Page 289 - Annual Report 2020

FY2020 proved undeveloped reserves which occurred with the divestment of unconventional Onshore
At 30 June 2020, Petroleum had 238 MMboe of proved undeveloped US assets. A reclassification from proved undeveloped to proved
reserves, which corresponds to 32 per cent of the reported proved developed status of approximately 40 MMboe that occurred in the
reserves of 748 MMboe. This represents an increase of 19 MMboe North West Shelf, Australia, with the completion of development Strategic Report
from the 219 MMboe at 30 June 2019. and the start of production from the Greater Western Flank
Phase B project, also contributed to the reduction. An additional
The most significant drivers of this increase were the additions 1 MMboe was also reclassified from proved undeveloped to proved
of 19 MMboe for the Ruby development project in Offshore Trinidad developed status with the completion of an infill well in the
and Tobago and 12 MMboe for the Greater Western Flank Phase 3 ROD integrated development in Algeria. Partially offsetting these
development project in Australia as extensions and discoveries. reductions were revisions for technical studies of 10 MMboe for
Reclassifications from proved undeveloped to proved developed the Kipper field in the Bass Strait, Australia. Additions following the
occurred in Australia in the Macedon field (7 MMboe), the Cobia approval of the Atlantis Phase 3 project in the Offshore US Gulf of
field in Bass Strait (2 MMboe) and in the Offshore US Gulf of Mexico Mexico added 8 MMboe for development plan changes, 7 MMboe
in the Mad Dog Spar A field (3 MMboe). In the Shenzi field, the need for performance and 1 MMboe as an extension. A performance
to perform a producer redrill resulted in the reclassification reduction of 2 MMboe in the Mad Dog field partially offset the Governance at BHP
of 4 MMboe proved developed into proved undeveloped. Atlantis performance addition.
In Australia, in the Bass Strait, 18 MMboe was moved into proved FY2018 proved undeveloped reserves
undeveloped for the Turrum field as a result of the reservoir At 30 June 2018, Petroleum had 421 MMboe of proved
performance reassessment while in the Kipper field, a reduction undeveloped reserves, which represented 30 per cent of year-end
of the gas delivery pressure requirements enabled more gas to be 2018 proved reserves of 1,400 MMboe. Approximately 237 MMboe
delivered prior to the installation of compression. This resulted in or 56 per cent of the proved undeveloped reserves resided in our
the movement of 16 MMboe from proved undeveloped to proved conventional offshore fields in Australia, the Gulf of Mexico and
developed reserves. Bass Strait proved undeveloped fuel was also Algeria, while 185 MMboe or 44 per cent resided in our Onshore
increased by 3 MMboe as a result of a fuel utilisation study. US fields. The proved undeveloped reserves at 30 June 2018 reflect
Performance revisions in the Mad Dog Spar A and the Shenzi fields a net decrease of 62 MMboe from the 483 MMboe reported at
in the US Gulf of Mexico reduced proved undeveloped by 6 MMboe. 30 June 2017. This decrease was in large part the result of changes Remuneration Report
Lower commodity prices resulted in a 4 MMboe reduction to proved to development plans and reduced pace of drilling, which resulted
undeveloped reserves. in a reduction of 67 MMboe, the majority of which occurred in
our Onshore US fields. This was partially offset by extensions
Over the past three years, the conversion of proved undeveloped of 50 MMboe for new drilling locations in our Onshore US fields.
reserves to developed status has totalled 98 MMboe, averaging The conversion of 48 MMboe from proved undeveloped to proved
33 MMboe per year. At 30 June 2020, a total of 30 MMboe proved developed through drilling and development activities also
undeveloped reserves have been reported for five or more years. contributed to the decrease. The largest component of this
These reserves are in our currently producing fields and will be conversion occurred in our Onshore US fields where 26 MMboe
developed and brought on stream in a phased manner to best was moved to proved developed status. An additional 11 MMboe
optimise the use of production facilities and to meet sales was converted in the North West Shelf Persephone development Directors’ Report
commitments. During FY2020, Petroleum spent US$1.0 billion in Australia, while 10 MMboe was converted in the Atlantis field in
on development activities worldwide. Of this amount: the Offshore US Gulf of Mexico. An additional 1 MMboe was also
• US$0.8 billion was spent progressing the conversion of proved converted as a result of drilling in the ROD integrated development
undeveloped reserves for conventional projects where developed in Algeria. Improved liquids prices but reduced gas prices led to
status was achieved in FY2020 or, will be achieved when a net reduction due to price in Onshore US proved undeveloped
development is completed in the future reserves of 4 MMboe. Performance revisions overall totalled
• US$0.2 billion represented other development expenditures, 9 MMboe, with an increase of 11 MMboe in Onshore US fields,
including compliance and infrastructure improvements primarily in Eagle Ford and Permian, and a net reduction
of 2 MMboe in Australia.
FY2019 proved undeveloped reserves The changes in proved undeveloped reserves in FY2020, FY2019
At 30 June 2019, Petroleum had 219 MMboe of proved undeveloped and FY2018 are summarised by change category in the table below. Financial Statements
reserves, which corresponds to 26 per cent of the reported proved Additional information detailing the effect of price, performance,
reserves of 841 MMboe. This represents a reduction in proved changes in capital development plans and technical studies are
undeveloped reserves of 202 MMboe from the 421 MMboe at also provided for revisions.
30 June 2018. The largest element of this reduction was 185 MMboe,

Year Ended 30 June
Proved Undeveloped Reserves (PUD) Reconciliation (MMboe) (a) 2020 2019 2018 6
PUD Opening Balance 219 421 483
Revisions of Previous Estimates (12) (18) (111)
Reclassifications to developed (8) (42) (48)
Performance, Technical Studies and Other (1) 16 9
Development Plan Changes (0) 8 (67) Additional information
Price (4) – (4)
Extensions/Discoveries 31 1 50
Acquisitions/Sales – (185) –
Total Change 19 (202) (62)
PUD Closing Balance 238 219 421
(a) Small differences are due to rounding. Shareholder information

BHP Annual Report 2020 287