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Shell Brazil CEO Is Optimistic About Brazil’s E&P Future

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Andre Araujo CEO Royal Dutch Shell

 

For Royal Dutch Shell, 2017 was a good year in terms of E&P activities in Brazil. Ranking as the second largest oil-producing company in Brazil, after acquiring BG Group’s assets in the country, the British-Dutch major increased its oil output by 12% to 330,000 boe/d compared to 2016.

Also, Shell Brazil made important moves to take advantage of opportunities in the country’s upstream segment. In 2017 Shell Brazil acquired three promising presalt fields in the Santos Basin—South Gato do Mato, Sapinhoá and West Alto Cabo Frio. Shell plans to begin drilling in the South Gato do Mato Field, where the company will work as operator, in 2019.

The company has a stake in 13 offshore blocks and four onshore blocks but intends to expand its operations in Brazil over the next few years. In an exclusive interview with Hart Energy, Shell Brazil CEO André Araújo shared his thoughts, which have been edited for clarity, about the company’s plans and expectations for its future in Brazil’s oil and gas segment.

Hart Energy: How were Shell’s activities in Brazil in 2017?

Araújo: We can say that in 2017 there were some important advances created in the Brazilian oil and gas industry, especially with improvement of the regulatory framework agenda that approved important changes such as in the local content rules and in the presalt sharing regime.

The three oilfield auctions and the announcement of a calendar of auctions in 2018 and 2019 also brought a great sense of predictability for the industry.

We realize that Brazil’s government and Brazil’s oil regulator are listening to the industry’s claims. They are working hard to ensure that the agenda for the upcoming year is very hot.

As for Shell, it was an important year to consolidate the company’s portfolio in Brazil. We made an excellent acquisition in the presalt auction in October [2017] when we became an operator in one of the most promising regions in the world for E&P.

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