Tuesday, January 8th 2013 - 19:50 UTC

British Gas plays the Brazil card and begins oil production in pre-salt Santos basin

British Gas started oil production at the Sapinhoa field off Brazil, one of the “Big Five” discoveries in the pre-salt Santos Basin. Along with Petrobras and Repsol, BG plans to pump an initial 25.000 barrels a day from the deposit in BM-S-9 Block, the England-based producer said in a statement.

BG plans to extract a third of its world oil production from Brazil by 2020

Sapinhoa holds about 2.1 billion barrels of recoverable oil and gas, according to Petrobras, Brazil’s state-controlled oil and gas producer.

The Cidade de Sao Paulo floating production, storage and offloading, or FPSO, will reach peak output in the first half of 2014.

BG slumped the most on record last October 31 after saying output growth would stall in 2013 following delays at projects in the US, North Sea, Brazil and Egypt.

The company plans to invest 30 billion dollars in Brazil, where it expects to pump about a third of its worldwide output by 2020.

Sapinhoa is the second of the so called “Big Five” fields in the BM-S-9 and BM-S-11 blocks where investors plan to install 15 FPSOs.

The Lula field, formerly known as Tupi, was the first find in the pre-salt deposit in the Santos Basin, and started production in October 2010.

BG has a 30% interest in the BM-S-9 Block, of which Petrobras is the operator with 45% and Repsol Sinopec Brasil has 25%.

 

Published in: Energy & Oil, Investments, Brazil.
Tags: Brazil, British Gas Group Plc, FPSO Cidade de Sao Paulo, FPSO development, Petrobras, Santos basin, Sapinhoa field.

5 comments Feed

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1 Lou Spoo (#) Jan 08th, 2013 - 10:37 pm Report abuse
But wait! What about the famed Latin American solidarity in keeping the British out that the Argentines are always banging on about?
2 Pirate Love (#) Jan 08th, 2013 - 10:52 pm Report abuse
Backward Argentina has yet to learn the concept of lip service. what a shame :))
3 andy65 (#) Jan 08th, 2013 - 11:02 pm Report abuse
Crissy will be sending her wipping dog Hector to The UN to complain
4 Falkland Islands (#) Jan 08th, 2013 - 11:45 pm Report abuse
oh I just love this, South America United, with Argentina omitted. :)
5 reality check (#) Jan 09th, 2013 - 08:31 pm Report abuse
Company plans to invest 30 billion dollars, read it and weep Christina. How much have you raised for your YPF developement plans so far, 4 billion was it? Think the Brazilians could teach you a thing or two, or maybe three or four.

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