Unveiling of the Largest Oil and Gas Field in a Quarter of a Century by BP
In a significant development, British multinational oil and gas company BP has made a significant oil discovery offshore Brazil. The Bumerangue block, located in the Santos Basin, is estimated to potentially contain around 2.5 to 4.4 billion barrels of oil in place.
The exploration well 1-BP-13-SPS encountered a 500-meter gross hydrocarbon column in a high-quality presalt carbonate reservoir, spanning over more than 300 square kilometers. Elevated levels of CO2 have been detected, and further laboratory analysis is underway to characterize the reservoir and fluids in greater detail.
BP plans to undertake follow-up appraisal activities to better delineate the resources, subject to receiving regulatory approvals. The drilling was performed by the Valaris Renaissance drillship, and the discovery is considered of high impact, de-risking a large subsalt area in the southern Santos Basin.
Regulatory matters are in order. BP was awarded the Bumerangue Production Sharing Contract (PSC) block in December 2022 during Brazil’s ANP (National Agency of Petroleum, Natural Gas and Biofuels) 1st Cycle of Open Acreage Production Sharing round. BP submitted a drilling permit request to the Brazilian Environment Authority (IBAMA) in September 2023 to explore the prospect. BP holds a 100% stake, with Pré-Sal Petróleo S.A. managing the PSC contract, and the contract features very favorable commercial terms, including 80% of revenue designated as "cost oil."
This discovery marks BP's largest offshore find in 25 years and signifies a significant step in the company’s exploration ambitions in Brazil. BP has reported that the total depth of the well exceeds 5,800 meters. The company is conducting laboratory studies to further characterize the formation and fluids found in the Bumerangue block.
BP has also announced other discoveries recently, including the Beryl and Frangipani oil and gas fields in Trinidad, the Far South in the Mexican Gulf, the Hasheem in Libya, the Alto de Cabo Frio Central in Brazil, the Fayoum 5 and El King in Egypt. The lab studies aim to provide more comprehensive data on the potential of the Bumerangue block.
Further appraisal work on the Bumerangue block will be conducted, subject to regulatory approval. With this discovery, BP continues to demonstrate its commitment to exploring and developing new resources, contributing to the global energy landscape.
The BP-led exploration in the Bumerangue block, within the Santos Basin, is not confined to oil, as it also involves the gas sector of the energy industry. This significant discovery is expected to significantly impact BP's financial standings, given its potential to yield billions of barrels of oil and revenue from the favorable commercial terms of the PSC.
