BP and Shell have agreed to partner on two deepwater exploration opportunities, with Shell taking a 50% interest in the Tupinambá block offshore Brazil and a 30% interest in five U.S. Gulf leases containing the Conifer prospect. BP will retain a 50% stake in Tupinambá and a 70% interest in Conifer and will remain operator of both, the British energy major said. Financial terms were not disclosed. BP expects the first exploration well at Tupinambá to spud soon, while drilling at Conifer is planned for 2027. The Brazilian transaction remains subject to regulatory approvals. Tupinambá is located in the pre-salt Santos Basin, approximately 400 kilometers off the Brazilian coast in water depths of around 2,300 meters. BP secured the block in December 2023 through Brazil's second production-sharing Permanent Offer cycle and was the sole bidder. The deal expands Shell's position in Brazil's offshore while allowing BP to share costs and risks. In the U.S. Gulf, Shell will acquire 30% interests in five leases covering the Conifer prospect in the deepwater Paleogene play, with BP obtaining four leases through Lease Sale 259 in 2023 and the fifth through the BBG-1 lease sale in February 2026. Conifer is located in the Keathley Canyon area roughly 250 miles southwest of New Orleans and near BP's Kaskida development, which BP sanctioned in 2024 as its first Paleogene development.
BP PLCBP partners with Shell to share costs and risks on deepwater exploration, retaining operatorship.
Shell plcShell acquires stakes in BP's Brazil and Gulf prospects, expanding its offshore position.
