BHP Billiton PLC Exploration and Development Report 30 Sept 2012 (8490O)
October 17 2012 - 1:00AM
UK Regulatory
TIDMBLT
RNS Number : 8490O
BHP Billiton PLC
16 October 2012
NEWS RELEASE
Release Time IMMEDIATE
Date 17 October 2012
Number 26/12
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 30 SEPTEMBER 2012
This report covers the Group's exploration and development
activities for the September 2012 quarter. Unless otherwise stated,
BHP Billiton's interest in the projects referred to in this report
is 100 per cent and references to project schedules are based on
calendar years.
Development
BHP Billiton remains committed to its proven strategy which is
to invest in large, long life, low cost, expandable, upstream
assets, diversified by commodity, geography and market, throughout
the economic cycle. In that regard, the Group has 19 high quality,
low risk, largely brownfield projects currently in execution that
are expected to deliver strong financial returns for our
shareholders. The majority of these projects are scheduled to
achieve first production before the end of the 2015 financial year
which will support strong growth in our major, high margin
businesses. With capital and exploration expenditure of US$22.0
billion forecast for the Group in the 2013 financial year, we are
fully committed and no major project approvals are anticipated over
this timeframe.
In response to the more challenging external environment, during
the September 2012 quarter BHP Billiton decided not to proceed with
the 2.5 million tonnes per annum (100 per cent basis) expansion of
Peak Downs that is associated with the Caval Ridge mine development
(Australia). Importantly, the 5.5 million tonnes per annum (100 per
cent basis) Caval Ridge mine remains on schedule to deliver first
production in the 2014 calendar year while the valuable Peak Downs
expansion option remains embedded within the portfolio.
The Bass Strait Kipper gas field (Australia) offshore production
facilities were completed in the September 2012 quarter and are
ready to commence production pending resolution of the mercury
content. The Bass Strait Kipper project will not be reported in
future Exploration and Development Reports.
BHP Billiton's Onshore US drilling and development expenditure
totalled US$1.0 billion in the September 2012 quarter. Our guidance
for Onshore US drilling and development expenditure for the 2013
financial year remains unchanged at US$4.0 billion. Over 80 per
cent of this expenditure will be focused on the liquids rich Eagle
Ford shale and Permian Basin.
Share of Initial
approved production
Project and capex target
ownership (US$m) date Production capacity (100%) Quarterly progress
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Petroleum projects
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Macedon (Australia)
71.43% On schedule and budget. The overall
Operator Gas 1,050 CY13 200 million cubic feet gas per day. project is 80% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Bass Strait Kipper
(Australia) 32.5% -
50%
Non operator The offshore production facilities
Gas/Gas Liquids 900 CY12(a) 10,000 bpd condensate and processing capacity of 80 million cubic feet gas per day. are 100% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Bass Strait Turrum
(Australia) 50%
Non operator On revised schedule and budget. The
Gas/Gas Liquids 1,350 CY13 11,000 bpd condensate and processing capacity of 200 million cubic feet gas per day. overall project is 81% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
North West Shelf
North Rankin B Gas
Compression On budget. Steady state production
(Australia) 16.67% remains on track for CY13. The
Non operator LNG 850 CY13 2,500 million cubic feet gas per day. overall project is 96% complete.
North West Shelf
Greater Western
Flank-A
(Australia)
16.67%
Non operator On schedule and budget. The overall
LNG 400 CY16 To maintain LNG plant throughput from the North West Shelf operations. project is 26% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Minerals projects
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Escondida Organic
Growth Project 1
(Chile)
57.5% On schedule and budget. The overall
Copper 2,207 H1 CY15 Replaces the Los Colorados concentrator with a new 152,000 tpd plant. project is 17% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Escondida Oxide
Leach Area Project
(Chile)
57.5% On schedule and budget. The overall
Copper 414 H1 CY14 New dynamic leaching pad and mineral handling system. Maintains oxide leaching capacity. project is 20% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
EKATI Misery Open
Pit Project
(Canada) 80% Project consists of a pushback of the existing Misery open pit which was mined from 2001 to On schedule and budget. The overall
Diamonds 323 CY15 2005. project is 30% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
WAIO Jimblebar Mine
Expansion
(Australia) 96% Increases mining and processing capacity to 35 million tpa with incremental debottlenecking On schedule and budget. The overall
Iron Ore 3,300(b) Q1 CY14 opportunities to 55 million tpa. project is 52% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
WAIO Port Hedland
Inner Harbour
Expansion
(Australia) 85% Increases total inner harbour capacity to 220 million tpa with debottlenecking opportunities On schedule and budget. The overall
Iron Ore 1,900(b) H2 CY12 to 240 million tpa. project is 69% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
WAIO Port Blending
and Rail Yard
Facilities
(Australia) 85% On schedule and budget. The overall
Iron Ore 1,400(b) H2 CY14 Optimises resource and enhances efficiency across the WAIO supply chain. project is 32% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
WAIO Orebody 24
