BP's Bumerangue Discovery Could Sustain Brazilian Oil Boom Through 2030s
A major oil discovery in Brazil has given BP a chance to keep its production boom running deep into the 2030s. The Bumerangue project, estimated to hold 2.5 billion barrels of recoverable oil, could offset declining production from BP's existing assets and arrive just as Brazil's current pre-salt giants begin to decline.
The ultra-deepwater development has a peak output target of 600,000 barrels per day and is expected to reach first oil in 2032. BP will need to control costs, find the right development partner, and prove that Bumerangue can turn its largest discovery in decades into a commercially competitive project.
The main uncertainty surrounding Bumerangue is concerns about carbon dioxide in the project's associated gas output. If concentrations exceed 45%, BP may need advanced subsea separation and re-injection technology, which would require around $3 billion in costs and a lot of yet-untapped technological expertise.