Brazil’s state-run Petrobras and partners Royal Dutch Shell, Total and Petrogal Brazil are adding to their presalt oil and gas production tallies, having marked first oil from the Iara license with the startup of FPSO P-68.
Located in the Santos Basin offshore Brazil, the FPSO—which features 10 producing wells and seven injection wells—has a daily capacity of up to 150,000 barrels of oil and 6 million cubic meters of natural gas.
The vessel is the first of two floaters planned for the Iara license, or Block BM-S-11A, which comprises the Sururu, Berbigão and Oeste de Atapu fields. The second, P-70, is expected onstream next year.
“First oil from Iara is a new milestone for Total in Brazil,” Arnaud Breuillac, president of E&P for Total, said in a statement Nov. 15. “It increases our share of production from the highly prolific presalt area, adding to current output from the Total-operated Lapa Field and the extended well tests under way on the Mero Field.”
Petrobras is operator of the block, holding a 42.4% interest. Shell has 25%; Total, 22.5%; and Petrogal Brazil, 10%.
Wael Sawan, upstream director for Shell, said in a separate statement that Brazil “continues to solidify its place as a heartland in our upstream portfolio.”
Shell, which did not bid on acreage in Brazil’s last two auctions, also has a stake in the Lula Field, which produces from the P-69 FPSO. Shell said the P-69 hit peak production just more than 10 months after first production. The company said it expects its Brazil oil and gas production to be about 400,000 barrels of oil equivalent per day in fourth-quarter 2019.
“Brazil is home to some of the best deepwater opportunities in the world and we look forward to working with Petrobras and other partners to progress additional development plans,” Sawan said.
Recommended Reading
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.
Oil Broadly Steady After Surprise US Crude Stock Drop
2024-03-21 - Stockpiles unexpectedly declined by 2 MMbbl to 445 MMbbl in the week ended March 15, as exports rose and refiners continued to increase activity.
Veriten’s Arjun Murti: Oil, Gas Prospectors Need to Step Up—Again
2024-02-08 - Arjun Murti, a partner in investment and advisory firm Veriten, says U.S. shale provided 90% of global supply growth—but the industry needs to reinvent itself, again.