Shell PLC and its partners have agreed on a final investment decision to proceed with the Gato do Mato deepwater development in the pre-salt area of Brazil’s Santos Basin.
The project will produce up to 120,000 barrels of oil per day (bopd) through a floating production, storage and offloading (FPSO) vessel, the British energy giant said in an online statement. Shell estimates recoverable resources to be 370 million barrels.
“Gato do Mato is an example of our ongoing investment in increasingly efficient projects”, commented Zoë Yujnovich, integrated gas and upstream director at Shell. “The project contributes to maintaining stable liquids production from our advantaged Upstream business, and expands our leadership as the largest foreign producer in Brazil as we continue working to provide for the world’s energy needs well into the future”.
The discovery straddles two contiguous blocks: BM-S-54, awarded 2005, and Sul de Gato do Mato, a 2017 production sharing agreement. The leaseholds are located off the coast of Rio de Janeiro in water depths ranging from 1,750 meters (5,741.47 feet) to 2,050 meters, according to Shell.
Shell operates the Gato do Mato consortium with a 50 percent stake through Shell Brasil Petróleo Ltda. Ecopetrol SA owns 30 percent. TotalEnergies SE holds the remaining 20 percent. State-owned Pré-Sal Petróleo SA (PPSA) manages the production sharing contract.
“Initial operations will involve the reinjection of natural gas for reservoir pressure support, with future optionality to export gas to onshore facilities”, Shell said.
“The investment in Gato do Mato is expected to generate an internal rate of return in excess of the hurdle rate for Shell’s Upstream business”, it added.
Last year Shell and its partners in Atapu, another Santos field, reached a final investment decision on a phase 2 project. Expected to start production 2029, the second phase will have a new FPSO with a capacity of 225,000 bopd. Phase 1 went onstream 2020 through FPSO P70, which has a capacity of 150,000 bopd.
Atapu is operated by Petróleo Brasileiro SA with a 65.7 percent interest. Shell owns 16.7 percent, France’s TotalEnergies 15 percent, Petrogal Brasil Ltda. 1.7 percent and PPSA 0.9 percent.
In the fourth quarter of 2024 Shell and its partners put onstream another Santos Basin project, Mero3. Mero’s phase 3 has a production capacity of 180,000 bpd, which will raise the field’s installed capacity to 590,000 bpd, according to the owners.
Petrobras operates Mero with a 38.6 percent stake. TotalEnergies owns 19.3 percent, Shell 19.3 percent, China National Petroleum Corp. 9.65 percent, CNOOC Ltd. 9.65 percent and PPSA 3.5 percent.
Source: by Jov Onsat for Rigzone Staff