Company News

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

4-traders
14/11/2017 13:55
Visualizações: 2668 (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
Agreement
Wärtsilä Lifecycle agreement renewed to maintain safe, r...
22/10/25
Petrobras
Petrobras receives operating license for deepwater explo...
20/10/25
Equatorial Margin
License Grant for Drilling in the Equatorial Margin Is P...
20/10/25
Equatorial Margin
ABESPetro Statement on the Licensing of the Equatorial M...
20/10/25
Energy Transition
BNDES, Petrobras, and Finep select Valetec to manage the...
20/10/25
Pre-Salt
Petrobras and PPSA sign equalization agreement for Jubar...
20/10/25
WPC Energy Youth Forum
Kuwait to Host 8th WPC Energy Youth Forum in October 2025
20/10/25
Exports
Petrobras signs contract to sell six million barrels of ...
20/10/25
Petrobras
Petrobras puts the Harpia supercomputer into operation
10/10/25
PPSA
PPSA Publishes Notice for the Non-Contracted Areas Auction
10/10/25
ROG.e
IBP Launches the New ROG.e: The World’s Largest Energy F...
10/10/25
Pre-Salt
CNPE Sets Minimum Value of BRL 10.2 Billion for the Unio...
08/10/25
Natural Gas
Petrobras Carries Out First Natural Gas Import from Arge...
08/10/25
Agreement
Seagems renews Wärtsilä Lifecycle Agreement to support t...
07/10/25
Pre-Salt
Petrobras begins contracting for the construction of FPS...
03/10/25
International Company News
Alkhorayef Petroleum Company acquires GRC Technologies, ...
01/10/25
Pre-Salt
FPSO P-78 arrives at the Búzios Field
01/10/25
RD&I
Brazil Has the Capacity to Develop Its Own Technology fo...
01/10/25
Equatorial Margin
Ibama Approves Pre-Operational Assessment (APO) Conducte...
26/09/25
Sustainable Aviation
Embraer Advances SAF Studies Following Acquisition of Bi...
26/09/25
International Company News
ExxonMobil Guyana Expands Capacity With Seventh Offshore...
24/09/25
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.