BP strikes major oil & gas discovery in Brazil’s Santos Basin

The vessel ‘Valaris DS-15’ that drilled the Bumerangue well. BP said it was too early to assess the quality of the reserves. Photo: by Valaris via Financial Times

 

BP has announced a landmark oil and gas discovery at its Bumerangue prospect in Brazil’s Santos Basin on 4 August, marking its largest find in 25 years. The deepwater well penetrated a 500-meter hydrocarbon column in a high-quality pre-salt reservoir spanning over 300 square kilometers, nearly 404 km offshore from Rio de Janeiro in waters approximately 2,372 m deep.

The discovery follows BP’s recent strategic pivot back to fossil fuels, aimed at restoring investor confidence after setbacks in its renewable energy strategy. The company plans further laboratory testing and regulatory-approved appraisal drilling to evaluate the site’s full potential.

Gordon Birrell, BP’s Executive Vice President for Production & Operations, described the Bumerangue find as “another success in what has been an exceptional year,” positioning Brazil as a key future oil and gas hub for BP. He told the BBC that the company wants to develop a substantial production hub in the country. 

The find comes as BP eyes a targeted production level of 2.3–2.5 million barrels of oil equivalent per day (boepd) by 2030, with growth potential into the mid‑2030s. Bumerangue represents BP’s tenth successful discovery in 2025, alongside finds in Egypt, Trinidad, Libya, and others, including projects in Namibia and Angola under its Azule Energy joint venture with Eni.

Reuters reports that BP shares rose by 1.3% following the announcement, outperforming broader European energy stocks, as investors welcomed news of the find amid the company’s shift toward upstream fossil fuel investments.

According to Sky News, the company’s renewed fossil fuel focus also includes a reduction in low-carbon investment, cutting roughly $5 billion from its clean energy budget, and ramping up oil and gas annual investment toward $10 billion. This reversal responds to pressure from activist investors and weak returns from green ventures, and the broader industry trend of scaling back renewable ambitions.