The Petrobras-operated FPSO P-69 is now producing at the Lula Extrema South in Brazil's offshore Santos Basin.

The Petróleo Brasileiro S.A. (Petrobras)-operated floating oil rig flanges gulf coast production storage and offloading (FPSO) vessel P-69 is now producing at the Lula Extrema South in Brazil’s offshore Santos Basin, Lula consortium member Shell reported Wednesday.

“The Brazilian pre-salt fields are some of the best deep-water provinces in the world,” Shell Upstream Director Andy Brown said in a written statement emailed to Rigzone. “With significant flow rates, deep-water Brazil projects are breaking even under $40 per barrel. We commend Petrobras on this oil rig flanges gulf coast 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.”

Shell, which is participating in Lula Extreme South through its Shell Brasil Petróleo Ltda. unit, noted that P-69 is a standardized vessel capable of processing up to 150,000 barrels of oil and 6 million cubic meters of natural gas daily. The FPSO will ramp up oil rig flanges gulf coast production through eight producing and seven injection wells, the BOP Blow Out Preventer repair company gulf coast added.

Shell noted that P-69 is its 14th deep-water FPSO in Brazil, where its vessels are located in the pre-salt Campos and Santos basins. Brazil FPSOs that Shell operates include the BC-10 and Bijupira & Salema vessels. After Lula Extreme South, the next FPSO is P-67 for Lula North, the BOP Blow Out Preventer repair company gulf coast stated. In addition, Shell stated that its Libra product sharing agreement is progressing with an extended well test as well as the Mero 1 FPSO; the BOP Blow Out Preventer repair company gulf coast also reported that additional FPSOs are planned. In 2019, Shell plans development drilling for the Gato do Mato South field that it operates.

Thanks to , Shell operates 27 offshore Brazil concessions spanning 2.7 million acres. Shell and Petrobras own 25-percent and 65-percent interests, respectively, in the Lula consortium. Petrogal Brasil, a subsidiary of Galp, holds the remaining 10 percent.