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BIL
BIBLT
BIL - BHP Billiton Plc - Quarterly report on exploration and development
activities quarter ended 31 December 2007
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
23 January 2008
Number 03/08
BHP BILLITON QUARTERLY REPORT ON
EXPLORATION AND DEVELOPMENT ACTIVITIES
QUARTER ENDED 31 DECEMBER 2007
This report covers the Company`s exploration and development activities for the
quarter ended 31 December 2007. 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. 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
First production was successfully achieved at seven major projects during the
quarter ended 31 December 2007; Genghis Khan, Atlantis South and Stybarrow, (oil
and gas) Koala Underground (diamonds), Pinto Valley (copper in concentrate)
Rapid Growth Project 3 (iron ore) and Ravensthorpe (nickel intermediate
product). These projects will not be reported in future Exploration and
Development Reports.
Further details of the project`s capital cost will be made available when the
Group announces its interim results on 6 February 2008.
During the quarter the Kipper project (oil and gas), Klipspruit (energy coal)
and the Gemco expansion project (manganese) were sanctioned and in January, the
company announced the sanctioning of the Newcastle Third Port Project.
PROJECT AND SHARE OF INITIAL PRODUCTION QUARTERLY PROGRESS
OWNERSHIP APPROVED PRODUCTION CAPACITY
CAPEX TARGET (100%)
US$M DATE
Petroleum
Projects
Neptune (US) 405 Q1 CY08 50,000 On budget and schedule.
35% barrels of Drying of the gas export
Oil/Gas oil and 50 line was completed and
million is ready for
cubic feet commissioning. Offshore
gas per day hookup and commissioning
of the topsides
continued. Drilling of
the fifth well in
progress with four of
seven wells completed.
Stybarrow 380 End CY07 80,000 First oil announced, see
(Australia) barrels of News at BHPBilliton
50% oil per day dated 19 November 2007.
Oil/Gas Stybarrow is currently
producing consistently
at design capacity of
80,000 barrels a day and
in less than two months
of operation, Stybarrow
has offloaded a total of
2.5 million barrels of
oil.
North West 200 End CY08 800 million On schedule and budget.
Shelf Angel cubic feet Jacket installed.
(Australia) gas per day
16.67% and 50,000
Oil/Gas bpd
condensate
North West 350 Late CY08 LNG On schedule and budget.
Shelf Train 5 processing Onsite construction and
(Australia) capacity of hookup continued.
16.67% 4.2 million
LNG tpa
Shenzi (US) 1,940 Mid CY09 100,000 On schedule and budget.
44% barrels of Hull fabrication
Oil/Gas oil and 50 completed and ready for
million sail away to Gulf of
cubic feet Mexico, US.
gas per day
Pyrenees 1,200 1H CY10 96,000 On schedule and budget.
(Australia) barrels of Floating Production
71.43% oil and 60 Storage and Offtake
Oil/Gas million (FPSO) conversion
cubic feet commenced.
gas per day
Bass Strait 500 CY11 10,000 bpd Approval announced, see
Kipper condensate News at BHPBilliton
(Australia) and dated 19 December 2007.
32.5% - 50% processing The first phase of the
Gas/Gas capacity of project includes two new
Liquids 80 million subsea wells, three new
cubic feet pipelines and platform
gas per day modifications.
Minerals
Projects
Alumar - 725 Q2 CY09 2 million On revised schedule and
Refinery tpa of budget. Detailed
Expansion alumina engineering
(Brazil) 36% substantially complete,
Alumina with procurement almost
complete and
construction well
underway.
Pinto Valley 140 Q4 CY07 70,000 tpa First shipment of copper
Restart (USA) copper concentrate achieved in
100% concentrate October 2007.
Copper
Koala 200 End CY07 3,300 First production
Underground tonnes per announced see News at
(Canada) day ore bhpbilliton dated 17
80% processed December 2007. The
Diamonds Project was completed
ahead of schedule and
under budget and mine
development is well
positioned for
production ramp up.
Underground critical
systems were
commissioned and turned
over to operations in
December 2007.
Ravensthorpe 2,200 Q1 CY08 Up to The Ravensthorpe project
(Australia) 50,000 tpa was commissioned in the
100% contained December quarter, in
Nickel nickel in line with the revised
mixed schedule and under
nickel- approved capital budget.
cobalt First production was
hydroxide achieved in October
product 2007, and the first
5000t production
milestone was achieved
in December 2007.
Yabulu 556 Q1 CY08 45,000 tpa On revised schedule and
(Australia) nickel budget. The Yabulu
100% Expansion is
Nickel mechanically complete
and is awaiting
sufficient mixed nickel-
cobalt hydroxide (MHP)
from Ravensthorpe to
commence nickel metal
production.
