BP makes its biggest oil & gas discovery in 25 years as it refocuses on fossil fuels

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BP has made its largest oil and natural gas discovery in 25 years off the coast of Brazil, it said Monday, in a potential big boost for the British company following its strategic shift away from renewable energy to refocus on fossil fuels.

BP (BP) is seeking to bolster oil and gas in its portfolio to regain investor confidence and revive underperforming shares.

It said it planned to create a major new output hub at the Bumerangue discovery in Brazil, which a BP spokesperson said was probably the company’s biggest since Shah Deniz in 1999, a gas and condensate field in the Azeri part of the Caspian Sea.

Shah Deniz, with around 1 trillion cubic meters of gas and 2 billion barrels of condensate initially in place, produced 28 billion standard cubic meters of gas last year, according to BP.

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“Although we cannot extrapolate as it is too early, and each well and each reservoir is different, we believe the data… provides support that the potential scale for this 100% BP discovery could be a game-changer,” Bernstein analyst Irene Himona said in a note.

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Early results indicate elevated levels of carbon dioxide in the Brazilian block, BP said, adding that further analysis would give more insight into its potential amid a bigger drilling program in Brazil.

BP is set to report its second-quarter results Tuesday.

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