Shell decision soon on BC-10 block

Offshore staff

(Brazil)- Shell is expected to make a decision on the commercial viability of its Brazilian BC-10 block by December, according to the vice president of E&P at Shell's Brazilian unit, John P. Haney. The block is situated in the Campos basin off the coast of Rio de Janeiro, and has estimated reserves of 400 MMbbl of oil.

Shell is the lead operator of the block, with a stake of 35%. In April, Shell said that they may produce between 60,000-100,000 b/d of crude from the field as of 2009. The oil in this block has a density between 17 and 24º API.

Shell has another decision to make regarding the development of a heavier oil field in its BS-4 block. This block, in the Santos Basin off the coast of Sao Paulo, contains heavy crude in very deep water. While this is acknowledged to be a major production challenge, current high oil prices are making fields such as this more commercially attractive.

Shell remains the only foreign company with a significant oil production presence in Brazil. It currently produces about 40,000 b/d at its Bijupira and Salema fields in the Campos Basin.

10/21/2005