BP oil discovery marks a major turning point for the energy giant as it moves focus back toward fossil fuels.
The UK-based company announced on Monday that testing began in deep waters off Brazil’s east coast. The discovery may significantly contribute to its future oil production plans.
BP executive Gordon Birrell called it “BP’s largest in 25 years.” He added that the firm plans to explore developing a production hub at the site.
Earlier this year, BP cut planned investments in renewable energy. Instead, it pledged to boost annual spending on oil and gas. The shift aims to restore investor confidence and capital returns.
The discovery occurred in the Bumerangue block within the Santos basin. The site lies roughly 250 miles off Brazil’s coast, at around 500 metres below sea level.
BP said this find represents its biggest since the Shah Deniz gas field in the Caspian Sea in 1999. It comes after several other significant discoveries this year, including in the Gulf of Mexico and Egypt.
“This is another success in an exceptional year for our exploration team,” Birrell said. He highlighted the company’s increased exploration efforts and readiness to capitalize on promising reserves.
BP’s push toward becoming a “net zero” energy producer has faced multiple setbacks. The company posted a $5.7 billion annual loss during the pandemic in 2020. In 2022, it wrote off a $25 billion stake in its Russian energy business following the Ukraine conflict.
However, BP delivered better-than-expected second-quarter 2025 results. Underlying replacement cost profits dropped by 15% to $2.4 billion compared to 2024, but that still exceeded analysts’ expectations of $1.8 billion.
Derren Nathan, head of equity research at Hargreaves Lansdown, said a “slick turnaround plan pumped up BP’s second-quarter results.” He pointed to higher production, improved exploration, and development as key drivers.
Meanwhile, BP’s share price suffered as the company invested heavily in renewables. At the same time, rival firms benefited from rising oil and gas prices triggered by geopolitical events.
Last month, BP named Albert Manifold as its new chair, succeeding Helge Lund. Lund had announced his intention to step down earlier, shortly after the pivot away from green investments.
The BP oil discovery underlines a clear and deliberate shift in corporate strategy. The company now prioritizes increased fossil fuel output over renewable expansion.
Analysts note that pressure from investors outweighed the green agenda. They demanded stronger returns and faster paybacks.
Still, critics warn that this strategic pivot may attract environmental scrutiny. BP may also face challenges adapting to evolving global energy policies and climate goals.
Overall, the BP oil discovery announced this week redefines the company’s direction. It positions BP for renewed growth in oil and gas, but raises important questions about sustainability and the future of energy markets.
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