Shell consortium wins PSC for Libra oil field offshore Brazil

Brazil has awarded a 35-year production-sharing contract for the Libra presalt oil discovery in the Santos basin offshore Brazil.

Offshore staff

RIO DE JANEIRO – Brazil has awarded a 35-year production-sharing contract for the Libra presalt oil discovery in the Santos basin offshore Brazil.

The consortium with the successful bid for the PSC includesRoyal Dutch Shell, Petrobras, Total, CNPC, and CNOOC. Shell holds 20% in the consortium, with Petrobras 40% as operator; Total, 20%; CNPC, 10%; and CNOOC, 10%.

The production-sharing contract is expected to be signed in November 2013. As part of thewinning bid, Shell will pay its 20% share of the total signing bonus of $1.4 billion, and fulfil the minimum work program no later than the end of 2017.

The ultra-deepwater Libra field is 170 km (105 mi) off the coast of Rio de Janeiro. The block covers approximately 1,550 sq km (600 sq mi) in water depths of around 2,000 m (6,500 ft). The reservoir depth is around 3,500 m (11,500 ft) below the seafloor.

The Agência Nacional do Petróleo estimates that total gross peak oil production could reach 1.4 MMb/d from recoverable resources of 8-12 Bbbl. Further appraisal is required to substantiate this estimate, the development concept, and a first oil date.

10/21/2013

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