JP Morgan Oil Seminar Sydney, Australia May 2, 2003 The Future of the Gulf of Mexico and BHP Billiton s Position Bernie Wirth - Vice President, Exploration and Appraisal Gulf of Mexico
Outline Explain why the GOM remains an attractive basin for investment Update the status of BHP Billiton producing and sanctioned projects Provide overview of future BHP Billiton appraisal and exploration activities Page 2
Value Creation through Exploration: 1996 2002 (1H) GOM Deepwater Kazakhstan Angola Egypt Nigeria Bolvia Norway Netherlands Denmark Indonesia Bangladesh Azerbaijan Algeria Libya Argentina Yemen Colombia Brazil Australia Italy Venezuela UK (2500) 0 2500 5000 7500 10000 12500 Source: WoodMackenzie US $ Millions Page 3
GOM Value Creation by Company: 1996 2002 (1H) BHPBilliton Super Majors Peers (500) 0 500 1000 1500 2000 2500 3000 Source: WoodMackenzie Page 4 US $ Millions
Gulf of Mexico Multi Play and Multi Trap Shelf 0-600 Water Deepwater 600-5,000 Water Ultra Deepwater 5,000-10,000 + Water Pleistocene Pliocene Pleistocene Pliocene U Miocene U Miocene L Miocene Oligocene Eocene/Paleocene Cretaceous L Miocene Oligocene S S S Eocene/Paleocene Cretaceous Emerging New Plays GC Mini-Basin Play Atwater Foldbelt 01.01.01 Page 5
Gulf of Mexico Deepwater Resource Distribution Stratigraphy # of Discovered Discoveries Resource Bboe* BHPB Examples Plio-Pleistocene 56 5.0 Typhoon, Genesis, Boris Miocene Oligocene Carbonate Eocene-Paleocene MCU Cretaceous 51 8.0 Mad Dog, Atlantis, Shenzi 3 >1.0?? Cascade (7 wells)? Source: Wood Mackenzie, BHP Billiton analysis * Excludes approximately 1.2 Bboe not classified Page 6
Keys to Past & Future Success Favourable geologic, fiscal environment World Class Team Petroleum systems approach Commercial flexibility Cost control Cycle time shortening Page 7
Producing Assets Shelf WC 76 GC 18/60 Deepwater Typhoon - Boris Page 8 Genesis
Green Canyon Mini-Basin Typhoon Boris Page 9
Developing Assets: Mad Dog - On track for first oil FY2005 Spar Construction Topsides Construction Page 10
Developing Assets: Atlantis On track for first oil FY2007 Atlantis-1 742 743 Atlantis 6ST Atlantis 6 744 Atlantis 3 Edge of Salt Atlantis 2ST Atlantis 2 Atlantis 4 Atlantis 3ST Atlantis 7 Approximate Field Boundary 786 788 Page 11
Gulf of Mexico Production by Company Shell ChevronTexaco BP ExxonMobil El Paso Unocal Devon/Ocean Apache Kerr McGee Marathon Anadarko Amerada Hess Newfield Noble Stone Agip ConocoPhillips Forest Dominion Offshore Energy Nexen BHPBilliton (current) Mad Dog & Atlantis BOE per day* Deepwater >1,500 Shallow < 1,500 0 100000 200000 300000 400000 500000 600000 Page 12 *12 month average to 9/01
BHP Billiton Gulf of Mexico Summary Objectives Status Areas Activity Key Assets NPV Growth Profit Growth Core Plays Emerging Plays Atwater Fold Belt (AFB) Green Canyon East AFB Gas Mississippi Canyon Walker Ridge Deep Shelf Gas Developments Appraisal Exploration Production Exploration Exploration Appraisal Exploration Appraisal Exploration Appraisal Exploration Mad Dog Atlantis Caesar/Cleopatra Shenzi - Neptune Typhoon Boris Genesis Vortex Champlain Cascade Page 13 Perdido Foldbelt Exploration
Discoveries: 5 under Appraisal Vortex Genesis Champlain Shenzi Atlantis Mad Dog Cascade Neptune Legend BHPB Lease BHPB Producing Lease BHPB Lease Sale High Bid Oil Salt BHPBilliton Operated BHPBilliton Non-operated Miles Kilometers 0 10 20 0 20 40 Divisional Name/Footer Page 14
Hou st on Bay town G alv es t o n B ay G alv es t o n G alv es t o n Beaum ont St. J am e s Hou m a Ne w O r lea ns Exploration: Focus in Play Fairways Lake Char les Laf ayette Lake Pontchart rain Mis si ssippi River Breton Sound Deep Shelf Gas Mississippi Canyon Perdido Foldbelt Green Canyon Mini Basin Walker Ridge Atwater Fold Belt (AFB) Eastern AFB Gas 4 to 5 Deepwater Exploration wells planned in next 12 months 01.01.01 Page 15