TIDMBHP
RNS Number : 6995N
BHP Group PLC
21 January 2019
Release Time IMMEDIATE
Date 22 January 2019
Release Number 01/19
BHP OPERATIONAL REVIEW
FOR THE HALF YEARED 31 DECEMBER 2018
- Production guidance for the 2019 financial year remains
unchanged for petroleum, iron ore, metallurgical coal and energy
coal. Total copper production guidance increased to between 1,645
and 1,740 kt and reflects the retention of Cerro Colorado.
- Group copper equivalent production(1) was broadly unchanged in
the December 2018 half year, with volumes for the full year also
expected to be in line with last year.
- Full year unit costs for all major assets are expected to be
in line with guidance(2) , predominantly reflecting stronger
anticipated volumes in the second half of the year. However, unit
costs were tracking above full year guidance at the December 2018
half year as a result of planned maintenance and production outages
during the period.
- All major projects under development are tracking to plan.
- In Petroleum, the first appraisal well at Trion in Mexico
(Trion-2DEL) encountered oil, in line with expectations. A downdip
sidetrack is currently being drilled to further appraise the
field.
- The Onshore US sale process was completed on 31 October 2018,
with the net proceeds of US$10.4 billion to be returned to
shareholders. On 17 December 2018, a US$5.2 billion off-market
buy-back of BHP Group Limited shares was successfully completed.
The balance of the net proceeds will be paid on 30 January 2019 as
a special dividend of US$1.02 per share.
- The financial results for the December 2018 half year are
expected to reflect certain items as summarised in the table on
page two.
- Productivity for the December 2018 half year has been impacted
by unplanned production outages at Olympic Dam, Spence and Western
Australia Iron Ore, with a total negative impact of approximately
US$600 million.
Dec H18 Dec Q18
(vs Dec (vs Sep
Production H17) Q18) Dec Q18 commentary
Lower seasonal gas sales at Bass Strait
partially offset by Pyrenees resuming
Petroleum production following maintenance in
(MMboe) 63 30 the previous quarter.
(-1%) (-8%)
Copper (kt) 825 416 Record throughput at Cerro Colorado
and higher volumes at Spence as production
returned to full capacity following
a fire in September 2018, partially
offset by lower volumes at Escondida
as a result of expected lower copper
grades.
(-1%) (+2%)
Volumes at Western Australia Iron Ore
(WAIO) impacted by a train derailment
Iron ore (Mt) 119 58 on 5 November 2018.
(+2%) (-6%)
Record production at South Walker Creek
Metallurgical offset by the impact of the scheduled
coal (Mt) 21 10 longwall move at Broadmeadow.
(+2%) (-1%)
Energy coal 13 7 Increased production at New South Wales
(Mt) Energy Coal (NSWEC) as a result of
higher bypass coal offset by the impact
of mine sequence changes at Cerrejón.
(-5%) (0%)
BHP Chief Executive Officer, Andrew Mackenzie, said: "Production
in the first half was broadly in line with the prior period despite
planned maintenance and outages. In Petroleum, our first appraisal
well at Trion in Mexico encountered oil and we added to our
exploration options with successful bids for two licences offshore
Eastern Canada. We completed the sale of our US shale assets and
returned US$5.2 billion to shareholders through a share buy-back
program, with a further US$5.2 billion to be returned as a special
dividend on 30 January 2019."
1
Summary
Operational performance
Production for the December 2018 half year and guidance for the
2019 financial year are summarised below.
Dec H18 Dec Q18 Dec Q18
vs vs vs Previous FY19 Current FY19
Production Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 guidance guidance
Petroleum -
Conventional
(MMboe) 63 30 (1%) (2%) (8%) 113 - 118 113 - 118 Upper end of range
Copper (kt) 825 416 (1%) (3%) 2% 1,620 - 1,705 1,645 - 1,740 Increased
Escondida (kt) 580 285 0% (10%) (4%) 1,120 - 1,180 1,120 - 1,180 Unchanged
Other copper(i) Cerro Colorado
(kt) 245 132 (2%) 15% 16% 500 - 525 525 - 560 60 - 70 kt for FY19
Iron ore(ii) (Mt) 119 58 2% (6%) (6%) 241 - 250 241 - 250 Unchanged
WAIO (100% basis)
(Mt) 135 66 (1%) (9%) (6%) 273 - 283 273 - 283 Unchanged
Metallurgical coal
(Mt) 21 10 2% 6% (1%) 43 - 46 43 - 46 Unchanged
Energy coal (Mt) 13 7 (5%) (9%) 0% 28 - 29 28 - 29 Unchanged
(i) Other copper comprises Pampa Norte (including Cerro Colorado
production for the full 2019 financial year to reflect its
retention, previous guidance only included 35 kt of production for
the first half of the 2019 financial year), Olympic Dam and
Antamina.
(ii) Increase in BHP's share of volumes reflects the expiry of
the Wheelarra Joint Venture sublease in March 2018, with control of
the sublease area reverted to the Jimblebar Joint Venture, which is
accounted for on a consolidated basis with minority interest
adjustments.
Summary of disclosures
BHP expects its financial results for the first half of the 2019
financial year to reflect certain items as summarised in the table
below. The table does not provide a comprehensive list of all items
impacting the period. The financial statements are the subject of
ongoing work that will not be finalised until the release of the
financial results on 19 February 2019. Accordingly, the information
is subject to update.
H1 FY19
impact
Description US$M(i) Classification(ii)
Continuing operations
Change in the accounting classification of 260 Revenue
treatment and refining charges as a result Operating costs
of IFRS15(3) (reclassification between revenue
and operating costs)
Unit costs tracking above full year guidance(2) Refer Operating costs
in H1 FY19 as a result of planned maintenance footnote(iii)
and production outages
Exploration expense (including petroleum 222 Exploration
and minerals exploration programs) expense
Impairment charges related to the Whenan 100-150 Depreciation,
shaft refurbishment project at Olympic Dam amortisation
(changes to the mine access plan) and Cerro and impairments
Colorado (termination of the sale and purchase
agreement
The Group's adjusted effective tax rate for Refer Taxation expense
H1 FY19 is expected to be slightly above footnote(iii)
the full year guidance range of 30 to 35
per cent
Non-cash fair value adjustments related to Refer Net debt
interest rate and exchange rate movements footnote(iii)
are expected to increase net debt in H1 FY19
Higher Australian and Chilean income tax 700 Operating cash
payments in H1 FY19 compared with H1 FY18 inflow
primarily due to higher instalment rates
and settlement of an Australian transfer
pricing dispute
Dividends paid to non-controlling interests 620 Financing cash
outflow
Reversal of provisions for global taxation 240 Exceptional
matters which were resolved during the period item credit
Financial impact on BHP Billiton Brasil of Refer Exceptional
the Samarco Dam failure footnote(iii) item charge
Discontinued operations
Loss from Onshore US (after taxation) mainly 275-325 Profit after
due to incremental costs (including redundancy taxation
costs and retention payments to employees)
and State and Federal tax expenses
Net proceeds received from the sale of Onshore 7,028 Investing cash
US (comprising Fayetteville US$0.3 billion inflow
and Eagle Ford, Haynesville and Permian US$6.7
billion, representing one-half of the gross
consideration at completion less customary
completion adjustments and two instalment
payments)
(i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow
and/or income statement impact as relevant.
