1. NOIA Conference 2017 October 4-6, Jackson Hole, Wyoming

2. BHP portfolio
Our strategy is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market.
Petroleum
Iron Ore
Copper
Coal
Reminder at start of presentation: Acknowledgement of Mexico earthquake
BHP sends it condolences to the Mexican people in the aftermath of the recent earthquakes. We are planning to contribute $150,000 to the Mexican Red Cross
BHP has been in business for more than 150 years. Our purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. Our products are sold worldwide, with sales and marketing led through Singapore and Houston, United States. Our company’s global headquarters are in Melbourne, Australia.
The diversified nature of our business sets us apart from other companies and provides resilience and flexibility through volatile market conditions to enhance value

3. Our Petroleum Conventional Asset - Quality Conventional assets concentrated in Australia and GoM
Conventional production outlook
(FY17e, BHP Billiton share)
International other
3-4 MMboe
North West Shelf
28-30 MMboe
Gulf of Mexico
33-35 MMboe
Trinidad & Tobago
5-6 MMboe
Our conventional assets and exploration targets are high quality and align to the overall BHP strategy of owning and operating large, long-life, low-cost, expandable upstream assets.
Our recent classification of our Shale assets as non-core represents BHP’s continued efforts to sharpen our focus on operating in the right commodities, with the right assets and capabilities to extract maximum value for our shareholders.
BACK UP Message on Shale - Our shale assets are high quality and of significant value but with the assets largely gas, the global shale opportunities largely US based and the pro-cyclical nature of investment, they do not sit comfortably in our portfolio.
Gas
Crude & Condensate
LNG
NGL
Australia operated
16-17 MMboe
Bass Strait
35-37 MMboe
Note: Based on FY17 forecast production. Size of bubbles scaled to overall production. Ranking of production based on Woodmac and BHP Billiton analysis.

4. BHP submits winning bid for Trion in Mexico's first deepwater bid round
Original contract bid terms and conditions not anything anyone would have bid on.
2nd Operator was originally required with maximum WI for Operator of 45%
JOA terms ie, voting procedures, use of 3rd party experts etc.
Contract terms ie., Clause 32.2 anti corruption, attesting on behalf of partner
Derisked with requirement for MWP only; additional carry not payable if not commercial
Got License vs. PSC
AMEXHI was huge support; overall positive outcome

5. BHP wins bid for Trion interest
Acquiring a operated 60% participating interest in Blocks AE-0092 and AE-0093 in the deep-water GOM in Mexico
Pemex to retain a non-operated 40% working interest
PEMEX and BHP believe that, once fully appraised, Trion could be one of the top 10 fields discovered in the Gulf of Mexico.
Bid elements include:
4% royalty in addition to existing royalty
Commitment to a minimum work program
A cash offer of US$624 million consisting of
US$62.4 million cash payment at closing
Commitment to a Minimum Work Programme in the order of $320 million
Transaction closed 3 March 2017

6. Why Trion? Selection process Oil Copper Deepwater Mexico Trion
Portfolio growth
Oil
Copper
Conventional
Deepwater
New heartland
Mexico
Discovered resource
Trion
Exploratus
Maximino
Supremus
BHP looks at GoM in total, not US separate from Mexico
We have acreage contiguous with the border
Trion is strategic early mover entry and partnership with NOC
PEMEX has been great partner, providing support to make the project a success – excellent collaboration
Discovered -> de-risked Access to new heartland
Adjacent to our existing GOM acreage on US side -Complementary to exploration efforts
Operatorship Early-mover advantage
Relationship builder with Mexican Gov’t & PEMEX -Upside potential
Gate to future expansion in Mexico Investment optionality
Favorable fiscal terms Low oil prices
Quick Facts (Trion)
Discovered in 2012
Partially appraised with 2 wells and 1 sidetrack exploring horizons in the Paleocene and Eocene layers
Spreads over 2 blocks (AE 0092, AE 0093) with a total area of 1284 km2
The fluid tests have demonstrated good quality oil
2,530 m water depth
~30 km south of the US/Mexico border
~60 km from Great White
~180 km from the Mexican coastline
Governed by license fiscal regime, i.e. Government takes its share through taxation

7. Milestones and What’s Ahead
Achieved to date:
HSE management system approved by ASEA August 17. This is the foundation for our license to operate.
Social Impact Study assessment submitted August 24 (submitted but not yet approved).
E&A plan submitted to CNH on August 29; entails our initial plans and thoughts for potential exploration, work program and budget.
Tender process for preferred rig under way with focus on safety, quality and cost competitiveness. 
Next Steps (next 6 months)
Prioritize exploration prospects and advance assessment of preferred option.
Develop basis of well designs to enable us to execute the wells safely and efficiently.
Advance the well permitting process - as the first international operator to drill in the deepwater, we are working through the permitting process with the help of the regulators involved.
Review and award the Shorebase operations and decide on the best option for aviation and vessels.
Base of operations will be in Mexico; continue to evaluate which is the best location to service the Trion area
We expect to start drilling the first of the appraisal wells in the second half of the 2018 calendar year.