Stocks & Shares Energy

Shell share price: Group adds acreage in Brazil deep-water project

Royal Dutch Shell (LON:RDSA) has won a 35-year production sharing contract for a block offshore Brazil, the Anglo-Dutch oil major has said. In a separate development, Bloomberg reported that the FTSE 100 group and its four partners had agreed to invest in a multibillion-dollar liquefied natural gas (LNG) project in western Canada.

Shell’s share price has been steady in London in today’s session, having added 0.29 percent to 2,644.10p as of 09:44 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent lower at 7,513.81 points.

Shell adds acreage in Brazil project

Shell announced in a statement on Friday night that it had won a 35-year production sharing contract for the Saturno pre-salt block located off the coast of Brazil in the Santos Basin, together with its bid consortium member Chevron. The FTSE 100 group will pay its share of the total signing bonus for the block, equating to approximately $390 million.

“We are pleased to add another material, operated exploration position to our leading portfolio in one of the world’s most prolific deep-water areas” said Andy Brown, Upstream Director at Shell.

Group approves Canada investment

In other Shell news, Bloomberg reported yesterday that the Anglo-Dutch group and its four partners had agreed to invest in a multibillion-dollar LNG in western Canada, marking the largest new one of its kind in years which would carve out the fastest route to Asia for North American gas.

People with knowledge of the plans told the newswire that LNG Canada, which also includes  Malaysia’s Petroliam Nasional, Mitsubishi Corp, PetroChina Co and Korea Gas Corp, is set to announce a final investment decision on the C$40 billion ($31 billion) project as early as today. Bloomberg, however, notes that the exact timing has not been decided.

As of 10:04 BST, Monday, 01 October, Royal Dutch Shell Plc 'A' share price is 2,642.50p.

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