(Australia) 85% On schedule and budget. The overall
Iron Ore 698 H2 CY12 Maintains iron ore production output from the Newman Joint Venture operations. project is 45% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Samarco Fourth
Pellet Plant
(Brazil) 50% On schedule and budget. The overall
Iron Ore 1,750 H1 CY14 Increases iron ore pellet production capacity by 8.3 million tpa to 30.5 million tpa. project is 59% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Daunia (Australia)
50% Greenfield mine development with capacity to produce 4.5 million tpa of export metallurgical On schedule and budget. The overall
Metallurgical Coal 800 CY13 coal. project is 68% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Broadmeadow Life
Extension
(Australia) 50% On schedule and budget. The overall
Metallurgical Coal 450 CY13 Increases productive capacity by 0.4 million tpa and extends life of the mine by 21 years. project is 83% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Hay Point Stage
Three Expansion
(Australia) 50% Increases port capacity from 44 million tpa to 55 million tpa and reduces storm On schedule and budget. The overall
Metallurgical Coal 1,250(b) CY14 vulnerability. project is 50% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Caval Ridge
(Australia)
50%
Greenfield mine development to produce an initial 5.5 million tpa of export metallurgical On schedule and budget. The overall p
Metallurgical Coal 1,870(b) CY14 coal(c). roject is 48% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Appin Area 9
(Australia)
100%
Maintains Illawarra Coal's production capacity with a replacement mining domain and capacity On schedule and budget. The overall p
Metallurgical Coal 845 CY16 to produce 3.5 million tpa of metallurgical coal. roject is 25% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Cerrejon P40
Project (Colombia) On schedule and budget. The overall
33.3% Energy Coal 437 CY13 Increases saleable thermal coal production by 8 million tpa to approximately 40 million tpa. project is 47% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Newcastle Third
Port Project Stage
3 (Australia) 35.5% On schedule and budget. The overall
Energy Coal 367 CY14 Increases total coal terminal capacity from 53 million tpa to 66 million tpa. project is 52% complete.
------------------- -------- ---------- -------------------------------------------------------------------------------------------- -------------------------------------
Minerals exploration
Greenfield minerals exploration is currently focused on
advancing copper targets within Chile and Peru. Minerals
exploration expenditure for the September 2012 quarter was US$199
million, of which US$144 million was expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in
the process of drilling as at 30 September 2012.
Well Location BHP Billiton equity Status
------------- -------------- ------------------- ---------------------
Gulf of Mexico 44%
Atlantis East DC 211 (BP operator) Drilling ahead
------------- -------------- ------------------- ---------------------
Gulf of Mexico 11.2% Temporarily abandoned
Gunflint-3 MC948 (Noble operator) Under evaluation
------------- -------------- ------------------- ---------------------
Gulf of Mexico 50%
Ness Deep GC507 (Operator) Drilling ahead
------------- -------------- ------------------- ---------------------
Petroleum exploration expenditure for the September 2012 quarter
was US$173 million, of which US$80 million was expensed. Petroleum
exploration expenditure of approximately US$775 million is
anticipated in the 2013 financial year with the majority of
activity to occur in the Gulf of Mexico.
This report, together with the Production Report, represents the
Interim Management Statement for the purposes of the UK Listing
Authority's Disclosure and Transparency Rules. There have been no
significant changes in the financial position of the Group in the
quarter ended 30 September 2012.
(a) The Bass Strait Kipper gas field offshore production
facilities were completed in the September 2012 quarter and are
ready to commence production pending resolution of the mercury
content. The project to remove this mercury is being managed on a
stand-alone basis.
(b) Excludes announced pre-commitment funding.
(c) The 2.5 million tonnes per annum (100 per cent basis)
expansion of Peak Downs is no longer included in the project
scope.
Further information on BHP Billiton can be found at:
www.bhpbilliton.com
Media Relations Investor Relations
Australia Australia
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email: Antonios.Papaspiropoulos@bhpbilliton.com email: James.Agar@bhpbilliton.com
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Tel: +61 3 9609 2211 Mobile: +61 427 777 908 Tel: +61 3 9609 3575 Mobile: +61 439 558 454
email: Fiona.Hadley@bhpbilliton.com email: Andrew.Gunn@bhpbilliton.com
Eleanor Nichols United Kingdom and South Africa
Tel: +61 3 9609 2360 Mobile: +61 407 064 748
email: Eleanor.Nichols@bhpbilliton.com Tara Dines
Tel: +44 20 7802 7113 Mobile: +44 7825 342 232
United Kingdom Email: Tara.Dines@bhpbilliton.com
Ruban Yogarajah Americas
Tel: +44 20 7802 4033 Mobile: +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com Brendan Harris
Tel: +44 20 7802 4131 Mobile: +44 7990 527 726
Americas email: Brendan.Harris@bhpbilliton.com
Jaryl Strong Matt Chism
Tel: +1 713 499 5548 Mobile: +1 281 222 6627 Tel: +1 71 359 96158 Mobile: +1 281 782 2238
email: Jaryl.Strong@bhpbilliton.com email: Matt.E.Chism@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Lonsdale Street Registered Office: Neathouse Place
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Members of the BHP Billiton Group which is headquartered in Australia
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