jp morgan oil seminar sydney, australia may 2, 2003 the...

JP Morgan Oil SeminarSydney, Australia May 2, 2003

The Future of the Gulf of Mexico and BHP Billiton’s PositionBernie Wirth - Vice President, Exploration and Appraisal Gulf of Mexico

Divisional Name / Footer informationDD Month Year

Outline

• Explain why the GOM remains an attractive basin for investment

• Update the status of BHP Billiton producing and sanctioned projects

• Provide overview of future BHP Billiton appraisal and exploration activities


Value Creation through Exploration: 1996 – 2002 (1H)

(2500) 0 2500 5000 7500 10000 12500

UKVenezuela

ItalyAustralia

BrazilColombia

YemenArgentina

LibyaAlgeria

AzerbaijanBangladesh

IndonesiaDenmark

NetherlandsNorwayBolvia

NigeriaEgypt

AngolaKazakhstan

US $ Millions

GOM Deepwater

Source: WoodMackenzie


GOM Value Creation by Company: 1996 – 2002 (1H)

(500) 0 500 1000 1500 2000 2500 3000US $ Millions

BHPBilliton

Source: WoodMackenzie

Super Majors

Peers

01.01.01

Gulf of Mexico – Multi Play and Multi Trap

Shelf0-600’ Water

Deepwater600’-5,000’ Water

Ultra Deepwater5,000’-10,000’+ Water

PleistocenePleistocene

PliocenePliocene

U Miocene

L MioceneOligocene

Cretaceous

S S S

Oligocene

U Miocene

L Miocene

Emerging New Plays

Cretaceous

Eocene/PaleoceneEocene/Paleocene

Atwater FoldbeltGC Mini-Basin Play


Gulf of Mexico Deepwater Resource Distribution

Stratigraphy # of DiscoveredDiscoveries Resource Bboe* BHPB Examples

56 5.0 Typhoon, Genesis, Boris

51 8.0 Mad Dog, Atlantis, Shenzi

3 >1.0 ?? Cascade(7 wells)

?Cretaceous

MCU

Eocene-Paleocene

Oligocene Carbonate

Miocene

Plio-Pleistocene

Source: Wood Mackenzie, BHP Billiton analysis* Excludes approximately 1.2 Bboe not classified


Keys to Past & Future Success• Favourable geologic, fiscal environment

• World Class Team

• Petroleum systems approach

• Commercial flexibility

• Cost control

• Cycle time shortening


Producing Assets

WC 76

Genesis

GC 18/60

Typhoon - Boris

Shelf

Deepwater


Green Canyon Mini-Basin

Boris

Typhoon


Developing Assets: Mad Dog - On track for first oil FY2005

Spar Construction Topsides Construction


786 788

742

Developing Assets: Atlantis – On track for first oil FY2007

744743

Atlantis-1

Atlantis–3ST

Atlantis–3

Atlantis–6

Atlantis–7

Atlantis–4

Atlantis–2Atlantis–2ST

Approximate Field Boundary

Edge of Salt

Atlantis–6ST


Gulf 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

BHPBilliton(current)

Mad

Dog

&At

lant

is


BHP Billiton Gulf of Mexico Summary

• NPV Growth• Profit Growth

Core Plays

Atwater Fold Belt (AFB)

Mississippi Canyon

Walker Ridge

East AFB Gas

Green Canyon

Developments

Appraisal

Exploration

Production

Exploration

Exploration

Exploration

Exploration

Appraisal

Appraisal

Shenzi - NeptuneCaesar/Cleopatra

Typhoon – Boris

Vortex

Cascade

Objectives Status Areas Activity Key AssetsMad Dog – Atlantis

Genesis

Exploration

Appraisal Champlain

Deep Shelf Gas

ExplorationPerdido Foldbelt

EmergingPlays

Divisional Name/FooterDD Month Year

0 10 20

0 20 40

Miles

Kilometers

Legend

BHPB Lease

BHPB Producing Lease

BHPB Lease Sale High Bid

Oil

Salt

BHPBilliton Operated

BHPBilliton Non-operated

ChamplainGenesis

AtlantisMad Dog

Vortex

Shenzi

Cascade

Neptune

Discoveries: 5 under Appraisal

01.01.01

Exploration: Focus in Play Fairways

H ou st on

G alv es t o n B ay

G alv es t o n

B ay t o wn

G alv es t o n

H ou m a

St . J am e s

B ea um o nt

Lake Char les

Laf ayet te

Ne w O r lea ns

BretonSound

Mississippi

River

LakePontchart rain

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)

4 to 5 Deepwater Exploration wells planned in next 12 months

jp morgan oil seminar sydney, australia may 2, 2003 the...

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