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38

BG To Invest $4 bln In Brazilian Tupi Area

UK gas major BG Group plans to invest roughly $4 billion in Brazilian Tupi pre-salt area over the next three years

BG and partners are due to perform a pilot project in Tupi at the end of 2010, when production in the area is expected to reach 100,000 b/d.

"This investment is only the first step in a large amount to be invested in the pre-salt," press reports quoted Julio Bueno, Rio de Janeiro state economic development secretary, as saying after he met with BG CEO Frank Chapman and BG's Brazil director Armando Henriques.

"The proceeds will represent a quarter of the total investments in the Tupi area," Bueno added.

Brazil's federal energy company Petrobras operates Tupi with a 65 percent stake. BG has 25 percent and Portugal's state oil company Petrogal the remaining 10 percent.

Petrobras estimates Tupi holds 5 billion to 8 billion barrels of recoverable oil and gas.

BG also own stakes in five other pre-salt fields in partnership with Petrobras.

Author: Ksenia Kochneva