BP Seeks Partner for Brazil Oil Discovery

RIO DE JANEIRO, Oct 2 (Reuters) – BP (BP.L), opens new tab will seek a partner for its major Bumerangue oil discovery in Brazil and could close a deal before making a final investment decision on the project, the oil major’s country head said on Thursday.

The British company, which currently holds 100% of the block, in August announced that Bumerangue was its largest oil and gas discovery in 25 years.

“The search for a partner will happen over the next one or two years, but it will run in parallel with the evaluation,” BP’s Brazil chief, Andres Guevara, said during an event in Rio de Janeiro.

“For me, almost certainly, the partnership will be closed before we make a FID (final investment decision)… but there’s no set date,” he added.

Brazil’s state-owned oil company Petrobras would be a natural partner. Sources at Petrobras told Reuters in August the firm’s involvement would likely depend on whether carbon dioxide levels in the field are low enough for commercial viability.

The Bumerangue discovery was made while drilling BP’s 13th well in Brazil, sparking industry interest by confirming the potential for major finds in pre-salt areas far from established producing regions.

“It’s relevant for us, but it’s also relevant for the country because it revitalizes the pre-salt (sector) after perhaps a decade without major discoveries,” Guevara said.

BP is currently active in seven blocks in Brazil, operating four of them. The company plans to drill another well next year in the Tupinamba block, which is adjacent to Bumerangue.

BIOENERGY FOCUS

Separately, Guevara said BP is considering investments in corn-based ethanol plants in Brazil, citing synergies with its existing sugarcane operations.

Guevara mentioned opportunities for shared infrastructure, such as storage tanks, or using leftover sugarcane fiber to power the corn ethanol plants.

BP is one of Brazil’s leading ethanol and sugar producers, with 11 plants across five states.

Reporting by Marta Nogueira; Writing by Isabel Teles and Fernando Cardoso; Editing by Sarah Morland and Marguerita Choy

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