Shares of BP (LSE:BP.) climbed on Monday after the energy major announced a significant oil and gas discovery off the coast of Brazil, marking its largest find in a quarter-century. The discovery took place in the Santos basin, a deepwater pre-salt area known for its rich hydrocarbon potential.
This is BP’s tenth discovery this year, adding to previous successes in Trinidad, Egypt, and other regions. The company aims to increase its oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day by 2030.
Production hit 2.4 million barrels per day in 2024, though BP expects output to decline next year.
As of 09:47 GMT, BP shares were trading up 1.6% in London.
Initial tests from the drilling site revealed elevated carbon dioxide levels, with further lab work planned to evaluate the block’s full potential. BP intends to build a major production hub in the area, reinforcing its commitment to fossil fuels.
The announcement comes ahead of BP’s second-quarter earnings report, due Tuesday.
In related news, the Financial Times reported Monday that BP is set to provide updates on its $5 billion cost-cutting plan during the earnings call, amid pressure from activist investor Elliott Management to deepen expense reductions.
Elliott is pushing CEO Murray Auchincloss to boost efficiency efforts by adding another $5 billion in savings on top of the current $4 billion–$5 billion target set for 2027, according to the FT. These savings targets are based on 2023 spending levels.
The hedge fund has “identified tens of thousands of BP support staff globally” as part of the company’s cost structure, the report noted.
BP has already achieved $750 million in cuts this year and aims to meet the full target through workforce reductions, asset disposals, and simplifying supply chains, the FT added.
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