Brazil: Offshore Production Shell Commences New, Deep-Water Production
Shell’s FPSO P-69 which is operated by Petrobras is capable of processing up to 150,000 barrels of oil and 6 million cubic meters of natural gas per day. The FPSO is expected to increase production via eight producing and seven injection wells.
Brazil – New, deep-water production is underway at Lula Extreme South in the Brazilian Santos Basin. Royal Dutch Shell, through its subsidiary Shell Brasil Petróleo (Shell) and consortium partners, has announced that the FPSO P-69 is now producing. Operated by Petrobras, P-69 is a standardised vessel that can process up to 150,000 barrels of oil and 6 million cubic meters of natural gas daily. It will ramp up production through eight producing and seven injection wells.
The Brazilian pre-salt fields are some of the best deep-water provinces in the world. With significant flow rates, deep-water Brazil projects are breaking even under 40 dollars per barrel, states Shell. Following Lula Extreme South, the next FPSO is P-67 for Lula North. The Libra product sharing agreement continues to progress with an extended well test as well as the Mero 1 FPSO, and additional FPSOs are planned. Shell also has development drilling planned for its operated, Gato do Mato South field in 2019.
Shell has a 25 per cent stake in the Lula consortium, operated by Petrobras (65 per cent). Galp, through its subsidiary Petrogal Brasil, holds the remaining 10 per cent interest.