Cabrillo Port

1. Cabrillo Port Supplying California with Clean, Reliable Natural Gas

2. Cabrillo Port Who Is BHP Billiton?

3. Petroleum Aluminium Base Metals Carbon Steel Materials Diamonds & Spec Prod Energy Coal Stainless Steel Materials BHP Billiton – Diversified With a Global Reach

4. BHP Billiton LNG, Inc. is a Subsidiary ofBHP Billiton, the World's Largest Diversified Resources Company 35,000 employees working in more than 100 operations in approximately 20 countries Market Cap: U.S. $95 Billion (October ‘05) Industry or near industry leader Aluminum Energy coal and metallurgical coal Copper Ferro-alloys Iron Ore and titanium minerals Substantial Interest Oil Gas Liquefied natural gas Nickel Diamonds Silver BHP Billiton Snapshot

5. BHP BillitonHealth, Safety, Environment and Community Policy “We commit to continual improvement in our performance, efficient use of natural resources and aspire to zero harm to people and the environment”

6. Cabrillo Port Project Description

7. Project Overview • Import LNG from Australia • Operate a LNG Floating Storage and Re-gasification Unit (FSRU) Approximately 21 miles Offshore Oxnard • Subsea Natural Gas Pipeline Linking into the Existing SoCalGas System • Deliver about 800 Million Cubic Feet of Natural Gas Daily, About 13% of California’s Average Daily Natural Gas Consumption

8. Project Benefits • Increases California’s Natural Gas Supply Diversity • Reduces California’s Reliance upon Interstate Pipeline Systems • Reduces California’s Reliance on Diminishing Domestic Resources • Supply Diversity and Capacity Should Moderate Prices • Safe & Proven Technology • Smallest Environmental Footprint Possible • Creates California-Based, Permanent Jobs • Long-term Investment and Involvement in Local Communities

9. Marine Sanctuary Boundary 12.43 miles from Cabrillo Port Cabrillo Port Site Closest land fall 14.04 miles from Cabrillo Port Almost 17 miles from Cabrillo Port to Pt. Dume Cabrillo Port Over 21 miles from the city of Oxnard and will not be visible to city residents

10. Why Choose This Site? • Access to SoCalGas Company’s Existing Transmission & Distribution Networks • SoCalGas Pipeline Routed Predominantly Through Farmland • The Remote Offshore Site • Provides an additional layer of security and safety • Ability to locate facility out of critical view shed • Minimal environmental footprint • Minimal societal impact

11. Natural Gas Pipeline Landfall SoCalGas Pipeline HDD pipelines (avoiding beach) Twin 24” gas pipelines connecting Cabrillo Port and the SoCal system will be installed underground using Horizontal Directional Drilling (HDD) avoiding any impact on the beach FSRU located 20.94 miles offshore

12. Visual Simulation – Typical Conditions Photo taken from Hwy 1 FSRU is 14.04 miles offshore

13. Visual Simulation – Clear Conditions Photo taken from Hwy 1 FSRU is 14.04 miles offshore

14. Visual Simulation – Marine Layer Conditions Photo taken from Hwy 1 FSRU is 14.04 miles offshore Visibility in photo is less than 1 mile

15. Visual Simulation – Night Photo taken from Hwy 1 FSRU is 14.04 miles offshore

16. Overview of Why California Needs LNG • Demand for Natural Gas is Growing in CA, Yet Domestic Supplies are Decreasing • California already imports 85% of the natural gas it currently needs • Control • LNG delivered directly into the existing SoCalGas Company’s system will serve CA market • Less opportunity for market manipulation • Economics • A long-term dedicated gas supply will moderate gas prices and help prevent price spikes or outages • Supply Diversification • All current basins that supply CA can supply multiple markets • Environmental Benefits • Does not negatively impact CA’s commitment to renewable sources • Cleaner burning natural gas is the fossil fuel of choice

