Shell to invest 10 bln USD in Brazil

The oil supermajor Shell will invest 10 billion U.S. dollars in Brazil over next four years, mostly to extract oil from the Atlantic pre-salt zone.

The plan revealed by Ben van Beurden, CEO of Shell, after meeting in Brasilia with President Michel Temer, a day after the Congress approved a law allowing foreign companies to exploit oilfields alone. The previous law required that state oil company Petrobras must have a minimum 30 pct stake in any exploration of pre-salt fields.

"This was a good move by the government and it will open up opportunities for more players to invest in Brazil," said van Beurden.

Shell, the largest foreign investor in Brazil, would also look to enter the distribution market in the country, he added.

Private companies currently account for 17.1 percent of Brazil's oil production but the legal change could see the number rise to 30 percent over the next decade, according to experts.

The 10 billion U.S. dollars in investments would only target existing projects with new investments potentially being made in future tenders, according to Shell.

The pre-salt zone is located in Brazil's Atlantic deepwaters under a 2,000-meter-thick layer of salt, and contains massive oil reserves that could cement Brazil as one of the world's largest oil producers. Endi