UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
September 5, 2012
| BHP BILLITON LIMITED (ABN 49 004 028 077) (Exact name of Registrant as specified in its charter) |
BHP BILLITON PLC (REG. NO. 3196209) (Exact name of Registrant as specified in its charter) | |
| VICTORIA, AUSTRALIA (Jurisdiction of incorporation or organisation) |
ENGLAND AND WALES (Jurisdiction of incorporation or organisation) | |
| 180 LONSDALE STREET, MELBOURNE, VICTORIA 3000 AUSTRALIA (Address of principal executive offices) |
NEATHOUSE PLACE, VICTORIA, LONDON, UNITED KINGDOM (Address of principal executive offices) | |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: x Form 20-F ¨ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ¨ Yes x No
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a
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Barclays CEO Energy & Power Conference
J. Michael Yeager
Chief Executive, BHP Billiton Petroleum
4 September 2012
bhpbilliton
resourcing the future
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Disclaimer
bhpbilliton
resourcing the future
Reliance on Third Party Information
The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by BHP Billiton.
Forward Looking Statements
This presentation includes forward-looking statements within the meaning of the US Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of BHP Billiton. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation.
Non-IFRS Financial Information
BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This presentation also includes certain non-IFRS measures including Attributable profit excluding exceptional items, Underlying EBITDA interest coverage, Underlying effective tax rate, Underlying EBIT margin and Underlying return on capital. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review.
No Offer of Securities
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any jurisdiction.
Stakeholder feedback
Please note, the Commonwealth Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2006 requires Operators to perform consultation relating to environment plans and oil spill contingency plans. The latest revision of the Regulations includes a requirement for correspondence from stakeholders relating to these plans to be passed on to NOPSEMA and therefore should not be considered to be confidential between the author and BHP Billiton. It is recommended that confidential matters not relating to the environment should be in separate communications.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012 Slide 2
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 3
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bhpbilliton
resourcing the future
A diversified global portfolio
Petroleum
A significant oil and gas exploration and production business
Iron Ore
One of the world’s premier suppliers of iron ore
Base Metals
One of the world’s largest producers of silver, lead and copper
Metallurgical Coal
Produce and market high quality hard coking coals for the international steel industry
Energy Coal
One of the world’s largest producers and marketers of export thermal coal
Aluminium and Nickel
A global producer and supplier of primary aluminium, alumina and nickel
Manganese
Operations produce a combination of ores, alloys and metals
Diamonds and Specialty Products1
EKATI Diamond Mine, titanium minerals, Potash development and exploration
Uranium
Olympic Dam is the world’s largest uranium deposit
Offices
Petroleum
Aluminium and Nickel
Base Metals
Uranium
Diamonds and Specialty Products
Iron Ore
Manganese
Metallurgical Coal
Energy Coal
Project and Exploration activities are not shown on this map.
1. BHP Billiton announced its intention to sell its interest in Richards Bay Minerals during the March 2012 quarter and a review of its diamonds business during the December 2011 quarter (this process is ongoing).
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 4
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bhpbilliton
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Four large businesses, including Petroleum
Petroleum
Iron Ore
FY12 Corporate Results
Underlying EBIT US$27.2 billion
Net Operating Cash Flow US$24.4 billion
Dividend per share US 112 cents
Petroleum Underlying EBIT US$6.3 billion
Base Metals
Metallurgical Coal
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 5
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 6
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A continuously growing business
Volumes
(BHP Billiton net share, Mboe/d)
700 Conventional
Shale
600
500
400
300
200
100
0
FY07 FY08 FY09 FY10 FY11 FY12 FY13e
In the past five years:
– Volumes grown to more than 600 Mboe/d
– Underlying EBIT grown to over US$6 billion
– Workforce population doubled to 4,000
Proved reserves in excess of 2.5 billion barrels oil equivalent
Total resource base of approximately 11 billion barrels oil equivalent
Source: BHP Billiton analysis as at 30 June 2012.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 04 September 2012
Slide 7
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World class portfolio and good fiscal terms
Onshore US Shale
~270 Mboe/d
Eagle Ford
Permian
Fayetteville
Haynesville
Gulf of Mexico
~90 Mboe/d
Shenzi
Neptune
Atlantis
Mad Dog
International ~75 Mboe/d
UK
Algeria
Pakistan
Trinidad and Tobago
Australia
~215 Mboe/d
North West Shelf
Bass Strait
Pyrenees
Stybarrow
Minerva
Production based on approximate FY13 expected net production rates.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 8
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Outstanding safety performance
Conventional business safety performance
(Total Recordable Incident Frequency)
10
9
8
7
6
5
4
3
2
1
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12
TRIF IADC1 Onshore US average
1. International Association of Drilling Contractors.
Source: BHP Billiton analysis.
