Shell broadens its US Gulf and Brazil horizons with stakes in BP’s prospects ahead of drilling ops

September 3, 2026, by Melisa Cavcic

UK-headquartered energy giant Shell has set the wheels in motion to add two new exploration prospects to its global portfolio, one in the Gulf of America (U.S. Gulf of Mexico) and the other in Brazilian waters, through deals with compatriot energy major BP. The Brazilian prospect is expected to be drilled before the one in the U.S. Gulf, which is slated to be spudded next year.

Shell Offshore, a subsidiary of Shell, has disclosed the acquisition of a 30% interest in the Conifer exploration prospect operated by BP Exploration and Production in the U.S. Gulf of America near the same firm’s Kaskida host development.

Colette Hirstius, Shell’s Executive Vice President for GoA and Shell USA President, commented: “The Gulf of America (GoA) remains a world-class basin, and we are continually looking for opportunities to grow our position and create value. Conifer is another way to strengthen our position in this highly competitive region.”

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The Conifer prospect is located offshore within Keathley Canyon, approximately 250 miles southwest of New Orleans. BP currently holds a 100% working interest in Kaskida and would retain operatorship upon completion of the deal. The initial exploration well for Conifer is currently anticipated to be drilled in 2027.

BP was awarded four leases covering the Conifer prospect in August 2023 following Lease Sale 259. The fifth lease of the prospect was awarded in February 2026 after the BBG-1 Lease Sale. Shell Offshore will enter all five leases.

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Meanwhile, Shell Brasil Petróleo has agreed on the terms to 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 70% in Conifer, while also continuing as operator in both. The company was awarded the Tupinambá block in December 2023 under the second production-sharing permanent offer cycle.

Pré-Sal Petróleo will continue to manage the production sharing contract (PSC) on behalf of the federal government. The completion of the transaction in Brazil remains subject to regulatory approvals. The Tupinambá exploration well is expected to spud soon.

Gordon Birrell, BP’s EVP Upstream, said: “Brazil and the Gulf of America are important regions for BP, and bringing together two experienced operators can help unlock the potential of both opportunities. This collaboration will help strengthen our position in both as we progress exploration activity.”