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Petroleum Presentation
Petroleum Business Briefing Houston May 29, 2003 Overview of Today’s Briefing • Introduction, Overview of Petroleum Strategy Philip Aiken, President & Chief Executive Officer, Petroleum • Global Exploration Steven Bell, President of Exploration & Business Development, Petroleum • Americas Development and Production Michael Weill, President of Operations & Technology, Petroleum • Gulf of Mexico’s Future and Our Position Bernie Wirth, Vice President of Gulf of Mexico Exploration & Appraisal, Petroleum • Conclusion & Questions 2 BHP Billiton – outstanding diversification - stable cash flows By Commodity Carbon Steel Materials Customer Sector Group EBIT: Petroleum 14% 8% 5% 3% Energ y Co al Aluminium 27% Diamond s & Spec. Prod. Base Metals 7% 36% Stainless Steel Materials South America 7% By Geography 11% 33% Southern Africa North America Rest of W orld Europe Oth er Asia 12% 14% 16% 3 32% 21% Net Operating Assets: By Market Sales: Australia 7% 28% 19% No rth America Jap an Rest of Wo rld Australia Data for 6 months ended 30 Dec 2002 Petroleum – our role in BHP Billiton (1) (2) The six BHPB Outstanding Assets Value Drivers Inventory of Projects (3) Customercentric Marketing (4) (5) (6) Portfolio Effect Petroleum Petroleum Innovation Petroleum is one of the key Value Drivers Petroleum: Outstanding Outstanding Assets Assets Innovation Innovation Customer-centric Customer-centric Marketing Marketing Inventory Inventoryofof Projects Projects Portfolio Portfolio Bass Strait North West Shelf GoM Deepwater Contract Creativity LNG LPG Domestic Gas Oil/Condensate Mad Dog/Atlantis Angostura Zamzama Ohanet/ROD Geographical spread Portfolio spread Efficiency: 4 • • • • Top quartile Net Income/boe Top quartile Return on Capital Second quartile Finding Costs Second quartile Finding & Development Costs 150 0 5 Source: The Petroleum Finance Company EXXONMOBIL RD/SHELL BP TOTALFINAELF CHEVRONTEXACO ENI PETROCHINA CONOCOPHILLIPS ENEL BHP BILLITON E.ON TOKYO ELEC. PWR. SCHLUMBERGER YUKOS SOUTHERN NTL GRID TRANSCO GAZPROM REPSOL YPF SINOPEC DOMINION STATOIL EXELON PETROBRAS ENCANA IBERDROLA KANSAI ELEC. PWR. BG GROUP ELECTRABEL CHUBU ELEC. PWR. DUKE ENERGY ENDESA RWE SURGUTNEFTEGAZ LUKOIL SUEZ ANADARKO OCCIDENTAL SCOTTISH POWER CNOOC FPL GROUP OIL & NAT. GAS CORP. ENTERGY NORSK HYDRO BAKER HUGHES CLP HOLDINGS SIBNEFT CENTRICA BURLINGTON FIRST ENERGY APACHE BHP Billiton – a small to medium player in a huge energy industry Market Capitalization of the Top 50 Energy Companies (PFC Energy 50) March 2003 (US$ Billion) 250 Oil Service 200 Diversified Electricity Elec. & Gas 10th 10thininterms termsofof Market MarketCap Cap Gas Oil & Gas 100 50 million barrels oil equivalent Our FY 2002 Reserves and Contingent Resources 3,882 4000 3000 2000 1000 0 Gas Liquids 1,816 2,066 1,456 337 1,076 857 599 990 P90/1P Jun 2002 P50/2P Jun 2002 6 1,479 P50/2P Contingent Resources Total 3882 MMboe • R/P Ratio 1P – 11 years 2P – 15 years • Contingent Resources - Scarborough - Scott Reef - Pakistan - Trinidad Petroleum – Overview March 2003 Year to Date 7 FY 2002 Full Year Turnover $2.4 billion $2.8 billion EBIT $1.0 billion $1.1 billion Operating capital employed $3.1 billion $2.9 billion Total production 91.5 million boe 134 million boe Average daily production 334,000 boe per