New, deepwater production is under way at Lula Extreme South in the Brazilian Santos Basin. Royal Dutch Shell, through its subsidiary Shell Brasil Petróleo (Shell) and consortium partners, announces that the FPSO P-69 is now producing.
Operated by Petrobras, P-69 is a standardized vessel that can process up to 150,000 BOE and 6 million cu m 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 deepwater provinces in the world,” Andy Brown, Upstream Director for Shell, said. “With significant flow rates, deepwater Brazil projects are breaking even under $40 per bbl. We commend Petrobras on this production milestone, and we look forward to progressing additional development plans with our consortium partners as well as for our recently acquired, deepwater Brazil blocks.”
Following Lula Extreme South, the next FPSO is P-67 for Lula North. The Libra production-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% stake in the Lula consortium, operated by Petrobras (65%). Galp, through its subsidiary Petrogal Brasil, holds the remaining 10% interest.