BP announces its largest oil and gas discovery in 25 years off Brazil’s coast

BP has made its largest oil and natural gas discovery in 25 years after a successful drilling operation in a field off the coast of Brazil.

This discovery provides a significant boost to the energy giant, which is refocusing on fossil fuels.

The Bumerangue field is located in the Santos Basin, approximately 400 km from Rio de Janeiro, and covers an area of over 300 km², about five times the size of Manhattan.

BP’s head of oil production, Gordon Birrell, said in a stock market announcement on Monday that this “significant discovery” is the company’s largest in 25 years. BP shares gained 1.2% in early trading.

According to a BP spokesperson, this is the company’s largest discovery since the 1999 discovery of the giant Shah Deniz field in the Caspian Sea, which contains approximately 35 trillion cubic feet of gas.

Bumerangue is believed to contain a mix of gas, condensate, and oil.

This discovery comes at a time when BP CEO Murray Auchincloss has shifted the company’s strategy to place greater emphasis on oil and natural gas production and less on renewable energy sources.

BP stated that it is still too early to assess the size or quality of the reserves but noted the detection of high carbon dioxide levels, a factor that could complicate extraction and increase processing costs.

The company holds 100% of the license rights to the field as the sole bidder in a 2022 auction. The terms appear commercially favorable: BP will pay only 5.9% of its profits to the Brazilian government after recovering its costs.

Bumerangue marks BP’s 10th discovery this year, following successful wells in Trinidad, Egypt, Libya, Brazil, and the Gulf of Mexico. Azule, BP’s joint venture with Italian oil giant Eni, has also made discoveries in Namibia and Angola.

In February, the company reversed its previous commitment to limit exploration outside its existing basins and reduce fossil fuel production as part of its transition to clean energy.

Last year, BP produced just under 2.4 million barrels of oil and gas per day. The company aims to maintain production between 2.3 million and 2.5 million barrels per day by 2030 and to increase it further by 2035.