BP strikes major oil discovery offshore Brazil, its largest in decades

BP said on Monday it has made its largest oil and gas discovery in 25 years in Brazil's Santos basin, a so-called pre-salt area in deep water offshore which is believed to be a large reservoir of oil and gas.

BP returned its focus to fossil fuels last year to regain investor confidence and revive underperforming shares after a troubled push into renewable energy.

Its London-listed shares rose 1.4% in early trade.

BP, which has plans to grow its global oil and gas production to 2.3 million to 2.5 million barrels of oil equivalent a day in 2030, said this was its 10th discovery so far this year, following findings in Trinidad, Egypt, Brazil and others.

Production in 2024 was 2.4 million barrels of oil equivalent. BP expects production to be lower in 2025.

The oil major, which is planning to establish a new big production hub offshore Brazil, had secured the block in December 2022 in what it said were "very good commercial terms".

BP holds 100% participation in the Bumerangue block with Brazil's state-run company Pré-Sal Petróleo SA as the production sharing contract manager.

Results from the rig-site analysis indicate elevated levels of carbon dioxide, BP said, adding that it would start laboratory analysis, which would give more insight into the potential of the block.

BP is set to report its second-quarter results on Tuesday.