|
|
BHPBill quarterly report on development for 30 Jun
This report covers exploration and development activities for the quarter ended 30 June 2004. Unless otherwise stated, BHP Billiton`s interest in the projects referred to in this report is 100%, and references to quarters are based on calendar years. Of the 14 projects that were under construction during the quarter, 12 are within Board approved expenditure limits and are tracking on or ahead of schedule. The exceptions are Minerva and the ROD Integrated development. The Panda Underground, the Worsley Development Capital and the Escondida Sulphide Leach projects have received Board approval during the quarter.
PETROLEUM DEVELOPMENT
North West Shelf expansion, Australia (BHP Billiton 16.67%, non operated)
Overall progress on the fourth liquefaction processing train is 96% complete. At the end of June the construction phase was nearly complete, with pipe and vessels insulation still to be finished. Commissioning is 90% complete. The second trunkline was commissioned in mid February 2004. The project remains on budget (BHP Billiton’s share of capital expenditure is USD247 million).
Mad Dog Development, Gulf of Mexico, USA (BHP Billiton 23.9%, non-operated)
BHP Billiton announced its sanction of the Mad Dog field in February 2002, approving up to USD335 million for the development of this Gulf of Mexico oil and gas field. The sanctioned facility has been designed to produce at a daily rate of 80 000 barrels of crude oil and 40 million cubic feet of natural gas. At the end of June, work on the topsides continued on track with its offshore lift onto the hull, which was successfully installed at its offshore location in February. The project remains on budget and on schedule for targeted first production by the end of 2004.
Greater Angostura Development, Trinidad (BHP Billiton 45%, operated)
In March 2003, BHP Billiton approved USD327 million for the first development phase of the Greater Angostura oil and gas field off the northeast coast of Trinidad. During the quarter, fabrication of onshore facilities continued, including oil storage tanks, pipelines and associated infrastructure. Fabrication/manufacture is complete on the loading buoy, pipeline end manifold and associated anchors, chains and hoses, which have all been received in Trinidad. All four wellhead protector platforms and the jacket for the central processing platform have also been completed and installed offshore. The remaining offshore facilities are being completed and offshore pipeline installation is in progress. The project remains on budget and on schedule for first oil production by the end of 2004.
ROD Integrated Development, Algeria (BHP Billiton 36.04%, joint operating entity comprising BHP Billiton/SONATRACH)
The ROD Integrated Development consists of the development of six satellite oilfields in the Berkine Basin in eastern Algeria. The project will produce 80 000 barrels of Sahara Blend crude oil per day, with associated gas being re-injected into the reservoir together with water to provide pressure support to the reservoir. The development drilling has been concluded and a total of 34 development wells are currently available for production operations. As at the end of June over 6.75 million workhours have been completed at the construction site without a Lost Time Incident. Overall project progress is 93% complete. Lower than planned productivity at the construction site has impacted progress and first oil is now scheduled for fourth quarter 2004. The project is expected to be delivered within the original budget. BHP Billiton’s share is USD192 million.
Minerva, Australia (BHP Billiton 90%, operated)
Engineering design on the Minerva development is approaching completion, procurement activities are well advanced and major packages are being delivered to site. On site, foundations and concrete works are almost complete and mechanical and electrical installation activities are underway. All other parts of the Minerva Development are now ready to produce, with the Minerva 3 and 4 wells completed, onshore and offshore flowlines installed, and all tie-ins made from the wellhead through to the gas plant. Initial production is expected in the fourth quarter of 2004, and BHP Billiton’s share of capital expenditure is USD150 million.
Caesar/Cleopatra Transportation Systems, Gulf of Mexico, USA (BHP Billiton interest in Caesar pipeline, 25%; interest in Cleopatra pipeline, 22%. Non-operated)
BHP Billiton acquired a 25% interest in the Caesar oil pipeline and a 22% interest in the Cleopatra gas pipeline, which will transport product from the Mad Dog and Atlantis fields to pipelines closer to shore. Construction of the system to the Mad Dog field is complete. During the quarter, risers connecting the hull of the Mad Dog production facility to the Caesar and Cleopatra pipelines were installed. Expenditure of up to USD132 million has been approved by the Board for this project. The project is on budget and on schedule to begin operation with first production at third-party facilities, in advance of first hydrocarbon production from Mad Dog and Atlantis.
