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BIL
BIBLT
BIL - BHP Billiton Plc - Quarterly report on exploration and development
activities quarter ended 31 December 2008
BHP Billiton Plc
Share Code: BIL
ISIN: GB0000566504
News Release
21 January 2009
03/09
BHP BILLITON QUARTERLY REPORT ON EXPLORATION AND DEVELOPMENT ACTIVITIES
QUARTER ENDED 31 DECEMBER 2008
DEVELOPMENT
BHP Billiton`s strong balance sheet allows us to invest through the cycle with a
highly disciplined and value-focused approach.
Highlighting our commitment to value accretive longer term growth, we sanctioned
two projects during the quarter, being the Western Australia Iron Ore Rapid
Growth Project 5 (RGP5), and the North West Shelf Cossack, Wanaea, Lambert,
Hermes (CWLH) Life Extension projects.
PROJECT AND SHARE OF INITIAL PRODUCTION QUARTERLY PROGRESS
OWNERSHIP APPROVED PRODUCTION CAPACITY
CAPEX TARGET (100%)
US$M DATE
Petroleum
Projects
Shenzi (USA) 1,940 Mid CY09 100,000 Ahead of schedule and
44% barrels of on budget. Hook-up and
Oil/Gas oil and 50 commissioning
million continuing. Six wells
cubic feet drilled and completed.
gas per day
Atlantis North 185 H2 CY09 Tieback to On schedule and budget.
(USA) Atlantis Manifold fabrication
44% South continuing.
Oil/Gas
Pyrenees 1,200 H1 CY10 96,000 On schedule and budget.
(Australia) barrels of Subsea hardware
71.43% oil and 60 delivery commenced and
Oil/Gas million Floating Production
cubic feet Storage and Offtake
gas per day (FPSO) conversion
continues.
Angostura Gas 180 H1 CY11 280 million On schedule and budget.
Phase II cubic feet Awarded transportation
(Trinidad and gas per day and installation
Tobago) contract. Executed
45% National Gas Company
Gas Interconnection
Agreement.
Bass Strait 500 CY11 10,000 bpd On schedule and budget.
Kipper condensate Drilling rig secured.
(Australia) and Detailed engineering
32.5% - 50% processing progressing and
Gas/Gas capacity of commenced West Tuna
Liquids 80 million platform retrofit work.
cubic feet
gas per day
Bass Strait 625 CY11 11,000 bpd On schedule and budget.
Turrum condensate Engineering and
(Australia) and procurement
50% processing progressing.
Gas/Gas capacity of
Liquids 200 million
cubic feet
gas per day
North West 245 CY11 Replacement The project was
Shelf CWLH vessel with sanctioned during the
Life Extension capacity of quarter. See News
(Australia) 60,000 bpd Release dated 3
16.67% oil December 2008.
Oil
North West 850 CY12 2,500 On schedule and budget.
Shelf North million Detailed engineering
Rankin B Gas cubic feet and procurement well
Compression gas per day advanced. Jacket
(Australia) fabrication commenced.
16.67%
LNG
Minerals
Projects
Alumar - 900 Q2 CY09 2 million On schedule and revised
Refinery tpa of budget. Engineering is
Expansion additional complete and
(Brazil) 36% alumina procurement well
Alumina advanced. Construction
is 82% complete with
the project overall 92%
complete.
Worsley 1,900 H1 CY11 1.1 million On schedule and budget.
Efficiency & tpa of Engineering is 49%
Growth additional complete and
(Australia) alumina construction camp now
86% operational.
Alumina
Iron Ore 1,850 H1 CY10 26 million On schedule and budget.
(Western tpa Engineering is now over
Australia) additional 95% complete and
RGP4 iron ore construction is nearing
86.2% system 70% complete.
Iron Ore capacity
Iron Ore 4,800 H2 CY11 50 million The project was
(Western tpa sanctioned during the
Australia) additional quarter. See News
RGP5 iron ore Release dated 25
85% system November 2008.
Iron Ore capacity Preliminary engineering
and construction
activities have
commenced.
Gemco 110 H1 CY09 1 million On schedule and budget
(Australia) tpa of in local currency.
60% additional Cyclone tower
Manganese manganese operational and
concentrate remainder of
installation activities
progressing well.
Project is 77%
complete.
Klipspruit 450 H2 CY09 Incremental On schedule and budget.
(South Africa) 1.8 million Earthworks and civil
100% tpa export and mechanical
Energy Coal thermal construction
coal progressing well. The
Incremental project is 70% complete
2.1 million with detailed
tpa commission planning
domestic commenced.
thermal
coal
Douglas- 975 Mid CY10 10 million On schedule and budget.
