Shell approves investment in Brazil offshore project

UK-based oil and gas major Shell has taken the final investment decision (FID) in the Gato do Mato oil and gas project off Brazil’s southeast coast. 

The pre-salt field’s development plan includes the installation of an FPSO designed to produce up to 120,000b/d of oil, beginning in 2029. 

The production unit will be built and operated by Japan’s Modec, which had previously signed a front-end engineering contract with the global major. 

This information was confirmed by Shell’s press office, which reiterated to BNamericas that no capex figure has been announced yet.  

The Gato do Mato Consortium includes Shell (as operator with a 50% stake), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo S.A. (PPSA), which acts as the manager of the production sharing contract.

The greenlight opens way for Ecopetrol to debut as a hydrocarbon producer in Brazil.

The Colombian company said in a statement that Gato do Mato establishes the company as one of the key players in the development of energy resources in Latin America and as a strategic partner for future projects.

Initial operations will involve the reinjection of natural gas for reservoir pressure support, with future optionality to export gas to onshore facilities.

The current estimated recoverable resource volumes of the Gato do Mato development are approximately 370Mb (million barrels). 

Located in the Santos basin, the Gato do Mato project is a pre-salt gas-condensate discovery that covers two contiguous blocks: BM-S-54, a concession contract entered into in 2005, and Sul de Gato do Mato, a production sharing agreement obtained in 2017.

The blocks are off the coast of Rio de Janeiro state in water depths ranging from 1,750m to 2,050m.

“The project contributes to maintaining stable liquids production from our advantaged Upstream business, and expands our leadership as the largest foreign producer in Brazil,” Zoë Yujnovich, Shell’s integrated gas and upstream director, said in a release.