With the green light from the Libra Consortium, Shell adds another long-term project in the Brazilian pre-salt layer
The Libra Consortium, which includes Shell, has taken a final investment decision to contract a Mero-3 floating storage and offloading unit (FPSO) to be deployed in the Mero field in the Santos Basin, in the pre-salt layer, the Shell (NYSE: RDS.A) on Tuesday (25).
In addition to Shell, other members of the Petrobras-operated Libra Consortium (NYSE: PBR) include Total (NYSE: TOT), CNPC and CNOOC Limited (NYSE: CEO). Petrobras signed a letter of intent with the Malaysia International Shipping Corp. Berhad (MISC Berhad) to charter and supply the Mero-3 FPSO, signals Shell in a press release.
“Mero-3 is the latest addition to our portfolio of world-class assets in the Brazilian pre-salt,” commented Shell Upstream Director Wael Sawan. “Shell is the largest foreign producer in Brazil and we are proud to be advancing another valuable growth opportunity in the country to support the long-term strategy of our Upstream business.”
Shell pointed out that the consortium has already taken the final investment decisions to contract two other Mero production systems in the Production Sharing Libra (PSC): the FPSOs Mero-1 and Mero-2. The company stated that each unit has a daily operating capacity of 180 barrels of oil equivalent (boepd), adding that production will start operating over the next four years. In addition, he highlighted that the FPSO Pioneiro de Libra – with a capacity of 50 boepd – has been producing at Mero since 2017.
According to Shell, the Libra Consortium will also do something unprecedented in the Mero-3 area: conduct a pilot test of Petrobras' “HISEP – High Pressure Separation” technology. HISEP uses centrifugal pumps to perform subsea separation and reinjection of much of the carbon dioxide produced along with the oil, explained Shell. The company pointed out that the technology allows the oil processing plant to be released into the FPSO, making it possible to increase oil production.
The HISEP is being defined and tested, and a pilot could be installed on the Mero-3 after qualification to carry out long-term tests and evaluate the technology, Shell said.
