BHP Billiton Limited
(ASX:BHP) says it plans to spend $4 billion a year to grow its US onshore oil and gas production to 500,000 barrels of oil equivalent a day by the financial year 2017.
Media reports say the mining giant will invest in its US shale gas business, taking it to 200,000 barrels of liquids a day during the same period ending June 30, 2017.
As a result, the US onshore business is expected to be self-funding in the 2016 financial year before generating almost $3 billion of free cash flow in the 2020 financial year.
The news comes after BHP chief executive officer Andrew Mackenzie reaffirmed production guidance and told shareholders the miner is set to continue to cut costs as well as reducing capex.
CEO of BHP's Petroleum business Tim Cutt told analysts in Houston that onshore US is well positioned to become another major cash-flow generator for the company.
BHP generated a net profit of $11.9 billion in fiscal 2013.
