BG Doubles Santos Basin Net Potential
BG Group on Thursday issued a material upgrade for its interests in the pre-salt Santos Basin, offshore Brazil.
Mean Total Reserves and Resources* are now estimated to amount to some 6 billion barrels of oil equivalent (boe) net to BG Group, with an upside potential of 8 billion boe net. Existing discoveries account for 96% of the mean Total Reserves and Resources.
The mean Total Reserves and Resources represents a doubling of BG Group's previous best estimate of 3 billion boe prevailing at the time of the Group's February 2010 Strategy Presentation.
The aggregate range of Total Reserves and Resources net to BG Group is from 4 billion boe (P90) to 8 billion boe (P10)**.
These new estimates result from BG Group's internal analysis based on probabilistic modelling of its Santos Basin interests. The analysis used a wealth of drilling, appraisal and other data that BG Group has gained or developed in relation to those interests, including:
- a total of 29 wells drilled in our existing discoveries; two wells drilled on Lula since November 2010 proving particularly important in delineating the flanks of the field. Other wells have demonstrated excellent connectivity in the reservoir;
- a total of 19 drill stem tests on current discoveries;
- the shooting and analysis of over 14,400 square kilometers of 3D seismic;
- full analysis of a completed extended well test (EWT) on Lula Sul and early results from the Guara EWT indicating the very large hydrocarbon volumes connected to each of these wells;
- production from the first permanent floating production, storage and offloading vessel on Lula which commenced in October 2010;
- development plans that include enhanced recovery processes to improve ultimate recovery factors for these giant fields; and
- cost optimization, potential debottlenecking of facilities and greater well productivity enhancing the economic viability of later phases of development.
BG Group Chief Executive Sir Frank Chapman said: "The doubling of our estimated Santos Basin mean reserves and resources is clearly significant and demonstrates the continued rapid evolution of our understanding of these enormous discoveries. Robust economics and solid progress with the fast-track development program will see gross installed production capacity rising steadily to reach more than 2.3 million boe per day by 2017. I believe this - alongside progress with major ventures in Australia, the US and across our global portfolio - will transform the scope, scale and value of BG Group."
* Total Reserves and Resources are defined by BG Group as the aggregate of proved and probable reserves plus discovered resources and risked exploration.
** The Total Reserves and Resources upgrade announced today is based upon probabilistic modelling by BG Group of its interests in the Santos Basin, in accordance with Society of Petroleum Engineers (SPE) guidelines. The data has been analyzed, interpreted and verified by BG Group and not by the Operator or other Consortium partners.
BG Group has interests in five blocks in the Santos Basin, offshore Brazil
- BM-S-9 (30%) containing the Guara, Carioca, Abare and Iguacu discoveries and prospects.
- BM-S- 10 (25%) containing the Parati and Macunaima discoveries and prospects.
- BM-S-11 (25%) containing the Lula, Cernambi and Iara discoveries and prospects.
- BM-S-50 (20%) containing prospects including Sagittario.
- BM-S-52 (40%) containing the Corcovado discovery.