Shell Adds New FPSO in Brazil

New, deep-water production is underway today at the Lula Extreme South in the Brazilian Santos Basin.  Royal Dutch Shell plc (RYDAF), through its subsidiary Shell Brasil Petróleo Ltda. (Shell) and consortium partners, announces that the FPSO P-69 is now producing.

Operated by Petrobras, P-69 is a standardized vessel that can process up to 150,000 barrels of oil and 6 million cubic meters of natural gas daily.  It will ramp up production through eight producing and seven injection wells.

"The Brazilian pre-salt fields are some of the best deep-water provinces in the world," said Andy Brown, Upstream Director for Shell.  "With significant flow rates, deep-water Brazil projects are breaking even under $40 per barrel.  We commend Petrobras on this production milestone, and we look forward to progressing additional development plans with our consortium partners as well as for our recently-acquired, deep-water Brazil blocks."

Following Lula Extreme South, the next FPSO is P-67 for Lula North. The Libra product sharing agreement continues to progress with an extended well test as well as the Mero 1 FPSO, and additional FPSOs are planned.   Shell also has development drilling planned for its operated, Gato do Mato South field in 2019.

Shell has a 25 percent stake in the Lula consortium, operated by Petrobras (65 percent).  Galp, through its subsidiary Petrogal Brasil, holds the remaining 10 percent interest.

P-69 is Shell's 14th deep water FPSO in Brazil, which includes FPSOs in the pre-Salt Campos and Santos Basin. Shell operates the BC-10 and Bijupira & Salema FPSOs