Shell said a memorandum of understanding with a Brazilian company is symbolic of a true partnership for deep waters. Photo courtesy of Royal Dutch Shell.
Sept. 12 (UPI) -- Royal Dutch Shell said it formed a "true partnership of spirit" with a Brazilian company working in tough conditions in the country's deep waters.
Shell said it signed a memorandum of understanding with Petroleo Brasileiro, the Brazilian company known also as Petrobras, meant to strengthen cooperation in deep waters.
"In true partnership spirit between two of the world's largest energy companies, Shell will benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil's pre and post-salt projects," Shell's statement read. "Shell will share with Petrobras its global deep water experience, especially on cost efficiency efforts and use of technology."
Shell already has a partnership with Petrbras to work in a group of fields in the broader Santos Basin off the Brazilian coast.
Brazil is expected to be second-only to the United States in terms of growth in oil production from countries outside the Organization of Petroleum Exporting Countries this year. The Santos basin offshore Brazil holds between 700 million and 1.3 billion barrels of oil equivalent, though production is complicated because most of Brazil's offshore oil reserves are referred to as pre-salt, meaning they are situated below a thick layer of salt on the ocean floor
Total oil production increased by 24,000 barrels per day to 2.69 million bpd in June, the last full month for which data are available.
"Competitive growth of deep-water resources remains key to our company's strategy for decades to come," Wael Sawan, Shell's executive vice president for deepwater operations, said in a statement.
Brazilian Energy Minister Fernando Coelho Filho discussed offshore cooperation last week with Iran, one of the more productive members of OPEC. In July, Norwegian energy company Statoil took a larger stake in the Santos basin offshore Brazil, saying the country was one of its core areas of growth.