UK-based natural gas and oil company BG Group and its partners have begun production from the Sapinhoá field in block BM-S-9, offshore Brazil.
The Cidade de São Paulo floating production, storage and offloading (FPSO) vessel is the first unit deployed on the Sapinhoá field, and the second of 15 FPSO vessels planned.
An additional ten wells, which include five producing wells and five injection wells, will be connected to the Cidade de São Paulo, which is expected to begin peak production in the first half of 2014.
During the first phase of the pre-salt Santos Basin development, the consortium will deploy another FPSO vessel called Cidade de Ilhabela in blocks BM-S-9 and BM-S-11.
Expected to begin production in the second half of 2014, the second FPSO’s output capacity will be 150,000 barrels of oil per day and 212 million standard cubic feet per day of natural gas.
Sapinhoá field currently processes 120,000 barrels of oil per day and 176 million standard cubic feet of gas per day and is claimed to produce high-quality oil with medium density of 30° API.
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Once the first well is linked to the vessel, 1-SPS-55, the field will produce about 15,000 barrels of oil a day and likely to go up to 25,000 barrels of oil a day subsequently.
BG Group chief executive officer, Chris Finlayson, said the installation of Cidade de São Paulo was done on time and on budget, while development of the second FPSO on the Lula field in block BM-S-11 is on track and expected to start production in 2013.
"Together, these two new units will more than triple gross processing capacity from around 100,000 barrels of oil and 176 million standard cubic feet of gas per day to 340,000 barrels of oil and 528 million standard cubic feet of gas per day," Finlayson added.
The company holds 30% interest in block BM-S-9, while Petróleo Brasileiro is the operator with 45% interest and Repsol Sinopec Brasil holds the remaining 25%.
Petróleo Brasileiro is also the operator of BM-S-11 block with a 65% stake, where BG Group and Petrogal Brasil hold 25% and ten percent respectively.
Image: BG Group has started production from Sapinhoá field in block BM-S-9, offshore Brazil. Photo courtesy of Mmm.