(iii) Financial impact is the subject of ongoing work and is not yet finalised.
Productivity for the December 2018 half year has been impacted
by lower than expected volumes at Olympic Dam (unplanned acid plant
outage in August 2018, volume impact of 45 kt), Spence (fire at the
electro-winning plant in September 2018, volume impact of 25 kt)
and WAIO (train derailment in November 2018, volume impact of 4
Mt), with a total negative impact of approximately US$600 million.
Productivity guidance for the full year is currently under review
and revised guidance will be provided in December 2018 half year
financial results.
2
Average realised prices
The average realised prices achieved for our major commodities
are summarised below.
Dec H18
vs Dec H18 Dec H18
Average realised Dec vs vs
prices(i) Dec H18 Dec H17 Jun H18 FY18 H17 Jun H18 FY18
Oil (crude and condensate)
(US$/bbl) 69.41 53.76 67.07 60.12 29% 3% 15%
Natural gas (US$/Mscf)(ii) 3.98 3.54 3.71 3.62 12% 7% 10%
US natural gas (US$/Mscf) 2.88 2.84 2.77 2.80 1% 4% 3%
LNG (US$/Mscf) 10.19 7.48 8.65 8.07 36% 18% 26%
Copper (US$/lb)(v) 2.54 3.08 2.93 3.00 (18%) (13%) (15%)
Iron ore (US$/wmt,
FOB) 55.62 56.54 56.86 56.71 (2%) (2%) (2%)
Metallurgical coal
(US$/t) 179.82 164.22 189.66 177.22 9% (5%) 1%
Hard coking coal
(US$/t)(iii) 197.86 182.29 205.80 194.59 9% (4%) 2%
Weak coking coal
(US$/t)(iii) 134.12 120.99 143.40 131.70 11% (6%) 2%
Thermal coal (US$/t)(iv) 84.15 87.49 86.47 86.94 (4%) (3%) (3%)
Nickel metal (US$/t) 12,480 11,083 13,974 12,591 13% (11%) (1%)
(i) Based on provisional, unaudited estimates. Prices exclude
sales from equity accounted investments, third party product and
internal sales, and represent the weighted average of various sales
terms (for example: FOB, CIF and CFR), unless otherwise noted.
Includes the impact of provisional pricing and finalisation
adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those
metallurgical coals with a Coke Strength after Reaction (CSR) of 35
and above, which includes coals across the spectrum from Premium
Coking to Semi Hard Coking coals, while weak coking coal (WCC)
refers generally to those metallurgical coals with a CSR below
35.
(iv) Export sales only; excludes Cerrejón. Includes thermal coal
sales from metallurgical coal mines.
(v) Comparative financial information has been restated for the
new accounting standard, IFRS15 Revenue from Contracts with
Customers, which became effective from 1 July 2018.
The majority of iron ore shipments were linked to the index
price for the month of shipment, with price differentials
predominantly a reflection of product quality and market
fundamentals. The majority of metallurgical coal and energy coal
exports were linked to the index price for the month of shipment or
sold on the spot market at fixed or index-linked prices, with price
differentials reflecting product quality.
At 31 December 2018, the Group had 339 kt of outstanding copper
sales that were revalued at a weighted average price of US$2.70 per
pound. The final price of these sales will be determined over the
remainder of the 2019 financial year. In addition, 364 kt of copper
sales from the 2018 financial year were subject to a finalisation
adjustment in the current period. The provisional pricing and
finalisation adjustments will decrease Underlying EBITDA(4) by
US$272 million in the 2019 financial year and is included in the
average realised copper price in the above table.
Major development projects
During the December 2018 quarter, the North West Shelf Greater
Western Flank-B project achieved first production ahead of schedule
and under budget. The North West Shelf Greater Western Flank-B
project will not be reported in future Operational Reviews.
At the end of December 2018, BHP had five major projects under
development in petroleum, copper, iron ore and potash, with a
combined budget of US$10.6 billion over the life of the
projects.
Corporate update
The Onshore US sales process was completed on 31 October 2018,
with the net proceeds of US$10.4 billion to be returned to
shareholders through an off-market buy-back and a special dividend
shareholder return program. On 17 December 2018, the US$5.2 billion
off-market buy-back of BHP Group Limited shares was successfully
completed and enabled the buy-back of approximately 265.8 million
shares (5.0 per cent of the total issued capital of BHP Group
Limited and BHP Group Plc) at A$27.64 per share. In addition, the
Board of BHP determined to pay a special dividend to shareholders
of US$1.02 per share, representing the residual US$5.2 billion of
net proceeds, based on the reduced number of shares on issue
(approximately 5,058 million) following completion of the
off-market buy-back.
3
On 19 November 2018, BHP settled its transfer pricing dispute
relating to its marketing operations in Singapore with the
Australian Taxation Office. The settlement fully resolved all prior
years, being 2003 to 2018, with no admission of tax avoidance by
BHP. As part of the settlement, BHP paid a total of approximately
A$529 million in additional taxes for the prior years (BHP paid
A$328 million of this amount when the amended assessments were
received in prior years, with the balance of A$201 million paid in
the December 2018 quarter). In addition, the settlement provides
certainty in relation to the future taxation treatment as, due to a
change in ownership of the main marketing entity, all profits made
in Singapore in relation to the Australian assets owned by BHP
Group Limited will be fully subject to Australian tax under the
Controlled Foreign Company tax rules from the 2020 financial
year.
