Britain’s BP announced Monday it made its biggest oil and gas discovery in 25 years off the coast of Brazil, as it shifts back to its fossil fuel business.
The discovery comes as a boost to the struggling energy major as it undergoes a major overhaul to focus on its more profitable oil and gas business, shelving its once industry-leading renewable energy strategy.
The company said it had located oil and gas at the Bumerangue prospect, 404 kilometres (251 miles) from Rio de Janeiro, in a water depth of 2,372 metres.
“This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream,” said Gordon Birrell, BP’s executive vice president for production and operations.
It marks the 10th discovery by BP in 2025.
Shares in the company rose more than one percent on London’s top-tier FTSE 100 index following the announcement.
BP is ramping up its global exploration programme, with around 40 wells planned over the next three years, including as many as 15 to be drilled this year.
The group expects to grow its daily global output to between 2.3 million and 2.5 million barrels of oil equivalent in 2030.
“BP will want to use its latest numbers to convince the market it has truly revamped its strategy and moved away from the green push which proved unpopular with a significant portion of its shareholder base,” said AJ Bell investment director Russ Mould.
BP publishes its latest earnings on Tuesday, after rival Shell last week reported a 23-percent slide in first-half net profit, hit by lower oil and gas prices.
