This story sits in the licensing and portfolio moves bucket. bp agreed separate farm out deals that bring Shell subsidiaries into exploration prospects in Brazil and the United States Gulf of Mexico while bp keeps operatorship.
In Brazil, Shell Brasil Petróleo will acquire 50% of the Tupinambá block in the Santos Basin, leaving bp with the other 50%. bp won the block in December 2023 under Brazil’s second production sharing Permanent Offer cycle, and the first exploration well is expected to start soon, subject to regulatory approval.
In the Gulf of Mexico, Shell Offshore will take 30% of five leases covering the Conifer prospect in the deepwater Paleogene, while bp retains 70%. Four leases were awarded in August 2023 and a fifth in February 2026. The first Conifer well is planned for 2027 about 250 miles southwest of New Orleans, near the Kaskida development.
Financial terms were not disclosed. The structure spreads exploration exposure between two experienced operators without bp surrendering control of either prospect. For the wider industry, the deal shows capital continuing to move toward frontier prospects that can sit near future production hubs or established deepwater basins.