Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Investor Day (November 2001)
37 slides from Bhp's investor day presentation, November 2001
Slide 1: Petroleum Business Briefing
Petroleum Business Briefing Philip Aiken President and Chief Executive Officer, Petroleum November 2001 Sydney
Slide 2: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 3: Petroleum Financial Year 2001
Petroleum Financial Year 2001 Revenue: US$3.3 billion EBIT: US$1.4 billion NOPAT: US$1.0 billion Total reserves: 1.4 billion boe Average daily production: 358,700 boe/d Total production: 131 MMboe No of staff & contractors: 1,700 Main centres: Melbourne, London, Houston, Perth
Slide 4: First Quarter Financial Year 2002
Petroleum First Quarter Financial Year 2002 Revenue: US$787 million EBIT: US$325 million Average daily production: 365,100 boe/d Total production for 1Q: 33.6 MMboe
Slide 5: EBITDA FY 2001 (Before Abnormals)
Petroleum EBITDA FY 2001 (Before Abnormals) US$million 277 462 Other * NWS Bass Strait LBD 633 535 US$1.9 billion * includes commodity hedging loss of US$58 million
Slide 6: Realised Oil Price – West Texas Intermediate
Realised Oil Price – West Texas Intermediate (US$bbl) Realised WTI Oil Price 38 Realised oil price: WTI Oil Price (Nominal US$/bbl) 34 FY 2001 US$ 28.04 30 1Q 2002 US$ 24.86 26 22 18 14 10 Jan-98 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01
Slide 7: Proved Reserves
Petroleum Proved Reserves 1500 1250 million barrels oil equivalent 1000 741 784 803 832 802 Gas 750 Liquids 500 646 624 590 557 607 250 0 1997 1998 1999 2000 2001
Slide 8: Exploration By Location
Petroleum Exploration By Location FY01 spend US$196 million 115 USA Australia/Asia Algeria Latin America West Africa UK 36 Other 1 16 1 5 22
Slide 9: Cost Base
Petroleum Cost Base Finding & US$4.13/boe • Alliancing/partnering Development Costs (99 – 01 avg) • Focused exploration US$3.16/boe • Liverpool Bay Development Operating Costs example (99-01 avg) • Non operated • Manpower G and A US$15M/month • SBS Page 9
Slide 10: Production Forecast
Petroleum Production Forecast ……excluding exploration success Sept2001 Sept 2001 200 Actual Forecast 150 MMboe 100 Gas 50 Liquids 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Page 10
Slide 11: Strong Margins, Impact of Lower Oil Prices
Petroleum – Strong Margins, Impact of Lower Oil Prices Oil Price US$ 30 18 12 NWS 12 M 8 Petroleum A LBD US$/boe R Bass G Strait I N 4 0 Current Sensitivity
Slide 12: Peer Group Benchmarking
Peer Group Benchmarking BHP Billiton's Peer Group Ranking – change in industry position over 4 years Performance based upon 3 year averages to 1996/7 and 2000/2001 100% Top Quartile Performance 75% 2000/01 50% 25% 1996/97 0% Development Replacement Production Return on Reserves Finding & Margin Prof
Slide 13: Petroleum Organisation
Petroleum Organisation Petroleum Executive BHP Billiton Committee Executive Committee Global Global Resource Asset Teams Teams
Slide 14: Executive Committee
Petroleum Executive Committee President & CEO Philip Aiken London President Integrated Business Mike Weill Melbourne Development President Deepwater, Discovery & Steve Bell Houston Appraisal President Project Development & Keith Hunter London Operations Petroleum Chief Financial Officer Greg Robinso
Slide 15: International Activities
