OilVoice - BG Group Annouinces First Commercial Oil Production From Tupi, Santos Basin, Brazil

BG Group Annouinces First Commercial Oil Production From Tupi, Santos Basin, Brazil

Monday, May 04, 2009

BG Group, announces that first commercial oil production has commenced on the Tupi field in the BM-S-11 concession in the Santos Basin, offshore Brazil.

The oil is being flowed to the floating production, storage and off-loading vessel (FPSO), BW Cidade de Sao Vicente.

The Tupi field is operated by Petrobras (NYSE: PBR) with 65% per cent interest, BG Group (LSE: BG.L) holds a 25% interest and Galp Energia (ELI:GALP), a 10% interest.

BG Group and partners will commence drilling a second well on the BM-S-11 concession, Tupi P1, in June. This well will also be tied back to the same FPSO.

The current extended well test on Tupi is expected to last 15 months. Production is expected to peak at around 15 000 barrels per day.

BG Group Chief Executive, Frank Chapman said: "The Santos Basin is now one of the world's most important hydrocarbon regions and will be a major source of global supply for decades to come. We are delighted to participate in the rapid development of the Tupi field and look forward to further close collaboration with our partner Petrobras to realise the full potential of the Santos Basin pre-salt."