UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
November 3, 2008
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter) | |
| VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation)
180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
ENGLAND AND WALES (Jurisdiction of incorporation or organisation)
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (Address of principal executive offices) | |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
[x] Form 20-F [ ] Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: [ ] Yes [x] No
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
BHP Billiton Petroleum
Phil Byrne
Australia Country Manager Analysts Tour 2008
26 October 2008
Disclaimer
Reliance on third party information
The views expressed here contain information that have been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.
Forward looking statements
This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. For more detail on those risks, you should refer to the sections of our annual report on Form 20-F for the year ended 30 June 2008 entitled “Risk factors” , “Forward looking statements” and “Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission.
No offer of securities
Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction
References in this presentation to “$” are to United States dollars unless otherwise specified.
Slide 2
Agenda
Overview of BHP Billiton
Petroleum in Australia
Projects & Opportunities
Exploration
Slide 3
Overview of BHP Billiton Petroleum
A significant oil and gas exploration and production business
Large and diverse portfolio of operating assets, development opportunities and exploration permits
Operations in six countries
Currently exploring in nine countries
Seven development projects currently in execution and numerous future projects in preparation
A key component of BHP Billiton for almost 40 years
Significance within BHP Billiton evident in the recent FY08 financials
22% of total underlying EBIT
27% of total capital expenditure
67.5% EBIT margin (highest within BHP Billiton)
Volume Growth of 13% in FY08 over FY07 – 318 kboed to 353 kboed
Slide 4
Global operational focus
E Canada UK Algeria Petroleum HQ Gulf of Mexico Colombia Trinidad Pakistan North West Shelf W Australia Bass Strait The Falklands Exploration Producing and development
Slide 5
Maintenance of a deep diversified inventory of growth options
CW Africa Exploration
DRC Smelter
CMSA Heap Leach 2
Olympic Dam Expansion 1
Angola & DRC
Macedon
CMSA Heap Leach 1
RBM
Mad Dog West
HPX3
Newcastle Third Port Exp
Samarco 4
Antamina Exp
Escondida 3rd Conc
Thebe
Cannington Life Ext
WA Iron Ore Quantum 2
Boffa/Santou Refinery
Ekati
Peak Downs Exp (Caval Ridge)
CMSA Pyro Expansion
Potash
Red Hill UG
Caroona
Shenzi Nth
Escondida Moly
Puma
Olympic Dam Expansion 3
Gabon
Scarborough
WA Iron Ore Quantum 1
Goonyella Expansions
WA Iron Ore RGP 6
Blackwater UG
Mt Arthur Coal (MACX)
Kennedy
GEMCO Exp
Browse LNG
Resolution
Potash - Jansen
NWS WFGH
Wards Well
Olympic Dam Expansion 2
Corridor Sands
Saraji Exp
Eastern Indonesian Facility
Neptune Nth
New Saraji
Nimba
Knotty Head
MKO Talc
Cerrejon Opt Exp
Maruwai Stage 2
Guinea Alumina
Angostura Gas
Mt Arthur Coal UG
WA Iron Ore RGP 5
Navajo Sth
NWS CWLH
Bakhuis
Perseverance Deeps
Daunia
Mt Arthur Coal OC (MAC20)
NWS T5
WA Iron Ore RGP 4
Atlantis North
Kipper
Klipspruit
Worsley E&G
GEMCO
Maruwai Stage 1
Shenzi
Turrum
Alumar
Newcastle Third Port
Pyrenees
NWS Nth Rankin B
Douglas-Middelburg
NWS Angel
Future Options
2013
Feasibility
Execution
2009
As at 14 August 2008 Proposed capital expenditure
£$ 500m
$501m-$2bn
$2bn+
Petroleum CSG
Other CSGs
Our core strategy and competitive advantages
The core strategy
Large, long-life upstream assets with multiple options – that we operate