17. U.S. Projected Natural Gas Demand/Supply Balance Source: U.S. Energy Information Administration

18. Cabrillo Port State & Federal Regulatory Review

19. Environmental Review Process

20. Primary Regulators • 4 Primary Agencies Federal and State Regulators • U.S. Department of Homeland Security (U.S. Coast Guard) • Deepwater Ports License • U.S. EPA Region 9 (California) • Air Quality and Emissions Permit • California State Lands Commission • Land Lease • California Coastal Commission • CDP, Consistency Determination • Other Federal Regulators • U.S. Department of Transportation • U.S. Maritime Administration • Other State Regulators • California Coastal Conservancy • California Public Utilities Commission

21. Cabrillo Port Technology & Safety

22. Safety, Security and Verification • All components are engineered to the highest safety standards and the gas operations systems are designed to be “fail safe” without human intervention • LNG carriers’ and the LNG terminal’s security plans are approved and regularly monitored by the U.S. Dept. of Homeland Security’s U.S. Coast Guard • The remoteness of Cabrillo Port provides an additional layer security and safety • Major classification societies which approve the design of ships and offshore structures have established Classification Rules for Offshore LNG terminals • One of these societies will independently examine and verify the design and construction of Cabrillo Port Class Rules for Offshore LNG Terminals from the 3 largest Classification Societies

23. Floating Storage & Regasification Unit Development Components “ A combination of proven technology components” Center Road Station Tie-in 36” 15 Mile Onshore Pipeline Oxnard SoCal Tie-in Directionally Drilled Section Under Beach Malibu 2 X 24” 20 Mile Subsea Pipeline FSRU in 2,850’WD

24. Safety of Location √ Cabrillo Port’s Remote Location Minimizes Perceived Safety Concerns √ Cabrillo Port is Over 21 Miles from the Nearest Heavily Populated Area – Oxnard, CA √ Cabrillo Port is Over 14 Miles from the Nearest Landfall √ Cabrillo Port is Situated in an Area Known for Relatively Mild Weather, Tidal and Geologic Activity √ Cabrillo Port is Situated Miles Beyond the International Shipping Lanes √ Cabrillo Port is Miles from the Channel Islands Marine Sanctuary

25. Floating Storage & Regasification Unit Safety • Storage Capacity = 273,000 m3 • Length = 928ft • Displacement ~ 210,000 DWT  Single Point Mooring  Side by side LNG transfer  Moss spherical LNG storage tanks  LNG regasification Proven Technologies • Anticipated Normal Throughput = 800 MMSCFD • Design Throughput = 1,500 MMSCFD • Permanently Turret Moored in 2,850’ wd.

26. 1999 - Buffalo FPSO – Converted 90,000 t dwt tanker 1994 – GRIFFIN FPSO Newbuild 100,000 t 1991- SKUA FPSO – Converted 150,000 t dwt tanker 1998 Modec Venture I – En route to ZOCA (Elang/K/KN) 1986 – JABIRU FPSO – Converted 150,000 t dwt tanker BHP Billiton Offshore Floating Expertise • BHP Billiton has been a pioneer in floating technology with a total of 9 floating units (6 FPSO, 1 FSU & 2 FSO) since 1985 • BHP Billiton has 20 years experience of successfully & safely marinizing far more complex hydrocarbon processing facilities on floating production units

27. Deepwater Pipeline Technology • Deepwater pipeline systems are used throughout the Gulf of Mexico and other locations worldwide • Two 24” pipelines provide redundancy which increases reliability • The pipelines are designed for fail-safe shut-in and to withstand earthquakes Cabrillo Port Pipeline Route & Bathymetry

28. Pipeline Safety √ BHPB will Operate the Subsea Pipeline from the FSRU to SoCalGas Connection Point √ Cabrillo Port will Utilize an Accurate, Proven, “Mass Balance” Leak Detection System √ Cabrillo Port will Be Subject to Annual Pipeline Inspections by SoCalGas Using Intelligent Pigging Technology √ SoCalGas Company Owns and Operates the Existing Pipelines Into Which FSRU Gas Supplies will Link √ Cabrillo Port will Provide Natural Gas that Meets or Exceeds California Quality Standards which are Among the Most Exacting in the Nation