BG Group begins extended well test in offshore Brazil

FTSE 100-listed integrated natural gas company BG Group has commenced a new extended well test in the Sapinhoá North area of its concession in offshore Brazil.

FTSE 100-listed integrated natural gas company BG Group has commenced a new extended well test in the Sapinho North area of its concession in offshore Brazil.

The company reported that the floating production, storage and offloading vessel (FPSO), Cidade de So Vicente, was connected to the well in water depths of 2,140 metres.

The FPSO is expected to operate in the area for up to six months, gathering technical information on reservoir behaviour and oil flow in the subsea lines, amongst other data.

During the initial test phase, the well is expected to produce around 15,000 barrels of oil per day (bopd).

Commercial production from the Sapinho discovery began early in January when the FPSO Cidade de So Paulo started up with a capacity to process 120,000 barrels of oil per day and 176m standard cubic feet of gas per day.

Another FPSO, the Cidade de Ilhabela, which is also known as "FPSO 4", is expected to produce from the Sapinho field and BG Group reported that it was on track to start production in the second half of 2014.

This FPSO has a production capacity of 150,000 barrels of oil per day and 212m standard cubic feet per day of natural gas.

BG Group has a 30% interest in the black, with operator Petrobras holding 45% and Repsol Sinopec Brasil S.A. 25%.

BG Group's share price was up 0.09% to 1,143p at 12:07 on Monday.

MF

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