Target organic growth opportunities that are material to BHP Billiton
Balanced proven plays and frontier exploration
Functional organisational model to achieve top quartile performance
Our competitive advantages
Balance sheet strength of a super major, with the energy of a start-up
Able to compete technically with super majors in chosen locations
Industry leading geoscience imaging technology in deepwater subsalt
Trusted and dynamic partner
Speed of decisions versus competitors
Slide 7
Agenda
Overview of BHP Billiton Petroleum
Petroleum in Australia
Projects & Opportunities
Exploration
Slide 8
Australia - A key contributor to growth
Australia’s largest oil and gas producer (Operated and Non-operated assets)
Petroleum’s largest contributing assets based in Australia
Five major projects delivered since 2001
Outstanding growth options located in Australia
Five major projects in execution or feasibility
Five major projects under assessment in future options
Scarborough Non-operator North West Shelf Non-operator Browse LNG Non-operator Thebe Operator Griffin Operator Stybarrow Operator Macedon Operator Pyrenees Operator Bass Strait Non-operator Minerva Operator Producing Assets Execution Future Options
Slide 9
Australia production profile
Production (mmboe)
25 22 24 11 2 9 3
22 20 2
20 19 Crude & 9 6 condensate 9 7
15 8
10 13 Natural gas 12
11 9 5
3 NGLs
2 0
Q1 FY 2008 Q2 FY 2008 Q3 FY 2008 Q4 FY 2008 Q1 FY 2009
Slide 10
Operated Assets
Moving to operated assets
Successful delivery of Stybarrow
Sanction of Pyrenees
Portfolio of steady performers
Continued focus on Exmouth sub-basin prospectivity
Assessing value enhancing opportunities
113°E 114°E 115°E 21°E 22°E
WA-255-P (2)
Stybarrow
Griffin Venture
WA-155-P(1)
WA-12-R
Ningaloo Marine Park
EXMOUTH
Commonwealth/State Waters Boundary
Western Australia
0 50km
Stybarrow and Griffin Developments, WA
Slide 11
Stybarrow, Western Australia
BHP Billiton (Operator, 50%)
Start-up ahead of schedule – November 2007
Cost approximately US$760 million (net approximately US$380 million)
Producing 80,000 bbl/day (gross)– at capacity – produced more than 10 mmboe to date (net)
Australia’s deepest offshore facility – water depth approximately 825 metres
Estimated economic field life 10 years
Future infill drilling opportunities
Stybarrow Venture FPSO
Slide 12
Minerva, Victoria
BHP Billiton (Operator, 90%)
Gas and condensate producing approximately 93.5 TJ\d gas and approximately 252 bpd condensate
First production January 2005
Two subsea wells, onshore gas plant
Max gross sales gas production rate: 150 TJ\d
Evaluating front-end compression
Brisbane
Adelaide
Melbourne
Sydney
MINERVA
Longford
0
500km
Slide 13
Griffin, Western Australia
BHP Billiton (Operator, 45%)
Commenced production in January 1994
Gas exported to shore via pipeline
Water depth 130 metres
Currently producing approximately 5,500 boe/d
Field life 2013+
Griffin Venture FPSO
Slide 14
Non-operated assets
North West Shelf Project and Bass Strait are world class assets and material to Petroleum’s business
North West Shelf Project
Currently Australia’s largest gas producer
Increasing production – Train 5, Angel
Bass Strait
Supplies gas to SE Australia
Additional expansion projects underway
Slide 15
North West Shelf Project, Western Australia
Australia’s largest resource project
Gas supplies to the WA market
LNG exported to Japan, China and Korea
Crude oil, condensate and LPG also produced and exported by the North West Shelf Venture
BHP Billiton (Non-operator, ~16.7%)
LNG PLANT
Perseus
North Rankin
Lambert/Hermes
Goodwyn
Echo/Yodel
Sculptor
Angel
Cossack/Pioneer
Wanaea/Cossack
Keast/Dockrell
Wilcox
Dampier
Port Hedland
BARROW ISLAND
Karratha
PIPELINE ROUTE
Pipelines
Gas
Oil
Production/Retention
Exploration License
