Brazil's state-run energy giant
Petroleo Brasileiro S.A.
) has confirmed the startup of its floating production storage
and offloading ("FPSO") vessel in the Santos Basin to extract oil
and gas from the deepwater Lula Nordeste pre-salt project.
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The Cidade de Paraty FPSO - one of the goals set for this year as
per Petrobras' 2013-2017 business plan - lies 2,120 meters deep
in water, around 300 kilometers from the coastline. The platform
has a production capacity of 120,000 barrels of oil per day and 5
million cubic meters of natural gas per
FPSO vessels - unlike most offshore producing platforms that take
out the oil and gas from the depths of the ocean and transport it
onto land through a pipeline - collect the oil, store it in
onboard tanks and offload it to tanker shuttles that take the oil
This helps the oil companies (like Petrobras) to not only keep
pushing their offshore limits but also to move their expensive
facilities to safety in case of a hurricane or tropical storm.
The use of FPSOs is widespread in offshore Brazil and West
7-LL-11-RJS, the first well from the Petrobras-operated Lula
Nordeste field to be tied to the Cidade de Paraty platform, can
churn out a maximum of 25,000 barrels of oil per day though
output will be confined to 13,000 barrels per day during the
first month and increased gradually as the systems are put in
Following 7-LL-11-RJS, the FPSO will be connected to seven more
production wells and six injection wells in the near future, with
peak output likely to be achieved anytime during the second half
of next year.
Headquartered in Rio de Janeiro, Petrobras is the largest
integrated energy firm in Brazil and one of the largest in Latin
America. The company's activities include: the exploration,
exploitation and production of oil from reservoir wells, shale
and other rocks, and in the refining, processing, trade and
transport of oil and oil products, natural gas and other fluid
hydrocarbons, in addition to other energy-related activities.
Petrobras currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three
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Exterran Partners L.P.
Dawson Geophysical Co.
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