Brazil: First Oil Flows from OGX’s Waimea

OGX announces the beginning of the opening procedure of well OGX-26HP, in Waimea. OGX, the oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announces that at 19h46min40sec on Saturday 28th January, the opening procedure of FPSO OSX-1 first well, denominated OGX-26HP, has been initiated.

The procedure involves the injection of chemical products into the well for the preliminary treatment of oil and gas which is to be processed by the vessel. The flow rate levels of oil will gradually be increased as per industry best practices for an optimal management of the reservoir.

On October 6, 2011 OGX signed a commercialization agreement with Shell Western Supply and Trading Ltd for the sale of first two shipments of oil from the Waimea accumulation, in block BM-C-41, in the shallow waters of the Campos Basin. OGX has a 100% interest in this block.

“The sale of our first oil production to a major oil company like Shell, not only demonstrates the quality of the oil discovered by OGX, but also the execution capability of the company’s exploration, production and commercialization teams. This partnership with a global company that has a 98 year history in Brazil reflects our willingness to work closely with institutions that are also committed to the future of the country,” said Eike F. Batista, Chairman of OGX.

A total volume of 1.2 million barrels will be sold. This oil will be shipped in two batches of 600,000 barrels each of which Shell intends to process in one of its refineries.

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Offshore Energy Today Staff, January 30, 2012; Image: OGX