BP and Petrobras Discuss Stake in Brazil's Bumerangue Oil Block

By James Calloway

BP estimates its Bumerangue discovery offshore Brazil contains about 8 billion barrels of liquids, and it is discussing a sale of a stake to Petrobras.

What is BP discussing?

Bloomberg News reported on Thursday, citing people familiar with the matter, that BP is in talks with Petrobras over a stake in Bumerangue. The block lies offshore in Brazil’s Santos basin. Negotiations remain ongoing, and the report said a deal is not guaranteed.

Reuters could not independently verify the Bloomberg report. BP and Petrobras did not immediately respond to Reuters requests for comment. The lack of company confirmation leaves both the talks and their commercial terms unconfirmed.

Takeaway: A potential partnership is under discussion, but no transaction has been agreed.

Who owns Bumerangue now?

BP currently owns 100% of the block. Last year, the company said it was seeking a partner to help evaluate the discovery before making a final investment decision on the project. That makes the reported sale part of the appraisal and ownership process, not evidence of a sanctioned development.

The stake percentage, purchase price and allocation of appraisal costs were not disclosed. The reported timing would bring Petrobras into the ownership process before a final investment decision, although neither company has confirmed the discussions.

Takeaway: Petrobras remains a prospective partner rather than a confirmed owner.

How large is the discovery?

BP has described Bumerangue as its "biggest discovery in 25 years." It estimates the field contains about 8 billion barrels of liquids and has positioned Brazil as a cornerstone of its upstream portfolio. The figure gives the proposed partnership substantial scale, but it remains a company estimate attached to a discovery.

The report does not present the 8 billion barrels as approved project capacity or proved reserves. It also gives no production rate, development cost or forecast startup date for what would still be a new project. The volume therefore frames the commercial interest; the appraisal determines whether that interest becomes a development.

Takeaway: The resource estimate is large, but BP has yet to turn it into an approved production scheme.

What does the appraisal program change?

BP plans to complete a three-well appraisal program for Bumerangue by the end of the first half of next year. The company has said the program will help it evaluate the discovery ahead of a final investment decision. That timetable gives a prospective partner time to review the appraisal before committing capital, if the negotiations produce an agreement.

The report provides no sanction date, production start date or final investment decision for the project. The planned wells remain evaluation work, not the start of commercial production. Any sale would therefore reshape the ownership and funding of the appraisal phase rather than mark the beginning of production.

Takeaway: Bumerangue remains at appraisal stage, with no sanctioned development or startup date.

Can the carbon dioxide be managed?

BP has said the carbon dioxide content in the Bumerangue oil and gas discovery "could be managed." That statement addresses a potentially material feature of a large offshore development, but the source provides no method, cost, processing arrangement or timetable for handling the gas.

For the partners, the assurance means carbon content is not a stated blocker to further evaluation. It does not remove the engineering work needed to select and execute a management approach. Any appraisal result and final investment case would still have to account for the discovery’s carbon dioxide content.

Takeaway: BP has offered reassurance on carbon dioxide, but not a detailed execution plan.

What would a deal change for operators?

If the sale proceeds, Petrobras would join the ownership group before BP makes a final investment decision. The source does not say whether Petrobras would operate a well or facility, or how the partners would share appraisal costs, development funding or future production.

The immediate commercial issue is the size and terms of any stake, not a new supply forecast. No sale price, percentage interest, production capacity or project margin was disclosed, so the financial effect on either company remains unquantified.

Takeaway: Watch for a confirmed stake agreement with disclosed terms, the three-well appraisal and BP’s final investment decision.