rbc - mike weill - bhp/media/bhp/documents/...bullwinkle 1353 ft -1991 baldpate 1700 ft petronius *...
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BHP Billiton
Mike WeillPresident of Petroleum Operations & Technology-Americas/AustraliaSeptember 17, 2003
The largest company in a consolidating sector
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8/03 (
US$B
n) Market value of minerals industry US$306 bnValue of Top Five US$141 bnValue of BHP Billiton US$ 42 bn
Source: Datastream
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Oil ServiceDiversifiedElectricityElec. & GasGasOil & Gas
10th in terms of Market Cap
10th in terms of Market Cap
Market Capitalization of the Top 50 Energy Companies (PFC Energy 50)March 2003 (US$ Billion)
Source: The Petroleum Finance Company
BHP Billiton – a small to medium player in a huge energy industry
A global footprint
Energy CoalDiamonds & Spec Prod
Aluminium
Carbon Steel Materials
Base Metals
Petroleum
Stainless Steel Materials
Petroleum – A Key Value Driver For BHP Billiton
• Top quartile Net Income/boe• Top quartile Return on Capital• Second quartile Finding Costs• Second quartile Finding & Development Costs
Outstanding Assets
Inventory of Projects
Customer-centric
MarketingPortfolio
Effect Innovation
Bass StraitNorth West Shelf
GoM DeepwaterContract Creativity
LNGLPG
Domestic GasOil/Condensate
Mad Dog/AtlantisAngosturaZamzama
Ohanet/ROD
Geographical spread
Portfolio spread
(1) (2) (3) (4) (5) (6)Value Drivers
Petroleum:
Efficiency:
Outstanding Assets
Outstanding Assets InnovationInnovation Customer-centric
MarketingCustomer-centric
MarketingInventory of
ProjectsInventory of
Projects PortfolioPortfolio
PetroleumPetroleum Employees
(7)
Attributable production 333,000 boe/day(Crude oil and condensate, natural gas, LPG, Ethane)
Turnover $3 264 millionEBITDA $1 727 millionEBIT $1 178 millionNet operating assets $3 293 million
CapEx $909 million
Petroleum – Facts & Figures (FY03)
Petroleum Growth Strategies Overview
GlobalPortfolio
High Margin Oil Exploration& Production
DiscoveredResources
Gas Commercialization
Cash Generation
• High-margin returns but greater subsurface & technological risk
• Price upside
• Positioning in resource-rich countries
• Low risk resources but higher political risk
• Maximize returns• Limited growth or capability
contribution
• High-growth• Environmentally
and greenhouse friendly
• North West Shelf– Train 4 progress – China SPA & Equity
Agreements
• Other LNG– Korea potential– Taiwan potential
• Pakistan – Zamzama
• Eastern Gas– Bass Strait– Minerva
Gas Commercialization Overview
• North Africa– Algeria: Ohanet wet gas
development – Algeria: ROD oil fields
• Middle East– Evaluation of opportunities
Discovered Resources Overview
• Gulf of Mexico
• Trinidad
• Australia, Africa, Brazil
• Other opportunities – access, position long term– deepwater and others
High Margin Oil Exploration and Production Overview
01.01.01Page 11
Ho us t o n
G alv e st on Ba y
G alv e st o n
B a yt ow n
G alv es t on
Ho um a
S t . J am es
B ea u m on t
Lake Char les
Laf ayett e
Ne w O r le an s
Br et onSound
Mississippi
River
LakePont char t rain
Exploration: Focus in Play Fairways
Perdido FoldbeltPerdido Foldbelt
Walker RidgeWalker Ridge
Deep Shelf GasDeep Shelf Gas
Green CanyonGreen CanyonMini BasinMini Basin
MississippiMississippiCanyonCanyon
EasternEasternAFB GasAFB GasAtwater FoldAtwater Fold
Belt (AFB)Belt (AFB)
BHP Billiton in the Gulf of Mexico
Green Canyon
Typhoon
Mississippi Canyon
Eastern Atwater Foldbelt
Walker Ridge
U S A
0 50km
Ewing Bank
Atwater
Genesis
NeptuneAtlantis
Mad Dog
Cascade
Boris
GC 18
West Cameron
Typhoon - Boris
GC 18/60
Genesis
West Cameron
LicenceProducing
Deepwater production systemsProgression 1989 - 2003
Platform CompliantTower
Mini-TLP FPS SPAR TLP
Bullwinkle1353 ft -1991
Baldpate1700 ftPetronius *1750 ft - 1998
Typhoon2100 ft - 2001Matterhorn2850 ftAllegheney *3300 ft - 1999
P-40*3353 ft - 2001Thunder Horse6050 ftAtlantis *7040 ft - 2006
Genesis2600 ftMad Dog4500 ft – 2004Diana 4800 ftDevil’s Tower *5610 ft - 2003
Jolliet1760 ftMars3000 ftUrsa 3900 ft - 1999Marlin3250 ftMagnolia *4700 ft - 2004
SUBSEA
0
1000
2000
3000(~1000 m)
4000
5000
7000
6000(~2000 m)
8000
WaterDepth
(ft)
9000(~3000 m)
FPSO
* Record Holder
Boris 2200 ft – 2003Mars Subsea3000 ftMensa5300 ft - 1997Canyon Express (gas)*7209 ft – 2002King (oil)*5334 ft - 2002
Griffin426 ftLaminaria1263 ftSeillean6080 ft - 1998
Source: Offshore Magazine 2003
Capability Development• People• Technology• Funding
Griffin FPSO
Knowledge Sharing Programs
Boris Project Team
West Cam Operations Crew
3-D Visualization
What’s aheadGulf of Mexico Production by Company
0 100000 200000 300000 400000 500000 600000
NexenOffshore Energy
DominionForest
ConocoPhillipsAgip
StoneNoble
NewfieldAmerada Hess
AnadarkoMarathon
Kerr McGeeApache
Devon/OceanUnocal
El PasoExxonMobil
BPChevronTexaco
ShellBOE per day
Deepwater >1,500’Shallow < 1,500’
12 month average to 9/01
BHP Billiton(current)
Mad
Dog
&At
lant
is
Conclusion
• Petroleum is a value driver for BHP Billiton• Petroleum is a differentiating factor for BHP Billiton• BHP Billiton Petroleum is a well established oil and gas
business with: – solid performance– strong producing assets– value adding growth opportunities– consistent strategic direction.
• We’re delivering on our four-part strategy for growth
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