BG unveils new Brazilian oil discovery
Shares in BG Group rose today after the oil and gas explorer announced another crude oil discovery off the coast of Brazil.
BG described the find as material and said it was the sixth success at the deep-water Santos basin since the firm and its partners began drilling three years ago.
It is the latest development in moves which are expected to see Brazil become a leading exporter of crude oil over the next decade.
BG has interests in five areas in the Santos basin, including a 25% stake in the Iara exploration well, which produced the latest find. It is partnered by Brazilian operator Petrobras, with 65%, and Galp Energia which owns 10%.
Petrobras is renowned for its deep-water drilling ability, and is widely regarded as one of the strongest state-run oil companies in the world.
While the potential Brazil find could add significant supplies to a global oil market many see as tight, it would likely take the better part of a decade before any of the oil finds its way to market.
BG chief executive Frank Chapman said: “The exceptional sequence and scale of our drilling success in this area reflects the world class status of the pre-salt Santos Basin, to which BG Group has substantial exposure through our extensive licence interests.”
Shares were more than 2% higher today.
