Shell Brazil president signals oil company’s appetite to continue expanding its exploration portfolio in Brazil

April 2, 2019

An active participant in the last rounds of the ANP, Shell is expected to continue with the expansion of its exploration and production portfolio in Brazil in 2019. In an interview with BE Petróleo, the Brazil oil company’s president signaled that the company is willing to invest in the largest number of assets offered in the next auctions.

“If three auctions happen this year, let’s look at everyone with a dedicated team,” said the executive, adding that the company is awaiting publication of the bidding documents to define its bid strategy.

For 2019, the 16th round of concessions is scheduled, on October 10, the sixth of production sharing (still undefined) and the surplus auction (October 28).

Since 2017, Shell has acquired nine exploration areas in Brazil: Sul de Gato do Mato and Entorno de Sapinhoá in the second round of sharing; Alto de Cabo Frio Oeste (3rd of sharing); the blocks C-M-791, POT-M-859, POT-M-948 and POT-M-952 (15th of concessions); Três Marias (4th of sharing) and Saturno (5th of sharing).

Gas

Araújo also commented on the movement articulated by the government to develop the gas segment, with the Novo Mercado gas program, which should have the general guidelines presented until May. “It is positive when we listen to the Ministries of Economy, Mines and Energy and regulatory agency, all saying that gas is a priority for 2019,” he said.

For Araújo, the gas debate comes in good time. “With the prospect of increased production, almost as a natural consequence of the auctions of the past two years, I think it’s a good time. I have no doubt that gas has a chance to bring more jobs, benefits and competitiveness, “he said.

He estimates that the stimulus of the government program will be welcome to help monetize the pre-salt gas. “Most companies re-inject the gas into the reservoirs, which helps in productivity, but at some point we need to remove that gas,” said Shell president, noting that energy is the cleanest asset among fossil fuels.

Source: BE Petroleum

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