BG Group sees Brazil project nearing production

published 30 December 2011

BG Group, the gas company, has seen its share price rise 1.6% this morning on news that one of its assets in Brazil is nearing production.

The British firm owns 30% of block "BM-S-9" in the Santos Basin off the coast of Brazil.

Its partner in the project, Petroleo Brasileiro, has submitted a "Declaration of Commerciality" (DoC) with the relevant authorities.

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BG Group says this DoC "marks the start of the production phase for the Guar field".

The two partners are looking to name the block Sapinho. They also claim it has "excellent reservoirs with good quality 30 API oil".

Over 2011 BG Group is 5.45% up. Over the last five years the stock has doubled in value.