Shell to acquire stake in BP-operated Conifer prospect in Gulf of Mexico

SEATTLE (Oil Monster): Shell Offshore, a subsidiary of British oil ​and gas major Shell (SHEL.L), said on ‌Wednesday it would acquire a 30% stake in the BP-operated (BP.L) 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.

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.

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.

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.

Courtesy: www.reuters.com