BHP has agreed to fund a total of US$515 million in further
financial support for the Renova Foundation and Samarco. This
comprises US$438 million to fund the Renova Foundation until 31
December 2019 which will be offset against the Group's provision
for the Samarco dam failure, and a short-term facility of up to
US$77 million to be made available to Samarco until 30 June
2019.
As at the date of this Operational Review, we are not in a
position to provide an update, for the purpose of the December 2018
half year financial results, on the ongoing potential financial
impacts on BHP Billiton Brasil of the Samarco dam failure. Any
financial impacts will continue to be treated as an exceptional
item.
Petroleum
Production
Dec H18 Dec Q18 Dec Q18
vs vs vs
Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18
Crude oil, condensate and
natural gas liquids (MMboe) 29 14 (5%) (3%) 3%
Natural gas (bcf) 206 94 1% (2%) (16%)
Total petroleum production
(MMboe) 63 30 (1%) (2%) (8%)
Petroleum - Total Conventional petroleum production was broadly
flat at 63 MMboe. Guidance for the 2019 financial year remains
unchanged at between 113 and 118 MMboe, with volumes expected to be
towards the upper end of the guidance range.
Crude oil, condensate and natural gas liquids production
declined by five per cent to 29 MMboe due to natural field decline
across the portfolio and a 70 day planned dry dock maintenance
program at Pyrenees completed during the September 2018 quarter.
This decline was partially offset by higher uptimes at our Gulf of
Mexico assets.
Natural gas production was broadly flat at 206 bcf, reflecting
increased tax barrels at Trinidad and Tobago in accordance with the
terms of our Production Sharing Contract. This was partially offset
by planned maintenance at Trinidad and Tobago in the December 2018
quarter and natural field decline across the portfolio.
On 30 November 2018, BHP completed the sale of its interests in
the Bruce and Keith oil and gas fields in the United Kingdom to
Serica Energy UK Ltd, with an effective date of 1 January 2018.
Projects
Project and Capital expenditure Initial production
ownership US$M target date Capacity Progress
North West Shelf 216 CY19 To maintain LNG plant First production
Greater Western throughput from the achieved in October
Flank-B North West Shelf 2018, ahead of
(Australia) operations. schedule and below
16.67% (non-operator) budget. The overall
project is 98%
complete.
Mad Dog Phase 2 2,154 CY22 New floating On schedule and
(US Gulf of Mexico) production facility budget. The overall
23.9% (non-operator) with the capacity to project is 37%
produce up to 140,000 complete.
gross barrels
of crude oil per day.
During the December 2018 quarter, the Bass Strait West
Barracouta project was approved. The A$200 million (BHP share)
investment is expected to produce first gas in the 2021 calendar
year to help offset Bass Strait production decline, and to deliver
competitive returns.
On 8 January 2019, BP (the operator) announced the sanction of
the Atlantis Phase 3 project. Approval from BHP's Board will be
sought during the March 2019 quarter. Study work continues on the
Ruby project in Trinidad and Tobago.
4
Petroleum exploration
Exploration and appraisal wells drilled during the December 2018
quarter are summarised below.
Total
Formation Water well
Well Location Target age BHP equity Spud date depth depth Status
Samurai-2 ST01 (sidetrack) US Gulf of Mexico GC476 Oil Miocene 50% 25 August 2018 1,088 m 10,088 m Plugged and abandoned
(Murphy Operator)
Concepcion-1 Trinidad & Tobago Gas Pleistocene/ 65% 30 September 2018 1,721 m 3,506 m No commercial hydrocarbons encountered; plugged and abandoned
Block TTDAA 5 Pliocene (BHP Operator)
Trion-2DEL Mexico Oil Eocene 60% 15 November 2018 2,379 m 4,659 m Hydrocarbons encountered
Block AE-0093 (BHP Operator)
In the US Gulf of Mexico, a sidetrack of the Samurai-2
exploration well commenced on 25 August 2018 to further appraise
the discovery, and was plugged and abandoned on 2 November 2018
after delineating the Samurai discovery. Appraisal and development
planning is in progress. In the Western US Gulf of Mexico, the
Ocean Bottom Node(5) seismic acquisition is expected to be
completed in the March 2019 quarter. This is the world's first
deepwater exploration ocean bottom node seismic acquisition.
In Trinidad and Tobago, the Concepcion-1 well was spud on 30
September 2018 to further test the Magellan play, with no
commercial hydrocarbons encountered. The well was plugged and
abandoned on 25 October 2018. This completed Phase 2 of our
deepwater exploration drilling campaign in Trinidad and Tobago.
In Mexico, we spud the Trion-2DEL appraisal well on 15 November
2018 and encountered oil in line with expectations. This was the
first well drilled by an international operator in the Mexican
deepwater. A downdip sidetrack of the Trion-2DEL well commenced on
4 January 2019 to further appraise the field, including the oil
water contact.
BHP was successful in its bids to acquire a 100 per cent
interest in, and operatorship of, two exploration licences for
blocks 8 and 12 in the Orphan Basin, offshore Eastern Canada. BHP's
aggregate bid amount of US$625 million reflects the costs of the
drilling and seismic work likely to be performed during the
exploration phase, although there is no minimum work program under
the licence agreements. BHP's minimum commitment under the licence
agreements, if no work is performed, is approximately US$119
million for block 8 and US$38 million for block 12.
Petroleum exploration expenditure for the December 2018 half
year was US$316 million, of which US$166 million was expensed. A
US$750 million exploration and appraisal program is being executed
for the 2019 financial year.
Onshore US - Discontinued operations
The Onshore US sales process was completed on 31 October 2018,
with the rights to the economic profits transferring to the
purchasers from 1 July 2018. Onshore US production for the July
2018 to October 2018 period was 26 MMboe, with drilling and
development expenditure of US$0.4 billion. Our operated rig count
remained unchanged at five, with two rigs at Eagle Ford, two rigs
at Permian and one at Haynesville. We continue to provide certain
transitional services to BP for up to nine months following
completion, however no further production will be reported by
BHP.
Copper
Production
Dec Q18
Dec H18 Dec Q18 vs
vs vs Sep
Dec H18 Dec Q18 Dec H17 Dec Q17 Q18
Copper (kt) 825 416 (1%) (3%) 2%
Zinc (t) 54,795 24,237 (6%) (17%) (21%)
Uranium oxide concentrate (t) 1,495 936 33% 285% 67%
Copper - Total copper production decreased by one per cent to
825 kt. Guidance for the 2019 financial year has been increased to
between 1,645 and 1,740 kt and reflects the retention of Cerro
Colorado.
