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BP Agrees to Sell Stakes in Brazil, Gulf of Mexico Exploration Assets to Shell

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BP (BP) agreed to sell stakes in two offshore oil and gas exploration projects in Brazil and the Gulf of Mexico to Shell (SHEL), as the British energy company seeks to streamline its portfolio, the company said in a statement on Wednesday.

Shell Brasil Petroleo will acquire a 50% stake in the Tupinamba exploration block in Brazil's Santos Basin, while Shell Offshore will acquire a 30% stake in five leases containing the Conifer exploration prospect in the deepwater Gulf of Mexico.

BP will retain a 50% stake in Tupinamba and a 70% stake in Conifer and will remain operator of both projects.

The Tupinamba exploration well is expected to begin drilling soon, while the Conifer well is expected to be drilled in 2027, BP said.

BP was awarded the Tupinamba block in December 2023 under Brazil's second cycle of the Production Sharing Permanent Offer. Pre-Sal Petroleo, a state-owned company, will continue to manage the production-sharing contract on behalf of the Brazilian federal government.

BP was awarded four of the leases covering Conifer in August 2023 in the US Gulf of Mexico's Lease Sale 259. The fifth lease was awarded in February 2026 in the BBG-1 Lease Sale. Shell Offshore will acquire a stake in all five leases.

Gordon Birrell, BP's executive vice president for upstream, said Brazil and the Gulf of Mexico are important regions for BP, and bringing together two experienced operators could help unlock the potential of both opportunities.

Completion of the Tupinamba transaction remains subject to regulatory approval.

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