BP and Shell have reached an agreement to collaborate on two deepwater exploration opportunities, with Shell acquiring a 50% interest in the Tupinambá block offshore Brazil and a 30% interest in five U.S. Gulf leases containing the Conifer prospect. Under the arrangement, BP will maintain a 50% stake in Tupinambá and a 70% interest in Conifer while continuing as operator of both assets. The financial terms of the transactions have not been disclosed. The partnership brings Shell into both BP exploration prospects ahead of planned drilling activities. BP expects the first exploration well at Tupinambá to spud soon, while drilling for Conifer is scheduled for 2027. The transaction involving the Brazilian acreage remains subject to regulatory approvals.
Tupinambá Adds to Brazil Exploration Portfolio
Tupinambá is situated in the pre-salt Santos Basin, approximately 400 kilometers offshore Brazil, in water depths of around 2,300 meters. BP obtained the block in December 2023 during Brazil’s second production-sharing Permanent Offer cycle, where it was the sole bidder for the acreage.
Shell’s participation increases its position in one of Brazil’s most important offshore producing regions. At the same time, the transaction enables BP to share the cost and exploration risk associated with drilling Tupinambá. Brazil has gained greater importance within BP’s exploration portfolio after the company’s Bumerangue discovery in the Santos Basin. BP announced the discovery in 2025 as its largest discovery in 25 years.
Shell Takes Stake in Conifer Prospect
In the U.S. Gulf, Shell will take 30% interests in five leases that cover the Conifer prospect within the deepwater Paleogene play. BP secured four of the leases through Lease Sale 259 in 2023, while the fifth was acquired through the BBG-1 lease sale in February 2026.
Conifer is positioned in the Keathley Canyon area, roughly 250 miles southwest of New Orleans, and is located near BP’s Kaskida development, according to industry reports. BP sanctioned the Kaskida project in 2024, making it the company’s first development in the Gulf’s Paleogene geological formation. The transaction gives Shell exposure to another of the BP exploration prospects while BP continues to hold the majority interest and operatorship. Drilling at Conifer is planned for 2027, placing Shell alongside BP ahead of the exploration programme.
Companies Align Exploration Interests
For BP, the decision to bring Shell into the two prospects supports its effort to concentrate capital while continuing to maintain exposure to potentially material exploration discoveries. The partnership also allows BP to retain operatorship of both Tupinambá and Conifer while reducing its share of the exploration cost and risk. For Shell, the transactions provide additional acreage in two regions where it already maintains substantial upstream operations. The company will gain interests in both BP exploration prospects without taking on operatorship. T
