Brazilian state-run energy giant Petrobras (PBR) said Monday that it had started natural gas production at two offshore fields.

The Cangoa and Camarupim fields, which lie off the coast of Espirito Santo state, started production on June 10, Petrobras said.

The two fields were part of the company's Plangas, an ambitious investment plan made in 2006 to boost natural gas output from Brazilian reserves. The natural gas will be piped to the company's UTGC treatment facility in Linhares.

Cangoa output started via the 7-CAN-1D-ESS well, connected to the Peroa platform, Petrobras said. The field lies about 42 kilometers off the coast in 60 meters of water, with production capacity of about 400,000 cubic meters of gas per day.

Camarupim output started via the 7-CMR-1H-ESS well, which is connected to the FPSO Cidade de Sao Mateus. Three additional wells, which have already been drilled, will also be connected to the floating production, storage and offloading vessel.

The Cidade de Sao Mateus is the first FPSO dedicated to natural gas production in Brazil.

The FPSO is anchored in 790 meters of water, with production expected to reach six million cubic meters of gas and 8,000 barrels of condensate per day. The Cidade de Sao Mateus has installed daily capacity of 10 million cubic meters and 35,000 barrels of oil.

Camarupim is a joint venture between Petrobras, which holds a 75% stake, and El Paso Corp. (EP). El Paso holds a 25% stake.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com