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Shell adds new, deep-water production in Brazil

13th November 2018

New, deep-water production is underway at Lula Extreme South in the Brazilian Santos Basin. Royal Dutch Shell plc, through its subsidiary Shell Brasil Petróleo and consortium partners, announces that the FPSO P-69 is now producing.

Deep-water production is underway at Lula Extreme South
Deep-water production is underway at Lula Extreme South

The FPSO P-69 is a standardized production vessel offshore Brazil with a capacity for 150,000 barrels of oil and 6 million cubic meters of natural gas a day.

Operated by Petrobras, P-69 is a standardized 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,” said Andy Brown, Upstream Director for Shell. “With significant flow rates, deep-water Brazil projects are breaking even under $40 per barrel. 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, deep-water Brazil blocks.”

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 percent stake in the Lula consortium, operated by Petrobras (65 percent). Galp, through its subsidiary Petrogal Brasil, holds the remaining 10 percent interest.