Best ever TRIF in the conventional business during FY12 at 1.34
New US onshore business significantly lagging in performance
Now embedding our HSE systems and processes within Onshore US business
Goal is to be become safest in industry, offshore and onshore
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 9
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Continuous 100% proved reserve replacement
Proved reserve replacement ratio
(%) 376% 429%
170% Including Onshore US acquisitions
150%
130%
110%
90%
70%
FY08 FY09 FY10 FY11 FY12
+100% proved reserve replacement delivered for the past five years, excluding additions from acquisitions
Significant resource additions from recent Onshore US shale acquisitions, including a substantial liquids component
Decades of future development potential
Liquids (including liquids priced LNG) represents 46% of proved reserves
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 10
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resourcing the future
Focused on the fundamentals that drive results
Unit cash operating costs
(BHP Billiton net share, US$/boe)
20 Peer group1 BHP Billiton
10
0
FY09 FY10 FY11 FY12
FY12 facility uptime
(% uptime, Operated vs. Operated by Others)
100%
90%
80%
OBO (avg)
Liv. Bay
Stybarrow
Neptune
Shenzi
Pyrenees
Angostura
Zamzama
Minerva
Highly competitive unit costs, both cash and non-cash while maintaining high HSE standards
Outstanding uptime at operated facilities
Gulf of Mexico drilling performance leads industry
Operated projects consistently delivered on schedule and on budget
1. Unit operating costs peer group consists of Apache, Marathon, Hess, BG, Anadarko, Noble and Talisman.
Source: BHP Billiton analysis,
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 11
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Continuing to lead drilling performance in the deepwater Gulf of Mexico
Average drill time per 1,000 ft
(Deepwater Gulf of Mexico, subsalt, days)
8
Others BHP Billiton
6 4 2
0
Pre-moratorium Post-moratorium
Source: Rushmore Associates’ The Rushmore Reviews, Scout Tickets and BHP Billiton analysis as of 16 April 2012.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 12
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 13
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bhpbilliton
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Shenzi – premier BHP Billiton operated facility in the Gulf of Mexico
Still producing over 100 Mboe/d (100% basis) after three years
Outstanding operational performance with 94% average uptime over the past three years
Achieved first water injection in May 2012 aimed at increasing reservoir performance
Recent north appraisal success
Major value added by 100 BHP Billiton’s strong safety, project delivery and operational performance
Shenzi gross production rates
(Mboe/d)
150
Nameplate capacity
100
50
0
Mar 09 Jan 10 Nov 10 Sep 11 Jul 12
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 14
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Atlantis and Mad Dog ramping-up with major volume growth ahead
Atlantis offline through Q4 FY12 to complete subsea manifold replacement project
Mad Dog offline throughout entire FY12 for rig replacement and substantial maintenance scope
Both facilities now back online — significant volume and earnings
Now drilling first new Atlantis producers since the moratorium
Pre-commitment funding approved for world-scale Mad Dog Phase 2 project
— New 130 Mboe/d development
— Doubles field deliverability
Atlantis
Mad Dog
Resource base as at June 30, 2012
(MMboe, BHP Billiton share)
600
Probable and contingent
Proved
400
200
0
Atlantis
Mad Dog
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 15
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resourcing the future
Expanding our strong position in Australia
Strong base of legacy assets at Bass Strait and North West Shelf, both with major field developments underway
Continued development of large Pyrenees oil field in Western Australia
New volumes from Macedon, with start up expected in CY13
Long term growth driven by potential 10 Tcf Scarborough LNG development
Additional growth potential from Browse LNG, now under evaluation
Pyrenees
Macedon onshore facilities
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 16
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bhpbilliton
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International operations are material and continue to deliver strong performance
Material contribution to Petroleum volumes and earnings
Significant recent growth in Trinidad with on-time and on-budget delivery of Angostura Gas
Safety and operational efficiency among the best in the portfolio
Experience has contributed to the success of our functional excellence approach
Production at international operations
(Mboe/d)
200
BHP Billiton net
Non-operator share
100
0
FY08 FY09 FY10 FY11 FY12
