Oil major Shell expects oil and gas output in Brazil’s offshore industry to quadruple by 2020.
Chief executive Ben Van Beurden spoke in Brazil as the company announced its takeover of BG Group had taken effect.
The oil boss said Brazil would be a key area for the company as it looks to expand its operations In liquefied natural gas and deepwater oil production.
He said:”We believe in the strong fundamentals of Brazil and the fundamentals of its geology.
“We will be looking at a substantial part of our production from Brazil.”
Shell has hailed its $52.6billion takeover of BG Group as a step towards becoming a “simpler, leaner, more competitive company”.
The mega-deal – creating the biggest trader of liquefied natural gas – came into force today after shareholders waved through the tie-up at the end January.
The impact of the deal – coupled with the low oil price – will lead to 10,000 job losses, with Shell already cutting 7,500 staff, while a further 2,500 positions are expected to be lost now the deal is complete. Shell also looks set to offload 30 billion dollars (£20.6 billion) of assets.
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