Petrobras and BP Pursue Bumerangue Pre-Salt Project Amid CO2 Challenges as Brazilian Equities' Top 500 Volume Slumps 22% to $220M

On August 12, 2025, Brazilian equities saw a trading volume of $0.22 billion, a 22.15% decline from the prior day, with Petróleo Brasileiro S.A. (PBR) rising 1.07% amid strategic developments. BP is evaluating a partnership with Petrobras to develop the Bumerangue oil discovery in Brazil’s pre-salt region, its largest find in 25 years. The project, located in deepwater salt layers, faces technical challenges due to elevated carbon dioxide levels, which could complicate extraction and raise costs. BP’s leadership has downplayed these concerns, while Petrobras is advancing early-stage technologies to address high CO2 content in its pre-salt fields. The collaboration builds on existing joint ventures between the two firms in other pre-salt blocks, including the Campos Basin’s Alto de Cabo Frio Central.

Petrobras’ ability to manage high CO2 reserves remains a critical factor in the project’s commercial viability. Historical discoveries like the Jupiter field remain undeveloped due to similar challenges, underscoring the need for technological solutions. While BP has not yet formally approached Petrobras for Bumerangue, industry sources suggest the project retains potential. The partnership could enhance Petrobras’ access to international expertise, though timelines for data sharing and project approval remain uncertain. Market participants are closely monitoring progress, as successful development could bolster Petrobras’ production capacity and long-term earnings.

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