Shell Brasil Begins Production at Mero-3 FPSO, Boosting Offshore Capacity in Brazil’s Santos Basin

Shell Brasil Begins Production at Mero-3 FPSO, Boosting Offshore Capacity in Brazil’s Santos Basin

(IN BRIEF) Shell Brasil has launched production at the Marechal Duque de Caxias FPSO (Mero-3) in Brazil’s Mero field, part of the Santos Basin, with an output capacity of 180,000 barrels of oil per day. This FPSO, located 200 kilometers off the Rio de Janeiro coast, is Shell’s latest addition in the field, joining Mero-1 and Mero-2. As part of the Libra Consortium, Shell works with Petrobras and other partners to enhance deep-water production, aligning with Shell’s goals for expanded energy production in Brazil. SBM Offshore MISC manages the Mero-3’s operations and engineering.

(PRESS RELEASE) LONDON, 1-Nov-2024 — /EuropaWire/ — Shell Brasil Petróleo Ltda. (Shell Brasil), a subsidiary of Shell plc, has initiated production at the Marechal Duque de Caxias FPSO facility in the Mero field, part of Brazil’s pre-salt Santos Basin. Known as Mero-3, this floating production, storage, and offloading (FPSO) unit has an operational capacity of 180,000 barrels of oil per day, further strengthening Shell’s presence in Brazil, where the company holds a 19.3% share in the project.

Commenting on the launch, Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized Shell’s focus on developing efficient and competitive projects, citing Brazil’s significant role in the company’s deep-water portfolio. Shell’s collaboration with Petrobras on the Mero field continues to ensure reliable energy production from one of the region’s most prolific areas.

The FPSO Marechal Duque de Caxias, positioned 200 kilometers off Rio de Janeiro’s coast at a depth of 2,200 meters, joins the FPSO Sepetiba (Mero-2) and FPSO Guanabara (Mero-1) as part of Shell’s ambitious production plans in Brazil. The Mero field operates under the Libra Production Sharing Contract (PSC), signed in 2013, and now includes three FPSOs with a combined production capacity of 590,000 barrels of oil equivalent per day. This is part of Shell’s broader commitment to deliver upstream and integrated gas projects reaching peak production of 500,000 boe/d between 2023 and 2025.

SBM Offshore MISC oversees the engineering, construction, and operation of Mero-3, managing the installation of topside processing and hull systems. The Libra Consortium, which includes Petrobras (38.6% and operator), TotalEnergies (19.3%), CNPC (9.65%), CNOOC (9.65%), and PPSA (3.5% for the Brazilian Government), jointly holds the rights to the Mero Unitized Field.

Notes to editors

  • Final Investment Decision on Mero-3 was announced in August 2020.
  • The Mero field is part of the Libra Production Sharing Contract (PSC), signed in December 2013.
  • Mero-3 contributes to Shell’s Capital Market Day 2023 commitment to deliver upstream and integrated gas projects coming on stream between 2023 to 2025 with a total peak production of more than 500,000 barrels of oil equivalent per day (boe/d).
  • The three FPSOs now online, along with the Early Production System (EPS), represent a total installed production capacity of 590,000 boe/d.
  • SBM Offshore MISC is responsible for the engineering, procurement, construction, mobilisation, installation, and operation of FPSO Marechal Duque de Caxias, including providing topside processing equipment as well as hull and marine systems.
  • Shell Brasil holds a 19.3 percent stake in the Mero Unitized Field, along with other members of the Libra Consortium: Petrobras (38.6 percent – operator), TotalEnergies (19.3 percent), CNPC (9.65 percent), CNOOC (9.65 percent), and PPSA (3.5 percent) representing the Government in the non-contracted area.

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-looking Statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, 10/31/2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s Net Carbon Intensity

Also, in this announcement we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-zero emissions target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-looking non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as [cash capital expenditure] and [divestments]. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this announcement do not form part of this announcement.

We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

Media Contact:

Brazil Media Relations: imprensa@shell.com
UK / International Media Relations: +44 20 7934 5550

SOURCE: Shell

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