Shell Offshore, a subsidiary of British oil and gas major Shell SHEL.L, said on Wednesday it would acquire a 30% stake in the BP-operated Conifer exploration prospect in the Gulf of Mexico.
Shell and BP are prioritizing long-term growth in their oil and gas portfolios after years of investing heavily in renewables and other lower-carbon energy businesses.
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.
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 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.
(Reuters - Reporting by Anna Peverieri in Barcelona; Editing by Sanjeev Miglani)
Subscribe
