Shell is ready to increase its investment in Italy to boost hydrocarbon production. The oil company recently urged the Italian government to allow new drilling to make it happen.
Speaking at an event in Rome, Shell Country Chair for Italy Joao Santos Rosa confirmed that the company can invest way more than it already has.
According to Santos, if new wells are authorised, Shell could easily double production at the Eni-operated (ENI.MI), Val d’Agri field to 80,000 barrels of oil equivalent per day from around 40,000 boed currently.
“The potential is far greater than what we invest now… we could invest significantly more,” Joao said.
Shell presently spends about 500 million euros ($578 million) annually in Italy, and it remains the leading foreign investor in its upstream sector.
However, its hydrocarbon production in Italy keeps dropping as its authorisation for new wells in the two concessions where it operates has stalled.
The London-listed group produces oil and gas in Europe’s two largest onshore fields, Val d’Agri and Tempa Rossa, both in the southern Basilicata region.
Santos further noted that Tempa Rossa, which is operated by TotalEnergies (TTEF.PA), and involves Japan’s Mitsui (8031.T), is currently underutilised as well, by producing just 30,000 boed.
Last year, the output of Shell and its partners in Basilicata accounted for 85% of Italy’s national oil production and 36% of its national gas output.
Shell Italia manufactures lubricants, sells renewable power to industrial clients, supplies petrol stations and engages in energy trading activities.
