Shell Acquires 30% Stake in BP-Operated Conifer Prospect, Expands in Gulf of Mexico
Shell and BP Expand Strategic Oil and Gas Investments
Shell's Acquisition in the Gulf of Mexico
Sept 2 (Reuters) - Shell Offshore, a subsidiary of British oil and gas major Shell, said on Wednesday it would acquire a 30% stake in the BP-operated Conifer exploration prospect in the Gulf of Mexico.
Focus on Long-Term Growth
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 and Shell Collaboration in Brazil
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.
Significance of the Gulf of Mexico
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’s Upstream Portfolio in Brazil
Bumerangue Discovery
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.
Reporting Credits
(Reporting by Anna Peverieri in Barcelona;Editing by Sanjeev Miglani)
