Company News

Total : Shell to begin drilling in Brazil's Gato do Mato block in 2019

4-traders
14/11/2017 13:55
Visualizações: 2667 (0) (0) (0) (0)

Royal Dutch Shell Plc's <RDSa.L> Brazil chief said on Monday that the oil major plans to begin drilling in 2019 in an offshore block in the coveted pre-salt layer that it won in an auction last month with France's Total (>> Total).

 

"We already drilled in the area. We know how to do it. We have the experience. So it is just about putting in place everything that we already have in order to not waste time," Andre Araujo, Shell's Brazil unit head, told reporters on the sidelines of an event in Rio de Janeiro.

 

The block, South Gato do Mato, is adjacent to a prospect that Shell and Total are already exploring jointly. Shell is operator in both areas with an 80 percent stake.

 

Araujo said it was too soon to forecast when the first oil might be produced there, but reiterated that the company is committed to investing an average of $2 billion (£1.5 billion) a year in Latin America's top economy through 2020.

 

Shell won half the blocks awarded in Brazil's deepwater auction in October in a historic opening of the pre-salt play to foreign operators. Billions of barrels of oil are trapped below thousands of feet of salt in the country’s Atlantic waters.

 

Wael Sawan, executive vice president for Shell's deepwater division, told Reuters the company was confident it could pump oil from the fields on offer for less than $40 a barrel.

 

During the event, Araujo also said the company is looking for opportunities in renewable energy in Brazil, which could be through acquisitions or working with partners.

 

"There are a lot of companies that believe that renewable energy in Brazil will grow, that there are business opportunities. Why not go in?" he said, adding that Raízen, partly owned by Shell, already invests in the sector.

 

Raízen is a 50-50 joint venture between Shell and Cosan SA Indústria e Comércio (>> Cosan SA Industria e Comercio), a Brazilian energy and infrastructure group. Besides being the world's largest sugar producer, Raízen is a large ethanol maker and generates electricity from biomass by burning dried-crushed cane at power plants adjacent to the mills.

Most Read
see see
ADIPEC 2025
Johnson Matthey: Leadership and Innovation Driving the G...
31/10/25
OTC Brasil 2025
OTC Brazil connects the Equatorial Margin’s potential to...
30/10/25
OTC Brasil 2025
New Version of ANP’s Greenhouse Gas Emissions Dynamic Da...
30/10/25
OTC Brasil 2025
Port of Açu and IKM Advance Partnership to Create Brazil...
30/10/25
OTC Brasil 2025
Port of Açu and SISTAC Sign Agreement to Provide Decommi...
29/10/25
Royalties
Royalties from August Production Distributed to States a...
29/10/25
OTC Brasil 2025
iUP Innovation Connections Links Innovation Strategy to ...
29/10/25
ANP
Permanent Production Sharing Offer: Registered Companies...
29/10/25
OTC Brasil 2025
Firjan Showcases Technology and Innovation Solutions for...
29/10/25
OTC Brasil 2025
O&G exploration is key to social development and a just ...
28/10/25
OTC Brasil 2025
Experts warn regulatory instability threatens US$100 bil...
28/10/25
International Company News
Sercel Awarded Major Contract by ONGC to Supply Sercel 5...
28/10/25
Record
Petrobras announces production record of FPSO Almirante ...
28/10/25
OTC Brasil 2025
Event brings together global offshore industry leaders a...
28/10/25
OTC Brasil 2025
Petrobras participates in OTC Brasil 2025, in Rio de Janeiro
28/10/25
Petrobras
Petrobras produced 3.14 million barrels of oil equivalen...
27/10/25
FIRJAN
By 2035+, Rio de Janeiro State’s Energy Potential Could ...
23/10/25
Pre-Salt
PPSA to auction in December the first share of governmen...
23/10/25
Auction
Petrobras wins auction and leases RDJ07 terminal at the ...
23/10/25
Permanent Offer
Equinor acquires two new blocks in the Campos Basin duri...
23/10/25
OTC Brasil 2025
OTC Brasil 2025 Kicks Off in One Week with a Packed Prog...
22/10/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.