Shell Brasil Petróleo Ltda., a subsidiary of Shell plc, has taken the final investment decision (FID) for the Gato do Mato project, a significant deepwater development in the pre-salt area of the Santos Basin, offshore Brazil.
This move marks a substantial expansion of Shell’s presence in Brazil’s energy sector.
The Gato do Mato Consortium, led by Shell as the operator with a 50 per cent stake, includes Ecopetrol (30 per cent), TotalEnergies (20 per cent), and Pré-Sal Petróleo S.A. (PPSA) as the manager of the production sharing contract.
The development plan involves the installation of a floating production storage and offloading (FPSO) vessel, designed to produce up to 120,000 barrels of oil per day.
With estimated recoverable resources of approximately 370 million barrels, the Gato do Mato project represents a significant addition to Brazil’s oil production capacity.
The consortium anticipates that the field will commence operations in 2029.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, highlighted the strategic importance of the project, stating: “Gato do Mato is an example of our ongoing investment in increasingly efficient projects.
“The project contributes to maintaining stable liquids production from our advantaged Upstream business, and expands our leadership as the largest foreign producer in Brazil as we continue working to provide for the world’s energy needs well into the future.”
The Gato do Mato project spans two contiguous blocks in the Santos Basin: BM-S-54, a concession contract entered into in 2005, and Sul de Gato do Mato, a production-sharing agreement obtained in 2017.
Located offshore from the Rio de Janeiro coast, the project operates in water depths ranging from 1,750 to 2,050 metres.
Initial operations will focus on the reinjection of natural gas for reservoir pressure support, with the potential for future gas exports to onshore facilities.
The investment is expected to generate an internal rate of return exceeding Shell’s Upstream business hurdle rate, underscoring the project’s economic viability.
This development not only reinforces Shell’s position as the largest foreign producer in Brazil but also demonstrates the company’s commitment to investing in efficient deepwater projects to meet global energy demands.