BG Group

Declaration of Commerciality for Guará area, offshore Brazil

Press release   •   Dec 30, 2011 11:06 GMT

BG Group today announced that its partner Petroleo Brasileiro S.A., as the operator of block BM-S-9 in the pre-salt Santos Basin offshore Brazil, has submitted a Declaration of Commerciality (DoC) with the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) for the accumulations of light oil and gas in the Guará area.

The DoC marks the start of the production phase for the Guará field and is another significant milestone in the development of BG Group's large and high quality discoveries in the pre-salt Santos Basin.

In the proposal, filed with the regulatory agency 12 months ahead of the ultimate deadline, the consortium suggests that the field, comprising excellent reservoirs with good quality 30 degrees API oil, be named Sapinhoá. The DoC notification to the ANP also includes the operator's estimates of total recoverable volumes associated with the initial stage of development.

The DoC, submitted following completion of an exploration and appraisal program that started in 2008, was accompanied by the Final Report on the Evaluation Plan. The Development Plan for the field will be submitted to ANP in February 2012.

Four wells were drilled in the area, including one well designed for reservoir data acquisition. Drill stem tests were performed on three of the wells. In addition, a five-month extended well test (EWT) was carried out on the discovery well, confirming the excellent productivity of the Guará reservoir. Data gathered from this EWT will assist in the optimisation of the field development plan.

BG Group has a 30% interest in the BM-S-9 concession, offshore Brazil (Petrobras, operator 45%, Repsol Sinopec Brasil 25%).