0121 568 8793 [email protected]
Shell Brazil

Shell Brazil output to quadruple by 2020

February 16 2016

Europe’s largest oil company Royal Dutch Shell, is hoping to quadruple oil and gas output in Brazil by the end of 2020.

Following Shell’s $52 billion takeover of BG Group Plc in January, the Anglo-Dutch company has announced its focus on expanding operations in liquefied natural gas (LNG) and deep-water oil production in Brazil’s offshore.

Since adding BG’s large Brazilian offshore assets, Shell’s local output rose sixfold to around 240,000 barrels of oil and natural gas equivalent a day (boepd), or 13 percent of its total of 1.8 million boepd.

These figures are expected to quadruple its Brazilian output by the end of the decade, boosting production to nearly 1 million boepd.

Shell is already Brazil’s no.2 producer after state-led Petrobras and the world’s largest trader of LNG.

While it sells LNG to Petrobras for the Brazilian market, Van Beurden and his Brazilian deputy, Andre Araujo, declined to say if they want to buy Petrobras’ natural gas assets, some of which are for sale.

Brazil’s importance to Shell is expected to increase as it moves ahead with giant subsalt projects such as Libra, which it is developing with Petrobras, France’s Total SA, China’s CNOOC, and CNPC.

Subsalt refers to large hydrocarbon resources trapped deep beneath the seabed by a layer of mineral salts. Libra may hold as much as 12 billion barrels of recoverable oil, according to Brazil’s government.

Shell faces serious challenges in Brazil. Oil prices have plunged since the BG deal was announced a year ago. Petrobras, Shell’s principal partner in the country, is in serious financial and legal difficulty after the price drop and a massive price-fixing, bribery and kickback scandal.

Van Beurden, though, said subsalt areas should be able to break even at oil prices forecast for this year, without saying what those prices might be.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Protected areas could help boost Brazil’s national economy, study finds

Brazil’s protected areas such as the Amazon and Caatinga are known globally for the incredible biodiversity treasures they hold. In 2016, there were approximately 17 million visitors in Brazilian protected areas and according to a new study published this...

Read More

Stay up to date

Sign up to our monthly newsletter:

Email Address

By signing up to our newsletter you indicate your consent to receiving email marketing messages from us. If you do not want to receive such messages, tick here: 

You can opt out any time via the unsubscribe link at the bottom of our newsletter or click here