In its third quarter operational results, BG Group reported that it has had further material exploration and appraisal success in the Santos Basin pre-salt.
In September, BG Group announced that the Guará discovery (BM-S-9, BG Group 30%) is estimated to contain recoverable volumes of 1.1 to 2.0 billion boe. During its drill stem test (DST), data indicated that a permanent production well would be capable of producing initial rates of up to 50,000 boed. This provides further evidence of the robust economics of this pre-salt play. To prioritize the development of Guará, the partners have agreed that it will receive the second FPSO available for the pre-salt developments, with a capacity of 120 000 bopd. First production is targeted for 2012.
Also on BM-S-9, BG Group announced a new discovery known as Abaré West, which proved the presence of an accumulation of oil and natural gas. The well will be fully analysed and the forward plan for this discovery will be incorporated into one of the two evaluation plans for BM-S-9 approved by ANP. Abaré West is the fourth consecutive BM-S-9 discovery following Carioca, Guará and Iguaçu.
BG Group has completed testing operations on Corcovado 1 (BM-S-52, BG Group 40%). The well flowed both condensate and gas on drill stem testing. The drilling of both Corcovado 1 and 2 has extended the partners' understanding of the Corcovado structure, one of the major structural highs on the edge of the Santos Basin pre-salt area, where the play is still evolving. The two-well campaign has successfully proved both the presence of moveable hydrocarbons and identified additional prospectivity on the flanks of the high. The well results are being evaluated to determine future drilling plans.
On Tupi, in the BM-S-11 concession area (BG Group 25%):
In terms of forward developments, the FPSO to deliver the first 100 000 bopd phase on Tupi is 48% complete and remains on schedule for first production at end 2010. Tenders for the first of two 120 000 bopd FPSOs are currently being evaluated. Following Tupi, the second FPSO will be located on Guará.
This year's extensive work program has delivered outstanding results and confirms the technical and economic robustness of the pre-salt play, underpinning the material and growing value of BG Group's extensive position in the Santos Basin.
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