BG Group announced on 9 September that the Guara discovery in the Santos Basin pre-salt, offshore Brazil is now estimated to contain recoverable volumes of 1.1 to 2.0 billion barrels of oil equivalent.
The DST flowed at 7,200 boepd but was facilities-constrained, though test data indicates that a permanent production well would be capable of producing initial rates of up to 50,000 boepd.
BG Group and partners have agreed a schedule which will prioritise the installation of production facilities on Guara. The development will use a 120 000 barrels per day Floating Production, Storage and Offloading vessel (FPSO), targeting first production from 2012. This will follow the 100 000 barrels per day first phase of the Tupi field, due onstream at the end of 2010 (BG Group 25%, operator Petrobras 65%, Galp 10%).
It is clear that the Santos Basin pre-salt will make a very material contribution to the production and cash flow of BG Group for many years to come.'
Approx half of BG's revenue is from its E&P activities, with its other main focus on gas (Australian LNG, and more recently US shale gas), though the above comment indicates the Brazilian production will contribute materially in future. And of course, should gas prices recover, that side of the equation will receive a boost too.
BG is XD today (interim divi of 5.62p)