Oil production commences at Shell floating platform in Brazil

Oil production commences at Shell floating platform in Brazil

Royal Dutch Shell (LSE: RDSA) has confirmed that production has started from a floating platform off the coast of Brazil, which can process up to 150,000 barrels of oil per day (bpd).

Production at the facility, situated in waters more than a mile deep within the Santos Basin, was initiated using a floating production storage and offloading (FPSO) vessel, which has been dubbed P-66.

As well as being able to produce 150,000 bpd of oil, the floating prospect also has the capacity to process 210 million cubic feet (mcf) of natural gas per day.

The oil major confirmed P-66 will be the first of many floating production units to appear across the region.

“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,” said Shell in a statement.

Shell’s subsidiary company, BG E&P Brasil, is part of the consortium behind P-66, which is operated by Brazilian energy company Petrobras.

Brazil is one of the world’s largest non-OPEC oil producing states, with analysts at the international cartel predicting the South American nation will contribute to around 20% of the growth in production from non-OPEC countries over the next year.