Shell is ready to invest in Italy more if drilling rights are unlocked

Shell is willing to increase its investment in Italy to boost the hydrocarbon production. The head of Shell's Italian division said this on Wednesday. He urged the government to permit new drilling.

Shell spends approximately 500 million euros (578 million dollars) per year in Italy and is the largest foreign investor in this sector. Shell's hydrocarbon production is decreasing in Italy as it waits for approval to drill new wells on the two concessions it operates in.

Shell Country Chair for Italy Joao Santis Rosa stated at an event held in Rome that "the potential is much greater than what we currently invest... We could invest substantially more".

The London-listed company produces oil and natural gas in Europe's largest onshore fields - Val d'Agri, and Tempa Rosa, both located in southern Basilicata.

Shell's production could be doubled at the Eni operated Val D'Agri Field if new wells were authorized. The current output is around 40,000 barrels of oil-equivalent per day.

Shell says that Tempa Rossa is currently also underutilised. It produces around 30,000 boed.

Shell will account for 36% of Italy's gas production in 2024 and 85% of the country's oil production. Shell also produces lubricants and sells renewable energy to industrial clients. It supplies petrol stations, has trading activities in energy, and provides petrol.

(source: Reuters)