BHP is pouring $1.34 billion into petroleum prospects offshore from the United States and Mexico.

The company will contribute $US696 million to the Atlantis Phase 3 project in the Gulf of Mexico, which is expected to be in production during the 2020 calendar year, with an estimated output of up to 38,000 barrels of oil equivalent per day.

“The project will further expand the Atlantis field and will provide cost-efficient, near term volumes,” BHP president operations petroleum Steve Pastor said.

BHP is also putting an extra $US256 million in funding towards news appraisal wells and other studies in the Trion field in Mexico.

The company wants to confirm the volume and composition of hydrocarbons near the crest of the Trion structure, and investigate the viability of the Trion field – in which it holds a 60 per cent stake.

“A further appraisal well at Trion, following the recent encouraging results at the 2DEL appraisal well, reduces investment risk and adds value to this project. If Trion is determined to be commercial, these funds will also provide an option to potentially accelerate development of Trion,” Mr Pastor said.