Shell resumes talks to hire FPSO for Brazil oil project

Shell has resumed negotiations to charter an FPSO for its pre-salt Gato do Mato field, off Brazil’s southeast coast, a source familiar with the matter told BNamericas. 

According to the source, the Anglo-Dutch oil major is in talks with Japan’s Modec. 

Before postponing the pre-salt project’s final investment decision at the end of 2022, Shell had been in talks with Modec and a consortium formed by BW Offshore and Saipem to hire an FPSO unit for the field. 

In December, the company’s Brazil president Cristiano da Costa said Shell intends to make the Gato do Mato FID in the first quarter of 2025. 

Through its press office, Shell told BNamericas that Gato do Mato continues to be evaluated and that steps are being taken to progress the project towards an investment decision.  

“Shell is reassessing the scope and is evaluating potential contract decisions for the development,” the company added.  

The original development plan for Gato do Mato outlined an FPSO with capacity to process 100,000b/d of oil. 

The field is located in the Santos basin and is controlled by a consortium made up of Shell, France’s TotalEnergies and Colombia’s Ecopetrol.