BG discovery in Santos Basin

BG Group has announced the discovery of a new oil field in the Santos Basin, offshore Brazil.

The discovery, known as Carioca, is within the BM-S-9 concession, where BG Group holds a 30 per cent interest.

The operator, Petrobras holds the 45 per cent in the project while the remaining 25 per cent in the project is held by Repsol YPF Brasil S.A.

The Carioca oil field is located in 2 140 metres of water approximately 273 kilometres off the south coast of Rio de Janeiro.

It is close to the Tupi discovery in Block BM-S-11 (BG Group 25%) which was announced in October 2006.

The exploration well flowed at a rate of approximately 2 900 barrels of 27 degrees API oil and 57 thousand cubic meters of gas per day. The rate was constrained by test equipment.

BG Group Chief Executive, Frank Chapman said, this is another significant discovery offshore Brazil, and builds on the Tupi discovery last year which is located 70kilometres to the east in the BM-S-11 concession.

This is BG’s third consecutive exploration well to discover hydrocarbons in the new Santos basin pre-salt play, and this exceptional sequence enhances our confidence in the material exposure that BG has to this highly prospective area, concluded Mr. Chapman.