BHP Billiton has secured oil exploration licences in Barbados.

The government of Barbados has granted early arrpoval for the Australian mining, oil and gas giant’s plans to explore a 5,000 square kilometre area about 40 kilometres southeast of the Caribbean island.

BHP says there could be some major finds in waters up to 2,000 metres deep.

Full government approval of BHP Billiton's environmental plans is needed before its first three-year phase of exploration, including a 2D seismic survey, can begin

If the first sweep is successful, a 3D seismic survey should follow, along with drilling of exploration wells.

The government of Barbados will receive royalty and tax payments if the exploration is successful.