BP makes its biggest oil and gas discovery in 25 years off coast of Brazil | BP

BP has made its greatest discovery of oil and gas over the last 25 years off Brazil when it continues to focus on renewable energies and fossil fuels.

The discovery of oil and gas from the Santos basin, which is located in deep waters, is the 10th oil discovery of the year of society and could be its most important since its discovery at Shah Deniz Gasfield in Azerbaijan in 1999.

BP performs other tests on the discovery of Santos, manufactured under approximately 2,400 meters of water and 250 miles (400 km) off the Brazilian coast, to assess the potential of the oil and gas basin. It is likely to play an important role in the company plan to increase its production of oil and gas between 2.3 m to 2.5 m of barrels of oil equivalent per day.

The company said on Monday that it also launched a new oil extension project in the Gulf of Mexico which should add 20,000 additional barrels per day to its production. The Argos project would be the first in a series of new projects in the Gulf by the end of the decade.

BP has returned its objective to fossil fuels in recent years after abandoning its failed plan to reduce its production of hydrocarbons, which had favored expansion in energy alternatives with low carbon content, such as offshore wind.

Gordon Birrell, the chief of oil and BP oil and gas production activities, said that the discovery was “another success in what was an exceptional year so far” which had stressed “the company’s commitment to develop our production of oil and gas upstream”.

He added that Brazil was an important country for BP, which will explore the potential to establish “a material and advantageous production center in the country”.

The Santos basin, which is in coastal waters off Rio de Janeiro and São Paulo, is the second discovery of BP in Brazil this year. The group also announced oil and gas discoveries in Trinidad, Egypt, in the Gulf of Mexico, Libya, Namibia and Angola, in a retirement marked by its former green program.

The company’s plan to become an “net zero” energy company has faced a series of unforeseen obstacles since its movement at the beginning of 2020.

The COVVI -19 pandemic sparked one of its worst financial results – a loss of $ 5.7 billion for 2020 – because it reported a loss of $ 4.9 billion for 2010 following the DEEPWATER HORIZON oil spill. In 2022, he was forced to take a 25 billion dollars after unloading his participation in the Russian oil company Rosneft after the Invasion of the Kremlin of Ukraine.

While the company has invested massively in the offshore wind industry, which has undergone increasing costs in recent years, its competitors have been able to exploit the sharp increase in prices of fossil fuels after the Russian invasion by pumping more oil and gas.

BP, which announces its half -yearly results on Tuesday, said last month that it would sell its share in 10 rare American winds at LS Power in New York. On Monday, he launched his 50:50 Offshore wind joint venture with the Japanese wind company Jera worth 4.5 billion pounds sterling, which he plans to use to access zero carbon wind energy developments while focusing on fossil fuels.

In the midst of the BP’s net zero strategy, its former managing director Bernard Looney was dismissed from the company for omitting to disclose its relations with its staff to the council.

The BP shielding course has raised concerns that it could become the prey of a greater rival intention on a takeover. Shell was forced to deny his reported interest in the purchase of BP.

BP has also become a target for the New York Elliott Management’s designing fund. The activist investor has raised a 5% stake in the company and acted for a recasting of the company’s strategy, including radical modifications to the board of directors.

Last month, BP appointed a successor to his sitting chair, Helge Lund. Albert Manifold, the former boss of the CRH building material company, will join the BP’s board of directors on September 1 as non -executive director and elected president, before taking over on October 1.

The announcement of the major BP oil discovery one day after the OPEC oil group and its allies said they would increase production again.

The OPEC + group agreed on Sunday to increase the production of 547,000 barrels per day for September, the last of an accelerated increase series to regain the market share. This decision means that OPEC + has now completely reversed its greatest slice of output cuts, made as the oil request collapsed after the COVVI-19 pandemic.

The price of oil fell by 2% on Monday, with Brent to just over $ 68 per barrel.