Shell and BP in Brazil, Shell will acquire stakes in Conifer and Tupinambá, both operated by BP, ahead of the next drilling campaigns. The transaction entails a 30 % stake for Shell in Conifer and a 50 % stake in Tupinambá. BP will retain 70 % and 50 %, respectively, and will continue as operator of both projects.
Shell enters the Conifer prospect operated by BP
On one hand, Shell Offshore agreed to acquire a 30 % stake in the Conifer exploration prospect, located in Keathley Canyon and near BP’s Kaskida development. The asset is situated approximately 250 miles southwest of New Orleans. Its location gives Shell a new deepwater exploration opportunity within a region where both companies have oil and gas operations.
BP Shell acquired four of the concessions associated with Conifer in August 2023 following Lease Sale 259, and a fifth concession was awarded in February 2026 after Lease Sale BBG-1. Shell will hold a stake in all five concessions, while BP will retain a 70 % interest in the project. The first exploratory drilling at Conifer is scheduled for 2027.
Colette Hirstius, Shell’s executive vice president for the Gulf of America and president of Shell USA, highlighted the company’s interest in continuing to expand its position in this basin.
The Gulf of America (GoA) remains a world-class basin, and we continually seek opportunities to expand our presence and generate value. Conifer is another way to strengthen our position in this highly competitive region.
Colette Hirstius
Shell and BP are moving forward with the exploration of Tupinambá in Brazil
Meanwhile, Shell Brazil Petroleum BP agreed to acquire a 50 % stake in the Tupinambá exploration block, located in the Santos Basin off the Brazilian coast. BP will retain the other 50 % and continue as operator. The company won the block in December 2023 during the second cycle of Brazil’s Permanent Production Sharing Offer.
Furthermore, Pré-Sal Petróleo will continue to manage the production-sharing agreement on behalf of the Brazilian federal government, although the closing of the transaction still requires the corresponding regulatory approvals. Unlike Conifer, whose drilling is scheduled for 2027, the first exploratory well at Tupinambá could begin soon, positioning the Brazilian project as the first of the two assets to enter a new evaluation phase through drilling.
Shell expands its offshore exploration portfolio
For Shell, both agreements offer a way to increase its exposure to new oil and gas opportunities without initially assuming direct operation of the projects. BP, for its part, will retain a majority stake in Conifer and an equivalent stake to Shell’s in Tupinambá. This structure allows both companies to share financial and technical exposure during future exploration campaigns.
Furthermore, the agreement focuses collaboration on two offshore areas relevant to its upstream portfolios, such as the deep waters of the Gulf of Mexico and the Santos Basin in Brazil.
Gordon Birrell, BP’s executive vice president of Exploration and Production, highlighted that both regions occupy an important place within the company’s activity.
Brazil and the Gulf of America are important regions for BP, and the union of two operators with extensive experience can help us realize the potential of both opportunities. This collaboration will strengthen our position in both regions as we advance our exploration activities.
Gordon Birrell
In this way, Tupinambá will be the first project to test the exploration potential of the new partnership. Conifer will then follow with a well planned for 2027, keeping Shell and BP active in one of the main offshore oil and gas areas in the United States.
Source: Offshore Energy
Photo: Shutterstock
