A landmark discovery in Brazil’s Santos Basin could reshape BP’s upstream strategy and energize offshore exploration across the region.
BP has confirmed a significant hydrocarbon discovery at the Bumerangue exploration well, located in the ultra-deep waters of the Santos Basin, approximately 404 km off the coast of Rio de Janeiro. The well, drilled to a depth of 5,855 meters, revealed a 500-meter gross hydrocarbon column in high-quality pre-salt carbonate reservoirs, with an areal extent surpassing 300 square kilometers.
The exploration well, 1-BP-13-SPS, intersected the reservoir approximately 500 meters below the crest of the geological structure—offering promising signs of substantial reserves. BP, the sole stakeholder in the block, acquired the acreage in December 2022 during the ANP’s 1st Cycle of the Open Acreage of Production Sharing, managed by Pré-Sal Petróleo S.A.
Gordon Birrell, BP’s Executive Vice President for Production & Operations, hailed the discovery as “BP’s largest in 25 years”, emphasizing its strategic value within the company’s global upstream portfolio. "This is another success in what has been an exceptional year for our exploration team," Birrell said. "Brazil is an important country for BP, and our ambition is to explore the potential of establishing a material and advantaged production hub here" .
This marks BP’s tenth discovery in 2025, adding to a series of successful finds across the globe—including in Trinidad, Egypt, the Gulf of Mexico, and Namibia—cementing its renewed focus on oil and gas exploration amid changing market dynamics.
The Bumerangue discovery comes at a time when BP is shifting its capital allocation strategy, scaling back its investment in renewables while doubling down on hydrocarbons to enhance short- and mid-term profitability. After enduring losses from the COVID-19 pandemic and its exit from Russia, BP is looking to restore investor confidence through conventional energy development with robust returns.
Industry observers believe the Bumerangue find could contain billions of barrels of oil equivalent, potentially transforming BP’s production footprint in Brazil and positioning the Santos Basin as a long-term strategic asset.
Initial rig-site analysis suggests elevated levels of carbon dioxide in the reservoir, prompting BP to initiate detailed lab-based studies to better understand fluid characteristics. While such findings raise questions around emissions intensity and carbon management, BP insists it remains committed to net-zero goals—highlighting parallel investments in carbon capture, hydrogen, and low-carbon technologies.
Nonetheless, the renewed emphasis on hydrocarbons adds to the growing tension between energy security and climate ambition. Market reaction, however, has been positive, with analysts viewing the discovery as a critical step in reasserting BP’s competitive edge in a rapidly evolving energy landscape.
The Bumerangue discovery is a pivotal development for both BP and the broader offshore exploration sector. It reinforces Brazil’s pre-salt reserves as a premier global resource base and confirms the Santos Basin as one of the world’s most promising hydrocarbon provinces.
For the industry, this signals a reinvigoration of deepwater exploration, with supermajors rebalancing portfolios to prioritize near-term profitability and energy security. It also invites new interest in Brazil’s offshore licensing rounds, showcasing the country’s attractiveness for high-impact, high-return upstream investments.
More broadly, this find reflects a shift in the energy dialogue: while the world transitions toward cleaner energy systems, the role of oil and gas remains central—especially in delivering stability, supply, and financial returns in the medium term.
Follow The Energy Circle for more updates on Brazil’s energy developments and global trends shaping the future of hydrocarbons and renewables.
