RIO DE JANEIRO (Reuters) -A possible partnership between BP and Petrobras to develop the British firm’s oil and gas find in Brazil’s pre-salt layer would hinge on carbon dioxide levels in the reservoir, three sources at the Brazilian state-run oil firm told Reuters.
BP’s Chief Executive Murray Auchincloss said on Tuesday that the firm would look to bring in a partner to help develop its find in the Bumerangue block, considered by BP to be its largest global discovery in 25 years.
Discoveries nearly two decades ago in Brazil’s pre-salt area, defined by vast deepwater fields under a thick layer of salt below the ocean floor, have turned the South American country into one of the world’s biggest oil producers.
When it announced the discovery, BP noted that it found “elevated levels of carbon dioxide” during a rig-site analysis, raising concerns about the block’s commercial viability.
Petrobras, the leader in pre-salt exploration, is developing technologies to make discoveries of oil reserves with high CO2 content economically viable to explore, but it is still in the very early stages, a source said on condition of anonymity.
A large Petrobras find in the Jupiter field, also in the pre-salt region, went undeveloped due to a higher-than-usual CO2 content, the same source added.
A high volume of CO2 in the reservoir could make the discovery economically unviable, experts told Reuters. Gordon Birrell, BP’s head of production and operations, said on Tuesday he is not “particularly” concerned about carbon dioxide levels in the Bumerangue block.
Two Petrobras executives, also speaking on condition of anonymity, said BP has not yet approached the company to discuss Bumerangue. Despite the CO2 worries, one of the sources said the discovery looks “very promising.”
A third source said he believes BP will eventually present data from the Bumerangue block to Petrobras, adding that it could happen later as “it appears there is still a long way to go to see the viability of the discovery.”
BP, which acquired 100% of the Bumerangue block at an auction in 2022, has partnerships in some blocks with Petrobras, including Alto de Cabo Frio Central, in the pre-salt of the Campos Basin.
Petrobras did not immediately comment on the matter when contacted. BP declined to comment.
(Reporting by Rodrigo Viga Gaier; additional reporting by Marta Nogueira; writing by Fabio Teixeira; editing by Paul Simao)
