By Brazil Stock Guide – BP Plc (BP) plans to bring in a partner for its Bumerangue oil block in Brazil before reaching a final investment decision, according to Andres Guevara de la Vega, head of the company’s Brazilian operations.
The announcement follows BP’s disclosure in August that Bumerangue marked its largest oil and gas discovery in a quarter century. While the UK-based major currently holds 100% of the block, Vega said partnerships will be crucial as the company expands its role in Brazil’s pre-salt region, according to Reuters.
“(The search for a partner) will be in the future… over the next one or two years, but it’s a process that will run in parallel with the evaluation. But it will happen,” Vega said during a British Chamber of Commerce event in Rio de Janeiro. “Almost certainly, the partnership will happen before we make an FID. This is common. But there is no date. But it will happen.”
Petroleo Brasileiro SA (PETR4.SA), the state-controlled oil giant, has been cited as a natural partner due to its expertise in pre-salt fields. However, sources told Reuters in August that its involvement could depend on CO₂ levels found in the reservoir.
BP is currently analyzing the fluids from the discovery to determine carbon dioxide content, a key factor for the project’s commercial viability. The find has drawn significant industry interest, as it was drilled from BP’s 13th well in Brazil and highlights the potential of underexplored pre-salt areas.
“It is relevant for us, but it is also relevant for the country. Because it revives the pre-salt after maybe a decade without major discoveries,” Vega said.
BP operates seven blocks in Brazil and is preparing to drill a new well in the neighboring Tupinambá block in 2026. Vega stressed that while geographically close, the two prospects are independent.
On bioenergy, BP is evaluating possible investments in corn ethanol to complement its sugarcane operations in Brazil. “We have to look at what is happening with corn,” Vega said, noting possible synergies in storage and energy use from sugarcane bagasse.
Although Petrobras has expressed interest in returning to ethanol production, Vega ruled out talks with the state company. BP remains one of Brazil’s leading producers of ethanol and sugar, with 11 mills spread across five states.