KEY POINTS
- BP will sell Shell 50% of Brazil’s Tupinambá block and 30% of the US Gulf’s Conifer leases.
- BP will remain operator, retaining 50% of Tupinambá and 70% of Conifer.
- The deal supports BP’s capital discipline while expanding Shell’s exploration portfolio in Brazil and the Gulf of America.
BP Plc has agreed to sell partial interests in two major offshore exploration opportunities to Shell Plc, deepening cooperation between the two energy giants while allowing BP to streamline its upstream portfolio and sharpen its focus on capital efficiency.
The agreement covers the Tupinambá exploration block in Brazil’s offshore Santos Basin and five deepwater leases containing the Conifer exploration prospect in the US Gulf of America.
The transactions will give Shell new positions in two strategically important offshore regions, while BP will retain operatorship of both projects.
Under the agreement, Shell Brasil Petróleo Ltda will acquire a 50% interest in the Tupinambá exploration block, located in Brazil’s prolific Santos Basin.
Following the transaction, BP will retain the remaining 50% interest and continue as operator of the block.
The Santos Basin is one of Brazil’s most important offshore oil-producing regions and is home to extensive deepwater and pre-salt resources. BP said bringing Shell into the project would combine the expertise and resources of two major international operators as they assess the block’s exploration potential.
BP upstream executive vice president Gordon Birrell said Brazil remains an important region for the company and that the partnership with Shell could help unlock the potential of the opportunity.
Shell Expands Position in US Gulf Exploration
Shell will also acquire a 30% interest in five deepwater leases on the US side of the Gulf of America that contain the Conifer exploration prospect. BP will retain a 70% stake and remain operator.
The portfolio includes one lease awarded in 2026 through the Trump administration’s Big Beautiful Gulf 1 Lease Sale, while four of the leases were awarded to BP in 2023 under Lease Sale 259.
The transaction gives Shell exposure to additional deepwater exploration opportunities while enabling BP to retain a controlling interest and operatorship.
BP said the transactions are consistent with its strategy of becoming a “simpler, stronger, more valuable company” through disciplined capital allocation.
The agreement reflects BP’s broader effort to reshape its upstream portfolio and focus investment on assets and regions where it believes it can generate stronger long-term returns.
Rather than exiting the Brazilian and Gulf exploration opportunities completely, BP is reducing its financial exposure while maintaining operatorship and majority ownership in both projects.
This structure allows BP to share exploration costs and risks with Shell while retaining significant upside if the prospects eventually result in commercially viable discoveries.
