BHP Billiton PLC (BLT) - Exploration and Development Report 30 Sept 2012 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$4.0 billion. Over 80 per cent of this expenditure will be focused on the liquids rich Eagle Ford shale and Permian Basin. Share of approved Initial Project and capex production Quarterly ownership (US$m) target date Production capacity (100%) progress Petroleum projects Macedon On schedule (Australia) and budget. 71.43% The overall 200 million cubic feet gas project is Operator Gas 1,050 CY13 per day. 80% complete. Bass Strait Kipper (Australia) The offshore 32.5% - 50% 10,000 bpd condensate and production processing capacity of 80 facilities Non operator million cubic feet gas per are 100% Gas/Gas Liquids 900 CY12(a) day. complete. Bass Strait On revised Turrum schedule and (Australia) 50% 11,000 bpd condensate and budget. The processing capacity of 200 overall Non operator million cubic feet gas per project is Gas/Gas Liquids 1,350 CY13 day. 81% complete. On budget. Steady state North West Shelf production North Rankin B remains on Gas Compression track for (Australia) CY13. The 16.67% overall 2,500 million cubic feet project is Non operator LNG 850 CY13 gas per day. 96% complete. North West Shelf Greater Western Flank-A (Australia) 16.67% On schedule and budget. Non operator To maintain LNG plant The overall throughput from the North project is LNG 400 CY16 West Shelf operations. 26% complete. Minerals projects Escondida Organic Growth Project 1 (Chile) On schedule and budget. 57.5% Replaces the Los Colorados The overall concentrator with a new project is Copper 2,207 H1 CY15 152,000 tpd plant. 17% complete. Escondida Oxide Leach Area Project On schedule and budget. (Chile) The overall New dynamic leaching pad project is 57.5% and mineral handling 20% complete. system. Maintains oxide Copper 414 H1 CY14 leaching capacity. EKATI Misery On schedule Open Pit Project Project consists of a and budget. (Canada) 80% pushback of the existing The overall Misery open pit which was project is Diamonds 323 CY15 mined from 2001 to 2005. 30% complete. Increases mining and processing capacity to WAIO Jimblebar 35milliontpa with On schedule Mine Expansion incremental and budget. (Australia) 96% debottlenecking The overall opportunities to project is Iron Ore 3,300(b) Q1 CY14 55milliontpa. 52% complete. WAIO Port Hedland Inner Increases total inner Harbour harbour capacity to On schedule Expansion 220milliontpa with and budget. (Australia) 85% debottlenecking The overall opportunities to project is Iron Ore 1,900(b) H2 CY12 240milliontpa. 69% complete. WAIO Port Blending and Rail Yard On schedule Facilities and budget. (Australia) 85% Optimises resource and The overall enhances efficiency across project is Iron Ore 1,400(b) H2 CY14 the WAIO supply chain. 32% complete. On schedule WAIO Orebody 24 Maintains iron ore and budget. (Australia) 85% production output from the The overall Newman Joint Venture project is Iron Ore 698 H2 CY12 operations. 45% complete. Samarco Fourth On schedule Pellet Plant Increases iron ore pellet and budget. (Brazil) 50% production capacity by The overall 8.3milliontpa to project is Iron Ore 1,750 H1 CY14 30.5milliontpa. 59% complete. Daunia Greenfield mine On schedule (Australia) 50% development with capacity and budget. to produce 4.5milliontpa The overall Metallurgical of export metallurgical project is Coal 800 CY13 coal. 68% complete. Broadmeadow Life Extension Increases productive On schedule (Australia) 50% capacity by and budget. 0.4milliontpa and The overall Metallurgical extends life of the mine project is Coal 450 CY13 by 21 years. 83% complete. Hay Point Stage On schedule Three Expansion Increases port capacity and budget. (Australia) 50% from 44 million tpa to The overall Metallurgical 55milliontpa and reduces project is Coal 1,250(b) CY14 storm vulnerability. 50% complete. Caval Ridge (Australia) Greenfield mine On schedule 50% development to produce an and budget. initial 5.5 million tpa of The overall Metallurgical export metallurgical project is Coal 1,870(b) CY14 coal(c). 48% complete. Appin Area 9 (Australia) Maintains Illawarra Coal's production capacity with a On schedule 100% replacement mining domain and budget. and capacity to produce The overall Metallurgical 3.5 million tpa of project is Coal 845 CY16 metallurgical coal. 25% complete. Increases saleable thermal On schedule Cerrejon P40 coal production by and budget. Project 8milliontpa to The overall (Colombia) 33.3% approximately project is Energy Coal 437 CY13 40milliontpa. 47% complete. Newcastle Third Port Project Stage 3 On schedule (Australia) Increases total coal and budget. 35.5% terminal capacity from The overall 53milliontpa to project is Energy Coal 367 CY14 66milliontpa. 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 Antonios Papaspiropoulos James Agar Tel: +61 3 9609 3830 Mobile: +61 477 325 Tel: +61 3 9609 2222 Mobile: +61 803 467 807 064 email: email: James.Agar@bhpbilliton.com Antonios.Papaspiropoulos@bhpbilliton.com Andrew Gunn Fiona Hadley Tel: +61 3 9609 3575 Mobile: +61 Tel: +61 3 9609 2211 Mobile: +61 427 777 439 558 454 908 email: email: Fiona.Hadley@bhpbilliton.com Andrew.Gunn@bhpbilliton.com Eleanor Nichols United Kingdom and South Africa Tel: +61 3 9609 2360 Mobile: +61 407 064 748 Tara Dines email: Eleanor.Nichols@bhpbilliton.com 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 Brendan Harris email: Ruban.Yogarajah@bhpbilliton.com 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 Melbourne Victoria 3000 Australia Place Tel +61 1300 55 4757 Fax +61 3 9609 3015 London SW1V 1BH United Kingdom Tel +44 20 7802 4000 Fax +44 20 7802 4111 Members of the BHP Billiton Group which is headquartered in Australia This information is provided by RNS The company news service from the London Stock Exchange END MSCFFIEFMFESEES -0- Oct/17/2012 06:00 GMT
BHP Billiton PLC BLT Exploration and Development Report 30 Sept 2012
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