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BHP Billiton Exploration and Development Report for the Quarter Ended 31 December 2012
BHP Billiton PLC
NEWS RELEASE
Release Time IMMEDIATE
Date 23 January 2013
Number 02/13
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 31 DECEMBER 2012
This report covers the Group’s exploration and development activities for the December 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 unchanged strategy, which is to invest in large, long life, low cost, expandable, upstream assets, diversified by
commodity, geography and market, ensures we are well placed to deliver high margin growth in our major
businesses. The Group has 20 low risk, largely brownfield projects in various stages of development and these
projects, all of which remain on schedule, are expected to generate strong financial returns for our shareholders.
The Western Australia Iron Ore (WAIO) Port Hedland Inner Harbour Expansion project achieved first production
during the December 2012 quarter as ore was received by the recently installed fifth car dumper at Finucane
Island. Debottlenecking and optimisation projects across the WAIO supply chain are currently being evaluated and
have the potential to underpin significant growth well beyond recently expanded port capacity of 220 million tonnes
per annum (100 per cent basis). WAIO Orebody 24 also delivered first production.
During the December 2012 quarter, BHP Billiton announced approval for a US$520 million (BHP Billiton share)
investment in the Longford Gas Conditioning Plant (LGCP) project as part of the Gippsland Basin Joint Venture
(Australia). The LGCP will add carbon dioxide (CO2) removal capacity which is necessary to condition production
from the Bass Strait Turrum project currently in development.
In addition, BHP Billiton signed a definitive agreement with PetroChina International Investment (Australia) Pty Ltd
during the period to sell its 8.33 per cent interest in the East Browse Joint Venture and 20 per cent interest in the
West Browse Joint Venture, located offshore Western Australia, for a cash consideration of US$1.63 billion. The
transaction is subject to regulatory approval and other customary conditions. Completion is expected in the first half
of calendar year 2013.
BHP Billiton’s Onshore US drilling and development expenditure for the December 2012 half year was
US$2.1 billion and guidance for the 2013 financial year remains unchanged at US$4.0 billion. Over 80 per cent of
this expenditure will be focused on the liquids rich areas of the Eagle Ford and Permian.
Project and Share of Initial Production capacity Quarterly
ownership approved production (100%) progress
capex (US$m) target date
Petroleum projects
Macedon 1,050 CY13 200 million cubic feet gas On schedule and budget. The overall
(Australia) per day. project is 90% complete.
71.43%
Operator
Gas
Bass Strait Turrum (a) 1,350 CY13 11,000 bpd condensate On revised schedule and budget. The
(Australia) and processing capacity overall project is 86% complete.
50% of 200 million cubic feet
Non operator gas per day.
Gas/Gas Liquids
Bass Strait Longford 520 CY16 Designed to process Approval announced. See News
Gas Conditioning Plant approximately 400 million Release dated 13 December 2012.
(Australia) cubic feet per day of high
50% CO2 gas.
Non operator
Gas
North West Shelf North 850 CY13 2,500 million cubic feet On budget. Steady state production
Rankin B Gas gas per day. remains on track for CY13. The overall
Compression project is 98% complete.
(Australia)
16.67%
Non operator
LNG
North West Shelf 400 CY16 To maintain LNG plant On schedule and budget. The overall
Greater Western throughput from the North project is 38% complete.
Flank-A West Shelf operations.
(Australia)
16.67%
Non operator
LNG
Minerals projects
Escondida Organic 2,207 H1 CY15 Replaces the Los On schedule and budget. The overall
Growth Project 1 Colorados concentrator project is 25% complete.
(Chile) with a new 152,000 tpd
57.5% plant.
Copper
Escondida Oxide Leach 414 H1 CY14 New dynamic leaching On schedule and budget. The overall
Area Project pad and mineral handling project is 28% complete.
(Chile) system. Maintains oxide
57.5% leaching capacity.
Copper
EKATI Misery Open Pit 323 CY15 Project consists of a On schedule and budget. The overall
Project(b) pushback of the existing project is 34% complete.
(Canada) Misery open pit which
80% was mined from 2001 to
Diamonds 2005.
WAIO Jimblebar Mine 3,300(c) Q1 CY14 Increases mining and On schedule and budget. The overall
Expansion processing capacity to project is 66% complete.
(Australia) 35 million tpa with
96% incremental
Iron Ore debottlenecking
opportunities to
55 million tpa.
