First production from Iracema discovery

BG Group has announced the early start of production from the Iracema area in block BM-S-11, one of the Group’s and its partners’ significant discoveries in the Santos Basin, offshore Brazil. The Cidade de Mangaratiba floating production, storage and offloading (FPSO) vessel is the first unit deployed on the Iracema development and the fourth FPSO to date to have started up across the partners’ interests in blocks BM-S-9 and BM-S-11 in the first phase of development of the pre-salt Santos Basin. 

BG Group Chief Operating Officer, Sami Iskander said: ‘The start-up of the Cidade de Mangaratiba FPSO marks first production from the Iracema discovery... With the Cidade de Ilhabela FPSO starting production by the end of the year, these vessels will add 82,500 b/d of capacity net to BG Group. Like the Lula and Sapinhoá developments, Iracema enters commercial production only around five years after its discovery. This fast-paced development in the Santos Basin reflects the quality of the reservoir and our ongoing close working relationship with Petrobras.’ 

The Cidade de Mangaratiba can process 150,000 b/d of oil and 283mn cf/d of gas, making it the FPSO with the highest production capacity to be brought on in the Santos Basin to date, according to BG Group. The FPSO will be connected to eight production wells and eight injections ones over the coming months. The oil produced from Iracema is high quality and of medium density (30° API). Gas not used for reinjection will be transferred to shore through the Santos Basin pipeline system. Plateau production is expected in 2016.

BG Group has a 30% interest in block BM-S-9, partnered by Petrobras (operator, 45%) and Repsol Sinopec Brasil (25%). It also has a 25% interest in block BM-S-11, partnered by Petrobras (operator, 65%) and Petrogal Brasil (10%).

The estimated local content for the development of the Iracema Sul area is 42%, according to Petrobras, higher than the 30% minimum local content specified by Brazil’s National Petroleum, Natural Gas and Biofuels Agency (ANP) for block BM-S-11.