MercoPress. South Atlantic News Agency

BP announces huge discovery off Rio de Janeiro

However, production could take years to begin

BP, the British oil and gas company, has announced its largest oil and gas discovery in 25 years, in the Boomerang Field, an area over 300 square kilometers within Brazil's Santos Basin, roughly 404 kilometers off the coast of Rio de Janeiro.

Analyses indicate the presence of a 500-meter column of hydrocarbons in a high-quality pre-salt carbonate reservoir. Initial drilling results also show high levels of carbon dioxide. BP plans to conduct further laboratory analysis to better understand the reservoir's potential.

This discovery is a significant development for BP, which has recently shifted its strategy to focus more on fossil fuel extraction to boost investor confidence and increase profits. Following the announcement, BP's shares rose by about 1.5% on the London Stock Exchange.

The company holds a 100% stake in the Boomerang block and hopes to use this discovery to establish a new major production center in Brazil.

However, the finding faces several potential challenges, according to the Brazilian Infrastructure Center (CBIE), which insisted it was premature to determine the profitability of the find due to uncertainties about the size of the reserves and technical difficulties.

A major concern is the high concentration of carbon dioxide in the associated gas, which requires specialized and costly technology for separation and reinjection. Additionally, Brazil's limited gas pipeline infrastructure, with only 35,000 to 40,000 kilometers of pipelines, poses a significant obstacle to distribution.

CBIE Director Pedro Rodrigues noted that it could take four to ten years for production to begin, pending the resolution of these technical and regulatory hurdles, including securing environmental licenses.