Royal Dutch Shell (LON:RDSA) has signed a cooperation deal with Brazil’s Petrobras which will see the companies develop pre-salt fields in the country, the Anglo-Dutch oil major has said. According to Petrobras’ website, daily oil output at the pre-salt progressed from the average of approximately 41,000 barrels per day, in 2010, to one million barrels per day in mid-2016, marking a nearly 24-fold increase.
Shell’s share price has slipped into the red in today’s session, having lost 0.20 percent to 2,140.00p as of 08:39 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally into positive territory and currently standing 0.11 percent higher at 7,421.81 points. The group’s shares have added more than 15 percent to their value over the past year, but have given up some four percent in the year-to-date.
Shell announced in an emailed statement this morning that it had signed a technical cooperation agreement with Petrobras to strengthen deep water partnership. The Memorandum of Understanding focuses on sharing technical and cost-efficient solutions and will see the companies establish a long-term mutual collaboration in developing pre-salt fields in Brazil.
“Competitive growth of deep-water resources remains key to our company’s strategy for decades to come, and we’re very pleased to advance the technical and operational benefits of our joint-ventures with Petrobras in Brazil,” Wael Sawan, Executive Vice-President, Deep Water for Shell, commented in the statement.
The agreement is valid for five years and can be renewed. Shell is already a strategic partner of Petrobras in the pre-salt, with minority interests in the Libra and Lula fields, as well as several areas in Santos Basin offshore Brazil.
Shell meanwhile is investing in projects to boost global gas demand, as part of its drive to turn into a natural gas giant.