Shell is taking substantial interests in two bp-operated exploration opportunities: Tupinambá in Brazil’s Santos Basin and Conifer in the deepwater Gulf of America.
Under the agreed terms, Shell will acquire a 50% interest in the Tupinambá exploration block, with bp retaining the remaining 50% and operatorship. Completion of the transaction remains subject to regulatory approval.
Tupinambá is regarded as one of Brazil’s most closely watched exploration prospects. The block is situated next to bp’s Bumerangue discovery in the Santos Basin and targets a large pre-salt opportunity. Westwood Global Energy Group previously identified Tupinambá as one of its key high-impact wells to watch in 2026.
In the Gulf of America, Shell will acquire a 30% interest in five leases containing the Conifer exploration prospect. bp will retain a 70% interest and continue as operator. Conifer is a deepwater Paleogene prospect and is expected to mark bp’s return to high-impact exploration in this technically challenging play.
The two transactions bring together companies with extensive deepwater exploration, drilling and development experience in both regions.
“Bringing together two experienced operators can help unlock the potential of both opportunities,” said Gordon Birrell, bp’s executive vice-president for production and operations.
According to bp, the agreements support its strategy of disciplined capital allocation as it seeks to simplify its portfolio and strengthen its upstream business.
The farm-ins also spread the geological and financial risks associated with two potentially high-impact wells while allowing bp to retain operatorship and substantial exposure to any exploration success.
Image credit: Gabriel Xavier on Unsplash.