5
Escondida copper production was broadly unchanged at 580 kt as
higher concentrator throughput and improved recoveries offset the
impact of expected lower copper grades. Production guidance remains
unchanged at between 1,120 and 1,180 kt for the 2019 financial
year.
Pampa Norte copper production decreased by 17 per cent to 105 kt
and reflects planned maintenance and a production outage at Spence
following a fire at the electro-winning plant in September 2018.
Record ore milled was achieved in the half year at both Spence and
Cerro Colorado. Spence returned to full capacity during the
December 2018 quarter, with production guidance of between 160 and
175 kt unchanged for the 2019 financial year. In the December 2018
quarter, BHP and EMR Capital agreed to terminate their agreement
for the sale and purchase of Cerro Colorado after it became clear
that the financing conditions of the transaction would not be
satisfied by the end of the 2018 calendar year. Production at Cerro
Colorado for the 2019 financial year is expected to be between 60
and 70 kt.
Olympic Dam copper production increased by 20 per cent to 65 kt
as a result of the major smelter maintenance campaign in the prior
period, which was partially offset by an unplanned acid plant
outage in August 2018. Surface operations resumed at the end of
October 2018 following completion of acid plant remediation works.
Underground operations continue to progress into the Southern Mine
Area, with record development kilometres achieved and the mine's
third decline becoming fully operational in the quarter. Production
guidance for the 2019 financial year remains unchanged at between
170 and 180 kt.
Antamina copper production increased by eight per cent to 75 kt
due to higher head grades. Production guidance for the 2019
financial year remains unchanged at approximately 135 kt for copper
and approximately 85 kt for zinc.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
Spence Growth Option 2,460 FY21 New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production On schedule and budget. The overall p
by approximately 185 ktpa in the first 10 years of operation and extend the mining operations roject is 34% complete.
by more than 50 years.
(Chile)
100%
Iron Ore
Production
Dec H18 Dec Q18 Dec Q18
vs vs vs
Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18
Iron ore (kt) 119,226 57,835 2% (6%) (6%)
Iron ore - Total iron ore production increased by two per cent
to 119 Mt (135 Mt on a 100 per cent basis). Guidance for the 2019
financial year remains unchanged at between 241 and 250 Mt, or
between 273 and 283 Mt on a 100 per cent basis.
At WAIO, increased volumes reflected record production at
Jimblebar and the impact from the Mt Whaleback fire in the prior
period. This was partially offset by the impact of planned
maintenance in the September 2018 quarter and a train derailment on
5 November 2018 which resulted in the suspension of rail operations
for five days and a production impact of approximately 4 Mt. During
the rail outage, mine stockpile levels were built and are expected
to be partially drawn down in the March 2019 quarter.
Mining and processing operations at Samarco remain suspended
following the failure of the Fundão tailings dam and Santarém water
dam on 5 November 2015.
Projects
Initial
Capital production
Project and expenditure target
ownership US$M date Capacity Progress
South Flank 3,061 CY21 Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi On schedule and budget. The overall p
mine. roject is 21% complete.
(Australia)
85%
6
Coal
Production
Dec H18 Dec Q18 Dec Q18
vs vs vs
Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18
Metallurgical coal (kt) 20,630 10,272 2% 6% (1%)
Energy coal (kt) 13,307 6,667 (5%) (9%) 0%
Metallurgical coal - Metallurgical coal production increased by
two per cent to 21 Mt. Guidance for the 2019 financial year remains
unchanged at between 43 and 46 Mt, with volumes weighted to the
second half of the year as expected.
At Queensland Coal, increased production was supported by record
production at South Walker Creek and higher wash-plant throughput
at Poitrel following the purchase of the Red Mountain processing
facility. This increase was partially offset by the scheduled
longwall move at Broadmeadow which was successfully completed
during the quarter.
The Caval Ridge Southern Circuit project was completed according
to plan with the conveying of first coal in October 2018.
Energy coal - Energy coal production decreased by five per cent
to 13 Mt. Guidance for the 2019 financial year remains unchanged at
approximately 28 to 29 Mt.
New South Wales Energy Coal production decreased by four per
cent as a result of a higher average strip ratio. Cerrejón
production decreased by seven per cent due to mine sequence
changes.
Other
Nickel production
Dec H18 Dec Q18 Dec Q18
vs vs vs
Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18
Nickel (kt) 39.5 18.1 (15%) (22%) (15%)
Nickel - Nickel West production decreased by 15 per cent to 40
kt as operations were suspended following a fire at the Kalgoorlie
smelter in September 2018. The smelter returned to operation on 1
October 2018, with full repairs now expected to be completed in the
March 2019 quarter. Planned maintenance at the Kwinana refinery was
brought forward to align with the smelter outage and, as a result,
production guidance for the 2019 financial year remains unchanged
and is expected to be broadly in line with the 2018 financial
year.
Potash project
Project and Investment
ownership US$M Scope Progress
Jansen Potash 2,700 Investment to finish the excavation and lining of the production and service shafts, The project is 82% complete and within the approved budget.
and to The main activity for the quarter
continue the installation of essential surface infrastructure and utilities. focussed on removing the boring equipment from both shafts.
(Canada)
100%
Minerals exploration
Minerals exploration expenditure for the December 2018 half year
was US$81 million, of which US$56 million was expensed. Greenfield
minerals exploration is predominantly focused on advancing copper
targets within Chile, Ecuador, Peru, Canada, South Australia and
the South-West United States.
Consistent with our exploration focus on copper, in September
2018, BHP acquired an initial 6.1 per cent interest in SolGold Plc
(SolGold), the majority owner and operator of the Cascabel porphyry
copper-gold project in Ecuador. On 15 October 2018, BHP entered
into an agreement to acquire an additional 100 million shares in
SolGold, for an investment of US$59 million, with our total
interest now approximately 11.2 per cent.
7
In November 2018, BHP confirmed identification of a potential
new iron oxide, copper, gold (IOCG) mineralised system, located 65
kilometres to the south east of BHP's operations at Olympic Dam in
South Australia. BHP is evaluating and interpreting the results
reported and planning a further drilling program, to commence in
early in the 2019 calendar year.
Variance analysis relates to the relative performance of BHP
and/or its operations during the December 2018 half year compared
with the December 2017 half year, unless otherwise noted.
