Shell PLC's
The project is a deep-water initiative located in the pre-salt region of the Santos Basin offshore Brazil.
The Gato do Mato Consortium is composed of Shell (the operator with a 50% stake), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo S.A. (PPSA), which manages the production sharing contract (PSC).
The development plan involves installing a floating production storage and offloading (FPSO) unit designed to produce up to 120,000 barrels of oil per day.
The current estimated recoverable resources for the Gato do Mato project are approximately 370 million barrels.
The consortium expects the Gato do Mato field to begin operations in 2029.
Initial operations will focus on gas reinjection for reservoir pressure, with future potential for gas export.
The resource is estimated to have a P50 probability, and the project is expected to deliver an IRR above Shell's required rate for its Upstream business. The blocks lie 1,750-2,050 meters off Rio de Janeiro's coast.
Zoë Yujnovich, Shell's Integrated Gas and Upstream director, 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."
Last month, the oil giant disclosed it resumed production at the Penguins field in the North Sea off the U.K. using a new floating production, storage and offloading (FPSO) facility.
Investors can gain exposure to the stock via Precidian ETFs Trust Shell plc ADRhedged
Price Action: SHEL shares are down 0.58% at $71.53 premarket at the last check Friday.
