• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 4 hours Science: Only correct if it fits the popular narrative
  • 42 mins Crazy Stories From Round The World
  • 16 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 14 hours China's Renewables Boom Hits the Wall
  • 21 hours EU has already lost the Trump vs. EU Trade War
  • 2 days ''Err ... but Trump ...?'' *sniff
  • 6 hours Do The World's Energy Policies Make Sense?
  • 15 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 8 hours Impeachment Nonsense
  • 2 days Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 21 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

The $22 Trillion Market Keeping Coal Afloat

The $22 Trillion Market Keeping Coal Afloat

Despite coal’s collapse in North…

Shell: Breakeven For Brazilian Pre-salt Less Than $40

Shell

Shell is confident that it can produce oil from Brazil’s promising prolific pre-salt layer for less than $40 per barrel, that’s why the supermajor is taking part in this week’s Brazilian auction, Wael Sawan, Executive Vice President Deepwater at Shell, told Reuters on Wednesday.

The pre-salt layer holds high-quality and prolific oil reserves, and recent Brazilian reforms have made them more attractive assets, Sawan told Reuters on the sidelines of an oil industry event in Rio de Janeiro. Shell believes that it can extract oil from those fields below its targeted breakeven cost of $40 a barrel, otherwise it would not have taken part in the auction, Shell’s manager noted.

“I think what Brazil really has going for it is a naturally blessed subsurface that allows it to compete with the best of what’s out there in the world,” Sawan told Reuters.

Brazil will hold on October 27 the second and third rounds of auctions for blocks in its pre-salt layer. Local oil regulator ANP said last week that it might reopen bidding for the oil blocks in the pre-salt layer that don’t receive bids in the auction.

Shell is among the oil industry’s heavyweights admitted to bidding in the auctions. But Shell’s Sawan did not elaborate on which blocks Shell would bid, or if it would do so with partners in consortia.  

Shell and Brazil’s Petrobras signed last month an agreement to set up a long-term cooperation initiative to develop pre-salt fields in Brazil. Shell is a strategic partner of Petrobras in the pre-salt layer, holding minority interests in the Libra and Lula fields and in other areas such as Sapinhoá, Lapa, and Iara, all of which are located in the Santos Basin. Currently, Petrobras and Shell are partners in ten exploration and production consortia, each operating in five blocks.

Also last month, Flávio Rodrigues, the head of government relations and regulatory affairs at Shell’s Brazilian subsidiary, said that the unit would invest US$2 billion annually in Brazil by 2020, excluding investment in possible bids for new exploration areas.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play