Earlier this week, British Petroleum (BP) announced that it had made a resource discovery that eclipsed any they have made in over two decades. These last few years have seen the multinational oil and gas firm shift its focus back to fossil fuels after failing to reduce hydrocarbon production, where it focused on energy alternatives that were low in carbon. Prior to this, the firm was planning to become a net zero company.
The coronavirus pandemic led to an unanticipated loss for the firm though, with reports showing its 2020 loss totaled $5.7 billion. This was quite a plunge, especially since its biggest loss before that was recorded in 2010 following the Deepwater Horizon spill.
Two years after the pandemic, BP experienced another multi-billion-dollar loss after it sold its stake in Rosneft following Russia’s invasion of Ukraine.
The multinational company’s latest discovery, the Santos basin, is its 10th one this year. Since the year begun, it has announced discoveries in the Gulf of Mexico, Trinidad, Angola, Namibia, Egypt and Libya.
The basin might possibly be its biggest discovery since the 1999 discovery of Azerbaijan’s Shah Deniz field.
BP expects this resource to play a huge role in its strategy to increase its production of gas and oil to 2.5 million barrels of oil equivalent per day. The firm’s head of gas and oil production business, Gordon Birrell, stated that the discovery was a success in its exceptional year. He added that it emphasized the firm’s commitment to growing its upstream gas and oil production.
Additionally, Birrell revealed that the firm was exploring the potential of establishing a production hub in Brazil. This comes as it works to offload its share in various windfarms in America to LS Power and collaborate with Jera on its offshore wind venture.
The firm is currently conducting further tests on its discovery located 400km off the coast of Brazil, beneath roughly 2,400 meters of water.
In other news, the company’s struggling share price has increased concerns that major firms may try to buy it. This is despite Shell releasing a statement denying that it had any interest in acquiring BP.
Some believe that the multinational oil firm may also be a target for Elliott Management, a hedge fund based in New York. This comes after the fund bought a 5% stake in the firm and has been pushing for a comprehensive restructuring of the firm’s strategy, including major changes to the board.
Many other companies, such as GEMXX Corp. (OTC: GEMZ), are also conducting oil and gas exploration activities in Latin America. BP’s discovery serves as proof that vast oil resources are waiting to be discovered in the region.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
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