Production volumes, sales volumes and capital and exploration
expenditure from subsidiaries are reported on a 100 per cent basis;
production and sales volumes from equity accounted investments and
other operations are reported on a proportionate consolidation
basis. Numbers presented may not add up precisely to the totals
provided due to rounding. Copper equivalent production based on
2018 financial year average realised prices.
The following footnotes apply to this Operational Review:
(1) Excludes production from Onshore US.
(2) 2019 financial year unit cost guidance: Conventional
Petroleum <US$11/boe, Escondida <US$1.15/lb, WAIO
<US$14/t, Queensland Coal US$68-72/t and NSWEC US$43-48/t; based
on exchange rates of AUD/USD 0.75 and USD/CLP 663.
(3) IFRS15 Revenue from Contracts with Customers became effective for the Group from 1 July 2018.
(4) Underlying EBIT and Underlying EBITDA are used to reflect
the underlying performance of BHP. Underlying EBIT is earnings
before net finance costs, taxation and any exceptional items.
Underlying EBITDA is Underlying EBIT before depreciation,
amortisation and impairment.
(5) WGOM OBN 2018 Seismic Permit is OCS Permit T18-010.
The following abbreviations may have been used throughout this
report: barrels (bbl); billion cubic feet (bcf); cost and freight
(CFR); cost, insurance and freight (CIF); dry metric tonne unit
(dmtu); free on board (FOB); grams per tonne (g/t); kilograms per
tonne (kg/t); kilometre (km); metre (m); million barrels of oil
equivalent (MMboe); million cubic feet per day (MMcf/d); million
tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds
(lb); thousand barrels of oil equivalent (Mboe); thousand ounces
(koz); thousand standard cubic feet (Mscf); thousand tonnes (kt);
thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd);
tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', 'Group', 'BHP Group', 'we',
'us', 'our' and ourselves' are used to refer to BHP Group Limited,
BHP Group Plc and, except where the context otherwise requires,
their respective subsidiaries as defined in note 27 'Subsidiaries'
in section 5.1 of BHP's 30 June 2018 Annual Report on Form 20-F,
unless stated otherwise. Notwithstanding that this release may
include production, financial and other information from
non-operated assets, non-operated assets are not included in the
BHP Group and, as a result, statements regarding our operations,
assets and values apply only to our operated assets unless stated
otherwise.
8
Further information on BHP can be found at: bhp.com
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9
Production summary
Quarter ended Year to date
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2017 2018 2018 2018 2018 2018 2017
Petroleum (1)
Petroleum
Conventional
Crude oil, condensate
and NGL (Mboe) 14,869 13,960 13,486 14,087 14,497 28,584 29,959
Natural gas (bcf) 96.1 82.9 90.7 112.3 93.9 206.2 203.4
Total (Mboe) 30,886 27,777 28,603 32,804 30,147 62,951 63,859
Total petroleum production
(MMboe) 48.4 44.7 49.0 52.8 36.1 88.9 98.7
Copper (2)
Copper
Payable metal in concentrate
(kt)
Escondida (3) 57.5% 238.5 244.9 246.1 240.0 212.6 452.6 434.8
Antamina 33.8% 33.8 35.2 34.6 37.0 38.3 75.3 69.7
Total 272.3 280.1 280.7 277.0 250.9 527.9 504.5
Cathode (kt)
Escondida (3) 57.5% 76.1 69.4 70.1 55.4 71.9 127.3 148.0
Pampa Norte (4) 100% 68.4 66.8 70.6 43.4 61.8 105.2 126.4
Olympic Dam 100% 12.2 40.5 42.0 33.3 31.6 64.9 54.2
Total 156.7 176.7 182.7 132.1 165.3 297.4 328.6
Total copper (kt) 429.0 456.8 463.4 409.1 416.2 825.3 833.1
Lead
Payable metal in concentrate
(t)
Antamina 33.8% 1,009 464 546 563 600 1,163 2,424
Total 1,009 464 546 563 600 1,163 2,424
Zinc
Payable metal in concentrate
(t)
Antamina 33.8% 29,054 25,562 35,983 30,558 24,237 54,795 58,255
Total 29,054 25,562 35,983 30,558 24,237 54,795 58,255
Gold
Payable metal in concentrate
(troy oz)
Escondida (3) 57.5% 50,279 59,953 68,345 63,578 73,726 137,304 100,804
Olympic Dam (refined gold) 100% 15,969 28,989 33,497 23,471 17,856 41,327 29,070
Total 66,248 88,942 101,842 87,049 91,582 178,631 129,874
10
Quarter ended Year to date
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2017 2018 2018 |2018 2018 2018 2017
Silver
Payable metal in concentrate
(troy koz)
Escondida (3) 57.5% 2,193 2,339 2,527 1,997 2,570 4,567 3,930
Antamina 33.8% 1,331 1,189 1,321 1,309 1,178 2,487 2,927
Olympic Dam (refined silver) 100% 135 248 278 213 212 425 266
Total 3,659 3,776 4,126 3,519 3,960 7,479 7,123
Uranium
Payable metal in concentrate
(t)
Olympic Dam 100% 243 1,118 1,123 559 936 1,495 1,123
Total 243 1,118 1,123 559 936 1,495 1,123
Molybdenum
Payable metal in concentrate
(t)
Antamina 33.8% 579 420 261 464 417 881 981
Total 579 420 261 464 417 881 981
11
Production summary
Quarter ended Year to date
BHP Dec Mar Jun Sep Dec Dec Dec
interest 2017 2018 2018 |2018 2018 2018 2017
Iron Ore
Iron Ore
Production (kt) (5)
Newman 85% 18,317 16,412 18,500 16,378 17,578 33,956 32,159
Area C Joint Venture 85% 13,575 12,802 12,041 11,696 10,280 21,976 26,674
Yandi Joint Venture 85% 16,348 15,802 17,339 16,870 15,627 32,497 30,907
Jimblebar (6) 85% 4,583 4,669 15,092 16,333 14,320 30,653 10,866
Wheelarra 85% 8,734 8,006 614 114 30 144 16,538
Samarco 50% - - - - - - -
Total 61,557 57,691 63,586 61,391 57,835 119,226 117,144
Coal
Metallurgical coal
Production (kt) (7)
BMA 50% 7,394 7,983 9,220 7,744 7,694 15,438 15,690
BHP Mitsui Coal (8) 80% 2,291 2,396 2,789 2,614 2,578 5,192 4,562
Total 9,685 10,379 12,009 10,358 10,272 20,630 20,252
Energy coal
Production (kt)
Australia 100% 4,383 3,662 6,261 3,982 4,311 8,293 8,618
Colombia 33.3% 2,914 2,444 2,762 2,658 2,356 5,014 5,411
Total 7,297 6,106 9,023 6,640 6,667 13,307 14,029
Other
Nickel
Saleable production (kt)
Nickel West (9) 100% 23.1 21.1 25.6 21.4 18.1 39.5 46.4
Total 23.1 21.1 25.6 21.4 18.1 39.5 46.4
Cobalt
Saleable production (t)
Nickel West 100% 263 240 277 249 154 403 543
Total 263 240 277 249 154 403 543
(1) LPG and ethane are reported as natural gas liquids (NGL).
