Shell to Acquire 30% Stake in BP-Operated Conifer Prospect
Shell Offshore will acquire a 30% stake in BP-operated Conifer in the Gulf of Mexico and a 50% interest in the Tupinamba exploration block in Brazil's Santos Basin. BP will retain majority ownership of Conifer, half of Tupinamba and operatorship of both prospects as the companies prioritize long-term growth in their oil and gas portfolios.
- Shell will acquire a 30% stake in BP-operated Conifer in the Gulf of Mexico.
- Shell will also take a 50% interest in Brazil's Tupinamba exploration block.
- BP will retain 70% of Conifer and 50% of Tupinamba.
- BP will continue as operator of both prospects.
- The Gulf of Mexico accounts for about 15% of U.S. crude oil production.
- BP has said its Bumerangue discovery holds 8 billion barrels of liquids.
MONTREAL (Oil Monster): Shell Offshore, a subsidiary of British oil and gas major Shell (SHEL.L), said Wednesday it would acquire a 30% stake in the BP-operated Conifer exploration prospect in the Gulf of Mexico.
Shell and BP are prioritising long-term growth in their oil and gas portfolios after years of investing heavily in renewables and other lower-carbon energy businesses.
Shell Will Also Take a 50% Stake in Tupinamba
BP said in a separate statement that Shell would also acquire a 50% stake in the Tupinamba exploration block in Brazil's Santos Basin. BP will retain the remaining 50% interest in Tupinamba and 70% in Conifer and continue as operator in both.
Gulf of Mexico Remains Important to U.S. Crude Supply
The Gulf of Mexico, which U.S. President Donald Trump has called on U.S. institutions to refer to as the Gulf of America under an executive order, is home to about 15% of U.S. crude oil production.
Brazil Remains a Cornerstone of BP's Upstream Portfolio
BP said earlier this year that its Brazilian Bumerangue discovery, described last year as its biggest in 25 years, holds 8 billion barrels of liquids, making Brazil a cornerstone of its upstream portfolio.
What Readers Are Asking
How much of Conifer is Shell acquiring?
Shell is acquiring a 30% stake in the BP-operated Conifer exploration prospect.
How much of Conifer will BP retain?
BP will retain a 70% interest in Conifer and continue as operator.
What stake is Shell acquiring in Tupinamba?
Shell will acquire a 50% stake in the Tupinamba exploration block in Brazil's Santos Basin.
Who will operate Tupinamba after the transaction?
BP will retain its remaining 50% interest and continue as operator.
How significant is the Gulf of Mexico to U.S. crude production?
The region accounts for about 15% of U.S. crude oil production, according to the article.
Courtesy: www.reuters.com