Petrobras begins output from first pre-salt field of Santos Basin

Sep 20, 2011 12:00 AM

Brazil's energy giant Petrobras began pumping natural gas from the offshore Santos Basin on the new 216-km Lula-Mexilhao pipeline, the company said.
The pipeline will gradually build up to 10 mm cmpd of natural gas. The gas will be sold in Brazil through a terminal on the coast of Sao Paulo state and an inland pipeline leading to the interior of Sao Paulo, Brazil's most populous state.

The Santos Basin gas comes from a deep offshore region known as the pre-salt area, rich in both crude oil and natural gas.
The pipeline start-up, in turn, will allow Petrobras to boost production at the offshore Lula field, the first oil field from the Santos Basin of pre-salt oil discoveries.

Production at Lula has been capped by limits on the amount of natural gas that can be flared, or burned off.
Lula is currently producing about 30,000 barrels of oil a day as part of a pilot production project.

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