day 367,000 boe per day Total proved reserves 1.38 billion boe 1.46 billion boe Staff and direct contractors 1,575 1,600 Main centers Melbourne, Perth, Houston, London Petroleum – our current operations and exploration AMERICAS UK / AFR / ME North Sea Liverpool Bay London Hague Houston Pakistan Gulf of Mexico Trinidad Bolivia Algeria Gabon Brazil South Africa M ain Offices M arketing Offices Production 8 AUSTRALIA/ASIA Singapore Tokyo Brunei Laminaria North West Shelf Griffin Perth Melbourne Minerva Bass Strait High margin oil exploration & production Gas Commercialization Access to Discovered Resources Petroleum FY02 Production by Asset 50 50.5 50.0 Full Year 2002 2001 YTD March 2003 2002 Total Production 134.2 130.9 91.5 100.5 47.6 86.6 44.0 86.9 35.0 56.5 35.7 64.8 Gas Liquids Australia/Asia 30 25.2 26.8 UK/Middle East/Africa 20 14.6 14.8 9.7 10 18.0 9.2 Americas 9.0 8.4 6.1 6.4 7.2 6.8 0.0 0.4 0.5 01 02 01 02 01 02 01 02 01 02 Liverpool Bay Bruce/ Keith Typhoon GoM Bolivia 01 02 Griffin 01 02 Laminaria/ Corallina 9 01 02 NWS 01 02 Pakistan 0 Bass Strait MMboe 40 MMboes Peer Group Benchmarking BHP Billiton Petroleum’s Peer Group Ranking 3 year averages to 1998/99 and 2001/02 100% 75% 50% $6.94/boe top quartile performance 24.9% $3.62/boe $3.62/boe $4.08/boe $1.29/boe 129% $1.74/boe $4.80/boe 9.9% 5.8% pa 125% 25% 10 1998/99 Return on Capital Profit Margin Production Growth Reserves Replacement Finding & Development Costs -2.3% pa Finding Costs 0% 2001/02 Petroleum Growth Strategies Overview High Margin Oil Exploration & Production • High-margin returns but greater subsurface & technological risk • Price upside Discovered Resources • Positioning in resource-rich countries Gas Commercialization Global Portfolio • Low risk resources but higher political risk Cash Generation • Maxim ize returns 11 • Limited growth or capability contribution • High-growth • Environmentally and greenhouse friendly Growth Area – Recent Highlights • High Margin Exploration – Atlantis, Mad Dog and Angostura fully sanctioned and in development – Significant acreage acquisitions (deepwater and deep gas in GoM) – Promising exploration and appraisal well results (Shenzi, Vortex, Atlantis-6) • Commercialization of Gas Resources – Fourth train progressing, and China LNG Sale & Purchase and Equity agreements signed – Zamzama and Minerva developments progressing • Discovered Resources - Ohanet & ROD developments progressing 12 High Margin Oil Exploration and Production Overview • Gulf of Mexico • Trinidad • Australia, Africa, Brazil • Other opportunities – access, position long term – deepwater and others 13 Gas Commercialization Overview • North West Shelf – Train 4 progress – China SPA & Equity Agreements • Other LNG – Korea potential – Taiwan potential • Pakistan – Zamzama • Eastern Gas – Bass Strait – Minerva 14 Discovered Resources Overview • North Africa – Algeria: Ohanet wet gas development – Algeria: ROD oil fields • Middle East – Evaluation of opportunities 15 Growth Overview – Projected Capital for Sanctioned Projects Total sanctioned projects – US$2.9 billion Project Zamzama Bream pipeline GoM Infrastructure Minerva ROD NWS LNG 4th train Mad Dog Ohanet Atlantis Angostura TOTAL 16 BHPB share US$M 40 50 100 123 192 235 335 464 1100 327 2,867 Product gas gas oil/gas transport gas oil gas oil gas/condensate oil oil Petroleum