Shell to Drill in Brazil's Subsalt Region in 2009

SAO PAULO (Dow Jones Newswires), November 7, 2008

Royal Dutch Shell PLC will start drilling in Brazil's promising subsalt region in late 2009, according to a report Friday in local financial daily Valor Economico.

According to the report, Shell will drill in the BM-S-54 block in the Santos Basin, the area off the coast of Rio de Janeiro and Sao Paulo states that has seen a wave of new discoveries. Shell holds 100% of the block.

Drilling will start when a specially contracted rig arrives at the site late next year, Valor said.

Shell also holds stakes in three other Santos Basin blocks in partnership with other firms: the BM-S-43, the BM-S-45 and the BM-S-8 blocks. The BM-S-8 block contains the promising Bem-Te-Vi prospect. In total, the oil company holds stakes in 13 exploration and production concessions in Brazil.

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