Shell invests in the Gato do Mato project in Brazil's pre-salt
Shell has announced its Final Investment Decision (FID) for the Gato do Mato deep-water project in Brazil's pre-salt Santos Basin. The project, operated by Shell (50% stake) in consortium with Ecopetrol (30%) and TotalEnergies (20%), will feature a floating production storage and offloading (FPSO) vessel designed to produce up to 120,000 barrels of oil per day.
The development has estimated recoverable resources of approximately 370 million barrels and is expected to commence operations in 2029. Located offshore Rio de Janeiro in water depths of 1,750 to 2,050 metres, the project covers two blocks: BM-S-54 and Sul de Gato do Mato. Initial operations will involve natural gas reinjection for reservoir pressure support, with future potential for onshore gas export.
Shell ha annunciato la sua Decisione Finale di Investimento (FID) per il progetto Gato do Mato in acque profonde nel bacino pre-salino di Santos in Brasile. Il progetto, gestito da Shell (50% di partecipazione) in consorzio con Ecopetrol (30%) e TotalEnergies (20%), prevede un'imbarcazione di produzione, stoccaggio e scarico galleggiante (FPSO) progettata per produrre fino a 120.000 barili di petrolio al giorno.
Lo sviluppo ha risorse recuperabili stimate di circa 370 milioni di barili e si prevede che inizi le operazioni nel 2029. Situato al largo di Rio de Janeiro a profondità d'acqua di 1.750-2.050 metri, il progetto copre due blocchi: BM-S-54 e Sul de Gato do Mato. Le operazioni iniziali prevederanno il reiniezione di gas naturale per il supporto della pressione del giacimento, con un potenziale futuro per l'esportazione di gas a terra.
Shell ha anunciado su Decisión Final de Inversión (FID) para el proyecto Gato do Mato en aguas profundas en la cuenca pre-salina de Santos, Brasil. El proyecto, operado por Shell (50% de participación) en consorcio con Ecopetrol (30%) y TotalEnergies (20%), contará con un buque de producción, almacenamiento y descarga flotante (FPSO) diseñado para producir hasta 120,000 barriles de petróleo por día.
El desarrollo tiene recursos recuperables estimados en aproximadamente 370 millones de barriles y se espera que comience operaciones en 2029. Ubicado frente a la costa de Río de Janeiro a profundidades de agua de 1,750 a 2,050 metros, el proyecto abarca dos bloques: BM-S-54 y Sul de Gato do Mato. Las operaciones iniciales implicarán la reinyección de gas natural para el soporte de presión del reservorio, con un potencial futuro para la exportación de gas en tierra.
셸은 브라질 프리샐 산토스 분지의 심해 프로젝트인 가토 두 마토에 대한 최종 투자 결정(FID)을 발표했습니다. 이 프로젝트는 셸(50% 지분)이 에코페트롤(30%) 및 토탈에너지(20%)와 컨소시엄을 이루어 운영하며, 하루 최대 120,000 배럴의 석유를 생산할 수 있도록 설계된 부유식 생산 저장 및 하역(FPSO) 선박이 포함됩니다.
이 개발은 약 3억 7천만 배럴의 회수 가능한 자원을 추정하고 있으며, 2029년에 운영을 시작할 것으로 예상됩니다. 리우데자네이루 해안에서 수심 1,750~2,050미터에 위치한 이 프로젝트는 BM-S-54 및 술 데 가토 두 마토 두 개의 블록을 포함합니다. 초기 운영은 저수지 압력 지원을 위한 천연가스 재주입을 포함하며, 향후 육상 가스 수출 가능성이 있습니다.
Shell a annoncé sa Décision Finale d'Investissement (FID) pour le projet Gato do Mato en eaux profondes dans le bassin pré-sal de Santos au Brésil. Le projet, opéré par Shell (50 % de participation) en consortium avec Ecopetrol (30 %) et TotalEnergies (20 %), comprendra un navire de production, de stockage et de déchargement flottant (FPSO) conçu pour produire jusqu'à 120 000 barils de pétrole par jour.
Le développement a des ressources récupérables estimées à environ 370 millions de barils et devrait commencer ses opérations en 2029. Situé au large de Rio de Janeiro à des profondeurs d'eau de 1 750 à 2 050 mètres, le projet couvre deux blocs : BM-S-54 et Sul de Gato do Mato. Les opérations initiales impliqueront la réinjection de gaz naturel pour soutenir la pression du réservoir, avec un potentiel futur pour l'exportation de gaz à terre.