Production Forecast …excluding exploration success Ohanet Zamzama FFD ROD 200 Angostura MMboe Gas 100 50 17 Atlantis Mad Dog 150 0 1995 Minerva NWS Train 4th Liquids 1997 Calendar Year 1999 2001 2003 Actual Forecast 2005 2007 Next presenter… Global Exploration Steve Bell President – Exploration and Business Development BHP Billiton Petroleum Overview: Worldwide Exploration and Appraisal • How petroleum exploration creates value for shareholders • BHP Billiton’s exploration results and performance • Near-term drilling activities • Review of the global portfolio 19 Exploration Turns Ideas into Money I D A V R CD R Value A V -Idea -Discovery -Appraised discovery -Developed field -Reserve additions -Capital destruction CD I D Time • The greatest leap in value is to turn an idea into an appraised discovery • We are in the business of turning ideas into money 20 Current Exploration Acreage Portfolio Gulf of Mexico Trinidad Gabon Brazil 21 South Africa North & West Australia Brunei Bass Strait Challenges unique to our portfolio • Different kind of wildcatter – not a drilling program focused company • Heavily weighted to deepwater exploration • Longer lead times between discovery/appraisal wells • Lumpy portfolio for booking reserves 22 Value Creation Through Exploration: 1996 – 2002(1H) The WoodMac study group: • 25 companies . . . exploring in nearly 80 countries . . . . . .spending $50 billion . . . Have: • created $23 billion in value through exploration . . . . . . through discovering 45 billion boe of commercial reserves . . . . . . with an 11% return on the exploration investment But: • only 16 (out of 25) companies have created value through exploration . . . and 9 companies have failed to replace production from exploration 23 Exploration Expenditure (BHPB 14 th) Super Majors BHP Billiton 0 2000 Source: WoodMackenzie 24 Value Creation Study – 1996-2002 4000 6000 8000 US $ Millions (Present Value) 10000 12000 Value Creation (BHPB 5 th) BHP Billiton (1000) 0 Source: WoodMackenzie 25 Value Creation Study – 1996-2002 1000 2000 3000 4000 5000 6000 US $ Millions (NPV of discoveries – PV of exploration expenditure) 7000 Returns on Exploration Investment (BHPB tied for 1st) BHP Billiton 0 2 4 Source: WoodMackenzie 26 Value Creation Study – 1996-2002 6 8 10 % 12 14 16 Drilling Activities in the next 12-18 months Gulf of Mexico Tiger Champlain Mississippi Canyon Santa Rosa Shenzi-2 Typhoon Boris Atwater Valley Mad Dog Puma Atlantis Neptune 5 Green Canyon Chinook Cascade 2 Walker Ridge 27 Gas Field Oil Field BHPB Acreage BHPB Operated in Red Drilling Activities in the next 12-18 months Trinidad Offshore Acreage Km s 0 10 20 30 40 50 Block 3(a) Angostura Block 2(c) TRI NI DA D • Drill Howler E-Well in Block 2(C) • BHPB holds a 64.25% interest • 4 exploration wells in Block 3(a) • BHPB holds a 30% interest 28 Our Drilling Activities in the next 12-18 months NW Australia Offshore Acreage WA-255-P(1) WA-255-P Skiddaw-1 GRIFFIN VINCENT Stybarrow-1 • Drilling Skiddaw-1 WA-155-P LAVERDA •Hydrocarbon discovery in Stybarrow-1 •2-3 exploration wells in WA-255-P and Wa-155-P • Appraisal planned • BHPB holds a 50% interest 29 ~10 Km Our Drilling Activities in the next 12-18 months Bass Strait Offshore Acreage WA-255-P(1) Area of new 3D seismic • Applying new 3D technology to a prolific basin • Drilling in 2004 • BHPB holds a 