British energy giant BP has announced its largest oil and gas discovery in a quarter-century, marking a significant moment in the company’s renewed focus on fossil fuel exploration. The find, located in deep waters off Brazil’s east coast, is expected to play a pivotal role in BP’s strategy to boost crude oil production amid a global energy landscape still reliant on hydrocarbons.
The discovery was made in the Bumerangue block within the Santos Basin, approximately 400 kilometers (250 miles) off the Brazilian coast. Tests at the site have revealed a hydrocarbon-rich area about 500 meters thick, signaling vast potential reserves. This is BP’s most significant find since it discovered the Shah Deniz gas field in the Caspian Sea in 1999.
Gordon Birrell, BP’s executive vice president for production and operations, hailed the discovery as “another success in what has been an exceptional year” for the company’s exploration team. He also confirmed that BP is evaluating the potential development of a new production hub in the region.
The announcement comes at a time when BP is shifting its investment strategy. Earlier this year, the company reduced its planned spending on renewable energy, committing instead to increase its investment in oil and gas by billions of dollars annually. The decision aims to restore investor confidence after years of lackluster stock performance compared to fossil fuel-heavy competitors.
BP has faced several setbacks in recent years. The Covid-19 pandemic led to a $5.7 billion loss in 2020, followed by a $25 billion writedown in 2022 after it exited its Russian energy investments due to the war in Ukraine. These challenges, combined with underwhelming returns from renewables, have pressured the company to return focus to its traditional strengths in oil and gas.
This latest discovery adds to a string of recent successes, including new reserves in the Gulf of Mexico and Egypt. Following the announcement, BP’s shares climbed slightly, rising just over 1% during London trading.
The Brazilian find underscores BP’s commitment to fossil fuels even as global climate goals urge a transition to cleaner energy sources.
