Shell Starts New Production off Brazil
Shell and partners have started deep-water production at FPSO P-66 in Lula South, in the Brazilian pre-salt of the Santos Basin, the Anglo-Dutch major said May 26. Shell has a 25% stake following its purchase of BG; state Petrobras 65% is operator, while Portuguese Galp has 10%.
“Achieving production at Lula South is an important accomplishment in the Santos Basin, and we recognize Petrobras’ delivery of this critical milestone,” said Shell's upstream boss Andy Brown. "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 is the tenth deep-water FPSO in operation across Shell’s working interest in the pre-salt areas of Santos Basin. Shell operates two additional FPSOs offshore Brazil.
Most gas produced from Santos basin deepwater fields is reinjected to produce more oil. Shell did not discuss marketing gas production in its release.
Shell’s deep water business – one of the strengths it shared with BG, whose Brazilian acreage was one of the attractions of the megadeal – also extends to the US Gulf of Mexico, Nigeria, and Malaysia and, globally, produces about 725,000 boe/d. Production is expected to reach about 900,000 boe/d by the early 2020s, from already discovered, established areas such as Brazil.
William Powell