50% interest 30 VIC/P45 Our Drilling Activities in the next 12-18 months Brunei Block J Offshore Acreage Brunei Block J 20km North Sa ei un J Br o c k Bl ba K ck lo B h h ba Sa k oc Bl G ei un K Br oc k Bl • Looking to spud first well this year • BHPB holds a 25% interest BRUNEI BRUNEI 0 31 50km MALAYSIA Our Drilling Activities in the next 12-18 months Brazil Offshore Acreage Campos Block BM-C-24 • Likely well in 2003 • BHPB holds 100% interest Ca mp o sB Rio de Janeiro as in Macae 50 km 32 Our Drilling Activities in the next 12-18 months West Africa / South Africa Offshore Acreage North Gabon Tolo Otiti GABON • Possible South Africa well in 2003 • BHPB holds a 90% interest • Ongoing technical work in Gabon • BHPB holds a 40.12% interest 3B/4B 0 33 500km SOUTH AFRICA Summary – We have added value and can continue • External analysis rates our exploration business very highly amongst peers and supermajors. • We have a strong inventory of drilling prospects for the next financial year • We will continue to be a focused, dominantly deepwater player. 34 Next presenter… Americas Development and Production Mike Weill President – Operations & Technology BHP Billiton Petroleum Overview: Development and Production in the Americas • Petroleum is in transition, with increasing focus in the GoM and Trinidad as an operator of oil and gas fields • BHP Billiton production from deepwater fields is increasing, and significant, material projects are in development – Genesis, Typhoon, Boris – Angostura, Mad Dog, Atlantis, Operated Appraisal • BHP Billiton has the talent, technology, and resources to execute these projects on time and on budget 36 Trinidad and Tobago Strategic Context – A Unique Opportunity High Margin E&P O AG B TO • Competitive fiscal terms • Attractive development potential, e.g., shallow water depths, off-the-shelf production technology BHPB Dominates Fairway TRINIDAD • BHPB operates • Exploration upside • Early infrastructure advantage Access to Robust Markets Angostura 37 Proposed Pipeline • Excellent regional oil markets • Large and growing gas market –Domestic –Export via LNG Angostura Project • • • • BHPB interest Capex (BHPB share) Project sanction First production • Gross reserves • Gross capacity 45% US$327million March 2003 December 2004 450 MMboe 100 Mbbl/d • Central Processing Platform with 3 Wellhead Protector Platforms Central Processing and K-2 Platforms • Phase 1 of the development includes oil production only. Gas will be re-injected to enhance reservoir performance, with gas production expected 3 to 9 years after first oil. 38 Angostura Project, Phase 1 Development Overview 39 Producing Assets in the Gulf of Mexico Licence Producing USA West Cameron GC 18/60 Mississippi Canyon West Cameron GC 18 Typhoon Ewing Bank Boris Green Canyon Typhoon - Boris 40 Neptune Atlantis Mad Dog Cascade Walker Rid ge 0 Genesis 50km Eastern Atwater Fold belt Atwater Genesis Typhoon (Green Canyon 236 and 237) Typhoon Boris 41 Boxer Typhoon Mini-Basin Ty oo ph n r be m A Ga jac k Ewing Bank sG r in he at GC 18 g s Sy m te Licence Producing Oil Pipeline Gas Pipeline 1 500’ 20 00’ Genesis Typhoon Boris Green Canyon 40 0 ’ 00 20km 50 42 ’ 00 Boris Development (Green Canyon 282) • BHPB interest • Capex (BHPB share) • Field discovery • Project sanction • First production • Gross reserves • Gross capacity 50% US$25 