BP has announced its largest oil and gas discovery in a quarter-century, located in the deep waters of Brazil’s Santos Basin, signaling a significant pivot away from renewables and back to fossil fuel expansion. This find is BP’s 10th oil discovery of the year and is expected to play a central role in its plans to raise production to up to 2.5 million barrels of oil equivalent per day.
Situated 2,400 meters underwater and 400km off Brazil’s coast, the discovery will undergo further testing to assess its potential. BP is also expanding its Gulf of Mexico operations, launching the Argos extension project, projected to add another 20,000 barrels daily to its output.
The company’s renewed emphasis on hydrocarbons follows a retreat from its earlier net zero ambitions due to market pressures and strategic missteps, including pandemic-related losses and a costly exit from Russia. While BP continues limited investments in offshore wind—like its £4.5bn joint venture with Japan’s Jera—it has sold off several US wind assets, reinforcing its fossil fuel-centric strategy.
BP’s long-term green energy plans have faltered amid leadership controversies, shareholder unrest, and growing interest from activist investors seeking strategic change. Meanwhile, the oil industry is regaining momentum, with Opec+ announcing new output increases to restore post-pandemic supply.