No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - BP said on Thursday that it was progressing plans for its significant Bumerangue discovery, offshore Brazil, and that the carbon dioxide in the reservoir can be managed.
The oil giant announced the discovery - its biggest oil and gas discovery in 25 years - back in August. However, it said at the time that results from the rig-site analysis indicated high levels of carbon dioxide, which can make a hydrocarbon field uneconomical to develop.
On Thursday, the group said initial laboratory and pressure gradient analysis has confirmed the presence of a circa 1,000 metre gross hydrocarbon column including a 100 metre gross oil column and an approximately 900 metre gross liquids rich gas-condensate column.
"Given the presence of liquids across the entire hydrocarbon column, the high-quality rock properties observed and BP's extensive technology and deepwater developments experience, BP believes that the carbon dioxide in the reservoir can be managed," it said.
The company said it was continuing laboratory testing and other analysis to determine fluid characteristics, gas-to-oil and condensate-to-gas ratios and an estimate of in-place volumes. It will provide an update in due course.
It also said that planning of appraisal activities is ongoing, with well activities expected to begin in early 2027.
Gordon Birrell, BP's executive vice president for production & operations, said: "We are still in the exploration phase for Bumerangue, however, initial results and analysis are extremely encouraging as they indicate a very large hydrocarbon column and a significant volume of liquids in the reservoir.
"We are pleased about what we have seen to date and our confidence in the potential of this field has increased. We have a team in place and are accelerating work on proposed appraisal activities and potential development concepts, which will include the potential for an early production system."
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.