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Tupi oil production suspended

Petrobras said that, by late 2010, the Tupi Pilot Project is scheduled to go online with the capabilities of producing and processing 100,000 barrels of oil and 4 million cubic meters of gas a day.
by Staff Writers
Sao Paulo (UPI) Jul 7, 2009
Production at the offshore Tupi field was suspended by Brazil's semi-public oil company this week because of equipment issues.

Petroleo Brasileiro SA, better known as Petrobras, issued a release Monday saying a "manufacturing issue" with bolts used on an underwater production control device caused the shutdown. Production will be affected for several weeks.

Production tests had been running in the Tupi field since May 1. Tupi and the nearby Jupiter find were announced in late 2007 and early 2008. The fields are believed to have 8 billion to 12 billion barrels of recoverable oil, although the extent of the reserves in the overall area could be much more vast. They marked the largest oil find in the Western Hemisphere in 30 years.

The floating production, storage and offloading craft sent to take part in the extended well test can process 30,000 barrels of oil a day.

Petrobras said that, by late 2010, the Tupi Pilot Project is scheduled to go online with the capabilities of producing and processing 100,000 barrels of oil and 4 million cubic meters of gas a day.

Petrobras has a 65 percent stake in operations in the Santos Basin area of the Atlantic Ocean about 180 miles off the Brazilian coast in about 6,500 feet of water. Also involved are BG Group and Galp Energia.

A Petrobras release said inspections of the problem that led to the halt of testing indicated there was no oil leak or damage to other equipment. However, the so-called Wet Christmas Tree assembly will be replaced. The well will be closed during that procedure, and the extended well test will resume when the new equipment is in place.

The Wet Christmas Tree device controls the flow of oil from the seabed to the surface.

The company "emphasizes that the issue in question is unrelated to aspects concerning field production or technology and that it will not impact the development of the Santos Basin's Pre-Salt Cluster."

Petrobras said test results to date have been within expectations for the Tupi field. Officials plan to use that information to detail a plan regarding fluid movement and submarine outflow from wells.

An earlier Petrobras release said the company began refining oil from the Santos Basin pre-salt layer on June 30 at a plant in Sao Paulo. The oil was described as "high-quality" and having low acidity levels and low sulfur content.

"The pioneering processing of this oil will allow the company to prove the yield and derivative quality on the commercial scale," the company said.

Several Brazilian officials, including Mines and Energy Minister Edison Labao and the entire board of directors of Petrobras, were at the offshore platform on May 1 when the first oil was lifted from the ocean floor. That first sample was ceremoniously delivered to Brazilian President Luiz Inacio Lula de Silva.

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