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Rigzone.com: Shell Offers Farm-In Opportunity Offshore Brazil

Monday, January 29, 2007 

Shell Brasil Ltda. formally announces the opening of a Data Room for block BMS-31, Santos Basin, Brazil. The block is in shallow water (500m), contains a near term drilling opportunity, and greater than 1,000MMbbls potential.

BMS-31 contains a drill-ready prospect with primary objective volumes estimated at 560MMbbls (STOIIP) of light oil. In addition, a number of follow-up prospects have been identified. Total unrisked recoverable volumes on the block are greater than 1,000MMbbls STOIIP.

Current working interest holders are Shell, the operator at 55% and Maersk at 45%. Shell is making up to 17.5% interest in BMS-31 available by farm-out to interested parties, and Maersk is making 15% available – for a total up to 32.5%.

BMS-31 is in Exploration Phase II, and carries an outstanding one-well commitment to be drilled by September 2007. Dry hole cost is estimated at approximately USD 50MM. A rig is contracted and the joint venture intends to drill the primary prospect, Jumante, during the first half of 2007.

Brazil is an attractive concession (tax/royalty) regime with “special participation” that enables investors to participate in upsides. Brazil has a strong market for consumption, and the contract enables export to ensure international pricing. Upon success, production is estimated to start in approximately 7-8 years.

This block sits to the NE of the largely untested updip Albian roller play. A series of discoveries have been made in blocks BS-400, BMS-4, BS-500, and BS-4 operated respectively by Petrobras, ENI, Petrobras, and Shell. These surrounding discoveries have proven the presence of thick Albian sandstones and charge.

The primary prospect, Jumante, is a large 4-way closure with the primary target in the Albian-Cenomanian sands age-equivalent to the Namorado in Campos. Abundant hydrocarbons are available to charge the prospect from a large mature kitchen in the pre-salt lacustrine source rocks of the Barremian Lagoa Feia. Upside exists in the Cenomanian-Turonian “subvolcanic” sands and Albian carbonates.

An Information Memorandum, including bid process rules, is available online through IndigoPool. The data-room is located in Shell’s Houston offices. Bids will be accepted up to March 2, 2007.

BMS-31 Factsheet

Acquired: Round 4
Operator: Shell
Other Partner(s): Maerks (45%)
Area: 1060 square kilometers (after 50% relinq.)
Distance to Coast: 85 km
3D Acquired: 1,200 square kilometers
Water Depths: 150 – 750 m
Phase 1: Expired Sept. 2005, 0 well commitment
Phase 2: Ends Sept. 2007, 2 well commitment renegotiated to 1 well to Albian
Prospect Inventory: 2007 drill-stie +2 additional prospects (unrisked-1000 MMbbls STOIIP)
Key Prospect: Jumante (2007 Drillsite) Objectives:

Primary: Albian-Cenomanian sands: 560 MMbbls STOIIP
Secondary: Cenomanian-Turonian sands
Prospect Area; 40 square kilometers
Phase: Light Oil
TD: 5400 m TVDss
Seismic: PSDM over Jumante
Water Depth: 515 m
Spud Date: Early 2007 (rig contracted)
Access to the Information Memorandum, Data Room and any additional information shall only be provided to selected parties who have executed a Confidentiality Agreement. Interested parties are requested to contact the person named below to register their interest, request a copy of the Confidentiality Agreement and request a Data Room invitation and time:

Gregory Mowlds, Houston
713 513 1519
[email protected]

Miles Dyton, London
44 20 7517 2660
[email protected]

Rob Singh, Melbourne
61 3 9674 7172
[email protected]

Sudha Chetty, Dubai
971 4 306 7217
[email protected]

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1 Comment on “Rigzone.com: Shell Offers Farm-In Opportunity Offshore Brazil”

  1. #1 Ken Thorne
    on Jun 6th, 2007 at 16:51

    To whom it may concern;

    I am looking for work in the Austrailian area/ offshore for HS&E positions.
    I am currently working in the Gulf of Mexico off the coast of Louisiana as a safety consultant. I would like to broaden my horizons and feel that I could be a part of your company and would become a great asset.
    if you could email me any information I would greatly appreciate it.

    Thank you for your time

    Kenneth Thorne

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