Shell Offshore, a subsidiary of oil and gas major Shell, will acquire a 30% stake in the BP-operated Conifer exploration prospect in the Gulf of Mexico, strengthening its position in one of the key upstream regions of the United States.
The transaction is part of Shell’s efforts to expand its oil and gas portfolio as the company continues to balance its conventional energy operations with investments in lower-carbon businesses.
BP will retain its role as operator of the Conifer prospect following the transaction. The Gulf of Mexico remains an important area for US oil production, accounting for around 15% of the country’s crude output.
Alongside the Gulf of Mexico deal, Shell has agreed to acquire a 50% interest in the Tupinamba exploration block in Brazil’s Santos Basin. BP will retain the remaining 50% interest and continue as operator of the Brazilian asset.
Brazil has become an increasingly important part of BP’s upstream portfolio. The company recently highlighted its Bumerangue discovery, which is estimated to contain around 8 billion barrels of liquids and has been described as BP’s most significant discovery in 25 years.
The latest transactions come as both Shell and BP place greater emphasis on their oil and gas businesses following substantial investments in renewable energy and other low-carbon alternatives. The companies are seeking to strengthen their portfolios through selected upstream assets while maintaining their broader energy transition strategies.
For Shell, the acquisition adds exposure to further exploration activity in the Gulf of Mexico, while the Brazilian transaction expands its position in the Santos Basin. Together, the deals reinforce the company’s focus on building its upstream portfolio across major oil and gas-producing regions.
