Bhp Group Ltd · ASX:BHP
Bhp — Barclays CEO Energy-Power Conference 2015
23 slides from Bhp's conference presentation, Feb 11, 2016
Slide 1: ASX cover letter: Barclays CEO Energy-Power Conference
BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbilliton.com 9 September
Slide 2: News Release: Petroleum operational excellence underpins value and returns
NEWS RELEASE Release Time IMMEDIATE Date 9 September 2015 Number 18/15 BHP BILLITON PETROLEUM OPERATIONAL EXCELLENCE UNDERPINS VALUE AND RETURNS BHP Billiton President Petroleum Tim Cutt will today explain how the Company expects to create significant value from its Petroleum resources at the Barcla
Slide 3: News release continuation and media/investor contacts
exploration through the cycle and expect to test three major opportunities in our core basins of Gulf of Mexico, Trinidad & Tobago and Western Australia over the next three years.” In conclusion, Mr Cutt said “We remain focused on value and returns above all else. Our projects must compete with othe
Slide 4: BHP Billiton Petroleum: A leading operator of a world class resource
Trinidad BHP Billiton Petroleum A leading operator of a world class resource Tim Cutt President, Petroleum 9 September 2015
Slide 5: Disclaimer: Forward-looking statements
Disclaimer Forward-looking statements This presentation contains forward-looking statements, which may include statements regarding, among other things: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestme
Slide 6: Disclaimer: Petroleum resources
Disclaimer 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 Billiton. Mr. Gadgil is a
Slide 7: A leading operator of a world class resource
A leading operator of a world class resource • A focused portfolio of high-quality assets in stable geographies – premier liquids position with high-return growth opportunities – large gas position with multi-decade resource potential – targeted oil exploration program with significant opportunities
Slide 8: Operating safely and sustainably is our priority
Operating safely and sustainably is our priority • Top quartile safety performance versus peers • Eliminating silica exposure in fracking operations at Onshore US • Reduced greenhouse gas emissions by 12% in FY15 Lost-Time Injury Frequency (LTIF) (number of recordable injuries per million hours work
Slide 9: Higher-cost oil and gas supply will be required
Higher-cost oil and gas supply will be required Liquids High-cost oil supply required to meet demand (MMbbl/d) • Development of emerging economies will continue to drive demand for crude oil – ~1 MMbbl/d annual demand growth • New higher-cost liquids supply will need to be induced as low-cost fields
Slide 10: A high-quality, focused portfolio
A high-quality, focused portfolio • We have a focused portfolio of high-quality A major producer in our core regions assets (BHP Billiton production, Mboe/d, CY14, net) 2nd 4th 8th 6th Rank1 – a major producer in our heartland regions 240 in Australia and North America 160 • We are well positioned t
Slide 11: Actively responding to changing conditions
Actively responding to changing conditions • We focus on value and returns A rapid response to a changing environment (capital and exploration expenditure, US$ billion) (MMboe) – we are a large petroleum business within a 7.5 300 diversified resources company where all options must compete for capit
Slide 12: Leading operational capability in Conventional
Leading operational capability in Conventional • Our operational experience and capability Industry leader in offshore drilling3 are a competitive advantage (average drill time, days per 1,000 feet) 9 – unit cash costs of US$10.92/boe in FY151 6 – average operational uptime of 95% 3 in FY152 0 • Our
Slide 13: Competitive growth opportunities in Conventional
Competitive growth opportunities in Conventional • Capital expenditure of ~US$1.6 billion Mad Dog II – Semi-submersible FPU concept expected in FY16 • Our high-quality Conventional portfolio will continue to create value – we are prioritising brownfield projects and infill drilling programs in our h
Slide 14: Driving continuous improvement in Onshore US
Driving continuous improvement in Onshore US • We have prioritised high-return liquids production Significant growth in Onshore US liquids production and deferred dry gas development for value (Mboe/d) (%) 360 60 – US$1.5 billion capital expenditure will support nine operated rig development program
Slide 15: Black Hawk continues to exceed expectations
Black Hawk continues to exceed expectations • We are the top performer in the Black Hawk Black Hawk well locations3 – anticipate reducing drilling cost to US$2.5 million per well in FY16 Gonzales – >100 Mbbl ahead of peers on average three year cumulative production per well1 Wilson DeWitt – average
Slide 16: Permian offers significant upside
Permian offers significant upside • Established position with ~78 thousand net Well performance is improving over time1 acres in the core area (Mboe/d, net) – currently producing ~30 Mboe/d – two rig drilling program will maintain production and retain core acreage • Potential to build a >150 Mboe/d
Slide 17: Preserving the value of our dry-gas fields
Preserving the value of our dry-gas fields • We have deferred our dry-gas development Haynesville acreage by Recoverable Resource program for long-term value at low cost of carry – Onshore US dry-gas resource could support half a century of production at twice the current production rate • Our Hayne
Slide 18: Focused on our highest-quality Hawkville acreage
Focused on our highest-quality Hawkville acreage • Large portions of the Hawkville remain Competitive returns in liquids rich areas competitive No future drilling <15% – within the sequence of our medium-term 15-25% development plan, 40% of our acreage >25% offers rates of return of >25% – ~750 addi
Slide 19: Focused exploration program
Focused exploration program 3 basins in 3 years Gulf of Mexico FY16 – Phase I FY17 – Phase II BHP Billiton acreage/Sale 246 bids Pemex Round 0 acreage Trinidad and Tobago Round 1 acreage FY17 – Phase I FY18 – Phase II BHP Billiton acreage Oil/gas fields Western Australia USA Proprietary 3D seismic1
Slide 20: Focused exploration program: moving from access & evaluation to testing
Focused exploration program Moving from access & evaluation to testing Gulf of Mexico Large structures Large footprints* • Leveraging our heartland expertise -1,750m • Targeting two immature Tier 1 plays (Paleogene TVD and Cretaceous) – numerous Tier 1 opportunities; first well planned for FY17 Shen
Slide 21: A leading operator of a world class resource
A leading operator of a world class resource • A focused portfolio of high-quality assets in stable geographies – premier liquids position with high-return growth opportunities – large gas position with multi-decade resource potential – targeted oil exploration program with significant opportunities
Slide 22: cdl
cdl bhpbilliton resourcing the future
Slide 23: Appendix: Black Hawk and Permian performance
Appendix Performance Black Hawk Permian Drilling cost1 $2.5 million $3.4 million3 Completion cost1 $3.6 million2 $3.1 million3 Expected FY16 production mix (Oil/Gas/NGL) 62%/20%/18% 51%/26%/23% Initial 30-day average production rate 1,659 boe/d 1,550 boe/d4 Median cumulative production 416 Mboe (3 y
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