Shell announce production startup of the third phase of its deep water Parque das Conchas BC-10 development in the Campos Basin, offshore Brazil.
The development includes the completion of additional production wells, all at depths greater than 5,900 feet (1,800 meters).
Shell Executive VP Deep Water, Wael Sawan, said: “The safe, early delivery of this production is a testament to the efficiency of our deep-water project execution,”
Parque das Conchas BC-10
The Shell operated Parque das Conchas BC-10 development has been producing since July 2009 on the startup of phase one, with phase two coming on-stream in October 2013.
All production is tied back to the fields Floating Production Storage Offloading (FPSO) vessel Espἰrito Santo, located around 90 miles (150 km) offshore Brazil, that itself has a production capacity of 100,000 barrels of oil per day.
Production from the first two phases has given the development a daily production rate of 35,000 barrels of oil.
Shell Announce Production Startup
Shell’s latest announcement sees the third phase of BC-10 coming on stream, boosting production by a further 20,000 barrels oil oil per day.
Phase three has involved drilling a further five production wells and two water injection wells, across an additional two oil fields the Massa and the O-South, all at depths greater than 5,900 feet (1,800 meters).
Sawan continued: “With this phased project, we have again demonstrated value from standardization, synergies from contractual relationships, and the strategic deployment of new technologies.”
“These barrels, like other subsea tieback opportunities across our deep-water portfolio, have development cost advantages and will contribute to the strong production growth we expect from offshore Brazil.”
Parque das Conchas (BC-10) is a joint venture between operators Shell 50%; India’s Oil and Natural Gas Corporation 27%; and Qatar Petroleum International 23%.
Parque das Conchas Development Overveiw
Brazilian Deepwater Development
Development of the Brazilian deep water oil and gas sector is proving hugely costly, not least due to the area’s reserves laying beneath a thick salt layer- known a pre-salt oil.
The investment required to develop pre-salt in Brazil is often exacerbated, by Brazil’s legal requirement for the government to often hold an ownership stake via Petrobras, making many developments unprofitable.
Global exploration and production companies have often made their views known that the area is uninvestable, due to the governments stake, with comments becoming more and more public over recent years.
Back in February 2016, when asked to comment on the matter by the Brazilian media, Shell CEO Ben van Beurden said: “I am aware that there is discussion about the role of Petrobras in the pre-salt. Our position is that it is up to the government and congress to decide.”
“But I think it makes sense to call other partners with the technology, and with the investment. I don’t see how this is not beneficial for Brazil.”