Shell announces start of Brazil deep-water oil project

Shell announces start of Brazil deep-water oil project

Shell (LSE:RDSB) and its partnership announced the beginning of oil production from the 3rd phase of its deep-water project in Parque das Conchas in the Campos Basin of Brazil.

The final phase’s production of the project is anticipated to add up to 20,000 barrels of oil per day at peak production from fields that have already manufactured more than 100 million barrels since 2009.

Wael Sawan, executive vice president of Deep Water Shell said, “With this phased project, we have again demonstrated value from standardization, synergies from contractual relationships, and the strategic deployment of new technologies.”

“These barrels, like other subsea tieback opportunities across our deep-water portfolio, have development cost advantages and will contribute to the strong production growth we expect from offshore Brazil.”

The venture is conducted by Shell (50 per cent) and owned by ONGC (27 per cent) and QPI (23 per cent).

Phase 3 of Parque das Conchas is made up of five producing wells in two Campos Basin fields (Massa and O-South) and two water-injection wells. The sub-sea wells sit in water greater than 1,800 metres and connect to a floating production, storage and offloading (FPSO) ship located 150-kilometres offshore Brazil called the ‘Espirito Santo.’

The project is Shell’s latest deep-water venture. Other deep-water projects currently in operation are the Stones project and the Appomattox project, both in the Gulf of Mexico.