BG Group kicks off production offshore Brazil

Production has started on time and on budget at BG Group's Sapinhoá field offshore Brazil, the natural gas and oil explorer announced on Tuesday morning.

Production has started on time and on budget at BG Group's Sapinho field offshore Brazil, the natural gas and oil explorer announced on Tuesday morning.

The field, located in block BM-S-9, is one of BG's "big five" discoveries in the pre-salt Santos Basin.

BG Group, which owns a 30% interest in the block, said that the oil that is being produced from Sapinho is of high quality and of medium density, with an API (the relative density of petroleum compared with water) of 30 degrees. Meanwhile, gas not used for reinjection is to be transferred through the Lula-Sapinho-Mexilho pipeline to an onshore treatment plant.

"The Sapinho field enters commercial production only four-and-a-half years after its discovery, a further demonstration of the excellent progress we are making in developing our world-class discoveries in the Santos Basin," said BG Chief Executive Officer Chris Finlayson.

The company said that the Cidade de So Paulo floating production, storage and offloading (FPSO) vessel is the first unit deployed on Sapinho and the second of 15 FPSO vessels planned by its consortium partners in blocks BM-S-9 and BM-S-11 in the first phase of development of the pre-salt Santos Basin.

"Development of the FPSO fleet continues to schedule, with costs tracking on or under budget," the firm said.

The Cidade de So Paulo has the capacity to process 120,000 barrels of oil per day and 176 million standard cubic feet of gas per day.

Another 10 wells are expected to be connected to the Cidade de So Paulo in the coming months, with peak production estimated for the first half of 2014.

Petrleo Brasileiro, as operator, owns a 45% stake in block BM-S-9, while Repsol Sinopec Brasil holds the remaining 25% interest.

Recommended

Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall to around £2,000, based on average typical use, for the first time since 2022. We have all the details.
31 Mar 2023
Best areas for buy-to-let in the UK
Buy to let

Best areas for buy-to-let in the UK

If you’re thinking of getting a buy-to-let property you’ll want to know the areas in the country with the highest rental yields
29 Mar 2023
The best one-year fixed savings accounts - March 2023
Savings

The best one-year fixed savings accounts - March 2023

Earn over 4% on one-year fixed savings accounts.
30 Mar 2023