logo
BP makes largest oil, gas discovery in 25 years off Brazil

BP makes largest oil, gas discovery in 25 years off Brazil

France 24a day ago
The discovery comes as a boost to the struggling energy major as it undergoes a major overhaul to focus on its more profitable oil and gas business, shelving its once industry-leading renewable energy strategy.
The company said it had located oil and gas at the Bumerangue prospect, 404 kilometres (251 miles) from Rio de Janeiro, in a water depth of 2,372 metres.
"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.
It marks the 10th discovery by BP in 2025.
Shares in the company rose more than one percent on London's top-tier FTSE 100 index following the announcement.
BP is ramping up its global exploration programme, 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.
BP publishes its latest earnings on Tuesday, after rival Shell last week reported a 23-percent slide in first-half net profit, hit by lower oil and gas prices.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oil giant BP surprises with better than expected earnings
Oil giant BP surprises with better than expected earnings

France 24

time9 hours ago

  • France 24

Oil giant BP surprises with better than expected earnings

The British group's return to profit in the second quarter contrasted with weaker results from energy rivals, as lower exceptional charges offset falling oil prices. Profit after tax came in at $1.63 billion in the April-June period, compared with a net loss of $129 million in the second quarter of 2024, BP said in an earnings statement. Stripping out exceptional items, underlying net profit was down nearly 15 percent. "This has been another strong quarter for BP operationally and strategically," chief executive Murray Auchincloss said in the earnings statement. BP on Monday said it made its biggest oil and gas discovery in 25 years off the coast of Brazil. In February, BP launched a major pivot back to its more profitable oil and gas business, shelving its once industry-leading targets on reducing carbon emissions and slashing clean energy investment. However, energy prices have come under pressure in recent months on concerns that US President Donald Trump's tariffs will hurt economic growth, while OPEC+ nations have produced more oil. BP managed to post a profit for the second quarter thanks to impairments which were lower than one year earlier, along with a revaluation of assets -- notably in relation to liquefied natural gas (LNG) -- and divestments. Sector woes By contrast, US rivals ExxonMobil and Chevron, along with French group TotalEnergies, posted heavy falls to their net profits in the second quarter. As did oil giant Saudi Aramco, which on Tuesday announced its 10th straight drop in quarterly profits as a slump in prices hit revenues. The average price for Brent North Sea crude, the international benchmark, stood at $67.9 per barrel in the second quarter, down from $85 one year earlier. British rival Shell still managed to post a slight increase to its profit after tax for the latest reporting period. As for BP, Auchincloss said the company was launching "a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry". Shares in BP gained 2.2 percent in London morning deals following its results and news of a fresh dividend and share buyback. "A slick turnaround plan pumped up BP's second-quarter results," noted Derren Nathan, head of equity research at Hargreaves Lansdown. "Despite lower oil and gas prices, it's managed to push underlying profits up by nearly $1 billion from the first quarter to $2.4 billion, well ahead of analyst forecasts." Nathan added that "shareholders will be glad to see this matched with financial discipline". BP already announced plans this year to cut cleaner energy investment by more than $5 billion annually and offload assets worth a total of $20 billion by 2027. It recently agreed to sell its onshore wind energy business in the United States, while Shell has also scaled back its climate objectives. BP last month named Albert Manifold as its new chairman, replacing Helge Lund, whose departure was announced amid the strategy reset. The group's net profit plunged 70 percent in its first quarter, hit by weaker oil prices. © 2025 AFP

BP launches cost-cutting scheme despite beating profit expectations
BP launches cost-cutting scheme despite beating profit expectations

Euronews

time9 hours ago

  • Euronews

BP launches cost-cutting scheme despite beating profit expectations

BP surprised investors on Tuesday by reporting stronger-than-expected profits in the second quarter, following a period of price volatility. Adjusted profits came to $2.4 billion (€2.1bn) for the three months through June, beating analyst forecasts of $1.8bn (€1.6bn). BP also announced a $750 million (€650mn) share buyback. Despite the better-than-expected results, the firm added that it would be launching a cost-cutting scheme when its new chair joins in September. This comes just a few months after BP said it would save $4bn to $5bn (€3.5bn to €4.3bn) by the end of 2027, relative to 2023 costs. On Tuesday, the firm said that it had so far delivered around $1.7bn (€1.5bn) of structural cost reductions and sold $3bn (€2.6bn) of assets. 'Underlying earnings in our customers business are up around 50% compared to a year ago and trading has delivered well quarter-on-quarter during challenging conditions,' said BP CEO Murray Auchincloss in an earnings statement on Tuesday. 'This has been another strong quarter for BP operationally and strategically,' he continued. New chairman Albert Manifold will replace former chair Helge Lund this year as the company cuts back on green spending and renews its focus on oil and gas. Lund was a pivotal figure in BP's sustainability transition, a push that has been scaled back due to pressure from investors such as Elliott Management. The firm said in February that it would increase oil and gas spending by about 20% to $10bn (€8.7bn) a year, while cutting renewable investment by around 70%. BP shares rose just over 2% on Tuesday in London, as of around 11.00 CEST. 'Having already teased these quarterly results last month, the reaction to BP beating expectations is understandably fairly muted,' said AJ Bell investment director Russ Mould. 'However, as the company looks to bat off pressure from activist shareholder Elliott and convince the wider market on its recent shift in strategy, updates like today's are helpful for management credibility.' BP's commitment to fossil fuels was strengthened when the company also announced on Monday that it had made its largest oil and gas discovery in 25 years in a field off the coast of Brazil. BP said it had found a roughly 500-metre area of oil and gas at the Bumerangue field in the Santos basin, about 400km from Rio de Janeiro. 'BP delivered its first positive quarter in a very long time,' Maurizio Carulli, global energy analyst at Quilter Cheviot, commented on BP's earnings. 'What is perhaps most encouraging is that this is despite the average Brent oil price in the quarter being at $68 per barrel, well below the average of $76 per barrel seen in the first quarter of the year.' 'The management team has clearly started delivering on the strategy reset announced a few months ago,' Carulli added.

Brazil's Supreme Court orders house arrest for former President Bolsonaro
Brazil's Supreme Court orders house arrest for former President Bolsonaro

France 24

time9 hours ago

  • France 24

Brazil's Supreme Court orders house arrest for former President Bolsonaro

01:49 05/08/2025 Trump threatens India with high tariffs over Russian oil Asia / Pacific 05/08/2025 Brazil judge places former president Bolsonaro under house arrest Americas 04/08/2025 How are world economies reacting to Trump's tariffs? Americas 04/08/2025 Trump's quest for the Nobel Peace Prize Americas 03/08/2025 Former Trump prosecutor Jack Smith faces investigation by US watchdog Americas 03/08/2025 Trump's tariffs on Brazil: 'There will be losses on both sides', analyst says Americas 03/08/2025 Mar del Plata Canyon: underwater robot live stream draws over a million viewers per day Americas 02/08/2025 Colombian ex-president Uribe sentenced to 12 years house arrest Americas

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store