Shell is expanding its deep-water exploration portfolio through two agreements with BP covering the Conifer prospect in the Gulf of Mexico and the Tupinamba block off Brazil.
Shell Offshore Inc. announced on Wednesday, September 2, that it will acquire a 30% interest in Conifer, an exploration prospect operated by BP Exploration and Production.
Conifer is located in the Keathley Canyon area, approximately 250 miles southwest of New Orleans. It sits near BP’s Kaskida development, potentially providing strategic infrastructure advantages if exploration proves successful.
BP will retain a 70% interest in Conifer and continue to operate the prospect. Shell will hold the remaining 30% once the transaction is completed.
The companies did not disclose the financial value of the agreement.
Key deal details:
- Shell will acquire a 30% interest in the Conifer prospect.
- BP will retain 70% and remain the operator.
- Conifer is located in the Gulf’s Keathley Canyon area.
- The first exploration well is expected to be drilled in 2027.
- Shell will separately acquire 50% of the Tupinamba block in Brazil.
Shell joins BP ahead of Conifer drilling
Shell said the initial Conifer exploration well is currently expected to be spudded in 2027. Until drilling and evaluation work is completed, the size and commercial potential of the prospect remain uncertain.
In its official announcement, Shell described the Gulf as a world-class basin and said the transaction would strengthen its position in the region.
The acquisition comes as major energy companies continue to prioritise deep-water projects capable of supplying oil and gas over long operating periods. Shell and BP already operate significant assets in the Gulf and have been reshaping their upstream portfolios around projects expected to offer competitive returns.
Shell is one of the largest deep-water producers in the region. The company has also been adjusting its Gulf portfolio, selling interests in selected mature assets while investing in exploration prospects and developments with longer-term potential.
The wider importance of oil supply and international energy investment has also been highlighted by developments surrounding the Trump–Venezuela oil agreement and its possible impact on gas prices.
Shell also takes 50% of Brazil’s Tupinamba block
The Conifer transaction forms part of a wider partnership between the two British energy companies. BP said Shell will also acquire a 50% interest in the Tupinamba exploration block in Brazil’s Santos Basin.
BP will retain the other 50% and remain operator of Tupinamba. The offshore Santos Basin is one of Brazil’s most important petroleum regions and has attracted extensive investment from international energy companies.
Brazil has become increasingly important to BP following its large Bumerangue discovery. The company has estimated that the discovery contains approximately eight billion barrels of liquids in place, although the recoverable volume and commercial development plan require further appraisal.
The Conifer and Tupinamba agreements give Shell exposure to two BP-operated exploration opportunities without assuming operating responsibility. BP, meanwhile, will retain control while sharing future exploration costs and geological risks with Shell.
Neither transaction guarantees a commercial discovery. Exploration prospects must pass through drilling, appraisal, regulatory and investment stages before any production decision can be made.
This article is based on statements issued by Shell and BP and reporting published on September 2, 2026. It will be updated if the companies disclose financial terms or additional drilling details.
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