BP makes new oil discovery as it faces shareholder backlash

BP has announced a new oil discovery in the Far South field in the Gulf of Mexico, news that may further anger some shareholders.

An exploration well was drilled in Green Canyon Block 584 about 120 miles off the coast of Louisiana, USA, with preliminary data indicating a potentially commercial volume of oil and gas.

The discovery comes after BP announced a strategy shift in February, cutting planned investment in renewable energy and returning to a focus on oil and gas.

The BP AGM is to be held this week, with CEO Murray Auchincloss  facing a shareholder rebellion.

Activist investors, US fund Elliott Management, which has a 5% stake in BP, look likely to oppose his position.