Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Presentation (August 2007)
21 slides from Bhp's investor presentation, August 2007
Slide 1: BHP Billiton Petroleum Investor Presentation – August 2007
BHP Billiton Petroleum Investor Presentation – August 2007 J. Michael Yeager Chief Executive, Petroleum
Slide 2: BHP Billiton is the World's Largest Diversified Resources Company
BHP Billiton Petroleum BHP Billiton is the World’s Largest Diversified Resources Company Petroleum ranks about 20th among largest international oil & gas companies Page 2
Slide 3: Strong Petroleum Financial Performance: More Expected
Strong Petroleum Financial Performance: More Expected Year ended June 2007 2006 Production (1) (mmboe) 116.0 115.6 Revenue ex third party products (US$m) 4,964 4,804 Underlying EBIT (US$m) 3,014 2,968 EBIT margin (2) (% ) 60.6 61.7 Exploration (US$m) 395 447 Capital expenditure (US$m) 1,687 1,124 Re
Slide 4: A Year of BIG Moves
A Year of BIG Moves • Maximize the current Base Assets – Record performance in safety & natural gas production – Oil growth is in progress • Execute Major Capital Investment Commitments – Critical year with excellent results • Capture New Opportunities – Significant new acquisition & exploration val
Slide 5: FY07 Production: Delivering the Base
FY07 Production: Delivering the Base • Record Safety Performance • Production flat with FY06, despite no new fields starting up • Program drilling and other opportunities offset expected 5-8% production decline • Facility uptime averaged 92% • All 9 Production Units performing to expectations • Work
Slide 6: FY07 Safety Results: Goal is Zero Harm
FY07 Safety Results: Goal is Zero Harm • Good safety & good business go hand in hand • Improvement achieved despite unprecedented peak in activity • No significant environmental events • Zero fatalities at controlled sites 5 22 20 4 18 16 3 14 4.73 12 10 20 2 8 2.37 6 1 4 2 6 0 0 FY06 FY07 FY06 FY07
Slide 7: Development: Executing the Projects
Development: Executing the Projects FY07 Results • $1.7 billion capex invested – Year on year increase • 5 major projects expected to advance to start up in the next 6 months – Zamzama – Pakistan – Neptune – Gulf of M exico – Genghis Khan – Gulf of M exico – Stybarrow – offshore Western Australia –
Slide 8: Zamzama - Pakistan
Zamzama - Pakistan • 4th largest natural gas field in Pakistan • Operations include onshore gas processing plant • Operated by BHP Billiton (38.5%) • Phase II expansion online by 3Q 2007 • Phase I & II capacity: ~450 million cubic ft /day (100%) • Completed on time and on budget • Capex Phase II = $
Slide 9: Neptune - Gulf of Mexico
Neptune - Gulf of Mexico • Deepwater oil operated by BHP Billiton, 35% • Reserves 100-150 mmboe (100%) • Production 50K bpd oil, 50 MM cubic feet gas per day (100%) • Installation complete, commissioning underway • First production expected by end of calendar year • Drilling will continue after star
Slide 10: Genghis Khan – Gulf of Mexico
Genghis Khan – Gulf of Mexico • Completed the US$1.33-billion (100%) transaction Feb 2007 – 1st Petroleum acquisition in more than 10 years • BHP Billiton 44% • Reserves 65-170 MM boe (100%) • Production capacity 55K bpd (100%) at full development • Hook-up & commissioning of subsea infrastructure u
Slide 11: Stybarrow FPSO – Western Australia
Stybarrow FPSO – Western Australia • Offshore oil operated by BHP Billiton • 50% interest • FPSO - 80K bpd (100%) • Commissioning near complete • First production expected early 2008 • Drilling will continue after start up • Capex = $380 million (net) Page 11
Slide 12: Atlantis South – Gulf of Mexico
Atlantis South – Gulf of Mexico • Deepwater oil • Owned 56% by BP (operator) & 44% BHP Billiton • Production capacity 200K bpd & 180 MM cubic feet gas per day (100%) • Expected online later this calendar year • Drilling on 7 wells complete & commissioning activities continue • Costs recently updated
Slide 13: Shenzi – Gulf of Mexico
Shenzi – Gulf of Mexico • Deepwater oil operated by BHP Billiton, 44% • Reserves 350-400 MM boe (100%) • 100K bpd & 50 MM cubic feet gas per day capacity (100%) • Hull and topsides fabrication in progress • Drilling with dedicated rigs under contract to 2012 • Online mid 2009 • Capex = $1.94 billion
Slide 14: NWS LNG Train 5 – Western Australia
NWS LNG Train 5 – Western Australia • Operated by Woodside • BHP Billiton 16.67% • Capacity of 4.2 MM tpa (100%) • Online end of 2008 • All 17 modules for Train 5 delivered on schedule • Hook up and commissioning continues • Record LNG prices • Capex = $300 million (net) Page 14
Slide 15: Petroleum Reserves as of 30 June 2007
Petroleum Reserves as of 30 June 2007 Billion Boe 2.5 0.103 Europe/Africa 2 0.579 Americas 1.5 0.076 Europe/Africa 0.248 Australia/Asia Americas 1 1.44 1.447 Australia/Asia 0.5 1.029 0 Proved (1P) Proved + Probable (2P) Contingent Resources 1.35 billion boe 2.15 billion boe 1.45 billion boe Page 15
Slide 16: Exploring around the World: Capturing New Opportunities
Exploring around the World: Capturing New Opportunities • Thebe discovery announced, offshore Western Australia • Malaysia acreage captured, office being established • Colombia 3D seismic commencing • Gearing up to participate in Gulf of Mexico lease sales – Oct 2007 Page 16
Slide 17: Southern Africa Exploration
Southern Africa Exploration BHP Billion Petroleum South Africa & Namibia Acreage Position Southern & Northern Blocks BHP Billiton 75%, Operator Mitsui 15%, PetroSA 10% Area ~29,000 km2 Block 3B/ 4B Block 3A/ 4A BHP Billiton 90%, Operator BHP Billiton 60%, Operator Global 10% PetroSA 30%, Sasol 10% A
Slide 18: Deep inventory of projects and options
Deep inventory of projects and options As at 22 August 2007 Proposed capital expenditure WA WA Iron Iron Ore Ore Saraji Saraji NWS NWS <$500M <$500M $501M-$2Bn $501M-$2Bn $2Bn+ $2Bn+ Quantum Quantum 11 WFG WFG Shenzi Nth Angola Angola Canadian Canadian DRC CMSA && DRC CMSA Heap Heap Maruwai Potash P
Slide 19: Deep Inventory of Projects and Options
Deep Inventory of Projects and Options As at 22 August 2007 Proposed capital expenditure <$500M <$500M $501M-$2Bn $501M-$2Bn $2Bn+ $2Bn+ NWS NWS WFG WFG Thebe Thebe Shenzi Nth NWS NWS Zamzama Angel Angel Phase 2 Angostura NWS NWS Neptune Gas Kipper Kipper T5 T5 Stybarrow Shenzi Shenzi Macedon Atlant
Slide 20: BIG Moves yet to come
BIG Moves yet to come • Significant multi-year volume growth – GOM – expected to increase from 12K → 100K bpd (net) next year • New barrels – great fiscal terms • New oil projects balance large gas volumes today • Filling the pipeline – recent success in exploration & acquisitions to sustain growth
Slide 21: Ohpbilliton
6dl Ohpbilliton