Product-specific conversions are made and NGL is reported in
barrels of oil equivalent (boe). Total boe conversions are based on
6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal.
(3) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
(4) Includes Cerro Colorado and Spence.
(5) Iron ore production is reported on a wet tonnes basis.
(6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of
saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%.
(9) Production restated to include other nickel by-products.
Throughout this report figures in italics indicate that this
figure has been adjusted since it was previously reported.
12
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Petroleum - Conventional
(1)
Bass Strait
Crude oil and condensate (Mboe) 1,513 1,126 1,361 1,653 1,401 3,054 3,328
NGL (Mboe) 1,584 1,170 1,428 1,840 1,447 3,287 3,534
Natural gas (bcf) 32.9 20.5 29.9 35.1 25.2 60.3 75.5
Total petroleum products (MMboe) 8.6 5.7 7.8 9.3 7.0 16.4 19.4
North West Shelf
Crude oil and condensate (Mboe) 1,442 1,377 1,267 1,514 1,520 3,034 2,916
NGL (Mboe) 200 210 186 242 206 448 427
Natural gas (bcf) 36.2 35.8 34.2 36.6 37.5 74.1 72.4
Total petroleum products (MMboe) 7.7 7.6 7.2 7.9 8.0 15.8 15.4
Pyrenees
Crude oil and condensate (Mboe) 1,210 1,250 1,168 282 1,101 1,383 2,720
Total petroleum products (MMboe) 1.2 1.3 1.2 0.3 1.1 1.4 2.7
Other Australia (2)
Crude oil and condensate (Mboe) 8 8 7 7 8 15 17
Natural gas (bcf) 13.3 13.4 13.9 13.8 13.9 27.7 29.4
Total petroleum products (MMboe) 2.2 2.2 2.3 2.3 2.3 4.6 4.9
Atlantis (3)
Crude oil and condensate (Mboe) 3,377 3,459 3,471 3,190 3,802 6,992 6,399
NGL (Mboe) 195 248 217 215 268 483 413
Natural gas (bcf) 1.8 1.8 1.5 1.5 1.9 3.4 3.4
Total petroleum products (MMboe) 3.9 4.0 3.9 3.7 4.4 8.0 7.4
Mad Dog (3)
Crude oil and condensate (Mboe) 1,231 1,140 581 1,270 1,158 2,428 2,251
NGL (Mboe) 72 55 27 61 54 115 116
Natural gas (bcf) 0.2 0.2 0.1 0.2 0.2 0.4 0.3
Total petroleum products (MMboe) 1.3 1.2 0.6 1.4 1.2 2.6 2.4
Shenzi (3)
Crude oil and condensate (Mboe) 2,513 2,323 2,110 2,016 2,024 4,040 4,804
NGL (Mboe) 184 140 151 122 121 243 325
Natural gas (bcf) 0.5 0.4 0.4 0.4 0.4 0.8 0.9
Total petroleum products (MMboe) 2.8 2.5 2.3 2.2 2.2 4.4 5.3
13
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Petroleum - Conventional
(1)
(continued)
Trinidad/Tobago
Crude oil and condensate (Mboe) 135 232 233 447 200 647 253
Natural gas (bcf) 10.5 10.0 9.8 24.0 14.0 38.0 20.2
Total petroleum products (MMboe) 1.9 1.9 1.9 4.4 2.5 7.0 3.6
Other Americas (3)
(4)
Crude oil and condensate (Mboe) 207 189 313 207 218 425 436
NGL (Mboe) 3 3 22 3 4 7 8
Natural gas (bcf) 0.1 - 0.3 - 0.1 0.1 0.2
Total petroleum products (MMboe) 0.2 0.2 0.4 0.2 0.2 0.4 0.5
UK (5)
Crude oil and condensate (Mboe) 22 43 38 36 36 72 62
NGL (Mboe) 13 18 18 21 21 42 52
Natural gas (bcf) 0.6 0.8 0.6 0.7 0.7 1.4 1.1
Total petroleum products (MMboe) 0.1 0.2 0.2 0.2 0.2 0.3 0.3
Algeria
Crude oil and condensate (Mboe) 960 969 888 961 908 1,869 1,898
Total petroleum products (MMboe) 1.0 1.0 0.9 1.0 0.9 1.9 1.9
Petroleum - Total
(1)
Conventional
Crude oil and condensate (Mboe) 12,618 12,116 11,437 11,583 12,376 23,959 25,084
NGL (Mboe) 2,251 1,844 2,049 2,504 2,121 4,625 4,875
Natural gas (bcf) 96.1 82.9 90.7 112.3 93.9 206.2 203.4
Total (Mboe) 30,886 27,777 28,603 32,804 30,147 62,951 63,859
Total petroleum production
(MMboe) 48,392.0 44,716.0 48,952.0 52,854.7 36,061.0 88,916 98,678
(1) Total boe conversions are based on 6 bcf of natural gas
equals 1 MMboe. Negative production figures represent finalisation
adjustments.
(2) Other Australia includes Minerva and Macedon.
(3) Gulf of Mexico volumes are net of royalties.
(4) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(5) BHP completed the sale of its interest in the Bruce and
Keith oil and gas fields on 30 November 2018. The sale has an
effective date of 1 January 2018.
14
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Copper
Metals production is payable metal
unless otherwise stated.