Atlantis Development, Gulf of Mexico, USA (BHP Billiton 44%, non-operated)
BHP Billiton completed full capital allocation for the Atlantis project in February 2003. The group`s share of total project expenditure is USD1.1 billion. The sanctioned facility is designed to produce at a daily rate of up to 150 000 barrels of crude oil and 180 million cubic feet of natural gas. During the quarter, batch setting operations were completed for the initial 15 wells of the development. The hull entered the dry-dock, and the topsides` lower and upper sections for each module were moved to the outdoor erection site for the completion of further work on these facilities. The project remains on budget and on schedule for first production in the third quarter of 2006.
MINERALS DEVELOPMENT
Aluminium
Worsley Alumina Development Capital Projects (DCP), Australia (BHP Billiton 86%)
The Worsley Alumina Development Capital Projects (DCP) was approved in May 2004 for an amount of USD192 million (USD165 million BHP Billiton share). The project will increase alumina production by 250 000 tonnes per annum (215 000 tonnes per annum BHP Billiton share) to a capacity of 3.5 million tonnes per annum (3.01 million tonnes per annum BHP Billiton share). Engineering and procurement activities have commenced. Civil and piling contractors have commenced construction work and are progressing on schedule. Commissioning of DCP is scheduled for the first quarter of 2006.
Base Metals
Escondida Norte, Chile (BHP Billiton 57.5%)
The development of the Escondida Norte pit, located approximately 5km north of the existing Escondida mining operations, was approved in June 2003. Pre-mine waste stripping continued during the quarter, using both contractor and Escondida equipment, with a third truck-shovel fleet commencing during June 2004. Total material movement in the pre-mine to the end of June 2004 was 47.9 million tonnes. Construction development during the period involved the partial erection of the mine fleet maintenance work shop, commencement of the crusher foundation area and its associated retaining wall, partial construction of the overland conveyor alignment and near completion of the light vehicle access road. Pre-mine development, design and construction activities are currently on track to meet first ore delivery to the crusher in the fourth quarter of 2005. Development costs are estimated at USD400 million (BHP Billiton share USD230 million).
Escondida Sulphide Leach, Chile (BHP Billiton 57.5%)
The Escondida Sulphide Leach project was approved in April 2004. The project will produce 180 000 tonnes (103 500 tonnes BHP Billiton share) of copper cathode per annum, utilising a bacterially assisted leaching process on low-grade run-of-mine ore from both the Escondida and Escondida Norte pits. The resulting solutions will then be treated in conventional solvent extraction and electrowinning plants. Detailed engineering is underway and preliminary site work has started to develop the temporary construction facilities. Development costs are estimated at USd870 million (USD500 million BHP Billiton share) and production is scheduled to begin during the second half of 2006.
Carbon Steel Materials
Dendrobium Coal Project, Australia
The Dendrobium Mine will be a low cost underground longwall operation capable of producing 5.2 Mtpa of raw coal (3.6 Mtpa of clean coal). Board approved capital expenditure is USD170 million. Construction activities associated with the mine surface facilities, ventilation shaft, washery upgrade and Kemira Valley Rail Coal Loading facilities have been completed and successfully commissioned. Construction activities associated with the thermal drier are well underway. The majority of the project’s remaining work is related to the underground drivage required to install and commission the longwall. All mining units have passed through the zone where difficult mining conditions had been experienced during the last quarter and are producing at expected rates. A review of project costs is currently underway. We continue to expect longwall commencement in the middle of 2005.
Diamonds and Specialty Products
Panda Underground Project, Ekati Diamond Mine, Canada (BHP Billiton 80%, Operated)
The Panda Underground Project was approved in May 2004. The project is a 2 600 tonnes per day sublevel retreat mine that will deliver approximately 4.6 million tonnes of ore and 4.7 million carats of high value Panda diamonds to the Ekati process plant over a 6 year production life. The project was initiated in July 2003 to fast track its development and prepare for delivery of critical material on the 2004 ice road. Overall project progress is 29% complete. The capital cost for the project is expected to be USD182 million (BHP Billiton share USD146 million), with first ore production on schedule for early 2005.
