Shell Begins Production from Bijupira-Salema Fields

Shell has commenced production from the Bijupira-Salema fields, in the Campos Basin, offshore Rio de Janeiro, Brazil. Shell assumed operatorship of the Bijupira-Salema Project following the acquisition of Enterprise Oil in May 2002. Shell also has interests in 14 exploration blocks offshore Brazil.

"This is an important milestone for Shell, as well as for Brazil," said Aldo Castelli, President of Shell Brasil. "We are the first private company to produce oil in the Campos Basin, the most prolific hydrocarbon province in the country, following the opening up of the sector to private investment. This is an example of the benefits to both industry and the country from such investment opportunities. Bringing Bijupirá-Salema on stream is a great way to celebrate the 90th anniversary of Shell in Brazil."

Initial production will be approximately 20,000 barrels of oil per day (bpd) from one of the eight production wells already completed. Production will increase gradually to reach an expected peak production rate of 80,000 bpd of relatively light crude oil (28 ° – 31 ° API) and 35 million cubic feet of gas per day. The project uses a Floating Production, Storage and Offloading (FPSO) vessel Fluminense for production handling and storage, with subsea wells tied-back to the FPSO via three manifolds. Reservoir pressure support will be provided by six water injection wells.

The adjacent Bijupira and Salema fields are in water depths ranging from 450 to 800 meters, approximately 295 km from the city of Rio de Janeiro. Discovered by Petrobras in 1990, the fields have estimated recoverable reserves of approximately 188 million barrels of oil and 62 bcf of gas.

Shell Brasil's Vice-President of Exploration & Production Michiel Kool said: "We are very happy to be able to deliver this project on time, within the estimated budget and ahead of our safety targets. In fact we are starting production earlier than anticipated in the plan sanctioned by the National Petroleum Agency in 2001."

Shell has been present in Brazil since 1913, and is active in eight different business activities in the country: Exploration & Production, Retail, Industry and Transport, Lubricants, Natural Gas and Energy Generation, Aviation, Shell Gas (GLP) and Chemicals.

The Bijupirá-Salema Project is a joint venture between Shell Brasil Ltda (operator - 80 percent) and Petrobras (20 percent).