20th Jan 2011 07:00
NEWS RELEASE | |
Release Time | IMMEDIATE |
Date | 20 January 2011 |
Number | 03/11 |
BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT
FOR THE QUARTER ENDED 31 DECEMBER 2010
This report covers the Group's exploration and development activities for the quarter ended 31 December 2010. 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
During the December 2010 quarter, a further US$570 million (BHP Billiton share) of capital expenditure was approved to underpin continued growth in Western Australia Iron Ore's production profile. The investment expands on BHP Billiton's earlier pre-commitment of US$1.73 billion (BHP Billiton share) announced in January 2010 and will facilitate the ongoing development of port, rail and Jimblebar mine infrastructure.
Industry wide cost pressure is being experienced across a broad range of projects and reflects stronger producer currencies, particularly in Australia, and underlying inflation on raw material and labour costs.
Project And Ownership | Share Of Approved Capex US$M | Initial Production Target Date | Production Capacity (100%) | QuarterlyProgress |
Petroleum Projects | ||||
Macedon(Australia)71.43%Gas | 1,050 | CY13 | 200 million cubic feet gas per day | On schedule and budget. Drilling campaign completed. The overall project is 14% complete. |
Angostura Gas Phase II (Trinidad and Tobago)45%Gas | 180 | H1 CY11 | 280 million cubic feet gas per day | On schedule and budget. Topsides installation completed. Hook-up and commissioning progressing. The overall project is 98% complete. |
Bass Strait Kipper (Australia)32.5% - 50%Gas/Gas Liquids | 900 | CY12(a) | 10,000 bpd condensate and processing capacity of 80 million cubic feet gas per day | Schedule and budget review completed. Additional funding approved. First phase of drilling completed. Mercury encountered in reservoir with solution being managed separately. The overall project is 62% complete. |
Bass Strait Turrum (Australia)50%Gas/Gas Liquids | 1,350 | CY13 | 11,000 bpd condensate and processing capacity of 200 million cubic feet gas per day | Schedule and budget review completed. Additional funding approved. The overall project is 54% complete. |
North West Shelf CWLH Life Extension (Australia)16.67%Oil | 245 | CY11 | Replacement vessel with capacity of60,000 bpd oil | On schedule and budget. Floating Production Storage and Offtake (FPSO) conversion continues. The overall project is 85% complete. |
North West Shelf North Rankin B Gas Compression (Australia)16.67%LNG | 850 | CY12 | 2,500 million cubic feet gas per day | On schedule and budget. The overall project is 62% complete. |
Minerals Projects | ||||
Worsley Efficiency & Growth (Australia)86%Alumina | 1,900 | H1 CY11 | 1.1 million tpa of additional alumina | On schedule. Budget is under review. Construction is 46% complete. The overall project is 59% complete. |
Antamina Expansion (Peru)33.75%Copper | 435 | Q4 CY11 | Increases ore processing capacity to 130,000 tpd | On schedule and budget. Engineering is 91% complete. Construction is 32% complete. The overall project is 40% complete. |
Iron Ore (Western Australia)RGP585%Iron Ore | 4,800 | H2 CY11 | 50 million tpa additional iron ore system capacity | Engineering is 99% complete. Construction is 89% complete. The overall project is 90% complete, based on original scope. The scope of the iron ore development sequence continues to be reviewed. |
MAC20 Project (Australia)100%Energy Coal | 260 | H1 CY11 | Increases saleable thermal coal production by approximately 3.5 million tpa | First production achieved ahead of schedule in October 2010. Ramp up underway. The overall project is 97% complete. |
(a) Facilities ready for first production pending resolution of mercury content.
Minerals Exploration
Grassroots exploration continued on copper targets in Chile and Zambia; nickel and copper targets in Australia; manganese targets in Gabon; and diamond targets in Canada. Exploration for iron ore, coal, bauxite, potash and manganese was undertaken in a number of regions including Australia, Canada, South America and Africa.
For the half year ended 31 December 2010, BHP Billiton spent US$279 million on minerals exploration, of which US$228 million was expensed.
Petroleum Exploration
Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 31 December 2010.
Well | Location | BHP Billiton Equity | Status |
Deep Blue-1 | Green Canyon Gulf of Mexico GC 723 | 31.875% (Noble operator) | Temporarily suspended Hydrocarbons encountered |
SE Longtom-1 | Gippsland Basin Australia VIC/RL09 | 50% (Exxon operator) | Plugged & abandoned Hydrocarbons encountered |
Yellowfin-1 | Gippsland Basin Australia VIC/RL6 | 50% (Exxon operator) | Plugged & abandoned Dry hole |
Petroleum exploration expenditure for the half year ended 31 December 2010 was US$173 million, of which US$135 million was expensed.
Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com.
Australia Brendan Harris, Investor Relations Tel: +61 3 9609 4323 Mobile: +61 437 134 814 email: Brendan.Harris@bhpbilliton.com
Leng Lau, Investor Relations Tel: +61 3 9609 4202 Mobile: +61 403 533 706 email: Leng.Y.Lau@bhpbilliton.com
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Kelly Quirke, Media Relations Tel: +61 3 9609 2896 Mobile: +61 429 966 312 email: Kelly.Quirke@bhpbilliton.com
Fiona Martin, Media Relations Tel: +61 3 9609 2211 Mobile: +61 427 777 908 email: Fiona.Martin2@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
United Kingdom & Americas 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
Americas Scott Espenshade, Investor Relations Tel: +1 713 599 6431 Mobile: +1 713 208 8565 email: Scott.Espenshade@bhpbilliton.com
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