Shell drills at Gato do Mato in 2019

Shell expects to begin drilling the Gato do Mato area early next year. The company has already filed an environmental licensing process to drill, which is in a more advanced stage of development compared to other company assets, company president André Araújo said.

While awaiting the issuance of the license, the company is in negotiations with partners to purchase equipment such as drill rigs as well as details of the area development project and the associated gas trading. The company has a more aggresive plan for pre-salt gas monetization – in December, the company contracted a consortium of the Vale Azul thermoelectric plant, which will use pre-salt gas.

 

The executive, who participated in the UK Energy event, conducted by the UK Consulate in Rio de Janeiro, said that the company even considered it positive if it could obtain the license before, although it works with the prospect to start work in 2019, which should focus on areas adjacent in order to complement the information available on the venture.

“We are very excited about the Gato do Mato project,” Araujo said. He also pointed out that other Shell projects are in a more initial phase, compared to Gato do Mato, such as Alto de Cabo Frio Oeste, and perceive the most acute attention of suppliers on each stage of development of the intermediate areas.

“We feel from the supply industry some anxiety, since there is a reduction of activities in the country, and projects like this bring a perspective of bringing results sooner,” he said, choosing not to make predictions about when he could produce the first oil of Gato do Mato.

At the event, Araújo stressed that Shell is very interested in new exploration and production projects in Brazil, but stressed that the country needs to offer “competitiveness”, considering that the company has also analyzed projects in other countries – Shell recently closed deals relevant in round of oil blocks in Mexico.

The company also showed great interest in areas such as natural gas, biofuels and renewable energy.

Source: Brazil Energy