BP has plans to drill four deepwater exploration wells off South Australia early next year, with projected expenditure on the program weighing in at $1.44 billion.

The campaign includes a $605 million guaranteed work program as well as an additional $832 million to be spent depending on initial exploration results.

BP (70%) plans to drill the wells with Norwegian state-owned company Statoil (30%).

According to Argus, geologists have estimated that BP's 12,100 square kilometre remit is more likely to contain gas than oil.

The wells will be located in 1-2.5km of water, in an area covered by 3D seismic data collected by BP in 2011 and 2012.

"BP is optimistic about finding hydrocarbons through its exploration, which marks its return as an operator of an exploration programme in Australia after an absence of more than 25 years," Argus said.

"One of the permits covers the area where Australian independent Woodside Petroleum drilled the Gnarlyknots wells that came up dry in 2003."

According to Argus, Woodside drilled its wells to less than 4000m, while BP predicts that sedimentary basins lie deeper than this and plans to drill up to 5000m.

The major announced earlier this month that it intended to slash capex over 2015 and hold back on various projects across its portfolio, falling in line with its peers in reacting to the depressed oil price.

The company said it planned to reduce exploration expenditure, postpone marginal projects in the upstream and not advance selected projects in the downstream and other areas.

A capex of $20 billion is planned for 2015, $4-6 billion below guidance provided in March last year.