UK supermajor Shell is working around the clock with three teams to find ways to reduce capital costs associated with the Gato do Mato development offshore Brazil in a bid to improve the economics of the Santos basin pre-salt project at a time when inflation is still running high.

Last November, Shell unexpectedly postponed by up to two years the final investment decision on Gato do Mato.

The move was taken just weeks after Norway’s BW Offshore received an extension on a limited notice to proceed from Shell related to the contracting of the Gato do Mato floating production, storage and offloading vessel, suggesting the project was to be sanctioned in the first quarter of 2023.