9th Sep 2009 07:00
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News Release |
September 9, 2009
Santos Basin Guara contains 1.1 to 2.0 billion recoverable barrels
BG Group (30%) and partners Petrobras (45%, operator) and Repsol (25%) have today announced that the Guara discovery in the Santos Basin pre-salt, offshore Brazil is now estimated to contain recoverable volumes of 1.1 to 2.0 billion barrels of oil equivalent. During its drill stem test, Guara flowed at 7 200 barrels of oil equivalent per day (boepd). These flow rates were facilities-constrained, and test data indicates that a permanent production well would be capable of producing initial rates of up to 50 000 boepd, providing further evidence of the robust economics of this pre-salt play.
BG Group and partners have agreed a schedule which will prioritise the installation of production facilities on Guara. The development will use a 120 000 barrels per day Floating Production, Storage and Offloading vessel (FPSO), targeting first production from 2012. This will follow the 100 000 barrels per day first phase of the Tupi field, due onstream at the end of 2010 (BG Group 25%, operator Petrobras 65%, Galp 10%).
BG Group Chief Executive Frank Chapman said:" The well test results on Guara were excellent and underscore again the outstanding potential in BG Group's extensive position in the world-class Santos Basin."
"Partners are fully aligned on continuing work to accelerate the full appraisal and development of these resources, with activities ongoing and planned at Tupi, Abare-West, Corcovado, Iracema, Iara, Carioca and Parati. It is clear that the Santos Basin pre-salt will make a very material contribution to the production and cash flow of BG Group for many years to come."
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Notes to Editors:
Guara (1-SPS-55 or 1-BRSA-594) is in a water depth of 2 141 metres and is located in the appraisal area of the BM-S-9 concession block, approximately 310 km offshore from Rio de Janeiro and 55 km southwest of the Tupi well (1-RJS-628 or 1-BRSA-369). BG Group holds a 30% interest in Guara (BM-S-9). Petrobras are operator with 45% and Repsol hold 25%. The Guara discovery was initially announced on June 13th, 2008.
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com
For further details on the original announcement of the Guara discovery, see:
http://www.bg-group.com/MediaCentre/PressArchive/2008/Pages/13June2008.aspx
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Contact:
Jo Thethi: +44 (0) 118 929 3110 [email protected]
Out of Hours Media Mobile: +44 (0) 7917 185 707
Investor Relations: +44 (0) 118 929 3025 [email protected]
There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to BG Group's annual report and accounts for the year ended 31 December 2008. BG Group does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
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