Escondida, Chile (1)
Material mined (kt) 101,371 103,385 106,788 107,260 105,580 212,840 206,238
Sulphide ore milled (kt) 30,260 32,203 31,732 30,513 30,507 61,020 54,340
Average concentrator
head grade (%) 0.98% 0.96% 0.96% 0.94% 0.87% 0.91% 1.02%
Production ex mill (kt) 245.7 252.6 253.6 241.9 219.9 461.8 449.9
Production
Payable copper (kt) 238.5 244.9 246.1 240.0 212.6 452.6 434.8
Copper cathode (EW) (kt) 76.1 69.4 70.1 55.4 71.9 127.3 148.0
- Oxide leach (kt) 27.4 24.5 27.1 19.5 23.4 42.9 49.8
- Sulphide leach (kt) 48.7 44.9 43.0 35.8 48.5 84.3 98.2
Total copper (kt) 314.6 314.3 316.2 295.4 284.5 579.9 582.8
(troy
Payable gold concentrate oz) 50,279 59,953 68,345 63,578 73,726 137,304 100,804
(troy
Payable silver concentrate koz) 2,193 2,339 2,527 1,997 2,570 4,567 3,930
Sales
Payable copper (kt) 236.7 228.3 260.3 216.5 229.2 445.7 431.8
Copper cathode (EW) (kt) 84.1 61.7 80.9 53.2 72.3 125.5 145.7
(troy
Payable gold concentrate oz) 50,279 59,953 68,345 63,578 73,726 137,304 100,804
(troy
Payable silver concentrate koz) 2,193 2,339 2,527 1,997 2,570 4,567 3,930
(1) Shown on a 100% basis. BHP interest in saleable production
is 57.5%.
Pampa Norte, Chile
Cerro Colorado
Material mined (kt) 20,191 17,766 17,918 18,488 19,875 38,363 41,572
Ore milled (kt) 4,611 4,905 4,833 4,802 5,069 9,871 8,562
Average copper grade (%) 0.59% 0.58% 0.58% 0.53% 0.62% 0.58% 0.60%
Production
Copper cathode (EW) (kt) 17.4 13.6 19.0 14.2 19.4 33.6 30.7
Sales
Copper cathode (EW) (kt) 17.7 13.7 20.9 13.8 19.0 32.8 30.0
Spence
Material mined (kt) 23,096 21,463 23,103 23,007 21,661 44,668 45,410
Ore milled (kt) 4,919 5,144 4,009 5,642 5,428 11,070 10,294
Average copper grade (%) 1.18% 1.03% 1.11% 1.15% 1.07% 1.11% 1.20%
Production
Copper cathode (EW) (kt) 51.0 53.2 51.6 29.2 42.4 71.6 95.7
Sales
Copper cathode (EW) (kt) 52.2 49.8 57.1 29.7 39.1 68.8 95.2
15
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Copper (continued)
Metals production is payable metal unless otherwise stated.
Antamina, Peru
Material mined (100%) (kt) 59,125 58,085 59,002 62,470 62,850 125,320 118,341
Sulphide ore milled
(100%) (kt) 13,098 12,166 12,973 13,197 12,912 26,109 25,920
Average head grades
- Copper (%) 0.89% 1.01% 0.91% 0.96% 1.02% 0.99% 0.91%
- Zinc (%) 0.93% 1.01% 1.19% 1.10% 0.85% 0.98% 0.96%
Production
Payable copper (kt) 33.8 35.2 34.6 37.0 38.3 75.3 69.7
Payable zinc (t) 29,054 25,562 35,983 30,558 24,237 54,795 58,255
(troy
Payable silver koz) 1,331 1,189 1,321 1,309 1,178 2,487 2,927
Payable lead (t) 1,009 464 546 563 600 1,163 2,424
Payable molybdenum (t) 579 420 261 464 417 881 981
Sales
Payable copper (kt) 37.0 32.1 36.6 33.6 40.7 74.3 68.9
Payable zinc (t) 30,340 26,456 33,088 31,822 26,072 57,894 55,564
(troy
Payable silver koz) 1,470 1,052 1,311 1,193 1,236 2,429 2,945
Payable lead (t) 972 859 595 612 649 1,261 2,596
Payable molybdenum (t) 693 500 388 208 535 743 861
Olympic Dam, Australia
Material mined (1) (kt) 1,391 2,056 2,201 2,044 2,434 4,478 3,242
Ore milled (kt) 554 2,188 2,171 1,242 2,157 3,399 2,856
Average copper grade (%) 2.22% 2.36% 2.12% 2.05% 2.10% 2.08% 2.12%
Average uranium grade (kg/t) 0.58 0.71 0.69 0.62 0.62 0.62 0.56
Production
Copper cathode (ER
and EW) (kt) 12.2 40.5 42.0 33.3 31.6 64.9 54.2
Uranium oxide concentrate (t) 243 1,118 1,123 559 936 1,495 1,123
(troy
Refined gold oz) 15,969 28,989 33,497 23,471 17,856 41,327 29,070
(troy
Refined silver koz) 135 248 278 213 212 425 266
Sales
Copper cathode (ER
and EW) (kt) 24.3 36.8 46.0 33.9 26.6 60.5 55.9
Uranium oxide concentrate (t) 338 509 1,230 765 828 1,593 1,018
(troy
Refined gold oz) 17,999 20,715 35,714 21,145 17,812 38,957 40,434
(troy
Refined silver koz) 118 202 307 216 177 393 337
(1) Material mined refers to run of mine ore mined and
hoisted.
16
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Iron Ore
Iron ore production and sales are reported on a wet tonnes basis.
Pilbara, Australia
Production
Newman (kt) 18,317 16,412 18,500 16,378 17,578 33,956 32,159
Area C Joint Venture (kt) 13,575 12,802 12,041 11,696 10,280 21,976 26,674
Yandi Joint Venture (kt) 16,348 15,802 17,339 16,870 15,627 32,497 30,907
Jimblebar (1) (kt) 4,583 4,669 15,092 16,333 14,320 30,653 10,866
Wheelarra (kt) 8,734 8,006 614 114 30 144 16,538
Total production (kt) 61,557 57,691 63,586 61,391 57,835 119,226 117,144
Total production (100%) (kt) 71,611 67,048 72,145 69,342 65,515 134,857 135,898
Sales
Lump (kt) 15,145 13,993 15,173 15,014 14,020 29,034 29,041
Fines (kt) 45,769 44,332 47,730 46,527 44,059 90,586 86,502
Total (kt) 60,914 58,325 62,903 61,541 58,079 119,620 115,543
Total sales (100%) (kt) 70,733 67,799 71,385 69,421 65,758 135,179 134,055
(1) Shown on a 100% basis. BHP interest in saleable production is 85%.
