ONGC starts output at Brazil block

Oil and Natural Gas Corp has started producing crude oil from its BC-10 deepwater block in the Campos Basin off Brazil's south-east coast. ONGC holds 15% in the block through its wholly-owned subsidiary ONGC Campos Ltd. Shell Brazil 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. Output is likely to reach 100,000 barrels per day by end 2010 or early 2011. 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 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.