Shell reported another quarter of record upstream production in Brazil and highlighted further exploration progress offshore Namibia as the company continued to reshape its global oil and gas portfolio during the second quarter of 2026.
The company produced 1.824 million barrels of oil equivalent per day from its upstream assets during the quarter, compared with 1.843 million boe/d in the first three months of the year. Liquids production increased from 1.346 million to 1.367 million barrels per day, while gas production declined from 2.884 billion to 2.648 billion ft³/d.
Shell attributed its record Brazilian performance to operational optimisation and the completion of maintenance turnarounds ahead of schedule. Brazil represents one of the company’s most important deepwater production areas, with interests in a series of pre-salt fields in the Santos Basin.
Exploration activity offshore Namibia also featured prominently in Shell’s quarterly update. Chief executive Wael Sawan described the company’s latest exploration well as its “most promising” in the country to date.
The comment refers to the Shell-operated Merlin-1X well in Petroleum Exploration Licence 39 in the Orange Basin. The well resulted in an oil discovery that Shell and its partners are assessing to determine its resource and commercial potential. The result provides further optionality within an acreage position that also contains the Graff, La Rona and Jonker discoveries.
Shell is also expanding its upstream and integrated gas position through its proposed $16.4 billion acquisition of ARC Resources. The transaction will strengthen the company’s acreage and production base in the Montney Basin of British Columbia and Alberta, Canada. Completion is expected during the third quarter, subject to final regulatory approval.
Shell said the acquisition would increase its expected combined Integrated Gas and Upstream production growth to approximately 4% annually between 2025 and 2030. The enlarged Canadian portfolio will include positions at Groundbirch, Attachie, Sunrise, Greater Dawson and Kakwa, alongside Shell’s LNG Canada interest.
Elsewhere, Shell has signed contracts to operate the offshore Loran gas field in Venezuela. The field extends towards the maritime boundary with Trinidad and Tobago, where Shell is developing the related Manatee gas resource.
The company is simultaneously withdrawing from less strategic or mature assets. During the quarter, Shell agreed to sell its non-operated 50% interest in the Na Kika platform and associated fields, together with the Coulomb tieback, in the Gulf of America for up to $1.7 billion.
Shell expects upstream production of between 1.68 million and 1.88 million boe/d in the third quarter, reflecting higher planned maintenance across the portfolio.
Source: Shell Q2 2026 results
