BG Group to Invest $30B in Brazil over The Next Decade
RIO DE JANEIRO (Dow Jones Newswires), March 15, 2011
BG Group announced it will invest up to $30 billion in Brazil over the next decade, confirming the South American country as one of the most important locations worldwide for the London-based energy group, Chairman Sir Robert Wilson said Monday.
The investments, which will include $1.5 billion in spending on a new global technology center through 2025, were announced by Wilson following a meeting with Brazilian President Dilma Rousseff in Brasilia. The investments may be "a first step towards turning Brazil into a global provider of technological solutions," BG said in a statement.
The company will also invest in training in Brazil, it said.
BG has invested $5 billion in Brazil since 1994, including in development of some of the country's important presalt oil finds, in conjunction with Brazilian oil giant Petrobras. These are located under a layer of salt in the Atlantic Ocean seabed, where total reserves are estimated at as much as 50 billion barrels of oil.
BG Group plans to produce 550,000 barrels of oil equivalent a day in Brazil by 2020, making this one of the group's most significant production centers.
BG is also a majority shareholder in Brazil's biggest natural gas producer, named Comgas, and a shareholder in the Brazil-Bolivia gas pipeline.
Copyright (c) 2011 Dow Jones & Company, Inc.
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