Shell expects to drill in the Pelotas Basin in 2028

(CNN) Shell expects to drill an exploratory oil well in the Pelotas Basin, a new exploration frontier, in 2028, said Lucio Prevatti, the company’s general manager for exploration and development in Brazil, during an event in Rio de Janeiro.

According to him, Brazil needs to find new producing areas to replenish its reserves and meet future demand.

“The Pelotas Basin is an excellent example. We bought the blocks two years ago and a data acquisition cycle and the first drilling (will occur) perhaps in 2028,” said Prevatti.

“In case of discovery, we are talking about a cycle of more than 10 years until the first oil… but Pelotas is not enough from Brazil’s point of view.”

The company has a total of 29 concession contracts in the Pelotas Basin, all as non-operator, covering blocks P-M-1737, P-M-1739 and P-M-1797.

Of the contracts signed, 26 are in partnership with Petrobras (operator) and three in consortiums formed with Petrobras (operator) and CNOOC Petroleum, according to a note.