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Shell begins production at Parque das Conchas (BC-10) offshore Brazil

Rio de Janeiro, July 13, 2009 — Shell today started production at its multi-field Parque das Conchas project 110 kilometres off Brazil’s south-east coast, where heavy oil resources lie beneath waters nearly two kilometres deep in the Campos Basin.

“This marks a major milestone in delivering oil from Brazil’s deep water and demonstrates Shell’s capability of delivering projects on time and on budget in a complex environment” said Marvin Odum, Shell Upstream Americas Director. “We are proud of the many technologies this project advanced, the jobs it created and the investment it spurred,” he added.  “It’s a testament to strong relationships and shared values -- a true partnership between the people and government of Brazil and Shell.”

Parque das Conchas is a two-phase project with initial production drawn from three fields: Abalone, Ostra and Argonauta B-West. The first phase, now on-stream, involves nine producing wells and one gas injector well. The second phase will focus on the Argonauta O-North field.  Shell executed a host of new and advanced technologies to meet the project’s many challenges, among them water depth and oil viscosity:

Electric pumps of 1,500 horsepower drive the oil 1,800 metres up to the surface for processing in a floating, production, storage and offloading vessel (FPSO), Espírito Santo, which is more than 330 metres long.  It can process 100 thousand barrels of oil and 50 million cubic feet of natural gas per day and store nearly 1.5 million barrels of oil for shipment to shore by transport tankers

Technology highlights:

  • Parque das Conchas is the first full-field development using subsea oil and gas separation and subsea pumping.
  • The water depth required weight reduction and the development of buoyant steel risers – flexible steel pipes several kilometres long that anchor the FPSO in place.
  • The field geology with its scattered formations demanded extended horizontal drilling for better production.
  • To keep the heavy oil (API 16-42) flowing, the FPSO, with 68 megawatts of power generation capacity, feeds power to the deep-water separation and high pressure pumping systems through huge electrical umbilical cables.
  • To avoid flaring and reduce CO2 emissions, natural gas produced with the oil will be separated and pumped back into the Ostra field until a gas export pipeline system is complete.

Enquiries

Shell International Media Relations
The Hague - Adam Newton
+31 70 377 6246

Shell Investor Relations
The Hague - Tjerk Huysinga:
+31 70 377 3996 / +44 207 934 3856

New York
Harold Hatchett:   
+1 212 218 3112

Notes to editors

1. Project interests
Shell Brasil Ltda. (operator) 50%; Petróleo Brasileiro S.A. - Petrobras (35%); and ONGC Campos Ltda. (15%).  Shell has produced oil in Brazil since 2003, in the Bijupirá and Salema fields. 

2. Project Timeline
· First discovery well drilled in 2000.
· Final discovery well (to date) drilled in 2003.
· Final Investment Decision taken in October 2006.

Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges.  Shell companies have operations in more than 100 countries with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. For further information, visit http://www.shell.com 


Cautionary Note
This announcement contains forward-looking statements 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 ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ 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 the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve 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 potential litigation and regulatory effects arising from recategorisation of reserves; (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. 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 factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2008 (available at www.shell.com/investor  and www.sec.gov ). These factors also should be considered by the reader.  Each forward-looking statement speaks only as of the date of this announcement, 13 July 2009. Neither Royal Dutch Shell 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.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this announcement that SEC's guidelines strictly prohibit us from including in filings with the SEC.  U.S. 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 . You can also obtain these forms from the SEC by calling 1-800-SEC-0330.