BP cancels deepwater exploration plans in the Great Australian Bight

BP has cancelled its plans to explore in the Great Australian Bight, offshore South Australia. The company cited a review of its strategy as the catalyst, noting that the ultra-frontier, deepwater acreage was no longer competitive with other opportunities in its global upstream portfolio. BP stated that the ongoing regulatory approval process did not impact its decision to exit. The decision reflects a broader industry shift away from high-cost, ultra frontier exploration drilling. The resulting high-grading effect will be a key factor in driving improved exploration returns and value creation across the industry over the next five years.