WESTERN AUSTRALIA
0 50km
Slide 16
North West Shelf Project - Scope
Gas
Trunklines
Slugcatcher
Condensate
LNG 1 LNG 2 LNG 3 LNG 4 LNG 5
Heavy Ends
LPG
Fractionation 1 Fractionation 2 Fractionation 3
Heavy Ends
LPG
Domgas 1 Domgas 2
Gas
Stabiliser 1 Stabiliser 2 Stabiliser 3 Stabiliser 4 Stabiliser 5 Stabiliser 6
LNG
Export
LPG
Export
Gas Sales
Domestic
Condensate
Export
Slide 17
North West Shelf Project – Train 5 LNG Expansion
Train 5 production capacity 4.4 mtpa (100%)
Capital cost BHP Billiton share approximately US$350 million
Total system capacity (Trains 1-5) expected to be 16.3 mtpa (100%)
First LNG production from Train 5 delivered ahead of project schedule – 1 September 2008
Slide 18
North West Shelf Project - Angel
On-line 3 October 2008
Capital cost BHP Billiton share approximately US$200 million
Delivered ahead of schedule and within budget
Will boost offshore production capacity to underpin LNG sales going forward
Produces up to 800 mscf of gas a day and 50,000 barrels of condensate a day (100%)
Slide 19
By 2012, ~60% of gas and LNG production contracts are expected to have price reopener mechanisms available
BHP Billiton Gas and LNG contracts pricing structure (%)
Most current long-term gas contracts contain regular price reopeners
Old gas contracts were negotiated at lower prevailing energy prices
Market trend has been for term LNG pricing to link more closely with crude
Short term LNG sales have been robust prices reflecting strong demand and value of LNG
100% 80% 60% 40% 20% 0%
FY2008 FY2009 FY2010 FY2011 FY2012
Contracts with NO Reopener Contracts to expire within 4yrs
Contracts with reopener (a)
Short term sales (0-4yrs)
Notes: (a) Includes pricing structures closely linked to uncapped market indices
Slide 20
LNG Market Development
With Train 5 recently operational, North West Shelf Venture expected to produce additional cargoes above contracted
LNG demand in Asia region has been strong, driven by growth in emerging markets, oil displacement, nuclear outages and environmental issues
Underlying demand growth likely to remain strong, though near term volatility likely
In near term, new/expanded regional production expected to back-out supply from further afield
Longer term, Australian greenfield supply required, projects likely to face challenging financial and regulatory environment
Slide 21
Bass Strait Overview
Gippsland Basin JV & Kipper Unit JV Infrastructure
Altona Petrochemical Complex
Melbourne
WAG Pipeline
Geelong
Port Philip Bay
Warragul
Trafalgar
Traralgon
Sale
Lakes Entrance
Barry Beach Marine Terminal
C+C Gas NGL Ethane
Long Island Point Fractionation Plant Crude Oil Tank Farm and liquids jetty
Longford Gas Processing and Crude Oil Stabilisation Plant
Proposed Pipelines
Non-GBJV Pipelines
Producing Oil & Gas for almost 40 years to date and still for another 30 years to come
Slide 22
Bass Strait Production
(FY08, Gross 100% Basis) (50% working interest)
Product Quantity Revenue
Crude & Condensate 72,000 bbl/d 60%
Domestic Gas 755 TJ/d ( 700 MMscf/d 115,000 boe/d) 20%
Butane 1,175 tonnes/d (~ 13,000 bbl/d) 8%
Propane 1,560 tonnes/d (20,000 bbl/d) 10%
Ethane 630 tonnes/d (11,000 bbl/d) 2%
Slide 23
Eastern Australia Gas
BHP Billiton supplies gas to Eastern Australia from Bass Strait and Minerva gas fields
Bass Strait directly supplies gas under long term contracts to three markets
Victoria via the Principal Transmission System
Tasmania via the Tasmanian Gas Pipeline
NSW via the Eastern Gas Pipeline
Minerva supplies gas to Victoria and South Australia
Brisbane
Adelaide
MINERVA
Melbourne
Longford
Sydney
BASS STRAIT
0 500km
Slide 24
Agenda
Overview of BHP Billiton Petroleum Petroleum in Australia Projects & Opportunities
Exploration
Slide 25
Australian projects in execution
