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BP-Petrobras Collaboration On Bumerangue Block Depends On CO2 levels, Insiders Say

BP-Petrobras Collaboration On Bumerangue Block Depends On CO2 levels, Insiders Say

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BP p.l.c. (NYSE:BP) is among the 11 Best Hydrogen Stocks to Invest in Now. According to three Petrobras insiders who spoke to Reuters, BP p.l.c. (NYSE:BP) and Petrobras' possible collaboration to develop BP p.l.c. (NYSE:BP)'s Bumerangue block oil and gas discovery in Brazil's pre-salt layer depends on reservoir CO₂ levels. Murray Auchincloss, the CEO of BP, recently announced that the business is looking for a partner for what it describes as its biggest worldwide find in 25 years. Concerns about economic viability were raised when BP p.l.c. (NYSE:BP) discovered 'elevated' CO₂ during a rig-site study. Early-stage technology is being developed by Petrobras to manage high-CO₂ deposits.
A construction worker installing a garage door in a new residential home.
Brazil is a major oil producer due to its pre-salt deepwater reserves, but projects can be halted by high CO₂ levels; as a result, Petrobras' enormous Jupiter field is still to be developed. Experts caution that too much CO₂ might render Bumerangue unprofitable, but Gordon Birrell, BP p.l.c. (NYSE:BP)'s production chief played down the worries. Petrobras has not been contacted by the firm, but sources anticipate data exchange in the future. Bumerangue was fully purchased by BP p.l.c. (NYSE:BP) in 2022, the two companies already collaborate on additional pre-salt blocks, including Alto de Cabo Frio Central. It is one of the Best Hydrogen Stocks.
While we acknowledge the potential of BP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.
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