Shell’s Brazilian arm has announced a £300 million addition to its acreage in the deep-water Saturno pre-salt block with Chevron as partner.
The deal means a 35-year production deal off the coast of Brazil in the Santos basin.
The agreement will see Shell increase its total net acreage off the coast of Brazil to approximately 2.7 million acres.
The arrangement is a 50/50% agreement with Chevron in Brazil.
Shell Brasil Petroleo, a subsidiary of Royal Dutch Shell, confirmed it will “engage with Chevron to define specific plans for exploration drilling in the area”.
Andy Brown, upstream director for Royal Dutch Shell, said: “We are pleased to add another material, operated exploration position to our leading portfolio in one of the world’s most prolific deep-water areas.
“We continue to grow an exciting and resilient Upstream business of long-term competitive positions in our heartlands while maintaining strong, capital discipline.”
Shell plans to drill the Alto de Cabo Frio West and South Gato do Mato pre-salt fields in the Santos Basin next year and is proceeding with seismic studies to mature two exploration blocks awarded earlier this year.
Since 2014, Shell has more than doubled its global, deep-water production and expects to exceed 900,000 barrels of oil equivalent by 2020, coming from previously discovered areas in Brazil, the U.S. Gulf of Mexico, Nigeria, and Malaysia.