BHP Group Ltd · ASX:BHP
BHP — BHP Billiton — Credit Suisse First Boston Asian Energy Conference 2002
27 slides from BHP's conference presentation, September 2002
Slide 1: BHP Billiton Petroleum
BHP Billiton Petroleum Greg Robinson, Chief Financial Officer, Petroleum Credit Suisse First Boston (Hong Kong) Limited Asian Energy Conference, September 2002
Slide 2: BHP Billiton - Financial Highlights Fiscal Year 2002
BHP Billiton - Financial Highlights Fiscal Year 2002 • Market capitalisation US$33 billion • EBITDA US$4.9 billion, despite lower prices • Operating cash flow (after interest and tax) US$3.9 billion • EBIT US$3.2 billion • Strong balance sheet – EBITDA interest cover 11.0 times, net gearing 35% • Th
Slide 3: Petroleum Financial Year 2002
Petroleum Financial Year 2002 Revenue: US$2.9 billion EBIT: US$1.1 billion Net Assets: US$2.5 billion Total reserves: 1.4 billion boe Average daily production: 366,000 boe/d Total production: 134 MMboe No. of staff & contractors: 1,600 Main centres: Melbourne, London, Houston, Perth
Slide 4: Focused Asset Portfolio
Focused Asset Portfolio Liverpool Bay, Bruce/Keith Pakistan Gulf of Mexico Algeria Brunei Trinidad Brazil Gabon North West Bolivia Angola Shelf/AOAT S.A. Bass Strait/East Australia
Slide 5: Petroleum Relative to the Industry Players
Petroleum Relative to the Industry Players Annual Production Proven Reserves 1. ExxonMobil 1. ExxonMobil 2. Shell 2. Shell 3. BP 3. BP 4. ChevronTexaco 4. ChevronTexaco 5. TotalFina Elf 5. TotalFina Elf 6. ConocoPhillips 6. ConocoPhillips 7. ENI 7. ENI 8. Repsol-Ypf 8. Repsol-Ypf 9. Encana 9. Encana
Slide 6: Peer Group Benchmarking
Peer Group Benchmarking BHP Billiton Petroleum’s Peer Group Ranking 3 year averages to 1998/99 and 2001/02 (6.9) (25) 100% top quartile performance top quartile performance (4.1) 75% (1.3) 2001/02 (5.8) 50% (125) 25% 1998/99 0% (US$ boe) Costs (US$ boe) Costs (US$ boe) (%) Replacement Development Gr
Slide 7: Production by Asset (Mmboe)
FY2002 Petroleum BHPB Production by Asset 50 49.5 Mmboes Total Production 133.7 40 Liquids 85.9 Gas 47.8 Production (Mmboe) 30 26.8 20 18.0 9.7 10 8.4 6.4 6.1 4.1 2.7 2.0 0 Bass Strait NWS Liverpool Laminaria Bruce / Typhoon Griffin GoM Bolivia Pakistan Bay Keith Producing
Slide 8: Petroleum EBIT FY 2002 US$million
Petroleum EBIT FY 2002 US$million 76 179 Other * NWS (Australia) 408 Bass Strait (Australia) LBD (UK) 410 US$1073 million * Includes exploration expenditure and overhead
Slide 9: Petroleum Growth Strategies
Petroleum Growth Strategies High Margin Oil Exploration & Production Low Risk Global (Discovered) Portfolio Gas Resources Cash Generation
Slide 10: High Margin Exploration/Production
High Margin Exploration/Production • Gulf of Mexico • Trinidad • Australia, Brunei, Africa, Brazil
Slide 11: Gulf of Mexico Exploration Program Result FY94 - FY02
Gulf of Mexico Exploration Program Result FY94 - FY02 Discoveries Typhoon • 21% commercial Atlantis Mad Dog success to date Pluto 24 • 33% if opportunities Boris Exploration Neptune under evaluation are Bass Lite included Cascade 36 Wells 12 Projects Drilling Leverage Appraisal • 1 sanctioned in FY0
Slide 12: Gulf of Mexico Deepwater Leasehold Ranking September 2002
0 100 200 300 400 500 600 700 Ch ev BP ron Te xa co Ex xo nM ob Number of Leases il Sh ell September 2002 Ke rr M cG Co ee no co Ph illip Oc s ea nE ne rgy BH PB illit on Ag ip/B B Un Am oc al era da He ss An Gulf of Mexico Deepwater Leasehold Ranking ad ark o
Slide 13: BHPB Gulf of Mexico 12-18 Month Drilling Activity
BHPB Gulf of Mexico 12-18 Month Drilling Activity Mississippi Canyon Kansas Habanero Tiger Shenzi Typhoon Vortex Boris Typhoon Nearfield Atwater Valley Mad Dog Eastern Atwater Foldbelt Atlantis Neptune 3 Green Canyon Chinook Cascade 2 Gas Field Oil Field Walker Western Atwater Foldbelt / BHPB Acreag
Slide 14: Green Canyon Area
Me eel Canyon allced get [gee i Ls - _ ‘? a so a Oe a CAS na Ténity N. i 5 * ken ioe — : sa e bhpbilliton
Slide 15: Mad Dog SPAR Facility