million October 2001 July 2002 February 2003 10-35 MMboe 18 Mbbl/d • Developed with a 3-slot subsea manifold tied back via single production flowline to the production facility at Typhoon • Boris-2 producer to come on-line in second second half of 2003 43 Mad Dog Development • • • • • BHPB interest Capex (BHPB share) First production Gross reserves Gross capacity • • • • Truss Spar facility Hull fabrication started July 2002 Topside fabrication started August 2002 Predrill wells commenced in 2002 • Wells • Accommodation 44 23.9% US$335 million December 2004 200-450 MMboe 80 Mbbl/d -- 40 MMcf/d 12 initial producers 130 (drilling & operations) Mad Dog Development - On track for first oil FY2005 Spar Construction 45 Topsides Construction Gulf of Mexico – Transportation Infrastructure Louisiana Mobile Mississippi Baton Rouge Texas Lafayette New Orleans Beaumont St.James Erath Houston Norco VK Gibson m Ca Clovelly COOPER m s re et 46 URSA k ATLANTIS GC MADDOGAT Caesar & Cleopatra Pipelines KC MARS ALLEGHENY HOLSTEIN HOOVER/ DIANA AC BRUTUS AUGER GB sa Ur s ar Auger 0 00 1, PS HOO EB MC MORPETH Manta Ray ENCHILADA res 400 met PETRONIUS M GB 072 G MPO POMPANO Morp eth ar Poseidon g ou e in Poseidon 30” Poseidon S Odyssey Fourchon er jac IP E C l pe Pi PS ay HI 30” Boxer Freeport Bo nit o Au ge r w gh Hi on P LOO er Galveston Pilottown Houma Am b 24” 24” WR 0 LU 75 Km 150 GoM Infrastructure – Caesar and Cleopatra Pipelines •BHPB interest 20-inch Deepwat er Valve Assembled •Capex (BHPB share) •First production 25% (Caesar) 22% (Cleopatra) US$100 million 2004 •Caesar is a new 28-inch diameter oil pipeline in the Southern Green Canyon area with 450 Mbbl/d capacity •Cleopatra is a new 20-inch gas pipeline with 500 mmcf/d capacity •Approximately 50% complete – on-schedule for operation to coincide by first production from Mad Dog field. J-Lay Tower Upgrade 47 Atlantis Development • BHPB interest • Capex (BHPB share) • First production 44% US$1.1 billion Third-quarter 2006 • Gross reserves • Gross capacity 635 MMboe 150 Mbbl/d 180 MMcf/d • Moored semi-submersible production facility with provisions for future capacity expansions • Atlantis is the third-largest field discovered to date in the GoM 48 What’s ahead Gulf of Mexico Production by Company BOE per day* Shell ChevronTexaco BP ExxonMobil El Paso Unocal Devon/Ocean Apache Kerr McGee Marathon Anadarko Amerada Hess Newfield Noble Stone Agip ConocoPhillips Forest Dominion Offshore Energy Nexen BHP Billiton Ma dD og & At la n t is Deepwater >1,500’ Shallow < 1,500’ (current) 0 100000 *12 month average to 9/01 49 200000 300000 400000 500000 600000 Deepwater production systems Progression 1989 - 2003 Platform Compliant Tower Mini-TLP FPS SPAR TLP SUBSEA FPSO Water Depth (ft) 0 1000 Bullwinkle 1353 ft -1991 Baldpate 1700 ft Petr onius * 1750 ft - 1998 * Record Holder Source: Offshore Magazine 2003 50 Typhoon 2100 ft - 2001 Matter hor n 2850 ft Allegheney * 3300 ft - 1999 2000 P-40* 3353 ft - 2001 Thunder Hor se 6050 ft Atlantis * 7040 ft - 2006 Genesis 2600 ft Mad Dog 4500 ft – 2004 Diana 4800 ft Devil’s Tower * 5610 ft - 2003 3000 (~1000 m) Jolliet 1760 ft Mar s 3000 ft Ur sa 3900 ft - 1999 Mar lin 3250 ft Magnolia * 4700 ft - 2004 4000 5000 Boris 2200 ft – 2003 Griffin 426 ft Mar s Subsea 3000 ft Mensa 5300 ft - 1997 Canyon Expr ess (gas)* 7209 ft – 2002 King (oil)* 