Shell is prepared to increase its investments in Italy if drilling permits are granted.

Shell is prepared to increase its investment in Italy to enhance hydrocarbon production, as stated by the head of the company's Italian division on Wednesday. He called on the government to permit new drilling.

Currently, Shell invests about 500 million euros ($578 million) annually in Italy and stands as the top foreign investor in the country's upstream sector. However, its hydrocarbon production is declining as it awaits approval for new wells in the two areas where it operates.

"The potential for investment is much higher than what we currently allocate... we could significantly increase our investment," said Joao Santos Rosa, Shell's Country Chair for Italy, during an event in Rome.

The London-based company extracts oil and gas from Europe's two largest onshore fields, Val d'Agri and Tempa Rossa, both located in the southern Basilicata region.

Santos mentioned that if new wells receive approval, Shell could potentially double production at the Eni-operated Val D'Agri field to 80,000 barrels of oil equivalent per day, up from approximately 40,000 boed at present. Tempa Rossa, which is run by TotalEnergies in collaboration with Japan's Mitsui, is also underused, currently generating around 30,000 boed, according to Shell.

In 2024, the production from Shell and its partners in Basilicata is expected to represent 85% of Italy's total oil output and 36% of its gas production. Additionally, Shell Italia produces lubricants, sells renewable energy to industrial customers, supplies gas stations, and engages in energy trading activities.