Feb 13 (Reuters) - BHP Group, the world's largestminer, said on Wednesday its board has approved $696 million infunding to expand production at the BP PLC-led Atlantisoil project in the U.S. Gulf of Mexico.
The move comes about a month after London-listed oil and gasmajor BP discovered further oil prospects in the Gulf of Mexico,including additional oil in the Atlantis field. BP said thetotal cost of developing the project would be around $1.3billion.
BP has a 56 percent interest in the Atlantis field, whileBHP holds the remaining 44 percent.
First production for the project is expected in 2020, BHPsaid in a statement, and is expected to increase production byabout 38,000 barrels of oil equivalent per day at its peak.
BHP said it had also approved $256 million in funding foradditional drilling and study at its 60 percent-held Trion fieldin Mexico.
The Mexican government-owned PEMEX holds the rest of Trion.
BHP's Australian shares ended 0.6 percent lower, while thebenchmark fell about 0.3 percent(Reporting by Ambar Warrick in Bengaluru; editing by RichardPullin)