5334 ft - 2002 Laminar ia 1263 ft Seillean 6080 ft - 1998 6000 (~2000 m) 7000 8000 9000 (~3000 m) Capability Development – People • Cultivate the experience and expertise to exert influence as nonoperated partner and assume larger roles as operator • Source company staff in key positions on Integrated Project Teams • Typhoon – Lead Facility, Lead Subsea, Lead Commercial Positions • Mad Dog – Spar Construction Superintendent, Operations Manager • Atlantis – Hull Delivery Manager • Trinidad – Entire Team • Boris – Entire Team 51 Capability Development • People • Technology • Funding Boris Project Team Griffin FPSO Knowledge Sharing Programs 3-D Visualization West Cam Operations Crew 52 Next presenter… Gulf of Mexico Exploration and Appraisal Update Bernie Wirth Vice President, Gulf of Mexico Exploration and Appraisal BHP Billiton Petroleum Overview • Explain why the GOM remains an attractive basin for investment • Update the status of BHP Billiton appraisal projects • Provide overview of future BHP Billiton exploration activities 54 Value Creation through Exploration: 1996 – 2002 (1H) GOM Deepwater Kazakhstan Angola Egypt Nigeria Bolvia Norway Netherlands Denmark Indonesia Bangladesh Azerbaijan Algeria Libya Argentina Yemen Colombia Brazil Australia Italy Venezuela UK (2500) 0 Source: WoodMackenzie 55 2500 5000 US $ Millions 7500 10000 12500 GOM Value Creation by Company: 1996 – 2002 (1H) Super Majors BHPBilliton Peers (500) 0 Source: WoodMackenzie 56 500 1000 1500 US $ Millions 2000 2500 3000 Gulf of Mexico – Multi Play and Multi Trap Shelf 0-600’ Water Deepwater 600’-5,000’ Water Ultra Deepwater 5,000’-10,000’+ Water Pleistocene Pleistocene Pliocene Pliocene U Miocene U Miocene L Miocene Oligocene Eocene/Paleocene Eocene/Paleocene LM O li ioc e g o c ne e ne Cretaceous Cretaceous S S S Emerging New Plays GC Mini-Basin Play 01.01.0157 Atwater Foldbelt Gulf of Mexico Deepwater Resource Distribution Stratigraphy Plio-Pleistocene Miocene # of Discovered Discoveries Resource Bboe* 56 5.0 51 8.0 3 (7 wells) >1.0 ?? BHPB Examples Typhoon, Genesis, Boris Mad Dog, Atlantis, Shenzi Oligocene Carbonate Eocene-Paleocene MCU Cretaceous Source: Wood Mackenzie, BHP Billiton analysis * Excludes approximately 1.2 Bboe not classified 58 ? Cascade Keys to Past & Future Success • Favourable geologic, fiscal environment • World Class Team • Petroleum systems approach • Commercial flexibility • Cost control • Cycle time shortening 59 BHP Billiton Gulf of Mexico Summary Objectives Status Areas Activity Developments Atwater Fold Belt (AFB) Appraisal Production Green Canyon • NPV Growth • Profit Growth East AFB Gas 60 Mad Dog – Atlantis Caesar/Cleopatra Shenzi - Neptune Exploration Core Plays Emerging Plays Key Assets Mississippi Canyon Walker Ridge Typhoon – Boris Genesis Exploration Exploration Appraisal Vortex Exploration Appraisal Champlain Exploration Appraisal Deep Shelf Gas Exploration Perdido Foldbelt Exploration Cascade Discoveries: 5 under Appraisal Vortex Champlain Genesis Shenzi Atlantis Mad Dog Neptune Legend BHPB Lease BHPB Producing Lease Cascade Oil Salt BHPBilliton Operated BHPBilliton Non-operated Miles Kilometers Divisional Name/Footer61 0 0 10 20 20 40 Neptune Ed ge of S a lt Po t No r e l ss ib Neptune-1 Neptune-4 Neptune-2 oun B d l ie te F a m i rox A pp Neptune-3 62 Neptune-5 (proposed) y r a d nt xt e E n