BP Discovers Oil At Far South Prospect in Deepwater Gulf, Boosts Upstream Growth Outlook

BP p.l.c. BP shares are trading higher premarket at the last check Monday after the company disclosed a new oil discovery at the Far South prospect in the deepwater U.S. off the Louisiana coast.

The exploration well was drilled in Green Canyon Block 584, located roughly 120 miles off the Louisiana coast in 4,092 feet of water, reaching a total depth of 23,830 feet.

BP operates the project with a 57.5% stake, while Chevron U.S.A. Inc. holds the remaining 42.5%.

This discovery highlights BP’s renewed focus on exploration, aligning with its February 2025 strategy reset to boost upstream investment and enhance its exploration portfolio.

In particular, BP aims to increase its global upstream production to between 2.3 and 2.5 million barrels of oil equivalent per day by 2030, with potential for further growth through 2035.

Of this, approximately 1 million barrels per day are projected to come from its U.S. onshore and offshore operations.

BP said it is focused on delivering more affordable and reliable energy from the region, building capacity to over 400,000 barrels of oil equivalent per day by the end of the decade.

Over the past decade, BP has made more than 40 discoveries, including recent successes.

As part of its intensified exploration strategy, BP plans to drill approximately 40 wells over the next three years, with 10 to 15 of those scheduled for 2025.

Last week, the company updated first-quarter guidance, expecting upstream production to decline compared to the previous quarter, with slightly higher production in oil production and operations and less in gas and low-carbon energy.

In the gas and low-carbon energy segment, realizations are expected to be flattish, while gas marketing and trading results are projected to be weak.

Investors can gain exposure to the stock via Precidian ETFs Trust BP plc ADRhedged (BATS: BPH) and Texas Capital Texas Oil Index ETF  OILT.

BP Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of BP have an average 1-year price target of $34.0, representing an expected upside of 27.87%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on BP, while 1 analysts have bullish ratings. The street high price target from Wells Fargo is $37.0, while the street low from Scotiabank is $30.0.

Price Action: BP shares are up 3.16% at $27.43 premarket at the last check Monday.

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