BP has announced a major oil and gas discovery in Brazil’s offshore Santos Basin, describing the Bumerangue find as potentially its largest in a quarter-century.
Revealed on August 4, the discovery features a 500-metre hydrocarbon column located in sub-salt rock formations, BP said in a statement.
While further laboratory analysis and appraisal drilling are pending, the early results signal a significant boost to the company’s upstream portfolio.
“This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream,” said Gordon Birrell, the company’s executive vice president for production and operations.
The Bumerangue block was awarded to the company in 2022 under a production-sharing agreement that allocates 80% of the field’s revenue as “cost oil” — a mechanism allowing the company to recover its investment before profits are shared with the Brazilian government.
The company also noted the presence of “elevated levels of carbon dioxide” at the discovery site, a factor likely to weigh in ongoing commercial assessments and future development planning.
The find marks a significant milestone for the company, which has long sought a greater role in Brazil’s prolific sub-salt oil sector. The company remains a relatively small player in the region, especially compared to rival Shell, which counts the country as a cornerstone of its global production.
“Brazil is an important country for BP, and our ambition is to explore the potential of establishing a material and advantaged production hub in the country,” Birrell added.
The announcement comes just ahead of the company’s Q2 corporate results, due August 5, amid heightened scrutiny from activist investors over the company’s debt levels and cost management. Several recent board-level changes have aimed to address those concerns.
The Bumerangue discovery could boost the company’s upstream growth strategy as it seeks to balance its energy transition commitments with sustained investment in high-margin oil and gas assets.
