15/09/2026 by Joel Thompson
UK-based oil majors BP and Shell have agreed to partner on opportunities for deepwater exploration in the US Gulf of Mexico and offshore of Brazil.
Under the agreement, Shell will take a 30% stake in the five US leases that hold the Conifer prospect and a 50% stake in the Brazilian offshore Tupinambá block. BP will retain the remaining interests and continue as the designated operator for both projects. The financial terms of the deal were not provided, and the Brazilian part of the deal is subject to regulatory approval.
The executive vice president for upstream at BP, Gordon Birrell, said:
“Brazil and the Gulf of America [Mexico] are important regions for BP, and bringing together two experienced operators can help unlock the potential of both opportunities. This collaboration will help strengthen our position in both as we progress exploration activity.”
BP, which also makes Castrol lubricant and coolant fluids, expects to start exploratory drilling at Tupinambá to begin soon, with Conifer activity following next year. Conifer is about 250 miles southwest of New Orleans and close to BP’s Kaskida development. Tupinambá, meanwhile, is located in water about 2,300 metres deep, roughly 250 miles offshore of Brazil in the pre-salt Santos Basin.
The deal suits the objectives of both companies. For Shell, it increases its already substantial upstream presence in the two regions without the burden of additional operation. For BP, it helps maintain its strategy of strict capital discipline by sharing risk while still maintaining exposure to what could be substantial discoveries.
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