Shell expands operated footprint in Brazil with new deep-water blocks

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Mar 29, 2018, 02:11 ET

RIO DE JANEIRO, March 29, 2018 /PRNewswire/ -- Shell Brasil Petroleo, a subsidiary of Royal Dutch Shell plc ("Shell"), today won four additional deep-water, exploration blocks in the Campos and Potiguar basins, bringing its total operated presence offshore Brazil to 18 blocks. In the 15^th deep-water bid round organized by the Brazilian National Petroleum Agency (ANP), Shell secured one exploration block on its own and three in joint-bids with Chevron Brazil, Petrobras, and Petrogal Brasil. Of the newly acquired blocks today, Shell will operate two.

Shell will pay its share of the total signing bonuses, equating for all bids to approximately USD $70-million (R$ 235-million).

"We continue to demonstrate our commitment to growing our production in Brazil and our strong belief in the value deep-water resources brings to our global portfolio," said Andy Brown, Upstream Director, Shell. "This bid round offers significant potential for additional deep-water discoveries. These lease commitments fall within our agreed capital ceiling and are consistent with our value-based approach."

Globally, Shell plans to invest $5-6 billion each year through 2020 into its deep water business to strategically grow production and returns for the company. The business is on track to deliver annual, free cash flow of $6-7-billion by 2020 (at $60/barrel Brent RT 2016).

NEW ACREAGE ADDED TO SHELL BRASIL'S PORTFOLIO
Campos Basin:
C-M-791 – Shell Brasil (40% - operator), Petrogal Brasil (20%), Chevron Brazil (40%)
Potiguar Basin:
POT-M-948 – Shell Brasil (100%)
POT-M-859 – Petrobras (60%), Shell Brasil (40%)
POT-M-952 – Petrobras (60%), Shell Brasil (40%)

EDITORS NOTE

Today's win further reinforces our commitment to Brazil, from which approximately 10% of our global oil and gas production originates.
Shell has operated Upstream and Downstream businesses in Brazil for 105-years and was the first international oil company to commercially produce oil after the state monopoly eased in the late 1990s.

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SOURCE Shell