ONGC starts output at Brazilian block

Oil and Natural Gas Corp (ONGC) has started producing crude oil from its BC-10 deepwater block in the Campos Basin off Brazil's south-east coast, a company official said. ONGC holds 15 % in the block through its wholly-owned subsidiary ONGC Campos Ltd. Shell Brasil is the operator of the block and holds 50 % interest, while the remaining is held by Petrobras.
"Crude oil production from BC-10 started this week. Though the initial volumes are low, it will be ramped up going ahead," the ONGC official said.

Output is likely to reach 100,000 bpd by end 2010 or early 2011, the official said, adding that the initial production is being drawn from three fields in the block -- Abalone, Ostra and Argonauta B-West. The natural gas being produced with the crude will be separated and pumped back into the Ostra field until a gas export pipeline system is complete.
The official said the crude oil being produced is heavy in nature with high viscosity and needs heating to maintain fluidity. It is being pumped out from beneath the seabed using a floating production, storage and offloading vessel "Espirito Santo" stationed in the block.

The BC-10 block is being developed in two phases. The first phase, now on-stream, involves nine producing wells and one gas injector well. The second phase will focus on production from the Argonauta O-North field.
The FPSO can store around 1.5 mm barrels oil for shipment to shore by transport tankers. According to ONGC Videsh Ltd, the overseas investment arm of ONGC, the company also holds 100 % operating interest in blocks BM-S-73 and BM-ES-42 in offshore Brazil.