British oil giant BP has made its biggest oil and natural gas discovery in 25 years, boosting investor confidence and reviving underperforming shares. The Bumerangue discovery off the coast of Brazil is likely to be one of the company’s largest since Shah Deniz in 1999.
BP plans to create a major new output hub at the site, which could potentially become a material and advantaged production hub in the country. This comes as BP seeks to bolster its oil and gas portfolio and regain investor confidence.
The discovery is BP’s 10th this year, following finds in Trinidad, Egypt, Brazil, and others. The company forecasts its oil and gas production to be around 2.3 million barrels of oil equivalent per day by 2030.
BP shares gained 1.3% on the news, outperforming a broader index of European energy companies. Analysts say the discovery could be a game-changer, but added that further analysis is needed due to elevated levels of carbon dioxide in the block.
The Bumerangue block was secured by BP in December 2022 with “very good commercial terms.” The company expects production to be lower in 2025 compared to 2024. BP will report its second-quarter results on Tuesday.
Source: https://edition.cnn.com/2025/08/04/business/bp-oil-gas-discovery-intl