Commodities

Shell Hires Modec to Advance Major Deepwater Brazil Oil Project

  • Modec wins contract for production unit at Gato do Mato field
  • Gato do Mato would be Shell’s second operated field in Brazil
A Petrobras FPSO anchored in Angra dos Reis, Brazil.Source: Bloomberg
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Shell Plc is advancing a major offshore oil development in Brazil after hiring Modec Inc. to do engineering and design work for a floating production vessel.

The production unit, known as an FPSO, will be located about 250 kilometers (155 miles) off the coast, Modec said in a statementBloomberg Terminal. Shell discovered Gato do Mato years ago but has been slow in moving forward with the development amid rising costs for equipment and services. An FPSO can cost more than $3 billion to build.