In a significant development that could reshape its future energy portfolio, British energy major BP has confirmed a major oil and gas discovery in Brazil’s Santos Basin—its largest global find in over two decades.
The new site, dubbed Bumerangue, represents a potential cornerstone for BP’s renewed focus on fossil fuel production. The company plans to establish a substantial production hub in the region as part of its broader effort to restore investor confidence and re-energize its upstream portfolio.
While BP has not yet released official reserve estimates, the company indicated that the discovery is likely its most substantial since Shah Deniz in Azerbaijan, which was discovered in 1999 and holds approximately 1 trillion cubic meters of gas and 2 billion barrels of condensate.
A New Strategic Direction
After several years of publicly prioritizing renewable energy investments, BP has recently pivoted toward reinforcing its traditional oil and gas assets—a move prompted by shareholder pressure and underwhelming stock performance.
“This is a strategic and material discovery for BP,” said Gordon Birrell, BP’s executive vice president of production and operations. “Brazil holds enormous potential, and we see this as a foundation for a long-term, advantaged production hub.”
The company secured exploration rights to the Bumerangue block in December 2022 under what it described as “very good commercial terms.”
Market Impact and Industry Response
Following the announcement, BP’s shares rose 1.3% by mid-morning on the London Stock Exchange, outperforming the broader European energy index.
Analysts have welcomed the news. Irene Himona of Bernstein said the discovery could “extend the life and strength of BP’s upstream portfolio well into the 2030s and 2040s,” potentially easing long-standing concerns about the company’s long-term resource base.
However, not all feedback has been entirely positive. Jean Paul Prates, the former CEO of Petrobras, noted that associated gas fields with high levels of carbon dioxide (CO2) can be difficult to develop economically. While BP has acknowledged the presence of elevated CO2 levels in initial analyses, it has not provided further details regarding commercial viability or long-term extraction plans.
Global Context and Future Outlook
Bumerangue is BP’s tenth hydrocarbon discovery in 2025, joining successful finds in Trinidad, Egypt, and other strategic regions. The company reported production of 2.4 million barrels of oil equivalent per day in 2024 and has forecast slightly reduced output this year, in line with asset lifecycle and exploration dynamics.
As global energy policy continues to evolve, BP’s latest discovery underscores a broader industry trend: the balance between accelerating renewable transitions and securing stable fossil fuel supply chains remains delicate. For BP, Brazil may prove to be a critical piece of that equation.
Partner With Us
Want to feature your brand, business, or service on 365247 — Whether you’re looking to sponsor, collaborate, or build presence within our ecosystem, we’d love to explore it with you.
Submit Your Interest Here
IMAGE: AFP
