BHP has committed $US544 million ($736.5 million) in capital for the Shenzi North oil project in the US Gulf of Mexico.
Shenzi North is operated by BHP, which holds a 72 per cent share in the project, with Respol holding the remaining 28 per cent.
Respol is expected to make a final investment decision later this year.
BHP’s capital expenditure represents a 100 per cent share interest and offers returns of more than 35 per cent.
Shenzi holds estimated recoverable reserves of between 350 million and 400 million barrels of oil with production expected to start in 2024.
BHP will use the nearby Shenzi production facility for the project.
BHP has also approved $US258 million in capital expenditure for the Trion oil project in Mexico to transition into the front end engineering design (FEED) phase.
The company stated the FEED studies will be based on completing the engineering, commercial arrangements and execution planning to reach a final investment decision by mid-2022.
BHP owns a 60 per cent participating interest in the two blocks containing the Trion Discovery, while PEMEX Exploration & Production Mexico owns the remaining 40 per cent.
BHP president operations petroleum Geraldine Slattery said both resources will help grow the company.
“Both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources,” Slattery said.
“Shenzi North is aligned with the petroleum strategy to unlock and deliver further growth options in this key Gulf of Mexico heartland.
“This board decision also marks an important milestone in advancing the Trion development as we continue to work with our partner PEMEX towards a final investment decision in calendar year 2022.”
BHP’s share price is down 2.56 per cent to $51.78 on the ASX at the time of writing.