Shell, the second-largest oil producer in Brazil with an average of 450,000 barrels of crude per day last year, announced plans for a drilling operation in one of its concessions and the development of a new oil field in the country by 2025.
The development of the new field, called Gato do Mato, depends on a decision by the company's management, which will be made between March and April, according to Shell Brazil President Cristiano Pinto da Costa at a press conference.
Gato do Mato is a promising concession in the Santos offshore basin in the southeast of the country. Shell secured the concession over a decade ago as the operator, holding a 50% stake, with partners including Colombia's Ecopetrol (30%) and France's TotalEnergies (20%).
The project for this field involves the installation of a platform with the capacity to produce 120,000 barrels of oil per day and future natural gas exploitation on ships.
"If the investment decision is approved, Gato do Mato is expected to begin operations by the end of the decade," Pinto da Costa stated.
The executive did not disclose the investment amount but noted that Shell has invested an annual average of between $1 billion and $1.5 billion in Brazil over the past decades.
Shell also plans to drill the Ariranha exploratory well in the first quarter, located in a concession in the Campos offshore basin, awarded in partnership with Chevron, using a drillship already en route to Brazil.
The executive added that 2025 will mark the first time in two decades that Shell will have two drillships operating in Brazil—one in Ariranha and the other for production enhancement at Parque das Conchas, Shell's main asset in Brazil, where it has extracted 230 million barrels of oil over the past fifteen years.
Shell also expects increased production from concessions where its partner Petrobras is the operator.
In the Mero field, part of the pre-salt Santos basin where Shell holds a 19.3% stake, the consortium led by Petrobras launched a third production platform in October with a capacity of 180,000 barrels per day. This year, a fourth platform with the same capacity, already departed from China, is planned for installation.
In Atapu, another pre-salt concession in the Santos basin where Shell holds a 16.7% stake, Petrobras will commission a second platform this year with a capacity of 225,000 barrels per day.
Shell currently operates 14 active deepwater exploitation platforms in Brazil, which ranks among the top five countries for Shell’s production volume globally.
