Shell and BP Reach Agreement to Each Hold 50% Interest in Brazil's Tupinambá Block

en.Wedoany.com Reported - On September 2, Shell Brasil and BP signed an agreement to acquire a 50% interest in the Tupinambá exploration block in the pre-salt layer of the Santos Basin, Brazil. BP currently holds 100% interest in the block and will retain the remaining 50% and continue as operator upon completion of the transaction. The transaction value was not disclosed, and closing remains subject to approval from regulatory bodies such as the Administrative Council for Economic Defense (Cade) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP), as well as other customary conditions precedent.

Tupinambá is located in the pre-salt layer of the Santos Basin, approximately 400 kilometers off the Brazilian coast, with water depths of around 2,300 meters at the operating site. The block was acquired by BP with 100% interest in the second permanent production sharing bidding round held in December 2023, with the production sharing contract managed by the Brazilian pre-salt oil management company PPSA on behalf of the federal government. The contract structure currently registered with PPSA still reflects BP Energy holding and operating 100% interest in Tupinambá, with a minimum surplus oil ratio of 6.5%.

Tupinambá remains in the exploration phase, with no exploration wells drilled in the block to date. BP stated that the first exploration well is planned to commence in the near term, with the current exploration phase expected to continue until May 27, 2031. This interest adjustment occurs prior to the drilling of the first well; upon completion of the transaction, Shell will assume a 50% interest in the block as a non-operating partner, while BP will continue to conduct exploration operations.

Tupinambá is adjacent to BP-operated Bumerangue block, but the two represent independent exploration targets. BP completed the drilling of a discovery well at Bumerangue in 2025 and has described it as one of the company's largest oil and gas discoveries in 25 years; BP has also previously stated clearly that despite the geographical proximity of Tupinambá and Bumerangue, this cannot be taken as an indication that the two share the same geological characteristics.

The agreement between Shell and BP also involves the Conifer exploration prospect in the U.S. Gulf of Mexico. Shell intends to acquire a 30% interest in the five lease blocks comprising Conifer, with BP retaining a 70% interest and continuing as operator. The Conifer exploration well is planned for drilling in 2027; the Tupinambá transaction, however, requires separate completion of Brazilian regulatory approvals before closing.