WAIO Port Hedland 1,900(c) H2 CY12 Increases total inner First production was achieved in Q4
Inner Harbour harbour capacity to CY12. The overall project is 80%
Expansion 220 million tpa. complete.
(Australia) Debottlenecking
85% opportunities that would
Iron Ore add substantial, low cost
capacity are being evaluated.
WAIO Port Blending 1,400(c) H2 CY14 Optimises resource and On schedule and budget. The overall
and Rail Yard Facilities enhances efficiency project is 55% complete.
(Australia) across the WAIO supply
85% chain.
Iron Ore
WAIO Orebody 24 698 H2 CY12 Maintains iron ore First production was achieved in Q4
(Australia) production output from CY12. The overall project is 66%
85% the Newman Joint complete.
Iron Ore Venture operations.
Samarco Fourth Pellet 1,750 H1 CY14 Increases iron ore pellet On schedule and budget. The overall
Plant production capacity by project is 71% complete.
(Brazil) 8.3 million tpa to
50% 30.5 million tpa.
Iron Ore
Daunia 800 CY13 Greenfield mine On schedule and budget. The overall
(Australia) development with project is 82% complete.
50% 4.5 million tpa of export
Metallurgical Coal metallurgical coal
capacity.
Broadmeadow Life 450 CY13 Increases productive On schedule and budget. The overall
Extension capacity by 0.4 million tpa project is 95% complete.
(Australia) and extends life of the
50% mine by 21 years.
Metallurgical Coal
Hay Point Stage Three 1,250(c) CY14 Increases port capacity On schedule and budget. The overall
Expansion from 44 million tpa to project is 57% complete.
(Australia) 55 million tpa and
50% reduces storm
Metallurgical Coal vulnerability.
Caval Ridge 1,870(c) CY14 Greenfield mine On schedule and budget. The overall
(Australia) development to produce project is 52% complete.
50% an initial 5.5 million tpa of
Metallurgical Coal export metallurgical coal.
Appin Area 9 845 CY16 Maintains Illawarra Coal’s On schedule and budget. The overall
(Australia) production capacity with a project is 30% complete.
100% replacement mining
Metallurgical Coal domain and capacity to
produce 3.5 million tpa of
metallurgical coal.
Cerrejon P40 Project 437 CY13 Increases saleable On schedule and budget. The overall
(Colombia) thermal coal production project is 57% complete.
33.3% by 8 million tpa to
Energy Coal approximately
40 million tpa.
Newcastle Third Port 367 CY14 Increases total coal On schedule and budget. The overall
Project Stage 3 terminal capacity from project is 66% complete.
(Australia) 53 million tpa to
35.5% 66 million tpa.
Energy Coal
Minerals exploration
Greenfield minerals exploration is focused on advancing copper targets within Chile and Peru. Minerals exploration
expenditure for the December 2012 half year was US$363 million, of which US$272 million was expensed.
Petroleum exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 31 December 2012.
Well Location BHP Billiton equity Status
Atlantis East Gulf of Mexico 44% Plugged and abandoned
DC 211 (BP operator) Dry hole
Gunflint-3 Gulf of Mexico 11.2% Temporarily abandoned
MC948 (Noble operator) Hydrocarbons encountered
Under evaluation
Ness Deep Gulf of Mexico 50% Plugged and abandoned
GC507 (Operator) Hydrocarbons encountered
Non-commercial
Petroleum exploration expenditure for the December 2012 half year was US$308 million, of which US$276 million
was expensed. Petroleum exploration expenditure of approximately US$775 million is anticipated in the 2013
financial year with the majority of drilling activity scheduled to occur in the Gulf of Mexico.
(a) Initial production through the Turrum facilities, scheduled for the 2013 calendar year, will be low CO2 gas.
Additional high CO2 production from the Turrum reservoir will come online with completion of the Longford Gas
Conditioning Plant in the 2016 calendar year.
(b) BHP Billiton has agreed to sell its diamonds business, comprising its interests in the EKATI Diamond Mine and
Diamonds Marketing operations, to Harry Winston Diamond Mines Ltd for an aggregate cash consideration of
US$500 million. The transactions are subject to regulatory approval and other customary conditions. Completion
is expected in the first half of calendar year 2013.
(c) Excludes announced pre-commitment funding.
Further information on BHP Billiton can be found at: www.bhpbilliton.com
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Australia Australia
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