Europe’s largest oil company, expects to make robust investments in Brazil’s offshore, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday.
CEO Ben Van Beurden spoke in Brazil shortly after Shell’s $52 billion takeover of rival BG Group Plc BG.L, approved in late January, took effect.
He said Brazil will be a key area for the Anglo-Dutch company as it focuses its expanded operations in liquefied natural gas (LNG) and deepwater oil production.
“We believe in the strong fundamentals of Brazil and the fundamentals of its geology,” Van Beurden told reporters in Rio de Janeiro. “We will be looking at a substantial part of our production from Brazil.”
By adding BG’s large Brazilian offshore assets, Shell’s local output rose sixfold to about 240,000 barrels of oil and natural gas equivalent a day (boepd), or 13 percent of its total of 1.8 million boepd.
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