BHP Billiton will focus on copper and oil as it boosts exploration spending in the coming financial year despite cutting its total capital expenditure.
The resources giant said on Monday it will spend $US900 million ($A1.2 billion), or 18 per cent of its capital budget, on exploration projects in the 2016/17 financial year.
Petroleum exploration will focus on deepwater basins in the Gulf of Mexico, the Caribbean and the Northern Beagle basin, off the coast of Western Australia.
Copper exploration will target greenfield deposits in Chile, Peru, the US, Canada and South Australia.
"We are investing at a time when most in our sector continue to reduce discretionary spend," BHP's Geoscience head Laura Tyler told investors during a presentation on Monday.
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The company in February said it would cut its capital budget to $US5 billion in 2016/17 from $US7 billion in the current financial year, as it moved to preserve cash amid a prolonged downturn in commodities markets.
BHP - which posted a $US5.7 billion half-year loss - had previously outlined exploration expenditure of around $800 million in 2016/17.
Earlier this year, chief executive Andrew Mackenzie outlined his changed priorities saying BHP will first focus on maintenance capital, followed by shareholder returns.
Any excess free cash would then be spent on value-creating projects, he said.
The company also unveiled major changes in its operating model, shifting from the traditional minerals-focused divisions to businesses based on geographic areas.
At 1155 AEST, BHP shares were up 54 cents, or 3.1 per cent, at $18.08 each.