Stainless Steel Materials
Ravensthorpe Nickel Project, Australia
The Ravensthorpe Nickel Project was approved in March 2004. The project includes the development of a mine, treatment plant and associated infrastructure near Ravensthorpe in Western Australia. The Ravensthorpe processing plant will produce a mixed nickel-cobalt hydroxide intermediate product (MHP). Engineering and procurement are proceeding on schedule including the construction management, autoclaves, acid plant and construction camp contracts. Site activities have commenced at Ravensthorpe. The capital cost for the project is expected to be USD1.05 billion, with the first shipment of MHP from Ravensthorpe expected by the second quarter of 2007.
Yabulu Extension Project, Australia
The Yabulu Extension Project was approved in March 2004. The metal refining section of the QNI Yabulu refinery near Townsville in Queensland is being expanded to process up to 220 000 tonnes of mixed nickel-cobalt hydroxide intermediate product (MHP). This additional processing capacity will increase refinery production to 76 000 tonnes of nickel and 3 500 tonnes of cobalt. Engineering and procurement activities are proceeding on schedule. The capital cost for the project is expected to be USD350 million, with first nickel metal production from the expanded Yabulu refinery expected by late 2007.
MINERALS EXPLORATION
The minerals exploration group of BHP Billiton continued to pursue global exploration opportunities for key commodities of interest to the group utilising both the Junior Alliance Program and in-house capabilities. The bulk sampling programme on the BHP Billiton Qilalugaq property near Repulse Bay, Nunavut, Canada (BHP Billiton 100%), has been completed. Processing of the sample is underway. Diamond drill testing of previously defined targets commenced on time and is on-going. Till sampling, Falcon and Dighem airborne surveys are underway on the remainder of the property to define additional targets.
EXPLORATION EXPENDITURE
During the quarter, BHP Billiton spent USD49 million on minerals exploration, of which USD46 million was expensed, and USD128 million on petroleum exploration, of which USD78 million was expensed.
|
|
Click here for original article
|
| |
BHPBill quarterly production report for June 04
BHP Billiton today released its production report for the quarter ended 30 June 2004. Unless otherwise stated, production volumes refer to BHP Billiton share.
Total Petroleum Products
Total production for the year ended June 2004 was 122.5 million barrels of oil equivalent. Total production for the June 2004 quarter was 30.3 million barrels of oil equivalent, in line with the June 2003 quarter and 2% higher than the March 2004 quarter.
- Oil and Condensate - Production for the June 2004 quarter was 13.3 million barrels, 15% lower than the 15.6 million barrels produced in the June 2003 quarter. This was mainly due to natural field decline in Bass Strait (Australia), Liverpool Bay (UK), Laminaria (Australia), North West Shelf (Australia) and Griffin (Australia). Production was also impacted by an unplanned shutdown at Bass Strait, a pre-cyclone shutdown at the North West Shelf and the divestment in February 2004 of our producing assets in Bolivia. This was partly offset by new production resulting from the commissioning of Ohanet (Algeria) in October 2003 and Boris North (USA) in September 2003. Production was 7% lower than the 14.3 million barrels produced in the March 2004 quarter, reflecting natural decline across the portfolio, the shutdowns at North West Shelf and Bass Strait and the divestment of our producing assets in Bolivia. Production at Ohanet was lower due to our risk sharing contractual agreement whereby higher realised prices result in lower production entitlement.
- Natural Gas - Production for the June 2004 quarter was 85.1 billion cubic feet, 17% higher than the 72.9 billion cubic feet produced in the June 2003 quarter. This was due to increased demand from Bass Strait and production from the Zamzama Phase 1 development (Pakistan) which was commissioned in September 2003. Production for the quarter was 11% higher than the 76.5 billion cubic feet produced in the March 2004 quarter mainly due to the increased demand from Bass Strait and cyclone downtime at North West Shelf and Griffin in the previous quarter. This was partly offset by planned shutdowns at Bruce (UK) and a fall in demand at Liverpool Bay due to seasonal factors.