Angostura – Trinidad
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 17
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 18
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bhpbilliton
resourcing the future
Large, high quality and flexible Onshore US shale position
Midland Basin
Delaware Basin
Liquid area
Dry gas area
Fayatteville
Haynesville
Lower Bossier
Permian
Eagle Ford
Black Hawk
Hawkville Field
Total resources by field at 30 June, 2012
(billions of barrels of oil equivalent)
4
Proved
Probable, possible and contingent
3
2
1
0
Haynesville Eagle Ford Fayetteville Permian
Approximately 1.6 million combined net acres across Texas, Louisiana and Arkansas
Resource base of approximately 8 billion barrels oil equivalent
Four giant fields, with 50 year lives
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 19
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Near-term activity has shifted to liquids
Gross operated rigs
(average rig count)
30
January 2012
June 2012
20
10
0
Fayetteville dry gas Haynesville dry gas Permian liquids Eagle Ford liquids
Aggressively pursuing Eagle Ford development
Fully appraising the Permian
Dry gas activity at reduced level to preserve opportunities and maintain capability
Prepared for dry gas ramp-up as prices improve
Fleet of new build rigs will support standardisation and continuous improvement
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 20
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Eagle Ford acreage is among the best in industry
NPV and acreage of Eagle Ford operators
(relative terms, BHP Billiton indexed to 1.0)
2.0
Relative acreage
1.5
BHP Billiton
1.0
0.5
Other operators
0.0
0.0 0.5 1.0 1.5
Midland Basin
Delaware Basin
Liquid area
Dry gas area
Fayatteville
Haynesville
Lower Bossier
Black Hawk
Hawkville Field
Relative net present value
Strong rates of return with many individual wells exceeding 100%
Average single well payback is under one year
Potential for higher recovery factors over time through reduced well spacing or improved technology
Material, expandable, high margin, liquids, operated, upside
Source: WoodMackenzie, BHP Billiton indexed to 1.0 (August 2012).
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 21
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Size and scale of Eagle Ford opportunity is unprecedented for BHP Billiton Petroleum
Actual and estimated production
(BHP Billiton net share, Mboe/d)
350 BHP Billiton Petroleum
Eagle Ford
300 BHP Billiton Petroleum
Australia
250
200
BHP Billiton Petroleum
150 Gulf of Mexico
100
50
0
FY08 FY10 FY12 FY14e FY16e
Single well liquids production (Black Hawk)
(gross barrels of oil per day)
2,000
Forecast
Actual
1,500
1,000
500
0
1 30 59 88 117 146
Days on production
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 22
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Significant near-term infrastructure expansion underway in the Eagle Ford
Six new processing plants planned
Significant added capacity: – 100 Mb/d liquids
– 1 Bcf/d gas
Approximately 800 miles of pipelines
+US$1 billion over the next five years
Eagle Ford Shale
Overview Map
San Antonio
LEGEND
Existing facility
Planned facility
Black Hawk Central CDP
Black Hawk NE CDP
Karnes CDP
Black Hawk SW CDP
Eagle Ford - Blackhawk Central CDP
Hawkville Far East CDP
Hawkville Central CDP
Hawkville NE CDP
Hawkville Mid East CDP
Hawkville West CDP
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 23
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Now appraising the liquids rich Permian
18 day single well flow back test
(oil, bo/d) (wet gas, Mcf/d)
600 7,200
Oil Wet gas
500 6,000
400 4,800
300 3,600
200 2,400
100 1,200
0 0
1 5 9 13 17
Days
Significant appraisal program ongoing and encouraging results to date
Acreage up from 378,000 at the time of the acquisition to over 440,000 today
Majority of wells completed within the past year and more than 60 planned for FY13
Targeting oil from multiple pay horizons
Wolfcamp shale over 900 ft thick in some areas
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 24
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BHP Billiton’s dry gas shale properties are among the lowest cost in the US
Comparative ranking of break even wellhead cost for US unconventional gas plays, 2012
(gas focused unconventional plays only)
Haynesville
Fayetteville
Lance Pinedale
Fruitland
Granite Wash
Niobrara Codell
Eagle Ford - Wet
Olmos
Lance Jonah
Montney
Duvernay Shale
Mesaverde Coals
Marcellus Southwest
Fayetteville
Arkoma Woodford
Horn River
Selma Chalk
Marcellus Northeast
Anadarko Woodford
Haynesville - Tier One
Barnett
Bossier Shale
Mesaverde Wasatch
Pennsylvanian Coals
Horseshoe Canyon
Raton Vermejo
Honaker Trail
Mesaverde Piceance
Almond Wamsutter
James Lime
Powder River CBM
Cherokee
Deep Haley
Mancos
Utica - Appalachia
Barnett Southwest
Black Warrior Coals
Deep Bossier
Wilcox Lobo
New Albany
Huron
Travis Peak
