• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 5 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%

Shell Pledges $10 Billion For Brazil Projects

Pre-Salt Brazil

With large-scale project opportunities for oil and gas development on the decline, supermajors are turning to smaller endeavors that yield faster returns—but they haven’t entirely given up on big projects, such as the development of Brazil’s pre-salt layer.

Shell has just announced it will spend as much as US$10 billion over the next five years on oil and gas projects in South America’s largest economy, taking quick advantage of a legislative change aimed at encouraging more foreign companies’ participation in the country’s energy industry.

Early last month, the Brazilian Senate scrapped the obligation to local state-owned giant Petrobras to act as operator of all oil and gas projects in the pre-salt deposits in the Brazilian shelf. Now, any energy company can become the operator of a project in the area.

Petrobras has proven unable to effectively exercise control over these resources on its own, especially after it came to light that senior executives at the company were involved in a wide-scale graft scandal, and also that the company’s debt had swelled to over US$100 billion, the largest in the industry.

Related: Russia And Iran Sign Flurry Of Energy Deals, What’s Next?

Shell is already the largest foreign investor in Brazil, Reuters notes. Some of its assets there it acquired with the purchase of rival BG Group and others, such as its stake in the huge Libra field in the pre-salt that it bought before the acquisition.

Brazil has recently stated its intention to raise its crude oil production, despite still weak prices. In fact, it disappointed OPEC when it said this, as the cartel was counting on some weighty non-OPEC producers to join its production-cutting efforts to push up oil prices.

The latest production figures for Brazil were record-highs: in September, 2.67 million bpd were pumped in the country, up 2.4 percent on August and 11.5 percent on September 2015. This was the fourth month of production increases in a row.

By Irina Slav 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