BP in Talks to Sell Stake in Bumerangue, Its Biggest Oil Discovery in 25 Years, to Petrobras

BP is in negotiations with Petrobras to sell a stake in the Bumerangue oil block off the coast of Brazil, its largest discovery in 25 years, according to people familiar with the matter. Negotiations between the two companies are ongoing and a deal may not materialize, the sources cautioned.

The Bumerangue block sits in Brazil's pre-salt Santos basin and was awarded to BP in December 2022 under terms that include 80% cost oil and 5.9% profit oil. BP currently holds a 100% interest in the block. The company has confirmed a gross hydrocarbon column of approximately 1,000 metres at the site, and estimates the discovery holds around 8 billion barrels of liquids in place, split roughly evenly between oil and condensate.

Development costs for the project could reach as high as $32 billion, and elevated carbon dioxide concentrations in the reservoir gas present a technical complication. Analysts and industry observers have noted that BP was likely to sell part of its interest before any final investment decision, while aiming to retain a significant operating stake. BP's approach to Petrobras, Brazil's state oil company, fits that expected path and would bring in an experienced pre-salt operator as a partner for what could be one of the country's most consequential upstream projects of the coming decade.