MercoPress. South Atlantic News Agency

BP announces major oil discovery off Brazil, while OPEC+ with Saudi Arabia leading, increase production

The company said it had located oil and gas at the Bumerangue prospect, 404 kilometers from Rio de Janeiro, in a water depth of 2,372 meters

Britain’s BP oil and gas giant announced this week its biggest oil and gas discovery in 25 years off the coast of Brazil. This happens when the corporation is in the midst of a major overhaul, dropping the renewable energy strategy thrust, and returning to traditional hydrocarbons policy.

The company said it had located oil and gas at the Bumerangue prospect, 404 kilometers from Rio de Janeiro, in a water depth of 2,372 meters, and marks the tenth discovery by BP so far this year.

“This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream,” said Gordon Birrell, BP’s executive vice president for production and operations.

BP is ramping up its global exploration program, with around 40 wells planned over the next three years, including as many as 15 to be drilled this year. The group expects to grow its daily global output to between 2.3 million and 2.5 million barrels of oil equivalent in 2030.

“BP will want to use its latest numbers to convince the market it has truly revamped its strategy and moved away from the green push which proved unpopular with a significant portion of its shareholder base,” said AJ Bell investment director Russ Mould.

And while BP was making the announcement, oil and gas media reported that OPEC+ had raised oil production last month, dropping announced cuts, speared by Saudi Arabia looking to discourage competitors.

The 12 members of the Organization of the Petroleum Exporting Countries boosted supplies by 200,000 barrels a day in May to 27.54 million barrels a day, with Saudis accounting for about half of the increase.

OPEC and its allies stunned oil markets in early April by announcing they would start to revive output at three times the planned rate, briefly sending crude prices to a four-year low. Brent futures have since recovered slightly, trading above US$ 62 barrel on Tuesday.

Delegates described the shift as a strategy designed by Riyadh to punish the coalition’s rogue members and recoup lost market share. At the weekend, the Saudis pressed OPEC+ to ratify a third super-sized hike, despite some objections from its partners.

Saudi Arabia bolstered production by 110,000 barrels a day to 9.08 million barrels a day in May, though still short of the full amount the kingdom could have added under the agreement.

Saudi Arabia has warned fellow members it could push through several more accelerated monthly hikes — set at 411,000 barrels a day for the group — to fully reverse the latest restraints by October.