BG Brazil reserves on upward curve

BG Group has upgraded its share of reserves and resources in Brazil’s pre-salt Santos basin to 6 Bboe, with an upside potential of 8 Bboe net.

Offshore staff

READING, UK – BG Group has upgraded its share of reserves and resources in Brazil’s pre-salt Santos basin to 6 Bboe, with an upside potential of 8 Bboe net. Discoveries account for 96% of the overall figure.

The company has interests in five blocks in the basin:
    1. BM-S-9 (30%) containing the Guará, Carioca, Abaré and Iguaçu discoveries and prospects
    2. BM-S- 10 (25%) containing the Parati and Macunaima discoveries and prospects
    3. BM-S-11 (25%) containing the Lula, Cernambi and Iara discoveries, and prospects
    4. BM-S-50 (20%) containing prospects including Sagittario
    5. BM-S-52 (40%) containing the Corcovado discovery.

BG has based its reserves/resources estimates on analysis of drilling, appraisal, and other data, including:
    • 29 wells drilled on its existing discoveries, with two wells drilled in particular on Lula since last November to assist delineation of the field’s flanks
    • 19 drillstem tests on current discoveries
    • Acquisition and analysis of more than 14,400 sq km (5,560 sq mi) of 3D seismic
    • Analysis of a completed extended well test (EWT) on Lula Sul and early results from the Guará EWT, both wells indicating very large hydrocarbon volumes
    • Production from Lula’s first permanent FPSO, which started last October
    • Development plans featuring processes to improve ultimate recovery factors from these giant fields
    • Cost optimization, potential de-bottlenecking of facilities, and greater well productivity, all enhancing the economic viability of later development phases.

BG Group CEO Sir Frank Chapman said: "Robust economics and solid progress with the fasttrack development program will see gross installed production capacity rising steadily to reach more than 2.3 MMboe/d by 2017."

06/30/2011

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