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UK company ventures into pre-salt territory

27th July 2012

BG Group has approved key contracts and an additional FPSO unit tender for use offshore Brazil

Estimates for the Brazilian Campos basin pre-salt oil and gas discoveries total 1.24bn barrels of oil equivalent

UK natural gas company BG Group and its partners have given the go ahead for the construction of the first six topside modules and integration packages for eight domestic floating production, storage and offloading units (FPSOs) in Brazil’s pre-salt basin.

The contracts worth USD 4.5 billion, will be signed via the Tupi BV and Guará BV consortia affiliates, and represent another milestone in the first-phase development of the big five pre-salt discoveries in BM-S-9 and BM-S-11, said BG group in a statement.

The contracts for the two remaining topside modules and integration packages are expected to be awarded within the next 18 months.

The BM-S-11 consortium in addition decided to tender for at least one additional chartered FPSO to be used in areas with different topside requirements.

“Progress with delivering on the vast potential in our world-class fields offshore Brazil continues apace. The approval for these contract awards, along with the tender process for an additional international FPSO, demonstrates the close alignment between partners on the fast-track, first-phase delivery plans for these outstanding resources,” said BG Group Chief Executive Sir Frank Chapman.

BG Group has a 30 per cent interest in Block BM-S-9 (Petrobras, operator, 45 per cent and Repsol Sinopec Brasil 25 per cent ). BG Group has a 25 per cent interest in Block BM-S-11 (Petrobras, operator, 65% and Petrogal Brasil 10 per cent).


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