MELBOURNE (dpa-AFX) - Anglo- Australian mining giant BHP Billiton plc (BHP.AX, BLT.L, BBL, BHP) Wednesday outlined a broad range of opportunities within its Petroleum business to grow value, returns and cash flow as markets improve.
The company noted that there would be significant opportunity to invest and maximize value in oil over the next decade. By 2025, the world is expected to consume more than 100,000 barrels of liquids per day - a third of which would come from new sources.
The company said Petroleum is well placed to maintain its position as BHP Billiton's highest margin business and to grow its free cash flow contribution.
BHP Billiton runs its Onshore US assets to maximise value rather than volumes and will continue to adjust its investment plans to reflect market conditions.
The company now has up to 1,200 undrilled net oil wells, contingent upon trials in the Eagle Ford, and 220 undrilled net gas wells that generate a minimum 15 percent internal rate of return at $50 per barrel of oil and $3 per MMbtu.
Speaking at an investor briefing in London, BHP Billiton President Operations Petroleum, Steve Pastor said, 'Having both minerals and petroleum in our portfolio allows us to maximise the value of our petroleum assets at the right point in the cycle. While currently well supplied, underlying fundamentals suggest both oil and gas markets are improving more quickly than our minerals commodities.'
BHP Billiton also announced positive drilling results at the Caicos exploration well in the Gulf of Mexico.
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