Samarco, Brazil (1)
Production (kt) - - - - - - -
Sales (kt) 14 25 - - 10 10 14
(1) Mining and processing operations remain suspended following
the failure of the Fundão tailings dam and Santarém water dam on 5
November 2015.
17
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Coal
Coal production is reported on the
basis of saleable product.
Queensland Coal
Production (1)
BMA
Blackwater (kt) 1,470 1,384 1,849 1,704 1,680 3,384 3,455
Goonyella (kt) 1,369 2,314 2,639 1,989 1,813 3,802 3,008
Peak Downs (kt) 1,367 1,723 1,658 1,131 1,662 2,793 2,969
Saraji (kt) 1,198 1,240 1,201 1,111 1,288 2,399 2,612
Daunia (kt) 718 547 629 620 419 1,039 1,380
Caval Ridge (kt) 1,272 775 1,244 1,189 832 2,021 2,266
Total BMA (kt) 7,394 7,983 9,220 7,744 7,694 15,438 15,690
BHP Mitsui Coal (2)
South Walker Creek (kt) 1,524 1,490 1,615 1,505 1,636 3,141 2,924
Poitrel (kt) 767 906 1,174 1,109 942 2,051 1,638
Total BHP Mitsui Coal (kt) 2,291 2,396 2,789 2,614 2,578 5,192 4,562
Total Queensland Coal (kt) 9,685 10,379 12,009 10,358 10,272 20,630 20,252
Sales
Coking coal (kt) 6,341 7,177 8,489 7,356 7,514 14,870 14,275
Weak coking coal (kt) 2,816 2,598 2,866 2,813 3,058 5,871 5,966
Thermal coal (kt) 173 168 85 141 157 298 275
Total (kt) 9,330 9,943 11,440 10,310 10,729 21,039 20,516
(1) Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
18
NSW Energy Coal, Australia
Production (kt) 4,383 3,662 6,261 3,982 4,311 8,293 8,618
Sales
Export thermal coal (kt) 4,048 3,181 5,795 3,549 4,809 8,358 7,670
Inland thermal coal (kt) 411 400 160 332 393 725 816
Total (kt) 4,459 3,581 5,955 3,881 5,202 9,083 8,486
Cerrejón, Colombia
Production (kt) 2,914 2,444 2,762 2,658 2,356 5,014 5,411
Sales thermal coal
- export (kt) 2,619 2,480 2,763 2,589 2,297 4,886 5,137
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Other
Nickel production is reported on the basis of saleable product
Nickel West, Australia
Mt Keith
Nickel concentrate (kt) 49.8 44.9 55.6 50.2 44.9 95.1 104.2
Average nickel grade (%) 20.3 21.3 18.8 18.9 19.8 38.7 40.7
Leinster
Nickel concentrate (kt) 87.6 54.7 78.4 78.8 65.3 144.1 166.3
Average nickel grade (%) 8.8 9.3 9.8 8.4 8.4 16.8 18.1
Saleable production
Refined nickel (1)
(2) (kt) 17.7 19.2 18.5 19.8 16.3 36.1 33.7
Intermediates and
nickel by-products
(1) (3) (kt) 5.4 1.9 7.1 1.6 1.8 3.4 12.7
Total nickel (1) (kt) 23.1 21.1 25.6 21.4 18.1 39.5 46.4
Cobalt by-products (t) 263 240 277 249 154 403 543
Sales
Refined nickel (1)
(2) (kt) 17.7 19.5 17.5 19.3 17.3 36.6 34.0
Intermediates and
nickel by-products
(1) (3) (kt) 6.9 2.5 6.3 2.2 2.1 4.3 11.9
Total nickel (1) (kt) 24.6 21.9 23.8 21.5 19.4 40.9 45.9
Cobalt by-products (t) 263 240 277 249 154 403 543
(1) Production and sales restated to include other nickel by-products.
(2) High quality refined nickel metal, including briquettes and powder.
(3) Nickel contained in matte and by-product streams.
19
Production and sales report
Quarter ended Year to date
Dec Mar Jun Sep Dec Dec Dec
2017 2018 2018 2018 2018 2018 2017
Onshore US - Discontinued operations (1)(2)
Eagle Ford (3)
Crude oil and condensate (Mboe) 3,720 2,838 3,826 3,256 1,035 4,291 7,177
NGL (Mboe) 2,100 1,555 1,767 1,919 614 2,533 3,956
Natural gas (bcf) 14.4 12.6 13.9 13.8 4.3 18.1 28.2
Total petroleum products (MMboe) 8.2 6.5 7.9 7.5 2.4 9.8 15.8
Permian (3)
Crude oil and condensate (Mboe) 1,142 1,398 1,903 1,478 631 2,109 2,321
NGL (Mboe) 460 465 770 687 284 971 1,047
Natural gas (bcf) 3.6 4.1 6.4 4.8 1.9 6.7 8.1
Total petroleum products (MMboe) 2.2 2.5 3.7 3.0 1.2 4.2 4.7
Haynesville (3)
Crude oil and condensate (Mboe) 1 - - 11 - 11 1
NGL (Mboe) - - - - - - -
Natural gas (bcf) 22.0 28.7 33.1 39.0 13.9 52.9 43.5
Total petroleum products (MMboe) 3.7 4.8 5.5 6.5 2.3 8.8 7.3
Fayetteville (4)
Natural gas (bcf) 20.5 18.7 19.1 18.6 - 18.6 42.1
Total petroleum products (MMboe) 3.4 3.1 3.2 3.1 - 3.1 7.0
Onshore US
Crude oil and condensate (Mboe) 4,863 4,236 5,729 4,745 1,666 6,411 9,499
NGL (Mboe) 2,560 2,020 2,537 2,606 898 3,504 5,003
Natural gas (bcf) 60.5 64.1 72.5 76.2 20.1 96.3 121.9
Total (Mboe) 17,506 16,939 20,349 20,051 5,914 25,965 34,819
(1) Total boe conversions are based on 6 bcf of natural gas
equals 1 MMboe. Negative production figures represent finalisation
adjustments.
(2) Volumes are net of mineral holder royalties.
(3) BHP completed the sale of its interests in the Eagle Ford,
Haynesville and Permian assets on 31 October 2018.
(4) BHP completed the sale of its Fayetteville assets on 28
September 2018.
20
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