Shell wins more offshore assets in Brazil

Shell wins more offshore assets in Brazil

Oct 29, 2017
2 min read
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Oil giant Shell and its partners won three, 35-year production sharing contracts for pre-salt blocks located in the Santos Basin, offshore Brazil.

The blocks was offered as part of Brazil's 3rd production sharing bidding round, which covered 4 blocks located in the "pre-salt polygon" region in the Santos and Campos basins: Pau Brasil, Peroba, Alto de Cabo Frio-Oeste, and Alto de Cabo Frio-Central.

The winning bids for Shell include a block adjacent to Shell’s Gato do Mato field (Shell 80 per cent operating, Total 20 per cent), a now unitised area to the Sapinhoá field (Petrobras 45 per cent operating, Shell 30 per cent, Repsol 25 per cent), and the new Alto de Cabo Frio – West block (Shell 55 per cent operating, QP 25 per cent, CNOOC Limited 20 per cent).

Shell said it will pay its share of the total signing bonuses, equating for all bids, of to approximately USD $100-million.

"We are very pleased to expand our number of operated fields in Brazil. 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.

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.