BP has found its largest oil and gas discovery in 25 years in Brazil’s Santos basin, aiming to boost investor confidence and shift focus back to fossil fuels. The company plans to create a major output hub at the Bumerangue discovery, with no reserve estimate provided.

Shares rose 1.3% following the announcement, outperforming European energy companies. Analysts believe this discovery could extend BP’s portfolio longevity and be a game changer for the company. The Bumerangue block in the Santos basin is strategically located but may face challenges due to high carbon dioxide levels.

BP has yet to disclose the CO2 levels at Bumerangue, which will determine the field’s viability. Rig-site analysis indicated elevated CO2 levels, but BP did not address questions about the field’s economic feasibility. The company aims to produce 2.3-2.5 million barrels of oil equivalent per day by 2030, with ten discoveries made this year.

The Bumerangue block was secured in December 2022 with promising commercial terms in the Santos basin. BP is set to report its second-quarter results soon. Shell, a London-listed rival, recently made a final investment decision for a project in the same basin.

Read more at Yahoo Finance: BP hails Brazil block as its largest global oil and gas find in 25 years