Record petrol production for BHP

Johannesburg - Global resources giant BHP Billiton (BIL) said Wednesday that it achieved record petroleum production for the nine months ended March 2010 with strong growth in its high margin crude operations following the successful start-up of Pyrenees (Australia) and strong performances from operations in the Gulf of Mexico (USA).

Crude oil production, at 19.7 million barrels (bbl) was 29% higher on the year.

Releasing its production report, the group also reported year to date production records for iron ore on the back of projects delivered from its deep inventory of ongoing expansions. Western Australia Iron Ore (Australia) and Samarco (Brazil) also achieved year to date production records.

Nine month iron ore production amounted to 93.719 million tones - up 7% y/y.

Year to date production records were also achieved for nickel, alumina and zinc, and at North West Shelf, Hunter Valley Energy Coal, Nickel West and Worsley (all Australia), Mad Dog (USA), Alumar refinery (Brazil) and Zamzama (Pakistan).

Production of energy coal was higher than all comparative periods mainly due to the continuing ramp up of the Klipspruit (South Africa) expansion and record production at Hunter Valley Energy Coal. A total of 49.861 million tonnes of energy coal was produced year to date - a rise of 2% y/y.

Quarterly production records were achieved for alumina, and at North West Shelf and Worsley (both Australia) and Samarco and Alumar refinery (both Brazil).

However, iron ore and metallurgical coal production was impacted by weather related disruptions, the group said.

The group also announced that it has reached agreement with the majority of its iron ore customers to permanently move existing contracts to index based prices on a landed equivalent basis.

- I-Net Bridge