1st May 2009 16:00
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News Release |
1 May, 2009
First commercial oil production from Tupi, Santos Basin, Brazil
BG Group, today announced that first commercial oil production has commenced on the Tupi field in the BM-S-11 concession in the Santos Basin, offshore Brazil.
The oil is being flowed to the floating production, storage and off-loading vessel (FPSO), BW Cidade de Sao Vicente.
The Tupi field is operated by Petrobras (NYSE: PBR) with 65% per cent interest, BG Group (LSE: BG.L) holds a 25% interest and Galp Energia (ELI:GALP), a 10% interest.
BG Group and partners will commence drilling a second well on the BM-S-11 concession, Tupi P1, in June. This well will also be tied back to the same FPSO.
The current extended well test on Tupi is expected to last 15 months. Production is expected to peak at around 15 000 barrels per day.
BG Group Chief Executive, Frank Chapman said: "The Santos Basin is now one of the world's most important hydrocarbon regions and will be a major source of global supply for decades to come. We are delighted to participate in the rapid development of the Tupi field and look forward to further close collaboration with our partner Petrobras to realise the full potential of the Santos Basin pre-salt."
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Notes to Editors:
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
BG Group has interests in five concessions in the deep water Santos Basin: BM-S-9, 10, 11, 50 which are operated by Petrobras and BM-S-52 which is operated by BG Group.
BG Group holds operated interests in the BM-S-13 and BM-S-47 concession areas in the shallow water Santos Basin.
BG Group also holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.
BG Group has a controlling stake (60.1%) in Brazil's largest gas distribution company, Comgas
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Edel McCaffrey: +44 (0) 118 929 3508 [email protected]
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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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