Petroleum HQ, Gulf of Mexico, Trinidad
UK
OIL GAS
Algeria
Pakistan
North West Shelf
North Rankin B (16.67%)
2,500 mmcfd gas facility
Start-up anticipated CY12
Bass Strait
Kipper (32.5% - 50%)
80mmcfd gas / 10 kbpd condensate development
Subsea contracts executed
Start-up anticipated CY11
Turrum (50%)
200mmcfd gas / 11 kbpd condensate development
Start-up anticipated CY11
W Australia
Pyrenees (71.43%)
96 kbpd / 60mmcfd gas FPSO development
FPSO conversion underway
Start-up anticipated 1H CY10
Note: All production rates on a gross production basis
Slide 26
Pyrenees Project, Western Australia
21 00’s 113 30’E 114 00’E 114 30’E 21 30’S 22 00’s
Pyreness Oil Fields
Stybarrow
Notional Development Area
WA-155-P(1)
WA-12-R
Pyrenees Development Area
Commonwealth State Waters Boundary
Serrurier Island
Muiron Islands
North West Cape
Tubridgi Point
Tent Point
EXMOUTH
Exmouth Gulf
North 0-20 Kilometres
Griffin Venture FPSO
1000m 500m 200m 100m 50m 20m
Ningaloo Marine Park
(Commonwealth Waters)
Ningaloo Marine Park
(State Waters)
Slide 27
Pyrenees Project, Western Australia
BHP Billiton (Operator, 71.43%)
Sanctioned July 2007
Project costs approximately US$1.7 billion (BHP Billiton share approximately US$1.2 billion)
Double hulled
96,000 barrels of oil processing capacity
Water depth 170 -250 metres
Estimated economic field life 25 years
Target for first oil 1H CY10
Slide 28
Bass Strait - Kipper (32.5% working interest, non-operated)
BHP Billiton share approximately US$500 million
Subsea tie-back
10,000 bpd condensate (100%)
Processing capacity 80mmcfd gas (100%)
Line pipe delivered, engineering and procurement progressing
Water depth approximately 100 metres
Start-up expected CY11
Slide 29
Bass Strait - Turrum (50% working interest, non-operated)
BHP Billiton share approximately US$625 million
New platform Marlin B linked by new bridge to existing Marlin A platform
Gas sales expected to commence in 2015 at approximately 200 mmcfd (100%)
11,000 bpd condensate (100%)
Full field development expected to recover approximately 1 trillion cubic feet (tcf) natural gas and 110 million barrels of oil and gas liquids (100%)
Currently in execution
Start-up expected CY11
Slide 30
North West Shelf Project - North Rankin B
BHP Billiton share approximately US$850 million
NRB designed to recover remaining lower pressure gas from the North Rankin and Perseus gas fields
New gas compression gas platform connected by 100 metre bridge to existing North Rankin A platform
2,500 mmcfd gas production (100%)
Detailed engineering and procurement progressing
Start-up expected CY12
Slide 31
Australian projects – pre-execution
Petroleum HQ Gulf of Mexico Trinidad
UK
Algeria
Pakistan
North West Shelf
NWS CWLH
Replacement of FPSO and associated subsea facilities
NWS WFGH
Gas field development
W Australia
Macedon
Subsea wells and gas plant
Thebe
LNG development
Scarborough
LNG development
Browse LNG
LNG development
Eastern Australia
Bass Strait
Development Drilling
Slide 32
Gas Development—Macedon, Western Australia
BHP Billiton (Operator, 71.43%, Apache 28.57%)
Shallow gas development in Western Australia, retention lease WA-12R
Gas is very lean with predominant methane content (~94% methane, ~5% nitrogen)
Water depth 180 metres, reservoir depth ~1000 metres
Approximately 10 km from Pyrenees (BHP Billiton, Operator) Oil Field Development
Macedon Development, WA
0 50km
113°E 21°E 114°E 115°E 22°E
WA-255-P (2)
Stybarrow
Griffin Venture
WA-155-P (1)
Pyrenees WA-12-R
Macedon
Ningaloo Marine Park
EXMOUTH
ONSLOW
Western Australia
Slide 33
Gas Development - Scarborough, Western Australia
Initial gas supply will be from Scarborough ~8 tcf (BHP Billiton 50%, ExxonMobil 50% - operator)
Other BHP Billiton owned gas in the vicinity includes Thebe and Jupiter + exploration potential
