OVL expects oil output from Brazil to hit 40,000 bpd

ONGC Videsh Ltd (OVL), the overseas arm of India's state-run Oil and Natural Gas Corp (ONGC), expects output at its deep-sea project in Brazil to rapidly rise to 40,000 bpd by the year-end and offset the natural declines that have set in its Russian and Sudan projects.
"Currently, oil is being produced from just one well and output is about 5,500 bpd. It will rise to 40,000 bpd by year end when five more wells will be brought into production," OVL Managing Director R.S. Butola told.

OVL, which has nine producing properties in seven countries, produced 120,000-130,000 bpd (6.5 mm tons) in 2008-09. This fiscal the output is to fall to 5.8 mm tons on declines that have set in Sakhalin-I project in Russia and Greater Nile project in Sudan.
Sakhalin-I, where OVL has 20 % stake, is producing about 160,000 bpd, down from peak of 250,000 bpd achieved in 2007 and the output is slated to further fall to about 100,000 bpd by 2011. In Sudan, output has fallen to 175,000 bpd.

OVL, Shell and Petrobras of Brazil started production on July 12 at its multi-field Parque das Conchas project, also known as BC-10, 120 km off Brazil's southeast coast. Output will be quickly ramped up to 100,000 bpd or 5 mm tpy shortly.
Shell is the operator of the project with 50 % stake while Brazil's state-run Petroleo Brasileiro (Petrobras) has 35 % interest. OVL has 15 %.