BG assets offer Shell big upside,with risks

摘要

Shell’s proposed takeover of the UK’s BG would catapult it into a lead position in Brazil’s prolific sub-salt region.But lower oil prices,coupled with the fallout of a corruption scandal at Petrobras, could limit the near-term upside. BG was an early mover in Brazil, participating in five significant sub-salt discoveries in the Santos basin—Lula, Iracema,Sapinhoa,Iara and Lapa.The company also operates 10 blocks in the Barreirinhas basin,which it picked up in a May 2013 licensing round.