Shell has reached a final investment decision on the Gato do Mato deepwater project in a pre-salt area of Brazil’s Santos Basin, the company said on Friday.
The development plan includes the installation of an FPSO vessel and is designed to produce up to 120,000 bopd. Gato do Mato’s estimated recoverable resource volumes stand at around 370 million barrels.
An investment figure was not given with the FID announcement.
The Gato do Mato Consortium comprises Shell (operator with a 50% stake), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo acting as the manager of the PSC.
“Gato do Mato is an example of our ongoing investment in increasingly efficient projects,” Shell integrated gas and upstream director Zoë Yujnovich said.
“The project contributes to maintaining stable liquids production from our advantaged upstream business, and expands our leadership as the largest foreign producer in Brazil as we continue working to provide for the world’s energy needs well into the future.”
The consortium anticipates that the Gato do Mato field will commence operations in 2029.
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 the Rio de Janeiro coast, in water depths ranging from 1,750-2,050 metres. Resource volumes are 100% total gross and a P50 estimate under the Society of Petroleum Engineers’ Petroleum Resources Classification System.
The investment in Gato do Mato is expected to generate an internal rate of return in excess of the hurdle rate for Shell’s upstream business.