h er Shenzi GC472 GC473 GC474 GC475 GC476 GC477 GC478 GC479 GC480 GC481 GC516 GC517 GC518 GC560 GC561 GC562 GC604 GC605 GC648 GC649 GC519 GC520 GC521 K2/Timon GC563 GC564 Marco Polo GC 654 #1 GC522 GC523 GC524 GC525 GC565 GC566 GC567 GC568 GC569 AT529 Shenzi AT573 GC606 GC607 GC608 GC609 GC610 GC611 GC612 GC613 GC650 GC651 GC652 GC653 GC654 GC655 GC656 GC657 AT489 AT488 AT487 AT486 AT485 AT445 AT444 AT443 AT442 AT441 AT530 AT531 AT574 AT575 AT533 AT532 AT576 AT577 Neptune AT617 AT619 AT618 AT620 AT621 GC658 AT661 GC692 GC693 GC694 GC695 GC696 GC697 GC698 GC699 GC700 GC701 GC736 GC737 GC738 GC739 GC740 GC741 GC742 GC743 GC744 GC745 GC746 GC780 GC781 GC782 GC783 GC784 GC785 GC786 GC787 GC788 GC789 GC790 GC824 GC825 GC826 GC827 GC828 GC829 GC830 GC831 GC832 AT705 AT749 GC869 GC870 GC871 GC872 GC873 GC874 GC875 GC876 GC877 AT706 AT707 AT708 AT751 AT750 AT752 AT795 AT796 44% operator AT793 AT794 AT837 AT838 GC834 BP GC868 AT664 AT665 AT709 AT753 Shenzi BHPB GC833 AT663 GC702 Atlantis MadDog AT662 28% AT839 AT840 AT797 AT841 GC878 Amerada Hess 28% GC912 63 AT881 GC913 GC914 GC915 GC916 GC917 GC918 GC919 GC920 GC921 GC922 AT882 AT883 AT884 AT885 Cascade & Chinook Shenzi MadDog Neptune Atlantis Chinook #3 Cascade Chinook 10 10 10 10 64 BHPB 40% operator Petrobras 30% TFE 15% Amerada Hess 15% Mil es Mil es 0 10 0 10 0 10 20 30 0 10 20 30 Kilometers Kilometers U. S. Natural Gas Supply / Demand Tcf / year 25 25 Demand Imports 20 15 Rest of U.S. 10 20 Tcf / year 6 15 4 10 High Deepwater Low High Low 2 Shallow Water 5 5 2003 2004 2005 Source: MMS Gulf of Mexico 0 0 1982 1985 1988 1991 1994 Source: Energy Information Administration 65 1997 0 2000 2006 2007 Eastern Atwater Foldbelt AT32 AT33 AT34 AT35 AT36 AT37 AT38 AT39 AT40 AT41 LL1 LL2 LL3 AT83 AT84 AT85 LL45 LL46 LL47 AT129 LL89 Merganser AT76 AT77 AT78 AT79 AT80 AT81 AT82 Santa Rosa Prospect AT120 AT121 AT122 AT123 AT124 AT125 AT126 AT127 AT128 Vortex LL90 BHPB AT164 AT165 AT166 AT167 AT168 AT169 AT170 AT171 AT172 AT208 AT209 AT210 AT211 AT212 AT213 AT214 AT215 AT216 33.33% operator Kerr McGee AT173 LL91 LL133 LL134 33.33% LL135 Ocean (Devon) 33.33% AT217 LL177 LL178 LL179 Vortex AT252 AT253 AT254 AT255 AT256 AT257 AT258 AT259 AT260 AT261 LL221 LL222 LL223 AT296 AT297 AT298 AT299 AT300 AT301 AT302 AT303 AT304 AT305 LL265 LL266 LL267 Jubilee 66 AT340 AT341 AT342 AT343 AT344 AT345 AT346 AT347 AT348 AT349 LL309 LL310 LL311 AT384 AT385 AT386 AT387 AT388 AT389 AT390 AT391 AT392 AT393 LL353 LL354 LL355 Exploration: Focus in Play Fairways La ke C h ar e ls La ke Po n t ch a r t ra n i La f aye tte B e a u m o n t si s si s r M R vi e i pi p S t J. a m e s o u s to n H e w N Or e l a n s B ya t o n w G r et o B n Sund o vla e st o n B a y H o u ma G a vl e s t n o G a vl e st o n Deep Shelf Gas Mississippi Canyon Santa Rosa Tiger Eastern Atwater Fold AFB Gas Belt (AFB) Green Canyon Mini Basin Perdido Foldbelt Puma Walker Ridge 4 to 5 Deepwater Exploration wells planned in next 12 months 01.01.0167 Next presenter… Conclusion & Questions Philip Aiken President & Chief Executive Officer BHP Billiton Petroleum Our Business Priorities • Maximize existing value from current portfolio • Deliver projects in progress • Create new opportunities through our three growth strategies • Continue to improve our HSEC performance 69 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. 70
