LatinNews Daily Report - 07 June 2013

ECONOMY| Lula field comes on stream. On 6 June Brazil’s state-owned oil firm Pebrobras announced that the ‘Cidade de Paraty’ floating production, storage and offloading system (FPSO) in Brazil's deepwater ‘pre-salt’ offshore reserves in the Santos basin had begun production. The Ciudad de Paraty is only the second rig to go into operation in the Santos basin. The ‘Cidade Angra dos Reis’ rig began operating in the area in 2010. The Cidade de Paraty, which has a capacity to extract 120,000 barrels of oil (bpd) per day and 5m cubic feet of natural gas, is anchored 300kms off the coast of Rio de Janeiro. Initially, the rig will produce 13,000bpd (as only one well has been drilled in the area to date), but the company expects production to rise consistently in coming months. The oil from Cidade de Paraty will be stored at the rig and then shipped to a processing plant at Caraguatatuba, in São Paulo state. Petrobras plans to install a total of ten similar platforms in the Lula field in the next few years, according to a company statement.

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