Middelburg tpa export Construction activities
Optimisation thermal are progressing well
(South Africa) coal and with steel erection
100% 8.5 million commencing as
Energy Coal tpa scheduled. The project
domestic is 34% complete.
thermal
coal
(sustains
current
output)
Newcastle 390 CY10 30 million On schedule and budget.
Third Port tpa export Project is over 35%
Project coal complete.
(Australia) loading
35.5% facility
Energy Coal
MINERALS EXPLORATION
BHP Billiton continues to identify and prioritise various exploration
activities. All of the exploration activities are reviewed regularly to ensure
that we are capturing value accretive opportunities for future development.
Selection study work on the proposed Olympic Dam Expansion (Australia) is
effectively complete. A Draft Environmental Impact Statement (EIS) based on the
five stage project configuration has been provided to the Federal, South
Australian and Northern Territory Governments for a compliance review, with the
intention that it be released for public comment during the first half of
calendar year 2009. Pending government approvals for the EIS and consistent with
the prevailing economic circumstances, project activity will be scaled back to
that necessary to support the approvals process and the study of a number of
mining and processing technology options. Olympic Dam Expansion expenditure for
the six months ended 31 December 2008 was US$112 million, of which US$29 million
was capitalised.
Grassroots exploration continued on targets in Australia, Chile, Argentina,
Zambia and the Democratic Republic of Congo (DRC); and on diamond targets in
Canada. Exploration for iron ore, coal, bauxite and manganese was undertaken in
a number of regions including Australia, South America, Russia and West Africa.
For the six months ended 31 December 2008, BHP Billiton spent US$357 million on
minerals exploration, of which US$313 million was expensed.
PETROLEUM EXPLORATION
Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 31 December 2008.
WELL LOCATION BHP BILLITON EQUITY STATUS
Lambert-8 Dampier Sub-Basin 16.67% BHP Billiton Plugged and
Western Australia (Woodside operator) abandoned.
WA-16-L Hydrocarbons
encountered.
Lambert West Dampier Sub-Basin 16.67% BHP Billiton Plugged and
Western Australia (Woodside operator) abandoned.
WA-16-L Hydrocarbons
encountered.
Lady Nora-2 Dampier Sub-Basin 16.67% BHP Billiton Plugged and
Western Australia (Woodside operator) abandoned.
WA-28-P Hydrocarbons
encountered.
Nereus-1 Dampier Sub-Basin 16.67% BHP Billiton Plugged and
Western Australia (Woodside operator) abandoned. Dry
WA-28-P hole.
Tidepole-2 Dampier Sub-Basin 16.67% BHP Billiton Drilling ahead.
Western Australia (Woodside operator)
WA-5-L
Torosa-5 Browse Basin 8.33% BHP Billiton Plugging and
Western Australia (Woodside operator) abandoning.
WA-30-R Hydrocarbons
encountered.
Puma-4 Green Canyon 29.805% BHP Drilling ahead.
Gulf of Mexico Billiton
GC823-2 (BP Operator)
Shenzi-8 Green Canyon 44% BHP Billiton, Hydrocarbons
Gulf of Mexico operator encountered.
GC610 Suspended.
Petroleum exploration expenditure for the six months ended 31 December 2008 was
US$263 million, of which US$183 million was expensed
****
Further information on BHP Billiton can be found on our website:
www.bhpbilliton.com
Australia
Samantha Evans, Media Relations
Tel: +61 3 9609 2898 Mobile: +61 400 693 915
email: Samantha.Evans@bhpbilliton.com
Peter Ogden, Media Relations
Tel: +61 3 9609 2812 Mobile: +61 428 599 190
email: Peter.Ogden@bhpbilliton.com
Kelly Quirke, Media Relations
Tel: +61 3 9609 2896 Mobile: +61 429 966 312
email: Kelly.Quirke@bhpbilliton.com
Leng Lau, Investor Relations
Tel: +61 3 9609 4202 Mobile: +61 403 533 706
email: Leng.Y.Lau@bhpbilliton.com
United Kingdom & South Africa
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
Scott Espenshade, Investor Relations
Tel: +1 713 599 6431 Mobile: +1 713 208 8565
email: Scott.Espenshade@bhpbilliton.com
Ruban Yogarajah, Media Relations
Tel: US +1 713 966 2907 or UK +44 20 7802 4033
Mobile: UK +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077
Registered in Australia
Registered Office: 180 Lonsdale Street
Melbourne Victoria 3000 Australia
Tel +61 1300 55 4757 Fax +61 3 9609 3015
BHP Billiton Plc Registration number 3196209
Registered in England and Wales
Registered Office: Neathouse Place
London SW1V 1BH United Kingdom
Tel +44 20 7802 4000 Fax +44 20 7802 4111
A member of the BHP Billiton group which is headquartered in Australia
Date: 21/01/2009 07:29:02 Produced by the JSE SENS Department.
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