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BP Strikes Big with Massive Oil and Gas Discovery, Renews Focus on Fossil Fuels
Aug. 5 — British energy giant BP announced a major oil and gas discovery in the South Atlantic’s Santos Basin, marking its largest find in 25 years.
Located 250 miles off the coast of Brazil, the Bumerangue block discovery rivals the scale of the 1999 Shah Deniz gas field in the Caspian Sea. This exciting news comes on the heels of several other successful finds for BP this year, including discoveries in Namibia, Egypt, the Gulf of Mexico, and the Caribbean.
This discovery underscores BP’s recent shift back towards traditional fossil fuels. Earlier this year, the company adjusted its strategy, increasing investment in oil and gas while scaling back its commitment to renewable energy projects. This strategic pivot aims to bolster investor confidence and maximize shareholder value.
The announcement coincided with BP’s second-quarter financial results, which revealed a net profit of $2.35 billion. Although this represents a 14.6% decrease compared to the same period last year, it significantly surpassed analysts’ predictions of $1.81 billion.
BP CEO Murray Auchincloss expressed optimism about the new discovery and highlighted the company’s strong upstream performance, record operating efficiency, and the launch of five major projects. Following the positive news, BP increased its quarterly dividend from 8 cents to 8.32 cents and maintained its $750 million share buyback program.
Auchincloss emphasized the company’s commitment to a thorough review to ensure continued maximization of shareholder value. BP’s share price saw a bump after the announcement, rising to $5.55 on the London Stock Exchange before settling slightly lower at $5.47.