BP has announced what it describes as its largest oil and gas discovery in more than two decades, underlining a strategic shift away from renewable energy back to fossil fuels.
The find was made in the Bumerangue block of Brazil’s deepwater Santos Basin, about 400 km off the coast of Rio de Janeiro.
A BP exploration well—drilled to a depth of approximately 5,855 metres in water depths of 2,372 metres—intersected an estimated 500‑metre hydrocarbon column within a reservoir spanning over 300 km².
Rig‑site tests flagged elevated CO₂ levels, raising questions about economic viability pending further laboratory analysis.
BP’s executive vice president for production and operations, Gordon Birrell, described the find as “BP’s largest discovery in 25 years” and another success in “an exceptional year” for the exploration team.
It marks BP’s tenth discovery of 2025, adding to discoveries in Egypt, Libya, the Gulf of Mexico, Trinidad, Angola and Namibia.
BP produced around 2.4 million barrels of oil equivalent per day (boepd) in 2024 and aims to reach 2.3–2.5 million boepd by 2030, with scope to expand into the mid‑2030s.
In February 2025, BP unveiled a strategic reset, reducing its annual planned investment in renewables to between US $1.5 billion and $2 billion (approximately €1.38–1.84 billion) and increasing its upstream capital expenditure to US $10 billion (around €9.2 billion) per annum.
BP also intends to divest US $20 billion (approximately €18.4 billion) in assets by 2027, including its Castrol lubricants business, solar operations under Lightsource BP, and service-station assets.
The shift follows sustained losses: in 2020, BP reported a US $5.7 billion (≈ €5.24 billion) annual loss amid COVID‑19, and in 2022 one of US $25 billion (≈ €23 billion) following exit from its Russian energy interests after Russia’s invasion of Ukraine.
BP’s shares rose by approximately 1.3% in London trading following the announcement, reflecting cautious investor optimism amid pressure from activist investor Elliott Management.
The Bumerangue discovery is expected to play a central role in BP’s upstream ambitions. Positioned over high‑quality pre‑salt carbonate formations, with favourable cost‑oil and profit‑oil terms under Brazil’s ANP contract, BP holds 100% participation in the block.
Analysts estimate in-place volumes could be around 2.4 billion barrels of oil equivalent, of which perhaps 500 million boe may be recoverable, though these figures remain preliminary and subject to appraisal results.
BP has yet to provide a timeline for potential commercial production in Bumerangue, but it is evaluating the feasibility of establishing a major production hub on its own infrastructure in Brazil, subject to regulatory approvals.
With elevated CO₂ concentration complicating potential extraction costs and regulatory scrutiny increasing globally, it remains unclear whether the discovery can meet both economic and environmental thresholds. Nonetheless, the announcement represents a significant reaffirmation of BP’s return to fossil fuel investment and its recalibrated long‑term strategy.
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