Haynesville - Tier Two
Chattanooga
Austin Chalk
Cody
Utica - Quebec
Antrim
Mannville
Lower Vicksburg
Cotton Valley
Baxter
Eagle Ford - Dry Gas
Pierre
Gothic
Columbia Sub-basalt
Palo Duro
Barnett Woodford
Conasauga
Source: Wood Mackenzie, 2012.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 25
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Industry best Haynesville acreage delivers strong forward returns at current prices
Haynesville acreage position
(Estimated Ultimate Recovery bands)
Core acreage delivers very strong per well recoveries, with some in excess of 20 bcf
+20% forward rates of returns, even at current prices
Significant value being added through continuous improvement initiatives
Positioned to ramp-up activity as US natural gas prices recover
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 26
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Fayetteville opportunity remains strong as US natural gas prices recover
Proved areas
Average Fayetteville rig release time
(days)
Large and proven resource
Near-term activity focused on opportunity preservation and operational momentum
Already realising significant operational improvements which will reduce costs and enhance value
Significant long term opportunity as US natural gas prices recover
50 40 30 20 10 0
Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 27
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Onshore US shale will be an essential element of Petroleum’s long term strategy
Material and highly expandable
Strong returns and fast payback
Significant flexibility to respond to market conditions
Multiple upside opportunities
Leverages existing strengths in safety, project management and operational excellence
Long term view perfectly matched to BHP Billiton strategy
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 28
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 29
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Material and focused exploration program – multiple high impact wells planned for FY13
Gulf of Mexico
Production heartland
World class basin with running room
3 significant FY13 wells
India
Leveraging industry leading technology to evaluate new plays
> 5,000 km 2D seismic in FY13
Southeast Asia
World class basin
Leading industry into deepwater
FY13 well and > 6,000 km 2D seismic
South Africa
Evaluating extension to a key emerging play
10,000 sq km 3D seismic acquisition
Australia
Production heartland
World class basin with running room
FY13 well and seismic
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 30
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bhpbilliton
resourcing the future
Agenda
Corporate overview
Petroleum overview
Conventional business
Onshore US shale
Exploration
FY13 outlook
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 31
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US$6.5 billion capital program planned for FY13, with shale liquids representing the largest component
Development capital
(BHP Billiton net share, US$ millions)
7,000
Conventional
6,000 Shale
5,000
4,000
3,000
2,000
1,000
0
FY07 FY08 FY09 FY10 FY11 FY12 FY13e
Conventional spend driven by: – Projects in execution – Development drilling in GoM and WA
Approximately 40 rigs operating Onshore US in FY13 with over 85% directed towards the liquids rich Eagle Ford and Permian
Onshore US spend will be adjusted as needed to maximize value in response to market conditions
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 32
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FY13 volume target of 240 MMboe driven by growth in liquids
Volumes
(BHP Billiton net share, MMboe)
250
Gas
Liquids
200
15% liquids growth
150
100
Gas roughly flat
50
0
FY11 FY12 FY13e
8% volume growth expected into FY13, driven by 15% expected liquids growth
Gas roughly flat as Macedon and North West Shelf offset lower shale dry gas volumes
Long term production growth: – Continued growth in shale liquids – Large conventional projects and drilling programs – Ramp-up in shale dry gas as price recovers
Source: BHP Billiton analysis.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 33
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Key themes
Large growing business in one of the world’s largest corporations
Outstanding track record of operated performance
Onshore US activity shifted to liquids
Additional oil volumes from return to work at Atlantis and Mad Dog
Shale dry gas resources remain strong and are valuable to the long term
Material and focused exploration
Can grow production on average 10% annually for the next 10 years
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, 4 September 2012
Slide 34
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BHP Billiton Limited and BHP Billiton Plc | ||||||
| Date: September 5, 2012 | By: | /s/ Jane McAloon | ||||
| Name: | Jane McAloon | |||||
| Title: | Group Company Secretary | |||||