ExxonMobil and BHP Billiton discussing optimum development plans for Scarborough
No liquids (95% methane, carbon dioxide < 1%)
Target market North Asia
Thebe-2 Thebe-1 Jupiter Scarborough
Jansz-Io Wheatstone
NWSV
Pluto
Gorgon
WA-351-P
BHP Billiton Operated BHP Billiton Non-Operated
50 km
Slide 34
PGas Development - Thebe, Western Australia
During FY08, BHP Billiton discovered and further appraised the Thebe gas field
Similar gas composition to Scarborough
Evaluating the reservoir
Looking at options for development
50 km north of Scarborough
Located in 100% owned and operated WA-346-P permit
Thebe-2 Thebe-1 Jupiter Scarborough
Jansz-Io Wheatstone
NWSV
Pluto
Gorgon
WA-351-P
BHP Billiton Operated BHP Billiton Non-Operated
50 km
Slide 35
North West Shelf Project - CWLH Life Extension Project
Cossack Pioneer production greater than 60,000 bbl/d (100%)
Evaluating option to extend field lives of Cossack, Wanaea, Lambert and Hermes
Cossack Pioneer replacement studies currently underway with final investment decision expected in Q4 CY2008
Hermes appraisal well currently being drilled to evaluate reserve upside
Potential infill well in 2009
Studies continuing for future infill opportunities
BHP Billiton (Non-operator, ~16.7%)
Cossack Pioneer
Slide 36
Agenda
Overview of BHP Billiton Petroleum
Petroleum in Australia Projects & Opportunities
Exploration
Slide 37
Key exploration and appraisal wells anticipated over coming years
Canadian Laurentian
1 well planned
Gulf of Mexico
8 wells planned
Colombia
2 wells planned
NW Australia
6 wells planned
Falklands
2 wells planned
Malaysia
4 wells planned
Gippsland
1 well planned
Exploration Strategy
Material in size to BHP Billiton
Balance proven plays and frontier exploration
Opportunities with potential for multiple successes Control and Operatorship
Slide 38
Carnarvon Basin - exploration and appraisal activity
Underwrote acquisition of large multi-client 3D seismic surveys over Exmouth Plateau acreage
Exploring for additional reserves
Black Pearl-1 exploration well in WA-12-R expected to spud Q1 CY09
Additional exploration planned in WA-255-P in FY10
NWSV appraisal and exploration
Six month campaign from September 08, building on significant success during FY07 and FY08
Hermes oilfield appraisal
Lambert West and Nereus exploration
Lady Nora and Tidepole appraisal
Keystone 3D seismic (~2400km2 on block)
Nereus & Lambert West exploration
Hermes oilfield appraisal
Thebe-2 Thebe-1
Jupiter Scarborough
Jansz-Io Wheatstone
NWSV
Pluto
Gorgon
WA-351-P
WA-255-P
Lady Nora & Tidepole appraisal
Aragon 3D seismic (3484km2)
Black Pearl-1
50km
BHP Billiton Operated
BHP Billiton Non-Operated
Slide 39
Browse Basin – exploration and appraisal activity
Located approximately 400 km north west of Broome
Browse complex of fields (Torosa / Calliance/ Brecknock):
Recent drilling and acquisition of new seismic data on Torosa and Calliance fields has significantly improved understanding of overall resource base
Appraisal program continues; development options under evaluation
Evaluating prospectivity of Argus gas discovery and WA-302-P exploration permit (including possible deepwater extension of Torosa Field)
WA - 302 -P
Torosa Brecknock
Calliance
Argus
Ichthys
Crux
100km
BHP Billiton Operated
BHP Billiton Non-Operated
Slide 40
Concluding Remarks
Significant assets
Continued production growth
Commercialising gas opportunities in the region
Major exploration focus
Australia a major contributor to current and future Petroleum production
Slide 41
bhpbilliton
resourcing the future
Slide 42
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BHP Billiton Limited and BHP Billiton Plc | ||||||
| Date: 3 November 2008 | By: | Jane McAloon | ||||
|
| ||||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||