Petroleum International Activities North Sea Liverpool Bay ME Pakistan Algeria Gulf of Mexico Trinidad Gabon Bolivia Angola NWS Bass Strait Production High Margin Exploration Gas Commercialisation Access to Discovered Resources
Slide 16: Recent Petroleum Highlights
Recent Petroleum Highlights • Ohanet wet gas project in Algeria approved • NWS LNG 4th train expansion approved and supporting sales agreements progressed • Typhoon started production in Gulf of Mexico (first deepwater production) • Successful appraisal drilling in Gulf of Mexico Atwater foldbelt •
Slide 17: Financial Year 2001 HSE Performance
Petroleum Financial Year 2001 HSE Performance • Lost Time Injury (LTI) Frequency Rate improved from 1.77 to 1.09 • Reported oil spills total volume 0.62 barrels • Liverpool Bay and Australia Operated Asset Teams achieved ISO 14001 Environmental Management Certification • Audits of Algerian and Pakis
Slide 18: Growth Strategies
Petroleum Growth Strategies High Margin Oil Exploration & Production Low Risk Global (Discovered) Portfolio Gas Resources Cash Generation
Slide 19: Petroleum within BHP Billiton
Petroleum within BHP Billiton • Extractive industry • Energy interface • Major financial contributor (39% EBIT) • Risk diversification • Growth potential • It’s a great business
Slide 20: Structure
Structure • BHP Billiton Petroleum Overview • Production • High Margin Exploration • Gas • Access to Discovered Resources • Summary
Slide 21: Production
Petroleum Production • Bass Strait - Australia • North West Shelf - Australia • Laminaria/Corallina - Australia • Griffin - Australia • Liverpool Bay - United Kingdom • Bruce/Keith - United Kingdom • Gulf of Mexico - United States • Mamore - Bolivia • Zamzama - Pakistan
Slide 22: Bass Strait
Bass Strait • BHP Billiton 50% equity (Esso Australia Resources P/L operator) • First production 1968 • One of BHP Billiton’s largest assets • FY 2001 crude & condensate production (net) - 29 million barrels, or an average 81,000 bbl/d net • FY 2001 average gas production - 267 MMcf/d (net) • BHP sh
Slide 23: Bass Strait
Bass Strait Bairnsdale e • 20 fields elin Pip p os ed Lakes Entrance Pro TRUE NORTH IS SHOW N FOR THE CENTRE OF THE MAP • 21 offshore production 0 5 10 15 20 SWEETLIPS SUNFISH facilities km Sale • Production profile MOONFISH WEST WIRRAH TUNA Longford SEAHORSE N. TURRUMTUNA WHITING BATFISH TURRUM KIP
Slide 24: North West Shelf / Laminaria Production by Product
North West Shelf / Laminaria Production by Product % REVENUE QTY (100% TERMS) MARKETS Tokyo Electric LNG Kansai Electric 7.5 MTPA 27% Chubu Electric 1,200 MMcf/d Kyushu Electric Chugoku Electric Tokyo Gas • Total 700,000 boe/d Natural gas (“Domgas”) Osaka Gas (100% terms) 570 TJ/d Toho Gas 2% 550 MM
Slide 25: North West Shelf Venture
North West Shelf Venture • Ownership (BHPB Share) Lambert/Hermes Angel – 16.7% LNG, Oil, Perseus Expansion GWA North Rankin – 8.3% to 16.7% Domgas Platform • Investment (BHPB Share) Wanaea Goodwyn /Cossack – A$2.2 billion to date Echo/Yodel/Keast Cossack Pioneer • P50 Remain.Reserves NRA Platform FP
Slide 26: Laminaria / Corallina
Laminaria / Corallina • Ownership (BHPB Share) – 32% Laminaria – 25% Corallina • Investment (BHPB Share) – A$500 million • P50 Remaining Reserves – 105 MMbbl (100%) • Declining Production from 2004 JVP’s • Phase 2 infill development to BHPB commence FY 02 at an initial Shell rate of 65,000 bbl/d (gr