Shell hat seine endgültige Investitionsentscheidung (FID) für das Gato do Mato Tiefseeprojekt im prä-salinen Santos-Becken in Brasilien bekannt gegeben. Das Projekt, das von Shell (50% Anteil) in einem Konsortium mit Ecopetrol (30%) und TotalEnergies (20%) betrieben wird, wird ein schwimmendes Produktions-, Speicher- und Entladefahrzeug (FPSO) umfassen, das darauf ausgelegt ist, bis zu 120.000 Barrel Öl pro Tag zu produzieren.
Die Entwicklung hat geschätzte rückgewinnbare Ressourcen von etwa 370 Millionen Barrel und wird voraussichtlich 2029 mit den Betrieb beginnen. Das Projekt befindet sich vor der Küste von Rio de Janeiro in Wassertiefen von 1.750 bis 2.050 Metern und umfasst zwei Blöcke: BM-S-54 und Sul de Gato do Mato. Die ersten Operationen werden die Reinjektion von Erdgas zur Unterstützung des Reservoirdrucks umfassen, mit zukünftigem Potenzial für den Export von Erdgas an Land.
- Project expected to generate IRR exceeding Shell's Upstream business hurdle rate
- Strengthens Shell's position as largest foreign producer in Brazil
- Significant resource base of 370 million recoverable barrels
- High production capacity of 120,000 barrels per day
- Long development timeline with operations starting in 2029
- Initial operations to gas reinjection without immediate gas monetization
Insights
Shell's Final Investment Decision on the Gato do Mato project represents a strategic deepening of the company's position in Brazil's coveted pre-salt basin. With 120,000 barrels of daily production capacity and 370 million barrels of estimated recoverable resources, this development significantly strengthens Shell's portfolio in one of the world's most productive offshore regions.
The company's 50% operating stake gives it controlling interest while sharing capital requirements with partners Ecopetrol and TotalEnergies. This consortium structure effectively balances risk exposure while maintaining operational control - a proven formula in capital-intensive deepwater developments.
What's particularly noteworthy is the project's economics. Shell explicitly states the investment will generate returns exceeding their Upstream hurdle rate, indicating robust project fundamentals despite the extended timeline to first oil in 2029. The initial gas reinjection approach with future export optionality provides production flexibility that can be adapted to market conditions.
This investment reinforces Shell's commitment to its "advantaged Upstream business" strategy - focusing capital on high-margin, lower-cost barrels rather than volume growth alone. By expanding its footprint as Brazil's largest foreign producer, Shell secures meaningful production that will contribute to its portfolio well into the 2030s and beyond.
Shell's Gato do Mato FID represents a significant capital allocation decision that strengthens the company's long-term production outlook. While specific investment figures aren't disclosed, deepwater pre-salt developments typically require multi-billion dollar commitments balanced against substantial production potential.
The financial merits are compelling. The project's stated IRR exceeds Shell's Upstream hurdle rate, indicating strong projected returns even after accounting for the company's internal risk adjustments. The 370 million barrel resource base provides meaningful scale, while the 120,000 bpd production capacity will deliver significant cash flow once operational.
From a portfolio management perspective, this investment demonstrates disciplined capital deployment toward advantaged assets. The consortium structure with Ecopetrol (
Though first production isn't expected until 2029, this timeline is typical for complex offshore developments and aligns with Shell's long-term strategy of maintaining stable liquids production. The project's economics must be robust to justify the extended period before generating returns, suggesting strong confidence in the asset's fundamentals.
For investors, this represents prudent reinvestment in Shell's core capabilities in a proven basin with established infrastructure advantages, reinforcing the company's ability to sustain its Upstream portfolio with disciplined growth projects.
The Gato do Mato Consortium includes Shell (operator with a
"Gato do Mato is an example of our ongoing investment in increasingly efficient projects," said Zoë Yujnovich, Shell's Integrated Gas and Upstream Director. "The project contributes to maintaining stable liquids production from our advantaged Upstream business, and expands our leadership as the largest foreign producer in
The consortium anticipates that the Gato do Mato field will commence operations in 2029.
Notes to editors
- Located in the Santos Basin, the Gato do Mato project is a pre-salt gas-condensate discovery that covers two contiguous blocks: BM-S-54, a concession contract entered into in 2005, and Sul de Gato do Mato, a production sharing agreement obtained in 2017.
- Initial operations will involve the reinjection of natural gas for reservoir pressure support, with future optionality to export gas to onshore facilities.
- The blocks are offshore
Brazil from theRio de Janeiro coast, in water depths ranging from 1,750 to 2,050 metres. - Resource volumes are
100% total gross and a P50 estimate under the Society of Petroleum Engineers' Petroleum Resources Classification System. P50 means there is a50% probability of the estimate being lower and a50% probability of being higher. - The investment in Gato do Mato is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell's Upstream business.
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