Parque das Conchas FPSO arrives in Brazil

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17/12/2008

The president of Shell Brazil, Vasco Dias, was this morning with the governor of the Holy Spirit, Paul Hartung, Secretary and Development, Guilherme Dias, to officiate at the arrival in Brazil of the platform floating production storage and offloading FPSO Espirito Santo.

The vessel arrived in the country on Sunday, December 14 and will be used for the production of oil and natural gas in the Parque das Conchas (formerly Block BC-10).

The FPSO took 35 days of travel after leaving the shipyard in Singapore to get to the Parque das Conchas, located in the Campos Basin, approximately 110 kilometers from the city of Vitória (ES).

In 2009, the company will complete the installation of subsea equipment that will allow the start of production planned for the second half of next year. The project features a number of technological challenges due to its location in deep water (water depth 1500-2000 m), geologically complex reservoirs with low pressure, in addition to the predominance of heavy oil.

"The arrival of the FPSO Espirito Santo is an important milestone in the development of Parque das Conchas and reiterates our long-term commitment to Brazil, where we operate for 95 years. We were the first private company to produce oil in the Campos Basin, and since 1998 has invested more than $ 2.3 billion in exploration and production activities in the country. The development of Parque das Conchas is an important initiative for the marketing of heavy oil in deep waters in Brazil, "said Vasco Dias.

The experience and technology of Shell Deepwater will be paramount in the extraction of oil and gas. Due to the low-pressure natural reservoirs, the project will utilize a system of artificial lift in subsea high pressure electric pump installed in caissons to help drive the oil to the FPSO. Due to the geological complexity of the fields, the development will use horizontal wells, which can reach up to 1 km in length inside the tank.

Governor Paulo Hartung said the news brought by Shell comes at a good time, ending a year of important news for the industry in the state, while the world is experiencing a serious economic crisis. "In the midst of an international crisis, with negative consequences for Brazil and the Holy Spirit, we are getting more good news, which opens new possibilities for the Espirito Santo," he said.

The Secretary Guilherme Dias noted that the entry into production of more than one on the coast of Espirito Santo FPSO consolidates and leverages the Holy Spirit as the second producer of oil. "Besides the strong presence of Petrobras as operator of blocks, we now have the participation of major oil companies operating in the world to our shores. At a time of shrinking investments around the world, the dynamism of the oil and gas in the State has been instrumental in keeping investment and jobs, attracting suppliers and service providers, "he said.

Notes to Editors:

  • Partners: Shell Brazil Ltda. (operator) 50%, Petroleo Brasileiro SA - Petrobras (35%) and ONGC Campos Ltda. (15%).
  • FPSO Espirito Santo has a daily processing capacity of 100,000 barrels of oil and 1.42 million cubic meters of gas, and storage of up to 1.4 million barrels.
  • The Parque das Conchas project will be conducted in two phases. The first step involves two fields (Abalone and oyster) and the production area Argonauta B-West, with nine production wells and one gas injector well. The second phase will focus on the production area Argonauta O-North. The distance between the fields can reach 20 kilometers.
  • As originally provided, the surplus gas is reinjected in the first field until the oyster gas flow system is operational. The measure contributes to the environment, avoiding the burning of gas and the consequent emission of CO2 in the atmosphere.

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