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BIL
BIBLT
BIL - BHP Billiton Plc - BHP Billiton Exploration And Development Report For The
Quarter Ended 31 December 2009
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
News Release
20 January 2010
03/10
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT FOR THE QUARTER ENDED 31
DECEMBER 2009
This report covers the Group`s exploration and development activities for the
quarter ended 31 December 2009. Unless otherwise stated, BHP Billiton`s interest
in the projects referred to in this report is 100 percent and references to
project schedules are based on calendar years.
Development
During the December 2009 quarter Western Australia Iron Ore Rapid Growth Project
4 (RGP4) achieved first production, ahead of schedule and within budget.
Klipspruit expansion project (energy coal) in South Africa is essentially
complete and has delivered first coal. These projects will not be reported in
future Exploration and Development Reports.
The approval of the Antamina Expansion project (base metals) in Peru was also
announced on 5 January 2010.
On 18 January 2010 BHP Billiton announced US$267 million (BHP Billiton share) of
pre-approval capital expenditure to accelerate the development of the Caval
Ridge and Hay Point Coal Terminal Stage 3 Expansion (HPX3) projects. The funds
will be used for feasibility studies, the procurement of long-lead time items
and initial project activities.
On 20 January 2010 BHP Billiton announced approval for US$240 million (BHP
Billiton share 100%) of capital expenditure to support the development of the
first stages of the Jansen Potash Project in Saskatchewan, Canada. This pre-
approval expenditure will facilitate the early stage work for the establishment
of the production and service shafts. The Jansen project is currently being
designed to ultimately produce approximately 8 million tonnes per annum of
agricultural grade potash, and represents BHP Billiton`s first production of
potash.
Future Exploration and Development Reports will disclose progress updates for
all projects with US$250 million or above of BHP Billiton share of capital
investment, which aligns disclosures with internal approval thresholds.
Development projects that are currently disclosed with an investment amount
below this threshold will continue to be shown until first production is
announced.
Project And Share of Initial Production Quarterly
Ownership Approved Production Capacity Progress
Capex Target (100%)
US$M Date
Petroleum
Projects
Pyrenees 1,200 H1 CY10 96,000 On schedule and
(Australia) barrels of budget. Floating
71.43% oil and 60 Production Storage and
Oil/Gas million cubic Offtake (FPSO) arrived
feet gas per on location and
day commissioning
continues. 9 wells
completed (7
producers, 1 gas
injector and 1 water
injector).
Angostura Gas 180 H1 CY11 280 million On schedule and
Phase II cubic feet budget. Jacket
(Trinidad and gas per day fabrication completed.
Tobago) Topsides fabrication
45% continues.
Gas
Bass Strait 500 CY11 10,000 bpd Schedule and budget
Kipper condensate under review following
(Australia) and advice from operator.
32.5% - 50% processing West Tuna platform
Gas/Gas capacity of retrofit work
Liquids 80 million continuing.
cubic feet
gas per day
Bass Strait 625 CY11 11,000 bpd On schedule and
Turrum condensate budget. Platform
(Australia) and fabrication continues.
50% processing
Gas/Gas capacity of
Liquids 200 million
cubic feet
gas per day
North West 245 CY11 Replacement On schedule and
Shelf CWLH vessel with budget. Floating
Life Extension capacity of Production Storage and
(Australia) 60,000 bpd Offtake (FPSO)
16.67% oil conversion continues.
Oil
North West 850 CY12 2,500 million On schedule and
Shelf North cubic feet budget. Jacket
Rankin B Gas gas per day fabrication continuing
Compression ahead of schedule.
(Australia)
16.67%
LNG
Minerals
Projects
Worsley 1,900 H1 CY11 1.1 million On schedule and
Efficiency & tpa of budget. Engineering is
Growth additional near complete,
(Australia) alumina procurement and
86% contracting activities
Alumina are well advanced and
construction is 11%
complete.
Antamina 435 Q4 CY11 Increases ore Approval announced,
Expansion processing see news release dated
(Peru) capacity to 5 January 2010.
33.75% 130,000 tpd
Copper
Iron Ore 1,850 H1 CY10 26 million First ore produced
(Western tpa of ahead of schedule. The
Australia) additional official opening of
RGP4 iron ore the Newman Hub
86.2% system occurred in November
Iron Ore capacity 2009.
Iron Ore 4,800 H2 CY11 50 million On schedule and
(Western tpa budget. Engineering is
Australia) additional over 85% complete,
RGP5 iron ore procurement and
85% system contracting activities
Iron Ore capacity are well advanced.
Construction has
reached 25% complete.
Klipspruit 450 H2 CY09 Incremental On schedule and
(South Africa) 1.8 million budget. Commissioning
100% tpa export of coal processing
Energy Coal thermal coal. plant is essentially
Incremental complete. Relocation
2.1 million to new industrial and
tpa domestic office complexes
thermal coal successful. Project is
99% complete.
Douglas- 975 Mid CY10 10 million On schedule and
Middelburg tpa export budget. Construction
Optimisation thermal coal activities are
(South Africa) and 8.5 progressing well with
100% million tpa installation of all
Energy Coal domestic mechanical equipment
thermal coal at the ROM Tip
(sustains complete. Erection of
current the coal processing
output) plant continues as
scheduled. Project is
84% complete.
Newcastle 390 CY10 30 million On schedule and
Third Port tpa export budget. Inbound
Project coal loading concrete systems and
(Australia) facility structures completed
35.5% with conveyor modules
Energy Coal and substation
installation
progressing well.
Project is 88%
complete.
MAC20 Project 260 H1 CY11 Increases On schedule and
(Australia) saleable budget. Coal handling
100% thermal coal and preparation plant
Energy Coal production by construction commenced
approximately in September 2009.
3.5 million Project is 40%
tpa complete.
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.
Grassroots exploration continued on copper targets in Chile, Argentina and
Zambia; nickel targets in Australia; manganese targets in Gabon; and 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 half year ended 31 December 2009, BHP Billiton spent US$239 million on
minerals exploration, of which US$220 million was expensed.
Petroleum Exploration
Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 31 December 2009.
Well Location BHP Billiton Status
Equity
Knotty Head-Green Canyon Gulf 25% BHP Billiton Drilling ahead
2 of Mexico GC 512 (Nexen operator)
Dabakan-1 Sandakan Basin 25% BHP Billiton Hydrocarbons
Philippines (Exxon operator) encountered
SC-56
Deep Blue-1 Green Canyon Gulf 31.875% BHP Drilling ahead
of Mexico Billiton
GC 723 (Noble operator)
Double Green Canyon Gulf 70% BHP Billiton Drilling ahead
Mountain-1 of Mexico (operator)
GC 555
Wolverine-1 Laurentian Basin 45% BHP Billiton Drilling ahead
Canada (CoP operator)
E.L. 1087R
SE Remora-1 Gippsland Basin 50% BHP Billiton Drilling ahead
Australia (Exxon operator)
VIC/RL4
Consistent with BHP Billiton`s growth strategy, the total forecast exploration
expenditure for the 2010 financial year has increased by US$200 million to
US$800 million. This is primarily due to increased drilling activity.
Petroleum exploration expenditure for the half year ended 31 December 2009 was
US$200 million, of which US$75 million was expensed.
****
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Americas
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BHP Billiton Limited ABN 49 004 028 077
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Date: 20/01/2010 07:05:05 Produced by the JSE SENS Department.
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