Alumina
Production for the June 2004 quarter of 1.1 million tonnes was in line with the June 2003 quarter. Increased production at Alumar (Brazil) due to scheduled maintenance occurring in the June 2003 quarter was offset by lower current quarter production at Worsley (Australia) due to processing of stockpiled hydrate in the June 2003 quarter. Production was in line with the March 2004 quarter.
Aluminium
Production for the June 2004 quarter was equal to the March 2004 quarterly production record of 333 000 tonnes, but 22% higher than the June 2003 quarter. The increase mainly reflects the ramp up of production from the Mozal 2 (Mozambique) and Hillside 3 (South Africa) expansions, which reached full commissioning in August 2003 and December 2003 respectively.
Copper
Production for the June 2004 quarter was 272 600 tonnes, 19% higher than the June 2003 quarter. This mainly reflects higher production at Escondida (Chile) and Tintaya (Peru), partly offset by sale of the group`s interest in Highland Valley Copper (Canada) in January 2004. Production was 13% higher than the March 2004 quarter due to increased production at Escondida. Production records were achieved at Escondida for the June 2004 quarter and for the year ending June 2004.
Silver
Production for the June 2004 quarter of 11.1 million ounces was 15% higher than the June 2003 quarter. This was due to improved mill throughput at Cannington (Australia) resulting from a continuing debottlenecking program. Production was 8% lower than the March 2004 quarter mainly due to lower ore grade at Cannington.
Iron Ore
Total iron ore production for the June 2004 quarter was 20.5 million tonnes, slightly lower than the March 2004 quarter and 6% higher than the June 2003 quarter. The increase reflects strong customer demand for iron ore products along with additional capacity following the completion of the Area C, Products and Capacity Expansion and Accelerated Expansion projects at Western Australia.
Metallurgical Coal
Total metallurgical coal production for the June 2004 quarter was 9.3 million tonnes in line with the June 2003 quarter. Production was 9% higher than the March 2004 quarter reflecting continued strong market demand for Queensland Coal (Australia) product, partly offset by lower production from Illawarra Coal (Australia), largely due to difficult mining conditions at the West Cliff colliery. Production records were achieved at Queensland Coal for the June 2004 quarter and the year ending June 2004.
Manganese
Ore production for the June 2004 quarter of 1.3 million tonnes was 26% higher than the June 2003 quarter and 6% higher than the March 2004 quarter. This reflects strong customer demand in all markets, particularly Japan, Europe and China and the group`s ability to flex production to meet additional market demand.
Hot briquetted iron
Production for the June 2004 quarter of 294 000 tonnes was 36% lower than the June 2003 quarter and 26% lower than the March 2004 quarter. This reflects the suspension of operations at the Boodarie Iron plant (Australia) following a gas explosion in May 2004. Production was immediately suspended and a number of investigations into the incident are continuing.
Diamonds
Production of 1.2 million carats at Ekati was seven per cent lower than the June 2003 quarter and 19% higher than the March 2004 quarter. This was due to variations in ore grade. While ore grade is lower than the June 2003 quarter, resumed mining of a high grade zone in the Koala pipe has seen grades improve compared with the March 2004 quarter.
Energy Coal
Production for the June 2004 quarter was 21.5 million tonnes, in line with the June 2003 quarter. Lower production at New Mexico Coal (USA) following two planned major dragline outages at the Navajo mine was partially offset by the ramp up of production at Mount Arthur Coal (Australia). Production was also in line with the March 2004 quarter where increased production from the Mount Arthur Coal ramp up was partially offset by lower production at New Mexico Coal San Juan mine following a longwall move in the June 2004 quarter. Annual export sales from Ingwe (South Africa) decreased to 39% of total sales compared with 43% in the June 2003 year. This predominantly reflects lower export tonnage availability following safety interventions at Koornfontein.
Nickel
Production for the June 2004 quarter was 19 900 tonnes, 5% lower than the June 2003 quarter and 6% lower than the March 2004 quarter. This mainly reflects scheduled maintenance at Yabulu in the June 2004 quarter, and conversion of work in process inventories to finished goods in the March 2004 and June 2003 quarters.
|
|
Click here for original article
|
| |
| |
|
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
| |
|
|
