Please share your perspective on the Bumerangue discovery. The timing could not have been more coincidentally suspicious. Does the field have high CO2? That would jeopardize development? Estimated development cost and what would a Shell or Exxon think in the event of BP acquisition?
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There are fields there without CO2 issues, some with moderate issues and others with severe CO2 issues. BP has drilled several wells in the area, good news and bad news both get a litte tight holed in exploration, take whatever is said with a grain of salt. Success in Brazil would be great for the company, though it is a long time coming after the investments in the Devon properties, the other business ventures, and all of the blocks BP purchased. This block was originally worked a while ago for the lease acquisition, and we'll see what development timeline looks like when they say more. BP has had great people work Brazil exploration over the years, and though many of them are gone or aren't currently working this project today, I wouldn't discount it so fast. Kaskida was discovered in 2006, we'll see when first oil occurs there, but some of the best staff that are left in the company are currently working that project too. BP's larger issue isn't that there aren't good projects, but that a lot of great staff aren't around anymore due to poor management.
BP needed good news…to satisfy Wall Street and the new incoming chairman…the chances of a FID are 4-5 years out…then next year is all about 👄 lipstick 💄 on the pig making it attractive
CO2 is absolutely a concern. The timing of the release is suspicious and no meaningful details were shared.