By Sabela Ojea

 

BHP Group PLC said Thursday that it has approved a capital expenditure of $544 million to execute an oil project in the U.S. Gulf of Mexico, and a second capital expenditure of $258 million to move an oil project in Mexico into the front end engineering design (FEED) phase.

The Anglo-Australian multinational miner said that production at the Shenzi North oil project, in the Gulf of Mexico, is expected to begin in 2024. BHP holds a 72% interest in Shenzi North. Repsol S.A. holds the remaining 28% working interest.

Regarding the oil project in Mexico, called Trion, in which it holds a 60% interest, the company said that the focus of the studies will be on completion of the engineering, commercial arrangements and execution planning needed to progress to a final investment decision from mid-2022.

"Both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources," said Geraldine Slattery, president BHP petroleum.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

August 05, 2021 10:14 ET (14:14 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
BHP Billiton (ASX:BHPCD)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more BHP Billiton Charts.
BHP Billiton (ASX:BHPCD)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more BHP Billiton Charts.