BIL - BHP Billiton Plc - Exploration and development report For the quarter

Release Date: 18/04/2012 07:06
Code(s): BIL
 
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BIL - BHP Billiton Plc - Exploration and development report For the quarter ended 31 March 2012 BHP BILLITON PLC SHARE CODE: BIL ISIN: GB0000566504 NEWS RELEASE 18 April 2012 11/12 BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT FOR THE QUARTER ENDED 31 MARCH 2012 This report covers the Group`s exploration and development activities for the March 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`s commitment to developing its portfolio of high return growth projects, diversified by commodity, geography and market was further reinforced by the approval of additional investment in its world class Base Metals, Iron Ore and Petroleum businesses. During the March 2012 quarter, BHP Billiton announced approval of the US$2.2 billion (BHP Billiton share) Escondida Organic Growth Project 1 (OGP1) which involves the replacement of an existing concentrator and allows access to valuable, higher grade ore. BHP Billiton also approved the US$414 million (BHP Billiton share) Escondida Oxide Leach Area Project (OLAP). In addition, pre-commitment expenditure of US$779 million (BHP Billiton share) for the proposed Western Australia Iron Ore (WAIO) Outer Harbour development was approved. This funding will enable feasibility studies to progress, the procurement of long lead time items and for dredging to begin, subject to the necessary regulatory approvals. On 11 April 2012, BHP Billiton also approved pre-commitment funding of US$708 million (BHP Billiton share) for the Mad Dog Phase 2 project in the deepwater Gulf of Mexico which will facilitate detailed engineering and the procurement of long lead time items related to the hull, topsides and subsea equipment. The Worsley Efficiency & Growth project will no longer be reported in future Exploration and Development Reports as it achieved first production in the March 2012 quarter and is 98 per cent complete. BHP Billiton`s Onshore US drilling and development expenditure totalled US$2.2 billion for the nine months ended March 2012. Project and Share of Initial Production Quarterly progress ownership approved productio capacity (100%) capex n target (US$m) date Petroleum projects Macedon 1,050 CY13 200 million On schedule and budget. (Australia) cubic feet gas The overall project is 71.43% Gas per day. 57% complete. Bass Strait 900 CY12(a) 10,000 bpd On revised schedule and Kipper
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