BG Starts Production from Third FPSO Offshore Brazil

BG Group reported Friday that start of commercial production from a third FPSO (floating production, storage and offloading) vessel on the group's discoveries in the pre-salt Santos Basin, offshore Brazil.

BG said the Cidade de Paraty FPSO is the second unit deployed on the giant Lula discovery and is located approximately 185 miles off the coast of Brazil in the northeast corner of the BM-S-11 block.

The Cidade de Paraty has capacity to process 120 000 barrels of oil per day and 176 million standard cubic feet of gas per day, according to BG. The first month of production will be restricted to around 13 000 barrels of oil per day and then gradually increased as gas reinjection systems are commissioned. It is expected that peak production will be reached in the second half of 2014.

BG Group Chief Executive Chris Finlayson said in a company statement:

"The start of production from our third FPSO vessel offshore Brazil, on time and on budget, marks another important success in delivering our 2013 milestones. Also, it demonstrates continued progress in the development of our major growth projects. 

"We now have three FPSO vessels on-stream in the Santos Basin, two of which have started production this year alone as our development program ramps up. It is a testament to the excellent working relationship we have with our partners and it shows the tangible progress we are making in bringing these world class discoveries to fruition in line with our plans."

Finlayson added that the remaining 12 FPSOs that BG has committed for the first phase development program are on schedule and that the new two FPSOSs in the program will begin production in 2014. BG plans to deliver some 500,000 boepd net to the group from its Brazilian offshore interests by 2020.



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