BP's Big Bet on Oil Pays Off in Brazil

By Tsvetana Paraskova - Aug 04, 2025

BP announced on Monday a significant oil and gas discovery in Brazil’s prolific offshore Santos Basin, the supermajor’s biggest in 25 years.  

BP’s exploration well in the deepwater Bumerangue block found an estimated 500 meter (1,640 ft) gross hydrocarbon column in high-quality pre-salt carbonate reservoir with an areal extent of greater than 300 square kilometers (116 square miles), the UK-based oil and gas major said in a statement.

BP plans further appraisal activities, subject to regulatory approval, in the block which it secured in a 2022 open acreage production sharing tender “on very good commercial terms.” 

“We are excited to announce this significant discovery at Bumerangue, bp’s largest in 25 years,” said Gordon Birrell, BP’s executive vice president for Production & Operations.  

“This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream,” the executive added. 

Bumerangue is BP’s tenth oil and/or gas discovery so far this year, including one in the Gulf of Mexico, as the company pursues increasing its oil and gas production following the strategy reset early this year. 

BP has said it is increasing its investment in upstream oil and gas to $10 billion per year while slashing spending on clean energy by more than $5 billion a year. 

In the upstream, BP will aim for 10 new major projects to start up by the end of 2027, and a further 8–10 projects by the end of 2030. Production is also expected to grow to 2.3–2.5 million barrels of oil equivalent per day (boed) in 2030, with capacity to increase to 2035. 

For Brazil, a new major discovery in the Santos Basin aligns with its goal to boost oil and gas production. 

“Brazil is an important country for bp, and our ambition is to explore the potential of establishing a material and advantaged production hub in the country,” Birrell said today.  

By Tsvetana Paraskova for Oilprice.com 

Elliott Wants BP to Double Cost Cuts Target to $10 Billion

By Tsvetana Paraskova - Aug 04, 2025

Elliott Management, the activist U.S. hedge fund with 5% in BP, is doubling down on its pressure on the UK supermajor to deliver massive cost reductions after the reset, seeking doubling of the current target of $5 billion by 2027, the Financial Times reports. 

BP’s stock has been underperforming its UK-based peer, Shell, and other major international oil firms in recent years. The BP board has been under increased pressure to seek fundamental changes to the business to reward shareholders more.   

The pressure on BP became more intense earlier this year after Elliott bought a stake and demanded changes in strategy. Elliott has been pushing for changes in strategy and board reshuffles to address BP’s underwhelming stock performance.  

In a major reset back to oil and gas, BP in February said it would increase its investment in upstream oil and gas to $10 billion per year while slashing spending on clean energy by more than $5 billion a year.  

BP will also look to reduce costs and net debt, aiming at $4 billion–$5 billion of structural cost reductions by the end of 2027 and targeting $20 billion of new divestments to be announced by the end of 2027. 

Elliott is not happy with the structural cost reductions target and wants it doubled, to $10 billion in cost cuts by 2027 compared to a 2023 baseline, according to sources who spoke to FT. 

BP has pledged that its second-quarter results – due out on August 5 – would include a progress report on the cost reductions. 

Elliott’s ask for doubling the cost cuts target may hamper BP’s long-term growth, another major investor in the UK energy giant told FT, noting that “I would guess there is some upside to BP’s stated target but doubling it to $10bn seems overly aggressive.”   

For the second quarter, BP has warned that lower oil and gas prices are expected to dent the earnings, despite higher output and stronger refining margins.    

By Tsvetana Paraskova for Oilprice.com