Shell expands Brazil operated footprint with new deepwater blocks
Shell Brasil Petroleo, a subsidiary of Royal Dutch Shell, won four additional deepwater exploration blocks in the Campos and Potiguar basins, bringing its total operated presence offshore Brazil to 18 blocks. In the 15th deepwater bid round organized by the Brazilian National Petroleum Agency (ANP), Shell secured one exploration block on its own and three in joint-bids with Chevron Brazil, Petrobras, and Petrogal Brasil. Of the newly acquired blocks, Shell will operate two.
Shell will pay its share of the total signing bonuses, equating for all bids to approximately $70 million (R$235 million).
“We continue to demonstrate our commitment to growing our production in Brazil and our strong belief in the value deepwater resources brings to our global portfolio,” Andy Brown, Upstream Director for Shell, said. “This bid round offers significant potential for additional deepwater discoveries. These lease commitments fall within our agreed capital ceiling and are consistent with our value-based approach.”
Globally, Shell plans to invest $5 billion to 6 billion each year through 2020 into its deepwater business to strategically grow production and returns for the company. The business is on track to deliver annual, free cash flow of $6 billion to $7 billion by 2020 (at $60/bbl Brent RT 2016).
