bp and Shell have agreed on transactions under which Shell will acquire a 50% interest in the Tupinambá exploration block in Brazil’s offshore Santos Basin and a 30% interest in five leases containing the Conifer exploration prospect in the deepwater Gulf of America Paleogene.
The agreements are part of bp’s approach to disciplined capital allocation as the company works to build a simpler and stronger business. bp will retain a 50% interest in the Tupinambá block and a 70% interest in the Conifer leases. bp will also remain operator of both exploration opportunities following completion of the transactions.
The Tupinambá block is located in the Santos Basin, offshore Brazil, while the Conifer prospect is located in the deepwater Gulf of America Paleogene. The agreements bring together the interests of two experienced energy companies in regions that are important to bp’s upstream business.
Gordon Birrell, EVP Upstream at bp, said Brazil and the Gulf of America remain important areas for the company. He said the partnership with Shell could help unlock the potential of both opportunities while strengthening bp’s position as exploration activities progress.
Under the agreement, Shell will take a 50% stake in Tupinambá, with bp retaining the other half and continuing as operator. In the Conifer opportunity, Shell will acquire a 30% interest across five leases, while bp will retain a 70% interest and remain operator. The transactions are intended to support bp’s capital allocation strategy while allowing the company to maintain significant exposure to both exploration areas.
The Tupinambá block is located in one of Brazil’s major offshore exploration regions. Brazil has become an important area for deepwater and offshore oil and gas activity, while the Gulf of America remains another key region for upstream exploration. The partnership with Shell is expected to bring together the technical and operational capabilities of the two companies as exploration work advances.
bp said the transactions are consistent with its efforts to allocate capital selectively while maintaining a strong portfolio of upstream opportunities. Retaining operatorship in both assets will allow bp to continue leading exploration and development activities.
The deal for Tupinambá remains subject to regulatory approvals. Completion of the transaction will take place after the required approvals have been received. The agreements reflect continued cooperation between bp and Shell in the upstream sector and provide both companies with interests in exploration opportunities in two significant offshore regions.
For bp, the transactions allow the company to retain majority interests in both opportunities while bringing Shell into the projects as a partner. The structure also enables bp to continue operating the assets and advancing exploration activities. The companies will work together as exploration progresses, with the aim of assessing the potential of the Tupinambá and Conifer opportunities. The transactions form part of bp’s broader focus on capital discipline and portfolio management while maintaining exposure to selected high-value exploration prospects.
