BP announces major oil discovery off Brazil

BP finds its largest offshore discovery in decades as it shifts priorities back to fossil fuels.

BP reveals significant oil and gas discovery off Brazil coast

BP has announced a major oil and gas discovery in the Santos basin, approximately 250 miles off the coast of Brazil. This discovery is seen as the company's largest since 1999 and marks its 10th find this year. The deep-water discovery, located beneath 2,400 meters of water, will aid BP's plans to increase extraction to between 2.3 million and 2.5 million barrels per day. Gordon Birrell, head of BP's production business, referred to this as a pivotal moment for the company, emphasizing Brazil's importance to their future operations. This announcement comes amidst BP’s recent struggles and returns to fossil fuels after shifting its focus away from low-carbon alternatives.

This significant find off Brazil may indicate a shift in BP's approach to energy production, reflecting a larger industry trend where companies are prioritizing fossil fuels amid fluctuating energy prices. The decision to explore new oil reserves underscores the challenges BP faces in achieving its net zero goals, particularly following recent financial setbacks, including substantial losses related to Russia and Covid-19. With investor pressure mounting, BP's strategy appears more reactive than proactive, demonstrating the complexities of transitioning in a volatile market.

Highlights

The discovery highlights the tension between energy transition goals and market realities.