Shell wins bid expand pre-salt growth in deep-water Brazil

Shell wins bid to expand pre-salt growth in deep-water Brazil

9:11 AM, 31st October 2017
Shell wins bids to expand the company's pre-salt growth in deep-water Brazil. These new areas add strategic acreage to Shell's leading set of global deep-water growth options.
Shell wins bids to expand the company's pre-salt growth in deep-water Brazil. These new areas add strategic acreage to Shell's leading set of global deep-water growth options.

RIO DE JANEIRO, BRAZIL: Royal Dutch Shell plc (Shell) and its partners won a three, 35-year production sharing contracts for pre-salt blocks located in the Santos Basin, offshore Brazil. Shell will pay its share of the total signing bonuses, equating for all bids, of approximately $100-million. Plans for the blocks will then be considered by Shell and its partners.   

The winning bids include a block adjacent to Shell's Gato do Mato field (Shell 80 percent operating, Total 20 percent), a now unitized area to the Sapinhoa field (Petrobras 45 percent operating, Shell 30 percent, Repsol 25 percent), and the new Alto de Cabo Frio – West block (Shell 55 percent operating, Qatar Petroleum 25 percent, CNOOC Limited 20 percent). 

Prior to these bidding results, Shell had previously stated plans for $10-billion investment into the early 2020s for its existing offshore developments in Brazil to support deep water as its upstream growth priority. Shell first began working under a production sharing contract in Brazil in 2013 when it entered the Libra consortium, led by Petrobras.

Shell pioneered deep-water exploration and production 40-years ago in US Gulf of Mexico, and together with its partners in Brazil, the company will combine that expertise to grow its offshore production. Worldwide last quarter, Shell produced more than 710-thousand barrels of oil equivalent per day (boe/d) from its deep-water business, with approximately 330-thousand boe/d production in Brazil. Other deep-water projects for Shell are in the Gulf of Mexico, offshore Nigeria, and offshore Malaysia.

"These winning bids were submitted after our thorough evaluation and add strategic acreage to our already leading set of global deep-water growth options. We will determine our next steps with a focus on continued value to Shell and our shareholders. Our deep-water expertise is well-suited for the opportunities that lie ahead," said Andy Brown, upstream director, Shell.

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