Slide 27: Griffin
Griffin • BHP Billiton share 45% Oil Field GORGON (Operator) Gas Field 100 0 m BARROW Is. • FPSO Production MINDEN WA-289-P WA-290-P • Current Production Rate: 25,000 bbl/d of oil & 35 WA-255-P WA-10-L MMcf/d of gas (gross) GRIFFIN CHINOOK SCINDIAN NOVARA WA-12-L • P50 Remaining Reserve: VINCENT 30
Slide 28: Liverpool Bay
Liverpool Bay • BHP Billiton 46.1% - Irish Sea Blackpool Preston Operator Tanker Loading • Petroleum’s largest OSI Hamilton North Field operated asset Lennox Field Southport Hamilton East Field Operations Support Vessel • 2.4% UK oil; 2.8% UK gas (ISP) E N G L A N D Hamilton Field • Good HSE Perform
Slide 29: Liverpool Bay - Performance Improvements
Liverpool Bay - Performance Improvements LBA Oil Sales (BHPB Share) • Higher Reliability • Record oil sales 6 week shutdown for major maintenance and upgrades – four cargo offtakes in a single month (March 2001) 2.6 2.6 2.6 • Reduced lifting costs – demurrage now costs less than 1 cent/bbl • Reduced
Slide 30: Liverpool Bay - Future
Liverpool Bay - Future Production (MMboe) 15.9 16 15 14.2 13.7 13.3 2000 2001 2002 2003 2004 2005 OPEX (US$M) 75 62 46 42 43 41 2000 2001 2002 2003 2004 2005
Slide 31: Bruce/Keith
Bruce/Keith Licence • Bruce: BHP Billiton 16% Shetland Oil Field Gas Field Islands • First Bruce Production 1993 Oil Pipeline Gas Pipeline Bruce / Keith • Nameplate capacity – Gas: 875 MMcf/d Block – Liquids: 60,000 bbl/d 9/8a, 9/8b ORKNEY & 9/8c • Remaining Reserves (P50): ISLANDS 430 MMboe (100%)
Slide 32: Gulf of Mexico Net Production
Gulf of Mexico Net Production 35,000 30,000 25,000 20,000 Typhoon MBOE/D 15,000 10,000 Genesis Green Canyon 18/60 5,000 West Cameron 76 0 99 00 01 02 03 Financial Year
Slide 33: Typhoon
Typhoon First production: July 2001 • Ahead of schedule and under budget Ownership • BHP Billiton 50% • Chevron 50% (Operator) TLP Capacity • 40,000 bbl/d oil • 60 MMcf/d gas Production • Max rate achieved Sept. 9 at 41,825 bbl/d • Currently producing from 4 wells mid to upper 30’s Mbbl/d and 40’s M
Slide 34: Genesis
Genesis • Acquired 4.95% working interest September 2000 • Chevron operated • Access to SPAR technology 2001 Highlights • Set 24 hour production mark at 58,500 bbl/d in Mar. 2001 • Drilled 4 additional development wells • Currently producing 52,500 bbl/d and 90 MMcf/d
Slide 35: West Cameron and Green Canyon
West Cameron and Green Canyon • BHP Billiton operator of West Cameron blocks 60, 61, 76 and 77 (with an effective working interest of 44.1 per cent) • FY 2001 gross production averaged 102 MMcf/d of gas and 626 barrels of condensate per day • During Q1 2002 an infill well was drilled and tested appr
Slide 36: Bolivia
Bolivia • BHP Billiton share 50% • FY2001 av gross production 10,700 bbl/d liquids Secure Eva-Eva • Gas sales 26 MMcf/d La Paz Mamore Surubi & Paloma Fields Santa Cruz • Reserves additions via infill and extension AND drilling ES • Near field prospect evaluation
Slide 37: Zamzama
Zamzama Sui N & S Gas Pipe Line • First gas discovered 1998 Power Station Gas Field (producing) Punjab with Zamzama-1 Concession Boundary • First gas produced March PAKISTAN 2001 er Zamzama • First Petroleum project in Riv us INDIA Ind Dadu Concession Pakistan • On time and budget Hyderabad Karachi