BP has announced its largest oil and gas discovery in 25 years, located in the Santos basin off the coast of Brazil. The find, in deep waters under about 2,400 metres of water and 250 miles from the Brazilian coast, is the company's tenth oil discovery this year and could be its largest since the Shah Deniz gasfield in Azerbaijan in 1999.
The company is conducting further tests to assess the potential of the basin, which is expected to play a significant role in BP's plan to increase its oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day. Gordon Birrell, head of BP's oil and gas production business, described the discovery as "another success in what has been an exceptional year so far", underscoring the company's commitment to growing its upstream production.
BP has shifted its focus back to fossil fuels after abandoning a plan to cut hydrocarbon production in favour of low-carbon energy alternatives such as offshore wind. The company has also announced oil and gas discoveries in Trinidad, Egypt, the Gulf of Mexico, Libya, Namibia and Angola this year, marking a retreat from its former green agenda. On Monday, BP started a new oil extension project in the Gulf of Mexico, expected to add 20,000 barrels per day to production.
The company's net zero strategy has faced challenges, including a $5.7 billion loss in 2020 due to the Covid-19 pandemic and a $25 billion hit from divesting its stake in Rosneft after Russia's invasion of Ukraine. BP's share price has fallen, raising concerns about a potential takeover, and activist investor Elliott Management has amassed a 5% stake, pushing for strategy changes. Last month, BP appointed Albert Manifold as chair-elect to replace Helge Lund.
