BP announces biggest oil and gas discovery in 25 years

Brazil has emerged as a focal point for BP as the company announces its most significant oil and gas discovery in over 25 years. This announcement came after drilling a well off the Brazilian coast in the Bumerangue oil field, located over 400 kilometers from Rio de Janeiro. The field spans more than 300 square kilometers and marks BP's tenth discovery of 2025, drawing particular attention given that it is the largest since the 1999 find of the Shah Deniz gas field in the Caspian Sea. Gordon Birrell, BP's executive vice president for production and operations, expressed excitement about this significant find, underscoring BP's commitment to exploring opportunities in Brazil. The company has aspirations of establishing a substantial and advantageous production hub in the country. This discovery aligns with BP’s renewed focus on fossil fuels amid pressures from investors, especially following a shift away from net zero ambitions noticed in the energy sector. Investors reacted positively to the announcement, with shares of BP rising approximately 1.5% during trading. However, as BP prepares to release its half-year results, expectations indicate a potential drop in earnings compared to the previous year, primarily due to lower oil and gas prices. Amid fluctuating market conditions, investor concerns revolve around profits and cost-cutting measures. Analyst expectations suggest BP will report underlying replacement cost profits of approximately $1.8 billion for the second quarter, representing a decrease from previous profits and a slump relative to last year’s figures. This discovery is timely, coming as leading oil companies including BP and its rivals face pressure to enhance profitability. With activist investor Elliott Management holding a 5% stake in BP and urging the company to cut costs, the strategic direction towards increasing oil and gas extraction becomes more pronounced. Additionally, Shell’s recent exploration of a potential acquisition of BP, which has since been dismissed, has further cast a shadow over BP’s stock performance, which has declined by nearly 7% over the past year. Overall, attention will soon turn to BP's exploration efforts, financial results, and broader strategies to navigate a changing energy landscape in the upcoming financial reports.