Deliver Your News to the World

Shell and partners add pre-salt production in Brazil

Consortium announces oil and gas production start at P-68 FPSO located at BM-S-11-A concession in Berbigão, Sururu, and West Atapu; unit can process up to 150,000 barrels per day.


WEBWIRE

New, deep-water production has come online from the Brazilian pre-salt Santos Basin. Shell Brasil Petróleo Ltda. (Shell Brasil) and its consortium partners today announced the start of oil and natural gas production at the P-68 floating production, storage, and offloading unit (FPSO), located in BM-S-11-A Concession in Berbigão, Sururu and West Atapu.

The FPSO can process up to 150,000 barrels of oil and 6 million cubic meters of natural gas daily. Operated by Petrobras, P-68 features ten producing wells and seven injection wells.

This new production at P-68 adds to Shell’s already prolific deep-water portfolio in Brazil. With the development in Iara, the company is opening a new production frontier in the Pre-Salt. This is also the first step in developing the large resource potential at Sururu.

“It has been a banner year for Shell Brasil,” said Wael Sawan, Shell’s Upstream Director. “From winning new acreage to setting records in drilling and production, the country continues to solidify its place as a heartland in our Upstream portfolio.”

“Brazil is home to some of the best deep-water opportunities in the world and we look forward to working with Petrobras and other partners to progress additional development plans,” he added.

Other updates from Brazil

The P-69 FPSO, located in the Lula field, reached peak production levels just over 10 months from first production. Shell’s oil and gas production in Brazil in the fourth quarter is expected to be around 400,000 barrels of oil equivalent per day.

The two blocks awarded to Shell in the 16th concession deep-water bid round were the latest additions to a robust portfolio of 2.6 million net acres with 21 exploration blocks, 4 development fields and 11 production fields in Brazil.

Shell Brasil is also carrying out exploration activities in the Gato do Mato and Alto do Cabo Frio Oeste blocks in the Santos Basin to secure future development. In June, the company started a drilling campaign in Gato do Mato and delivered the fastest-drilled well in Brazil. Seismic work at Gato do Mato is ongoing. In 2020, new exploration drilling activity is expected at the Saturno block in the Santos Basin. Shell Brasil seeks to be an early mover in areas with discoveries, de-risking these opportunities and driving towards a higher chance of success.

-----
  • The BM-S-11-A Consortium for Berbigão, Sururu, and West Atapu- includes Petrobras (42.5 percent - operator), Shell (25 percent), Total (22.5 percent), and Petrogal Brasil (10 percent).
  • P-68’s hull was built at the Rio Grande shipyard in southern Brazil. Integration of the modules and the final unit commissioning were carried out at the Jurong Aracruz shipyard in southeastern Brazil.
  • Shell’s equity interest in the in Berbigão and Sururu is subject to unitization.
  • Shell has 10 operated, deep-water production hubs globally and is on track to deliver sustained production above 900-thousand barrels of oil equivalent (boe) per day through 2025.
  • The deep-water 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.

Cautionary statement

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2018 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, November 14, 2019. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.


( Press Release Image: https://photos.webwire.com/prmedia/6/250259/250259-1.jpg )


WebWireID250259





This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.