Shell Sees BC-10 Block Start-Up This Year, Perdido in 2010

According to Dow Jones Newswires, Shell announced Tuesday at Houston's Offshore Technology Conference that its BC-10 development offshore Brazil will commence production in late 2009.

Operating with a 50% stake in BC-10, Shell is in partnership with Brazil's state-run Petrobras, which holds a 35% interest in the development, and India's ONGC, which holds the remaining 15% interest.

Additionally, Shell provided an update on its field development projects located in the US Gulf of Mexico. Specifically, Shell noted that the Perdido development, situated 200 miles from Houston, is slated to start-up production in 2010.

The Perdido Spar is designed to produce 100,000 bopd and 200 MMcf/d (6 MMcm/d) from three fields -- Great White, Silvertip and Tobago -- which are located offshore in the deep northwestern section of the Alaminos Canyon outer continental shelf area.

Moreover, Shell is making progress at the Ursa and Princess waterflooding project, located 130 miles from New Orleans, which is one of the largest construction projects in the Gulf of Mexico and will extend the fields' life expectancy for 10 years, according to project leader Mike Loveland.