BP Announces Its Largest Oil and Gas Discovery in 25 Years off the Coast of Brazil

The find, described by industry analysts as BP’s largest hydrocarbon discovery in more than 25 years, comes at a time when the global energy landscape is grappling with the dual pressures of growing demand and accelerating climate commitments.

A Monumental Find in Deep Waters

Located approximately 200 kilometers offshore, in ultra-deep waters of around 2,372 meters, the Bumerangue block spans a promising geological structure with a hydrocarbon column measuring approximately 500 meters. Beneath this lies a high-quality carbonate reservoir that stretches over 300 square kilometers—a vast footprint for a single block.

According to initial assessments from BP’s exploratory team, the geological formation shows characteristics typical of Brazil’s coveted pre-salt basins—fossil fuel-rich zones buried beneath a thick layer of salt, often associated with some of the world’s most productive deepwater fields. The company’s early enthusiasm is bolstered by the scale of the reservoir and its potential to become a major asset in BP’s global portfolio.

Strategic Timing and Ownership Advantage

The timing of this discovery is significant. BP secured full ownership of the Bumerangue block in December 2022, under Brazil’s Open Acreage Production Sharing regime, which offered favorable commercial terms and attracted major players eager to explore the untapped potential of Brazil’s offshore reserves. Unlike many joint ventures in the region, BP currently holds a 100% stake, giving it full operational control and decision-making authority—though that could change as development advances.

This is BP’s tenth discovery globally in 2025, reflecting a renewed focus on upstream oil and gas exploration, even as the company publicly maintains its ambitions toward a diversified, lower-carbon energy mix. The find may boost BP’s goal of reaching between 2.3 to 2.5 million barrels of oil equivalent per day by 2030—a key component of its strategy to remain competitive in a shifting energy market.

CO₂ Concerns Cast a Shadow

Despite the excitement, the discovery is not without complications. Early rig-site analyses revealed elevated levels of carbon dioxide (CO₂) in the reservoir—a common but significant challenge in pre-salt fields. High CO₂ content can affect the commercial viability of oil and gas production, increasing both operational costs and environmental scrutiny.

The presence of CO₂ could influence the field’s development timeline, economics, and even its attractiveness to potential partners. Notably, talks of a possible partnership between BP and Petrobras—Brazil’s state-controlled energy giant—may hinge on the outcome of ongoing laboratory and reservoir evaluations.

If CO₂ levels are manageable, BP may proceed with full-scale development or seek a joint venture with Petrobras to leverage local infrastructure and expertise. If not, the company may need to invest in carbon management solutions, such as carbon capture and storage (CCS), to make the project viable under tightening global emissions standards.

Implications for Brazil and Global Energy

For Brazil, the discovery reinforces its position as a key player in the global energy sector. The country’s pre-salt reserves have drawn intense interest from multinational oil companies in the last two decades, thanks to their scale, productivity, and relatively low lifting costs.

This new discovery could further boost Brazil’s appeal just ahead of a major offshore licensing round scheduled for October 2025, which is expected to draw renewed interest from global energy firms looking to expand exploration in politically stable and resource-rich jurisdictions.

For BP, the find is a double-edged sword. On one hand, it underscores the continued relevance of traditional oil and gas in its portfolio, particularly in emerging markets. On the other, it exposes the company to criticism for dialing back its green ambitions—especially after recent announcements that it would scale down its $5 billion renewable investment plan to focus on core profitability.

What’s Next?

BP has stated that it will proceed with more detailed analysis, including laboratory testing of the reservoir and long-term flow modeling, to determine the commercial feasibility of developing the Bumerangue block. Depending on results, a formal development plan could be submitted to Brazilian regulators by mid-2026.

In the meantime, the discovery remains one of the most closely watched developments in global oil and gas, offering a glimpse into how legacy energy companies like BP are navigating the complex intersection of exploration, profitability, and climate accountability in 2025 and beyond.