Shell Brasil, a subsidiary of Shell, has reached a final investment decision (FID) on the Gato do Mato project, a deep-water development in Brazil’s pre-salt Santos Basin.
This project involves a consortium, with Shell holding a 50% stake, alongside partners Ecopetrol (30%) and TotalEnergies (20%), with Pré-Sal Petróleo managing the production sharing contract.
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The Gato do Mato project will feature a floating production storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day (bopd).
The recoverable resource volume of the project is currently estimated at 370 million barrels.
Situated in the Santos Basin, the project spans two blocks: BM-S-54 and Sul de Gato do Mato, secured in 2005 and 2017, respectively.
The blocks are located offshore Brazil from Rio de Janeiro in water depths of 1,750–2,050m.
The consortium expects the field to begin operations in 2029. Initial operations will involve reinjection of natural gas to maintain reservoir pressure, with plans to potentially export gas to onshore facilities in the future.
Shell Integrated Gas and Upstream director Zoë Yujnovich said: “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 resource volumes are based on a P50 estimate, indicating a 50% probability of the estimate being higher or lower, as per the Society of Petroleum Engineers’ Petroleum Resources Classification System.
Shell anticipates that the investment in Gato do Mato will yield an internal rate of return exceeding the hurdle rate for its upstream business.
Additionally, Shell aims to commence natural gas production at Venezuela’s Dragon field by 2026, a year ahead of schedule, and plans to export gas to Trinidad and Tobago the same year.
The project highlights the industry’s optimism over continued exceptions from US sanctions on Venezuela, despite recent stricter enforcement.
Shell and its partners intend to start survey work next month, drilling three wells.
