10 5 5 Gulf of Mexico 0 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source: Energy Information Administration Scotia Capital Conference February 2003
Slide 12: U. S. Oil Supply / Demand
U. S. Oil Supply / Demand Billion Bbls/ year 8 8 7 Demand 7 6 6 5 5 Imports 4 4 3 3 2 2 Rest of U.S. 1 Gulf of Mexico 1 0 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source: Energy Information Administration Scotia Capital Conference February 2003
Slide 13: Indicative Margin Analysis
Indicative Margin Analysis WD 6,500 ft, Field Reserve 500 MMboe $US/bbl Nominal 25.00 20.00 7.18 Profit 3.19 3.15 Quality & Gas Content 15.00 1.20 3.15 3.15 5.45 Government Take 3.06 1.56 10.00 4.17 4.17 4.30 OPEX & Transportation 5.00 3.93 3.93 3.93 Appraisal & Development 1.00 1.00 1.00 Exploratio
Slide 14: Competitive positions in the Gulf of Mexico Deepwater Performance Post 95
Competitive positions in the Gulf of Mexico Deepwater Performance Post 1995 40 Full Cycle IRR Post 1995 % 35 Pioneer High Return 30 Lacking Scale Successful Independents Shell 25 Nexen Murphy Occidental Spinnaker BHPB BP $10B, 24% Dominion Kerr-McGee 20 Marathon /Oryx Mariner Ocean ENI 15 ExxonMobil
Slide 15: Deepwater production systems
Deepwater production systems Progression 1989 - 2002 Platform Compliant Mini-TLP FPS SPAR TLP SUBSEA Tower Water Depth (ft) 0 1000 Baldpate Morpeth 2000 Bullwinkle 1700 ft 1700 ft 1380 ft -1989 Petronius Allegheney GB 388 3000 1750 ft 3300 ft 2150 ft Genesis (~1000 m) Typhoon - 2001 2500 ft 2100 ft
Slide 16: Transportation Infrastructure
Transportation Infrastructure Erath Louisiana Mobile Ca Mississippi me Baton Rouge Texas ro Lafayette nH Beaumont New Orleans i gh St.James Houston Norco VK wa Gibson yP Clovelly Houma Pilottown G ipe Odyssey M PO LO 30” li n OP Galveston e Poseidon Fourchon nito Freeport 30” S ger ck IP POMPANO Bo
Slide 17: GoM Deepwater Potential
GoM Deepwater Potential Source: BP,BHPB 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 Scotia Capital Conference February 2003
Slide 18: Questions
Questions Scotia Capital Conference February 2003
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