CVRD Signs Deal with Shell to Explore for Natural Gas

Companhia Vale do Rio Doce (CVRD) has signed a memorandum of understanding with Shell Brasil Ltda to jointly evaluate opportunities and develop partnerships aiming to meet CVRD´s energy consumption needs.

The memorandum of understanding also includes the possibility of participating in exploration blocks in the Espírito Santo basin, off the Brazilian Southeastern Coast, where Shell already has interests.

At the same time, CVRD is evaluating opportunities to acquire some other areas already under concession for the exploration of natural gas. The Company is gearing up to participate in the next round of public tenders for the exploration of hydrocarbons to be conducted by Agência Nacional do Petróleo (ANP), the Brazilian regulatory agency for the oil industry.

As a major energy consumer, CVRD is seeking to diversify and optimize its energy grid through increased use of thermal coal, renewable fuels and natural gas.