Cliffs 139 1H CY08 360,000 tpa On schedule and budget.
(Australia) nickel ore Total project progress
100% is 32% complete. First
Nickel ventilation shaft
completed and earthworks
have commenced.
Engineering is 98%
complete.
Iron Ore 1,300 Q4 CY07 20 million Engineering, procurement
(Western tpa and construction
Australia) additional activities are complete.
RGP3 iron ore Ramp-up at the mine is
85% system underway. Port expansion
Iron Ore capacity is operating at design
performance levels.
Shipping in December
exceeded RGP3 rates of
129 million tpa.
Iron Ore 1,850 1H CY10 26 million On schedule and budget
(Western tpa in local currency.
Australia) additional Engineering progress is
RGP4 iron ore now over 70% complete
86.2% system and construction
Iron Ore capacity progress over 15%.
Mainline rail capacity
now at 155mtpa.
Samarco Third 590 1HCY08 7.6 million Total project progress
Pellet Plant tpa is 94% complete with
(Brazil) additional first production
50% iron ore expected to commence on
Iron Ore capacity schedule. The project is
within the local
currency approved
budget.
Gemco 110 1HCY09 Additional Project sanctioned
(Australia) 1 million during the quarter.
60% tpa Civil construction
Manganese manganese mobilised and certain
concentrate long lead items such as
the Drum Scrubber were
procured out of China.
Klipspruit 450 2HCY09 Incremental Project sanctioned
(South Africa) 1.8 million during quarter. See News
100% tpa export at bhpbilliton dated 7
Energy Coal coal December 2007.
Incremental
2.1 million
tpa
domestic
MINERALS EXPLORATION
BHP Billiton continued to pursue global exploration opportunities for key
commodities of interest utilising both in-house capabilities and partnerships.
Grassroots exploration continued on diamond targets in Angola and the Democratic
Republic of Congo (DRC), on copper targets in Australia, Chile, Mongolia, the
DRC and Kazakhstan; and on nickel targets in Australia, Brazil and Africa.
Exploration for iron ore, coal, potash and bauxite was undertaken in a number of
regions including Australia, South America, Canada and West Africa.
Drilling for bauxite on the Guinea, Boffa-Santou-Houda prospecting permits has
identified a substantial area of good quality bauxite with a target of over one
billion tonnes. Work is progressing to better understand the size, grade and
quality of this potential mineralisation.(1)
For the six months ended 31 December 2007, BHP Billiton spent US$303 million on
minerals exploration of which US$236 million was expensed.
(1) Competent Person Guinea: J van der Riet (MAusIMM)
PETROLEUM EXPLORATION
Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 31 December 2007.
WELL LOCATION BHP BILLITON EQUITY STATUS
Big Foot North-1 Green Canyon 55% BHP Billiton Dry hole. Plugged
Gulf of Mexico and operator and abandoned.
GC-953
Torosa-4 Browse Basin 8.33% BHP Billiton Hydrocarbons
Western (Woodside operator) encountered. Plugged
Australia and abandoned.
WA-30-R
Snarf-1 Browse Basin 20% BHP Billiton Drilling suspended.
Western (Woodside operator) Waiting on rig to
Australia continue drilling.
WA-275-P
Warrabkook-1 Browse Basin 25% BHP Billiton Drilling ahead.
Western and operator
Australia
WA-303-P
Petroleum exploration expenditure for the six months ended 31 December 2007 was
US$295 million of which US$196 million was expensed.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia
Samantha Evans, Media Relations
Tel: +61 3 9609 2898 Mobile: +61 400 693 915
email: Samantha.Evans@bhpbilliton.com
Don Carroll, Investor Relations
Tel: +61 3 9609 2686 Mobile: +61 417 591 938
email: Don.A.Carroll@bhpbilliton.com
United Kingdom
Andre Liebenberg, Investor Relations
Tel: +44 20 7802 4131 Mobile: +44 7920 236 974
email: Andre.Liebenberg@bhpbilliton.com
Illtud Harri, Media Relations
Tel: +44 20 7802 4195 Mobile: +44 7920 237 246
email: Illtud.Harri@bhpbilliton.com
United States
Tracey Whitehead, Investor & Media Relations
Tel: US +1 713 599 6100 or UK +44 20 7802 4031
Mobile: +44 7917 648 093
email: Tracey.Whitehead@bhpbilliton.com
South Africa
Alison Gilbert, Investor Relations
Tel: SA +27 11 376 2121 or UK +44 20 7802 4183
Mobile: +44 7769 936 227
email: Alison.Gilbert@bhpbilliton.com
Date: 23/01/2008 07:40:01 Produced by the JSE SENS Department.
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