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.

Advertisement - Article continues below

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.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020