Mad Dog SPAR Facility • Reserve Range (gross) – 200 - 450 (operator estimate 350) MMboe • BHPB share 23.9% • Gross capex US$ 1.4 billion • Investor in transportation • Wells – 16 well slots,13 producers • Capacity – ~80 mbbl/d, 40 MMcf/d – ~50 mbbl/d produced water • Drill Rig – ~5250 ton rig payloa
Slide 16: Atlantis Development
Atlantis Development Host Facility - Semi FPS • One of Gulf of Mexico’s largest fields DC 2 4,409' WD • Water depths in excess of 1 2 6,000 feet 3 4 15 16 • Gross capacity 150,000 bbl/d 14 13 DC 1 Export Pipelines 12 11 10 9 6,683' WD 8 7 6 5 • Gross reserves 575 MMboe • BHPB share 44% • FEED studie
Slide 17: Trinidad – Basis of Development
Trinidad – Basis of Development 2000 2000Aripo-1 Aripo-1 2001 2001Canteen-1 Canteen-1 0 Kms 25 Gas Gas discoverytested discovery testedatat Oil Oil andGas and Gasdiscovery. discovery. 21.6 179’ 179’ net gas pay,200’ net gas pay, 200’net 21.6MMcf/d MMcf/d oil pay net oil pay 1999 1999Angostura-1 Ango
Slide 18: Low Risk Discovered Resources - Algeria
Low Risk Discovered Resources - Algeria SPAIN Skikda • BHP Billiton entry 1989 Algiers Arzew • Successful exploration • ROD oil development TUNISIA sanctioned June 2000 BHP Exploration MOROCCO Blocks 401a/402a • Excellent relationship with SONATRACH ALGERIA • Successful bid for Ohanet wet gas field
Slide 19: Algerian Projects
Algerian Projects ROD oil field Ohanet • Central process facility at BRN • Wet gas development • Production 80,000 bbl/d • 700 MMcf/d processing facility • First oil: 2004 • First gas target: FY 2004 • Capital Expenditure: US$500M • Capital Expenditure: US$1,030M • Partners: • JV partners: – BHP Bil
Slide 20: Gas Commercialisation
Gas Commercialisation • North West Shelf Train 4 (gross capex A$2.4 billion) • Other LNG – China supply deal – Korea potential – Taiwan potential • Pakistan • Bass Strait – Eastern States Australia/Minerva (gross capex US$137 million)
Slide 21: Gas – Zamzama, Pakistan
Gas – Zamzama, Pakistan • Good prospectivity and growing domestic gas demand • Brownfield development based on existing production asset • Further gas sales agreements completed • Full field development of 300 MMcf/d gross with first gas in 2003 • BHPB share 38.5% and Operator • Gross capex ~ US$100
Slide 22: Petroleum Production Forecast
Petroleum Production Forecast Zamzama FFD …excluding exploration success Ohanet NWS 4 Train Minerva Bream P/L 2000 2001 2002 2003 2004 2005 Rod 200 Atlantis Mad Dog 150 Trinidad MMboe 100 Gas 50 Liquids 0 1995 1997 1999 2001 2003 2005 2007 22 Actual Forecast
Slide 23: Petroleum Proved Reserves
Petroleum Proved Reserves 1500 1250 million barrels oil equivalent 1000 741 784 803 802 857 832 Gas 750 Liquids 500 646 624 590 557 607 599 250 0 1997 1998 1999 2000 2001 2002
Slide 24: Petroleum Projected Capital – Sanctioned Projects
Petroleum Projected Capital – Sanctioned Projects BHPB share US$millions • Zamzama 50 gas • ROD 192 oil • Ohanet 464 gas/condensate • Bream pipeline 62 gas • Minerva 123 gas • Mad Dog 335 oil • NWS LNG 4 th train 270 gas • Atlantis* 1000 oil *part sanctioned to date US$355 million – final cost will
Slide 25: EBIT Margin vs Production per Boe
EBIT Margin vs Production per Boe Average Realised Oil Price (3): 12 160 13.20 22.43 28.04 22.58 140 10 120 EBIT Margin (US$ / Boe) Production (Mmboe) 8 100 6 80 60 4 40 2 20 0 0 1999 (2) 2000 2001 2002 Liquids Gas EBIT Margin per Boe (US$ / Boe) Note 1: all years EBIT results 12 months to 30 June N
Slide 26: Summary: Business Focus
Summary: Business Focus • Maximize existing value (now) • Deliver projects in progress (1-3 years) • Sanction and develop (3-4years) • Create new opportunities (4+ years)
Slide 27: Summary
Summary • BHP Billiton is a significant global resources company • BHP Billiton Petroleum is a well established oil and gas business with: – strong producing assets; and – substantial growth opportunities • BHP Billiton Petroleum is a significant contributor to BHP Billiton
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