Royal Dutch Shell plc, through its subsidiary Shell Brasil Petróleo Ltda. announces with consortium partners the start of production at the Lula North deep-water project in the Brazilian Santos Basin.
Production at Lula North is processed by the P-67 floating production and storage offloading vessel (FPSO) and is operated by Petrobras. The production hub is the seventh FPSO deployed at Lula and the third in a series of standardized vessels built for the consortium. It is designed to process up to 150,000 barrels of oil and 6 million cubic meters of natural gas per day.
Shell and its partners began production at Lula Extreme South with the P-69 FPSO in October 2018.
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. Discovered in 2006, Lula is the largest producing field in Brazil and accounts for 30 percent of the country’s oil and gas production.
Shell’s interest in the Lula field is subject to unitization agreements.
The entire BM-S-11 concession includes nine FPSOs, the two additional are in the Iracema field. In deep water, Shell has 10 operated, production hubs and is on track to exceed 900-thousand barrels of oil equivalent (boe) per day by 2020, from already discovered, established areas
The business has a strong funnel of opportunities in countries with existing expertise, long-term relationships, critical infrastructure, and a strong development pipeline with production on-stream in Brazil, the U.S. Gulf of Mexico, Nigeria, and Malaysia.
The company’s deep-water exploration opportunities extend beyond 2025 and include Brazil, Mexico, the U.S. Gulf of Mexico, offshore Mauritania, and the Western Black Sea.
