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BHP BILLITON PLC - 2016 Petroleum Investor Briefing

Release Date: 05/10/2016 07:50
Code(s): BIL     PDF:  
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2016 Petroleum Investor Briefing

BHP Billiton Plc
Registration number 3196209
Registered in England and Wales
Share code: BIL
ISIN: GB0000566504


Issued by:                    BHP Billiton Plc


Date:                         5 October 2016


To:                           London Stock Exchange
                              JSE Limited


For Release:                  Immediately


Contact:                      Helen Ratsey +44 (0) 20 7802 7540



                         BHP Billiton Plc – 2016 Petroleum Investor Briefing



 UK Listing Authority Submissions

 The following document has today been submitted to the National Storage Mechanism
 and will shortly be available for inspection at www.hemscott.com/nsm.do:

           •       2016 Petroleum Investor Briefing

 The document may also be accessed via BHP Billiton’s website - www.bhpbilliton.com

 BHP Billiton Plc Registration number 3196209
 Registered in England and Wales
 Registered Office: Neathouse Place London SW1V 1LH United Kingdom

 A member of the BHP Billiton Group which is headquartered in Australia


 Sponsor: UBS South Africa (Pty) Limited


 NEWS RELEASE

 Release Time            IMMEDIATE
 Date                    5 October 2016
 Location                London, United Kingdom
 Number                  23/16

RICH SET OF OPPORTUNITIES TO DRIVE VALUABLE GROWTH

BHP Billiton today outlined the broad range of opportunities within its Petroleum
business to grow value, returns and cash flow as markets improve.

Speaking at an investor briefing in London, BHP Billiton President Operations
Petroleum, Steve Pastor said “Having both minerals and petroleum in our portfolio
allows us to maximise the value of our petroleum assets at the right point in the cycle.”

“While currently well supplied, underlying fundamentals suggest both oil and gas
markets are improving more quickly than our minerals commodities.”

“Over the next decade, demand growth, natural field decline and the effects of industry
wide investment deferrals are expected to create a significant opportunity to invest
and maximize value in oil. By 2025 the world is expected to consume more than
100,000 barrels of liquids per day – a third of which would come from new sources.

“We are well placed to capitalise on this opportunity. We have a large, high quality
resource base. Our focus on productivity has significantly reduced both operating and
capital costs, supporting a range of shale and conventional investment opportunities
that would generate compelling returns at today’s prices. As a result, Petroleum is well
placed to maintain its position as BHP Billiton’s highest margin business and to grow
its free cash flow contribution.”

BHP Billiton runs its Onshore US assets to maximise value rather than volumes and
will continue to adjust its investment plans to reflect market conditions.

“Our Onshore US business gives us valuable flexibility. Our shale assets generate
cash at current prices, with significant upside should oil and gas prices recover as we
expect,” Mr Pastor said.

“We operate in the heart of some of the best shale plays and by further reducing costs
and improving capital efficiency to levels among the best in the industry, we have
increased our investible well inventory. As a result, we now have up to 1,200 undrilled
net oil wells, contingent upon trials in the Eagle Ford, and 220 undrilled net gas wells
that generate a minimum 15 per cent internal rate of return (IRR) at US$50 per barrel
of oil and US$3 per MMbtu.

“In the Permian, we have access to over one billion barrels of oil equivalent (boe)
meaning this field has the potential to become the largest production and free cash
contributor in our Petroleum portfolio within five years.”

In Conventional, BHP Billiton is expecting unit operating costs to remain at
approximately US$10 per boe over the 2017 and 2018 financial years as it pursues a
number of options to extend high margin production from its existing facilities.

“We have a rich portfolio of brownfield project options, with total capital expenditure of
US$2.5 billion and an average IRR of 45 per cent that will help offset field decline.
With significant improvements in capital efficiency, major capital projects like Mad Dog
2 are now economically attractive, even below US$50 per barrel of oil,” Mr Pastor
said.

BHP Billiton today also announced positive drilling results at the Caicos exploration
well in the Gulf of Mexico. Located in Green Canyon 564, this well is approximately
100 miles south of the Louisiana coast in the deep water Gulf of Mexico. Caicos was
drilled to a total depth of 30,803 feet and encountered oil in multiple horizons.

“We are encouraged by the Caicos results and are moving to further appraise the
area. The next step will be drilling the Wildling well in November. With success at
Caicos and Shenzi North, we continue to be optimistic around the opportunity for a
commercial development in the area.”

Further information on BHP Billiton can be found at: bhpbilliton.com


Media Relations                                   Investor Relations


Australia and Asia                                Australia and Asia


Matthew Martyn-Jones                              Tara Dines
Tel: +61 7 3227 5816 Mobile +61 419 418 394       Tel: +61 3 9609 2222 Mobile: +61 499 249 005
Email: Matthew.Martyn-Jones@bhpbilliton.com       Email: Tara.Dines@bhpbilliton.com


Paul Hitchins                                     Andrew Gunn
Tel: +61 3 9609 2592 Mobile +61 419 315 001       Tel: +61 3 9609 3575 Mobile: +61 402 087 354
Email: Paul.Hitchins@bhpbilliton.com              Email: Andrew.Gunn@bhpbilliton.com


Fiona Hadley                                      United Kingdom and South Africa
Tel: +61 3 9609 2211 Mobile +61 427 777 908
Email: Fiona.Hadley@bhpbilliton.com               Rob Clifford
                                                  Tel: +44 20 7802 4131 Mobile: +44 7788 308 844
Amanda Saunders                                   Email: Rob.Clifford@bhpbilliton.com
Tel: +61 3 9609 3935 Mobile +61 417 487 973
Email: Amanda.Saunders@bhpbilliton.com            Elisa Morniroli
                                                  Tel: +44 20 7802 7611 Mobile: +44 7825 926 646
United Kingdom and South Africa                   Email: Elisa.Morniroli@bhpbilliton.com


Ruban Yogarajah                                   Americas
Tel: +44 207 802 4033 Mobile +44 7827 082 022
Email: Ruban.Yogarajah@bhpbilliton.com            James Wear
                                                  Tel: +1 713 993 3737 Mobile: +1 347 882 3011
North America                                     Email: James.Wear@bhpbilliton.com


Bronwyn Wilkinson
Mobile: +1 604 340 8753
Email: Bronwyn.Wilkinson@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: Level 18, 171 Collins Street   Registered Office: Neathouse Place
Melbourne Victoria 3000 Australia                 London SW1V 1LH United Kingdom
Tel +61 1300 55 4757 Fax +61 3 9609 3015          Tel +44 20 7802 4000 Fax +44 20 7802 4111

Members of the BHP Billiton Group which is
headquartered in Australia

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