Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Corporate Update (September 2015)
20 slides from Bhp's corporate update, Sep 10, 2015
Slide 1: Trinidad 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 bhpbilliton resourcing the future
Slide 2: Disclaimer: Forward-looking statements
Disclaimer bhpbilliton resourcing the future 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
Slide 3: Disclaimer: Petroleum resources
Disclaimer bhpbilliton resourcing the future 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 employe
Slide 4: A leading operator of a world class resource
A leading operator of a world class resource bhpbilliton resourcing the future 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 progra
Slide 5: Operating safely and sustainably is our priority
Operating safely and sustainably is our priority bhpbilliton resourcing the future 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 inj
Slide 6: Higher-cost oil and gas supply will be required
Higher-cost oil and gas supply will be required bhpbilliton resourcing the future Liquids 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 decline – 3 to 4 MMbbl/d
Slide 7: A high-quality, focused portfolio
A high-quality, focused portfolio bhpbilliton resourcing the future We have a focused portfolio of high-quality assets - a major producer in our heartland regions in Australia and North America We are well positioned to realise significant value from our high-quality resource base - Onshore US devel
Slide 8: Actively responding to changing conditions
Actively responding to changing conditions bhpbilliton resourcing the future We focus on value and returns - we are a large petroleum business within a diversified resources company where all options must compete for capital We have responded quickly to market conditions - current plans see capital
Slide 9: Leading operational capability in Conventional
Leading operational capability in Conventional bhpbilliton resourcing the future Our operational experience and capability are a competitive advantage - unit cash costs of US$10.92/boe in FY151 - average operational uptime of 95% in FY152 Our Conventional assets will continue to deliver strong, stab
Slide 10: Competitive growth opportunities in Conventional
Competitive growth opportunities in Conventional bhpbilliton resourcing the future Capital expenditure of ~US$1.6 billion expected in FY16 Our high-quality Conventional portfolio will continue to create value - we are prioritising brownfield projects and infill drilling programs in our heartlands in
Slide 11: Driving continuous improvement in Onshore US
Driving continuous improvement in Onshore US bhpbilliton resourcing the future We have prioritised high-return liquids production and deferred dry gas development for value - US$1.5 billion capital expenditure will support nine operated rig development program in FY16 - activity will be further flex
Slide 12: Black Hawk continues to exceed expectations
Black Hawk continues to exceed expectations bhpbilliton resourcing the future We are the top performer in the Black Hawk - anticipate reducing drilling cost to US$2.5 million per well in FY16 - >100 Mbbl ahead of peers on average three year cumulative production per well1 - average returns ~35% at c
Slide 13: Permian offers significant upside
Permian offers significant upside bhpbilliton resourcing the future Established position with ~78 thousand net acres in the core area - currently producing ~30 Mboe/d - two rig drilling program will maintain production and retain core acreage Potential to build a >150 Mboe/d business - ~850 addition
Slide 14: Preserving the value of our dry-gas fields
Preserving the value of our dry-gas fields bhpbilliton resourcing the future We have deferred our dry-gas development 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 Haynesville acreage
Slide 15: Focused on our highest-quality Hawkville acreage
Focused on our highest-quality Hawkville acreage bhpbilliton resourcing the future Large portions of the Hawkville remain competitive - within the sequence of our medium-term development plan, 40% of our acreage offers rates of return of >25% - ~750 additional gross wells expected over life of field
Slide 16: Focused exploration program
Focused exploration program 3 basins in 3 years bhpbilliton resourcing the future Gulf of Mexico FY16 – Phase I FY17 – Phase II BHP Billiton acreage/Sale 246 bids Pemex Round 0 acreage Round 1 acreage USA Mexico Perdido Extension Deepwater 0 200 km Trinidad and Tobago FY17 – Phase I BHP Billiton acr
Slide 17: Focused exploration program: moving from access to testing
Focused exploration program Moving from access & evaluation to testing bhpbilliton resourcing the future Gulf of Mexico Leveraging our heartland expertise Targeting two immature Tier 1 plays (Paleogene and Cretaceous) – numerous Tier 1 opportunities; first well planned for FY17 Evaluating deepwater
Slide 18: A leading operator of a world class resource
A leading operator of a world class resource bhpbilliton resourcing the future 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 progra
Slide 19: bhpbilliton resourcing the future
bhpbilliton resourcing the future
Slide 20: Appendix: Performance Black Hawk Permian
Appendix bhpbilliton resourcing the future 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 c