Page 27 - Annual Report 2020

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The Carnival-1 well was spud in September 2019 and was a dry Conventional petroleum exploration and appraisal
hole. Evaluation and development planning studies in relation to Petroleum exploration expenditure for FY2020 was US$564 million,
these northern licences are ongoing. Exploration potential in the of which US$394 million was expensed. Expenditure on petroleum
southern blocks continues to progress with potential for a deep oil exploration over the last three financial years is set out below.
exploration test in FY2021. Strategic Report
In the US Gulf of Mexico, we expanded our acreage positions 2020 2019 2018
through lease sale participation. In FY2020, the regulator awarded Year ended 30 June US$M US$M US$M
(1)
BHP two blocks in Green Canyon, central Gulf of Mexico and 19 Conventional
blocks in the western Gulf of Mexico. In July 2020, the regulator petroleum exploration 564 685 709
(2)
(3)
awarded BHP two blocks in Green Canyon, central Gulf of Mexico
and three blocks in the western Gulf of Mexico. Additionally in Our petroleum exploration program had positive results in FY2020.
(4)
the western US Gulf of Mexico, the final processed data from the We are pursuing high-quality plays in our four priority basins and
Ocean Bottom Node seismic acquisition was received in April 2020 a US$450 million exploration program is planned for FY2021 as we Governance at BHP
and technical work is ongoing to inform the exploration program. progress testing of our future growth opportunities and evaluate
We continue to advance evaluation of options to optimise value potential new basins for future entries.
at Wildling through progressive development of the discovery. For more information on conventional petroleum exploration,
Different options for the development concept are under review, refer to section 1.11.1.
including a tieback to the Shenzi facility.
In Barbados, the regulator has approved offshore exploration Exploration expense
licences for the Carlisle Bay and Bimshire blocks, allowing BHP Exploration expense represents that portion of exploration
to commence the first three-year licence phase. expenditure that is not capitalised in accordance with our
In Canada, we continue to progress our assessment of the Orphan accounting policies, as set out in note 11 ‘Property, plant and
equipment’ in section 5.
Basin in Eastern Canada where we are in year two of our six-year Remuneration Report
exploration licences. Potential exploration wells are anticipated in Exploration expense for each segment over the last three financial
FY2022 pending approval of the environmental impact assessment years is set out below.
and other regulatory approvals.
2020 2019 2018
In Australia, BHP participated in a multi-client 3D seismic acquisition Year ended 30 June US$M US$M US$M
in the Gippsland Basin. The data will be delivered during FY2021 Exploration expense
through FY2022 and will inform us of the prospectivity in this area. Petroleum (5) 394 409 592
Copper 54 62 53
For more information on conventional petroleum exploration, Iron Ore 47 41 44
refer to section 1.11.1.
Coal 9 15 21
Exploration expenditure Group and unallocated items (6) 13 10 7 Directors’ Report
Our resource assessment exploration expenditure increased by Total Group 517 537 717
5 per cent in FY2020 to US$132 million, while our greenfield
expenditure decreased by 29 per cent to US$44 million.
Expenditure on resources assessment and greenfield exploration
over the last three financial years is set out below.

2020 2019 2018
Year ended 30 June US$M US$M US$M
Greenfield exploration 44 62 53
Resources assessment 132 126 112
Total metals exploration Financial Statements
and assessment 176 188 165 Additional information

(1) Leases were awarded in blocks: GC124 and GC168. Shareholder information
(2) Leases were awarded in blocks: GB721, GB630, GB574, GB575, GB619, GB676, GB677, EB655, EB656, EB701, GB762, GB805, GB806, GB851, GB852, GB895, GB672,
GB716 and GB760.
(3) Leases were awarded in blocks: GC80 and GC123.
(4) Leases were awarded in blocks: AC36, AC80 and AC81.
(5) Includes US$ nil (FY2019: US$21 million; FY2018: US$76 million) exploration expense previously capitalised, written off as impaired.
(6) Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West and legacy assets (previously disclosed as closed mines
in the Petroleum reportable segment), and consolidation adjustments.
BHP Annual Report 2020 25