Shell Brasil has approved a major new oil project in the deep waters of Brazil’s Santos Basin, marking a significant investment in the country’s offshore energy sector.
The energy giant’s subsidiary has taken the Final Investment Decision (FID) for the Gato do Mato development, which is expected to produce up to 120,000 barrels of oil per day once operational in 2029. The field holds an estimated 370 million barrels of recoverable resources.
The Gato do Mato project is being developed by a consortium led by Shell Brasil, which holds a 50% stake in the venture. The remaining partners include Ecopetrol with 30% and TotalEnergies with 20%. Brazil’s state-owned Pré-Sal Petróleo S.A. (PPSA) will oversee the production-sharing contract.
The development will involve the deployment of a floating production storage and offloading (FPSO) vessel, which will extract and store oil before transferring it to tankers for transport. Initially, natural gas from the field will be reinjected into the reservoir to maintain pressure, with the potential for future export to onshore facilities.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described Gato do Mato as an important part of the company’s strategy to maintain stable oil production while prioritising efficiency.
“Gato do Mato is an example of our ongoing investment in increasingly efficient projects,” she 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 Gato do Mato field covers two offshore blocks located south of Rio de Janeiro, with water depths ranging from 1,750 to 2,050 metres. The first block, BM-S-54, was acquired by Shell in 2005, while the second, Sul de Gato do Mato, was added under a production-sharing agreement in 2017.
Shell has highlighted the project’s potential to deliver a strong financial return, with an internal rate of return (IRR) expected to exceed the company’s benchmark for upstream investments.
The decision comes as Brazil continues to attract major investment in its offshore oil and gas sector, particularly in the pre-salt region of the Santos Basin, which has become a focal point for deep-water exploration.
Environmental campaigners, however, have raised concerns about the expansion of oil projects in sensitive marine ecosystems, warning that increased production risks undermining global efforts to transition to cleaner energy sources.
Despite these concerns, Shell and its partners remain committed to the project, which they view as a key part of Brazil’s long-term energy strategy.
With first oil expected in 2029, Gato do Mato represents another major step in Shell’s deep-water portfolio, reinforcing its position as one of Brazil’s leading offshore operators.
