BP discovers its biggest oil and gas field in decades
What's the story
Oil giant British Petroleum (BP) has announced its largest oil and gas discovery in 25 years, off the coast of Brazil. The find, located at the Bumerangue block in Santos basin, some 400km from Rio de Janeiro, could greatly contribute to BP's plans to ramp up crude production. The company is now conducting tests at this deep-water site.
Historic find
Major find for BP
The Bumerangue block was awarded to BP in December 2022, with terms of 80% cost oil and 5.9% profit oil. The company plans laboratory analysis to better understand the reservoir and fluids discovered, which will give more insight into the potential of this block. This is BP's biggest discovery since the Shah Deniz gas field in the Caspian Sea in 1999.
Expansion strategy
Other recent discoveries by BP
Along with the Bumerangue prospect drilling campaign this year, BP also has an exploration well planned for the Tupinamba block in 2026. This is the 10th discovery reported by the $84 billion energy giant. Other discoveries include oil and gas finds at Beryl and Frangipani in Trinidad; Fayoum 5 and El King in Egypt; Far South in Gulf of America; Hasheem in Libya; Alto de Cabo Frio Central Brazil; Namibia through Azule Energy, its joint venture with Eni.
Strategic pivot
Shift in investment strategy
In February, BP had announced a shift in its investment strategy, cutting back on renewable energy investments to focus more on oil and gas operations. The move was aimed at boosting investor confidence amid rising oil and gas prices after Russia's invasion of Ukraine. Following the latest discovery announcement, BP's shares rose by over 1% in London trading.