"The Libra oil discovery in Brazil is one of the largest deep water oil accumulations in the world. We look forward to applying Shell’s global deep water experience and technology, to support the profitable development of this exciting opportunity," said Peter Voser, chief executive officer, Royal Dutch Shell.

The production sharing contract is expected to be signed in November 2013. As part of the winning bid, Shell will pay its 20-percent share of the total signing bonus of USD $1.4 billion [3.0 billion reais], and fulfill the minimum work program no later than end 2017.

The ultra-deep water Libra accumulation is located in Santos Basin, approximately 170 kilometers (105 miles) off the coast of Rio de Janeiro. The block covers approximately 1,550 square kilometers in water depths of around 2,000m (6,500 ft). The reservoir depth is around 3,500 meters below the sea floor (11,500 fet). The ANP estimates that total gross peak oil production could reach 1.4 million barrels per day. Further appraisal is required to firm up this estimate, the development concept and a first oil date.

Shell is one of the industry’s pioneers in deep water oil and gas with some 330,000 boe/d of production, world-wide, from deep water in 2012. Our commitment to technology and innovation continues to be at the core of our strategy. As energy projects become more complex and more technically demanding, we believe our engineering expertise will be a deciding factor in the growth of our businesses.