Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (December 2005)
18 slides from Bhp's investor presentation, December 2005
Slide 1: BHP Billiton Petroleum
BHP Billiton Petroleum Philip Aiken Group President Energy December 2005
Slide 2: Disclaimer
Disclaimer The views expressed here contain information 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. Any forward looking information in this presentation ha
Slide 3: Agenda
Agenda Update for BHP Billiton Petroleum: – FY 2005 Performance – Growth Projects – Current Exploration Focus – Algeria – Gulf of Mexico – Production and Project Update – Summary
Slide 4: Petroleum – Overview
Petroleum – Overview FY 2005 FY 2004 Turnover $5.9 billion $5.6 billion EBIT $1.83 billion $1.4 billion Operating capital employed $4.4 billion $4.1 billion Total production 119.0 million boe 122.5 million boe Average daily production 326,000 boe per day 335,000 boe per day Total proved reserves 1.4
Slide 5: Projects commissioned in FY 2005 operating successfully
Projects commissioned in FY 2005 operating successfully
Slide 6: Growth Projects
Growth Projects • Australia – NWS Train 5 – sanctioned June 2005 – production late 2008 – Stybarrow – sanctioned November 2005 – 50% BHP Billiton, operated – first oil Q1 CY 2008 – Pyrenees – in feasibility – BHP Billiton operated – FPSO preferred development option – Pilbara LNG: – 100% BHP Billito
Slide 7: Growth Projects: Cabrillo Port - Floating Storage & Regasification Unit
Growth Projects: Cabrillo Port - Floating Storage & Regasification Unit • Single Point Mooring • Side by side LNG transfer • Moss spherical LNG storage tanks • LNG regasification • Normal Throughput = 650 - 850 MMSCFD • Storage Capacity = 273,000 m3 • Design Throughput = 1,500 MMSCFD • Length = 928f
Slide 8: Location of our current exploration screening, testing and executing activities
Location of our current exploration screening, testing and executing activities Business Development Sphere Nth Africa, M East / Russia / Maritime Subcontinent Canada Pakistan GoM Algeria Brunei Borneo Trinidad Philippines Offshore Columbia Indonesia Namibia NWS Exmouth South Carnarvon Africa Gippsl
Slide 9: Algerian Acreage
Algerian Acreage Supported by 114 asset staff & contractors
Slide 10: Gulf of Mexico – Storm Paths of Hurricanes Katrina & Rita
Gulf of Mexico – Storm Paths of Hurricanes Katrina & Rita Lafayette Hurricane Hurricane 10.00am - 24/09/05 Katrina Katrina 120kph Category 3 NEW ORLEANS HOUSTON 10.00am - 29/08/05 Cameron 208kph Category 3 Amelia Houma Sabine Pass Galveston 10.00pm - 23/09/05 Fourchon 4.00am - 29/08/05 192kph Catego
Slide 11: Gulf of Mexico
Gulf of Mexico West WestCameron Cameron Starlifter Starlifter Joseph Licence Producing Blackbeard Discovery Development Neptune Neptune E - well Green GreenCanyon Canyon18/60 18/60 Genesis Genesis Shenzi Shenzi Everest Typhoon Typhoon//Boris Boris Impacted Impactedby byH. H.Rita Rita Knotty Head Atl
Slide 12: Gulf of Mexico – Project Update
Gulf of Mexico – Project Update • Atlantis South (44% BHP Billiton) – Tow out later this month – Capacity: 200,000 barrels of oil/day and 180 mmscf/day of gas – First production third quarter 2006 • Neptune (35% BHP Billiton, operated) – Board sanction June 2005 – Capacity: 50,000 barrels of oil/day
Slide 13: Conclusion
Conclusion • The Petroleum business is a value driver for BHP Billiton • Petroleum is a differentiating factor for BHP Billiton • We have core businesses in Bass Strait / Eastern Australia gas & Western Australia oil & gas • The Gulf of Mexico is a core area for our business • We have other opportun
Slide 14: Ohpoilliton
6de Ohpoilliton
Slide 15: PSC - General Principles
PSC - General Principles Contractor pays for / bears risk of all exploration, development and production Contractor reimbursed for share of “agreed” costs from production over a fixed term (consisting of capital and operating cost contributions) Remaining “profit oil” is divided between Contra
Slide 16: Generic PSC Entitlement Flow Chart
Generic PSC Entitlement Flow Chart STEP 1. TOTAL STEP 2. FIELD STEP 3. STEP 4. JV STEP 5. TAX INTEGRATED FIELD ALLOCATION IF CONTRACTOR VS PARTNER BARREL PRODUCTION REQUIRED GOVT ALLOCATION ALLOCATIONS IMPLICATIONS Pre - Tax Cash Flow = Total Reported Production & Reserves Field 1 Post Tax Cash Flow
Slide 17: Production, Reserves and Accounting Impacts
Production, Reserves and Accounting Impacts Production / Reserves: 1) Base Production entitlements = Contractors agreed recovery of costs + agreed share of profit (Economic Interest Method) Price 2) Tax Barrel Production entitlement = Contractors estimated tax liability Price 3) Total Reported Produ
Slide 18: Basis of Treatment & Industry Practice
Basis of Treatment & Industry Practice Only the US SEC provides specific guidance on the treatment of hydrocarbons recoverable under PSC arrangements (FAS 69) Reserve volumes determined by various owners should add to 100% Application of the “Working Interest” (WI) method (where WI % is not eq