Todays AFR has a good article on BHPs Phil Aikken's Oil plans/vision.
They are lookin at possibilities... maybe even WPL?
"That is the next challenge for the business, finding that fourth core business."
"It was saying where is there a new basin, where is there a new basin province that we can get into, get good acreage and we can find oil and be successful," Aiken says.
Initially partnering UK oil giant BP, BHP Billiton has proved itself a capable player in the risky area of ultra-deep-water exploration.
BHP Billiton has two ultra-deep-water projects under construction, with the Mad Dog oil project (set to come on stream by the end of the year) and the Atlantis oil project, which will have initial production in the third quarter of 2006.
"There were a number of people looking at deep water in the mid-1990s, but we went into ultra-deep water probably ahead of most of the industry," Aiken says.
The company has two discoveries that are well appraised - Neptune and Shenzi - which Aiken hopes will lead to sanctionable projects, while the Cascade, Chinook and Puma discoveries provide the option of further production in coming years.
"We still have a lot more acreage to build exploration growth at the moment," Aiken says.
And it's not just in the Gulf of Mexico where BHP Billiton is laying claim to exploration acreage. It has interests in offshore regions off South Africa, Brazil, and Brunei, and recently secured some acreage in offshore Canada.
"We are trying to be very focused. We think it is very important to have good operations today, and we have good projects coming through, but we have got to be thinking what's next, what are going to be the company opportunities in five to 10years," Aiken says.
"So some of the acreage that we have taken recently is really stuff that probably won't come on stream for 10 years, but we have to be continually looking out to the future."
But Aiken offers a cautionary note when it comes to spending shareholder funds on new acreage.
"You've got to get in early, get in at the right price, test it and if it's successful consolidate your position, and if it's unsuccessful, get out before you spend too much money."
The willingness of BHP Billiton petroleum to go global is highlighted by its work in the North African nation of Algeria through its Ohanet wet gas project and the Rhourde Oulad Djemma (ROD) oil project, which will come on stream later this year after some delays.
Algeria is a big gas producer and is well positioned to provide gas to Europe, especially given the decline of production from the North Sea. The Algerians want to expand their gas production and BHP Billiton is looking to build its presence in the country. It has won two more exploration blocks and is considering bidding on a project offered by the Algerian government.
"What we would like to do is finish up with a number of assets. So at the moment we have two assets in Algeria - ROD and Ohanet - but it would be nice to have three or four so you get the critical mass to have a meaningful position."
Ohanet produces about 16.5million cubic metres a day of gas, and although BHP Billiton does not own the gas, it gets paid through stripping out liquids such as condensate and the LPG.
"I think you'll see more projects like that in Algeria and we'd be looking to bid on those."
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