bp plc has agreed to farm out deals with Shell plc subsidiaries for stakes in exploration prospects in Brazil and the US Gulf of Mexico.

Brazil

Shell Brasil Petróleo Ltda will acquire a 50% stake in the Tupinambá exploration block in the Santos Basin, offshore Brazil. bp will retain the remaining 50% interest in Tupinambá and will continue as operator.

bp was awarded the Tupinambá block in December 2023 under the second production-sharing Permanent Offer cycle. Pré-Sal Petróleo S/A will continue to manage the Production Sharing Contract on behalf of the federal government. The Tupinambá exploration well is expected to spud soon, bp said. Completion of Tupinambá remains subject to regulatory approvals. 

Gulf of Mexico

Separately, Shell Offshore Inc. will take a 30% stake in five leases containing the Conifer exploration prospect operated by BP Exploration and Production in the deepwater US Gulf of Mexico Paleogene. bp will retain a 70% interest in Conifer and will continue as operator. 

bp was awarded four leases covering the Conifer exploration prospect in August 2023 following Lease Sale 259. The fifth lease of the prospect was awarded in February 2026 following the Big Beautiful Gulf 1 Lease Sale. The initial Conifer exploration well is expected to be drilled in 2027. The prospect lies within Keathley Canyon, about 250 miles southwest of New Orleans, La., near bp’s Kaskida host development.

Brazil and the US Gulf of Mexico are important regions for bp, said Gordon Birrell, executive vice-president, upstream. He said, noting "bringing together two experienced operators can help unlock the potential of both opportunities." 

While financial details were not disclosed, the move comes as bp continues efforts to streamline the company and support a disciplined approach to capital allocation.