Shell Brasil Makes Final Investment Decision for Deepwater Project in Santos Basin

Shell do Brasil, a Brazilian subsidiary of the UK-headquartered energy giant Shell, has officially announced its final investment decision (FID) for the deepwater development project in the pre-salt area of the Santos Basin off the coast of Brazil.

Initially postponed in November 2022, the FID for the Gato do Mato field has now been confirmed by Cristiano da Costa, President of Shell Brasil, for 1Q 2025. This project marks a significant milestone for Shell’s operations in Brazil.

The project will involve the installation of a floating production, storage, and offloading (FPSO) unit to produce up to 120,000 barrels of oil per day. The estimated recoverable resources in the Gato do Mato field are approximately 370 million barrels.

The consortium for the project includes Shell as the operator with a 50% stake, Ecopetrol (30%), TotalEnergies (20%), and Pré-Sal Petróleo SA (PPSA) as the manager of the production sharing contract (PSC). Operations are expected to commence in 2029.

Zoë Yujnovich, Shell’s Head of Integrated Gas and Upstream, expressed enthusiasm for the project, stating: “Gato do Mato is an example of our continued investment in increasingly efficient projects. The project contributes to maintaining stable liquids production in our Upstream business and extends our leadership as the largest foreign producer in Brazil as we continue to work towards meeting the world’s energy needs in the future.”

The Gato do Mato field, located in the Santos Basin at water depths ranging from 1,750 to 2,050 meters, is a pre-salt gas-condensate discovery spanning two blocks: BM-S-54 and Sul de Gato do Mato.

Initial operations will include reinjection of natural gas to support reservoir pressure and the potential export of gas to onshore facilities. Stabilized crude oil will be stored in FPSO tanks and offloaded to shuttle tankers for market distribution.

Shell anticipates a favorable return on investment for the Gato do Mato project, aligned with its strategy to enhance oil and gas production globally. The company also aims to develop a field development plan (FDP) and make an FID for its recent natural gas discovery in the North Sea by 2027.