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Shell Finds More Evidence of Oil in Brazilian Field

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By Peter Millard and Joao Lima

May 11 (Bloomberg) — Royal Dutch Shell Plc, Europe’s biggest oil company by market value, found more evidence of oil at a project in Brazil’s offshore Campos Basin where the company has increased production faster than expected.

Shell made the discovery at the Nautilus field, which is 1,571.75 meters (5,157 feet) deep, the Brazilian petroleum regulator said. The field, located in block BC-10, was declared a commercial find in December 2005.

Companies including Shell, Chevron Corp. and Galp Energia SGPS SA have boosted production this year in Brazil’s Atlantic waters, where state-run Petroleo Brasileiro SA made the largest oil discovery in the Americas since 1976 at the Tupi field. Shell has brought production on line at BC-10 faster than it expected, Chief Financial Officer Simon Henry said in a conference call with investors April 28.

“It’s one of their priority projects going forward,” Evgeny Solovyov, an analyst at Societe Generale SA who has a “buy” recommendation on Shell, said in a telephone interview from London. “Brazil is very important and will remain so for Shell.”

The Hague-based Shell produced 85,000 barrels a day at BC- 10, also known as Parque das Conchas, in January, spokesman Jaryl Strong said March 14. The company is using a vessel that can process 100,000 barrels of crude and 50 million cubic meters of natural gas per day at the block.

–Editors: Carlos Caminada, Bob Brennan.

To contact the reporters on this story: Peter Millard in Rio de Janeiro at [email protected] Joao Lima at [email protected]

To contact the editor responsible for this story: Dale Crofts at [email protected]

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