Shell undertakes deep-water production in Brazil

The global group of energy and petrochemical companies, Royal Dutch Shell plc through its subsidiary BG E&P Brazil Ltda and consortium partners in Lula South has started since May 6, production at the Floating Production Storage and Offloading (FPSO) P-66 unit.

The FPSO P-66 is situated at around 290-kilometers offshore Brazil in a 2,150 meter water depth. It has the capacity to produce up to 150,000 barrels of oil and six million cubic meters of natural gas a day.

Andy Brown, Upstream Director for Shell declared: “Achieving production at Lula South is an important accomplishment in the Santos Basin, and we recognize Petrobras’ delivery of this critical milestone. The consortium has additional FPSOs in this series planned over the next three-years. Across Shell’s deep water business in Brazil, we’re investing in projects with competitive break-even prices, and our presence as Brazil’s second largest oil producer continues to grow.”

The P-66 stands as the first unit in a series of standardized vessels operated by Petrobras, the semi-public Brazilian multinational corporation in the petroleum industry, to begin production within the BM-S-11 block consortium.

Shell holds a 25% share in the consortium while Petrobras operated the field with a 65% interest and Galp’s subsidiary, Petrogal Brazil has 10%.

The deep-water production is estimated to reach near 900 thousand barrels of oil per day in the early 2020s.