BP, Petrobras in Talks Over Brazil's Bumerangue Oil Block

MONTREAL (Oil Monster): BP is reportedly in discussions with Brazil's state-controlled Petrobras over the sale of a stake in its Bumerangue offshore oil discovery, although elevated carbon dioxide (CO2) levels and competing development priorities could complicate a potential agreement.

Two sources at Petrobras told Reuters on November 12, 2026, that negotiations were ongoing but the proposed transaction was not a priority. Bloomberg News first reported the discussions earlier Thursday. Neither company had publicly confirmed a deal.

BP Seeks Partner for Major Brazilian Discovery

BP has described Bumerangue as its largest oil and gas discovery in 25 years. Located in the deepwater Santos Basin, the block is estimated to contain approximately 8 billion barrels of liquids in place.

The company previously said it was seeking a partner to help assess the discovery before making a final investment decision. The estimate does not establish how much oil or condensate could ultimately be recovered commercially.

One Petrobras source questioned BP's plans for the discovery, telling Reuters: "It seems BP doesn't know what to do with Bumerangue."

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Elevated CO2 Levels Complicate Development

BP has said the field's elevated CO2 content can be managed and expects to complete its three-well appraisal program by the end of the first half of 2027.

Petrobras remains cautious, according to Reuters' sources. Its technical team is assessing BP's proposal and the field's carbon dioxide concentration before determining whether the opportunity is commercially attractive.

The Brazilian company faces a similar challenge at its undeveloped Jupiter discovery, also in the Santos Basin, where unusually high CO2 concentrations have complicated development.

Petrobras is working on technology intended to improve the commercial viability of high-CO2 oil resources. Sources indicated that Jupiter would take priority over Bumerangue if the technology becomes available.

As one Petrobras source told Reuters: "One can't think of Bumerangue before finding a solution for Jupiter."

OilMonster Industry Edge | Resource Size vs. Commercial Viability

Bumerangue's estimated 8 billion barrels of liquids in place do not establish recoverable reserves or project profitability. Elevated CO2 concentrations introduce additional technical and economic questions, making appraisal results especially important.

For BP and a potential partner, the next milestone is determining whether the discovery can support a commercially viable development before committing capital. No transaction or final investment decision has been announced.

Appraisal Results Will Shape Next Steps

BP's appraisal program is expected to provide additional information on reservoir characteristics and development options. The outcome could influence potential partnership terms, project design and a future investment decision.

The reported discussions remain preliminary, and neither the size nor the value of a possible Petrobras stake has been disclosed.

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Courtesy: Reuters.