Shell expects to decide on sanctioning Gato do Mato, its biggest new Brazilian offshore project, within the next three months — after re-evaluating its viability in the light of supply constraints and rising costs in recent months.

The UK-based supermajor has been working on contracting arrangements for a project that will feature a floating production, storage and offloading unit to be deployed in the Santos basin.

Bids were welcomed recently in a tender to supply the subsea umbilicals, risers and flowlines (SURF) package for the planned pre-salt development, according to Cristiano Pinto da Costa, head of Shell’s Brazilian unit.