Shell and Petrobras Sign Deepwater Deal
Royal Dutch Shell and Petrobras have signed an MOU to establish a long-term mutual collaboration in developing pre-salt fields in Brazil.
Shell will benefit the from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects. Shell will in turn share its global deepwater experience, especially on cost efficiency efforts and use of technology.
The MoU also involves sharing best practices on safety and governance management, technical and operational solutions, contract management, logistics, wells construction and air transportation safety.
The document was signed by Shell CEO Ben Van Beurden and Petrobras CEO Pedro Parente, during a visit by Petrobras’ executives to the Shell headquarters.
The agreement is valid for five years and can be renewed. Shell is a strategic partner of Petrobras in the pre-salt, with minority interests in the Libra and Lula fields and other important areas such as Sapinhoá, Lapa, and Iara, all of which are in Santos Basin.
In May, Shell, through its subsidiary BG E&P Brasil and consortium partners in Lula South, commenced deepwater production at the FPSO P-66. Positioned in 2,150-meter (7,000-foot) water depth, the P-66 can process up to 150,000-barrels of oil and six million cubic meters of natural gas per day. The FPSO is the first in a series of standardized vessels operated by Petrobras to begin production within the BM-S-11 block consortium and the seventh to produce within the consortium overall.
The P-66 is the tenth deepwater FPSO in operation across Shell’s working interest in the pre-salt areas of Santos Basin. Shell operates two additional FPSOs offshore Brazil.
Shell’s deep water business also extends to the U.S. Gulf of Mexico, Nigeria, and Malaysia and, globally, produces approximately 725,000 barrels of oil equivalent per day (boe/d); production is expected to reach approximately 900, boe/d by the early 2020s from already discovered, established areas.