RIO DE JANEIRO: Global oil company Royal Dutch Shell unveiled plans on Wednesday, Sept 8 to sell its stake in four Brazilian offshore blocks, including a field in the vast deepwater subsalt region.
The company said it would sell its stakes in the BS-4, BM-S-8, BM-S-45 and BM-ES-28 blocks. The projects also include investment by Brazil's state oil company Petrobras, U.S.-based Chevron, Portugal's Galp and Brazilian miner Vale.
"Shell reaffirms that it continues to see Brazil as a key area for exploration and production," the company said in an e-mailed statement. "This initiative has no impact on our vision for Shell's future growth and development in the country."
Shell's action comes as the government seeks congressional approval to revamp the nation's oil laws to increase state control of Brazil's new-found oil wealth. Shell has also diversified into biofuels in Brazil, seeking a foothold in ethanol production in one of that fuel's largest producers.
The company holds 20 percent of the BM-S-8 block in the subsalt region that includes the Bem-Te-Vi discovery. The region is a vast area of deep water oil deposits that are buried under the ocean's floor beneath a layer of salt.
Analysts believe the area could hold 50 billion to 100 billion barrels of oil.
Shell has 15 blocks in Brazil including the Parque das Conchas and Bijupira and Salema fields that are already in production.
Earlier this year it signed a binding agreement with ethanol company Cosan that will create Brazil's No. 3 fuel distributor with estimated annual sales of $21 billion that will also explore international ethanol and sugar opportunities.
Shares of Shell rose 0.6 percent to 1814.50 pence in London. - Reuters
The company said it would sell its stakes in the BS-4, BM-S-8, BM-S-45 and BM-ES-28 blocks. The projects also include investment by Brazil's state oil company Petrobras, U.S.-based Chevron, Portugal's Galp and Brazilian miner Vale.
"Shell reaffirms that it continues to see Brazil as a key area for exploration and production," the company said in an e-mailed statement. "This initiative has no impact on our vision for Shell's future growth and development in the country."
Shell's action comes as the government seeks congressional approval to revamp the nation's oil laws to increase state control of Brazil's new-found oil wealth. Shell has also diversified into biofuels in Brazil, seeking a foothold in ethanol production in one of that fuel's largest producers.
The company holds 20 percent of the BM-S-8 block in the subsalt region that includes the Bem-Te-Vi discovery. The region is a vast area of deep water oil deposits that are buried under the ocean's floor beneath a layer of salt.
Analysts believe the area could hold 50 billion to 100 billion barrels of oil.
Shell has 15 blocks in Brazil including the Parque das Conchas and Bijupira and Salema fields that are already in production.
Earlier this year it signed a binding agreement with ethanol company Cosan that will create Brazil's No. 3 fuel distributor with estimated annual sales of $21 billion that will also explore international ethanol and sugar opportunities.
Shares of Shell rose 0.6 percent to 1814.50 pence in London. - Reuters
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