BG sees up to 8 billion boe net in Santos presalt

By OGJ editors
HOUSTON, June 30
– BG Group said its presalt holdings in the Santos basin off Brazil contain a net potential of 6 billion bbl of oil equivalent mean total reserves and resources, double the group’s early 2010 best estimate.

The company estimated a 90% chance that its interests contain at least 4 billion boe and a 10% chance they could hold as much as 8 billion boe net.

BG Group’s Santos basin presalt interests include:

• A 30% interest in the BM-S-9 block containing the Guara, Carioca, Abare, and Iguacu discoveries and prospects.
• A 25% interest in BM-S- 10 containing the Parati and Macunaima discoveries and prospects.
• A 25% interest in BM-S-11 with the Lula, Cernambi, and Iara discoveries and prospects.
• A 20% interest in BM-S-50 containing prospects including Sagittario.
• A 40% interest in BM-S-52 including the Corcovado discovery.

The new estimate results from an internal analysis based on probabilistic modeling that took in a wealth of drilling, appraisal, and other data that BG Group has gained or developed in relation to those interests, including:

• A total of 29 wells drilled in the existing discoveries; two wells drilled on Lula since November 2010 proving particularly important in delineating the flanks of the field. Other wells have demonstrated excellent connectivity in the reservoir;
• A total of 19 drillstem tests on current discoveries;
• The shooting and analysis of more than 14,400 sq km of 3D seismic;
• Full analysis of a completed extended well test (EWT) on Lula Sul and early results from the Guara EWT indicating the very large hydrocarbon volumes connected to each wells;
• Production from the first permanent floating production, storage, and offloading vessel on Lula that started up in October 2010;
• Development plans that include enhanced recovery processes to improve ultimate recovery factors for these giant fields; and
• Cost optimization, potential debottlenecking of facilities, and greater well productivity enhancing the economic viability of later phases of development.

BG Group Chief Executive Sir Frank Chapman said: "The doubling of our estimated Santos basin mean reserves and resources is clearly significant and demonstrates the continued rapid evolution of our understanding of these enormous discoveries.

“Robust economics and solid progress with the fast-track development program will see gross installed production capacity rising steadily to reach more than 2.3 million boe/d by 2017. I believe this-- alongside progress with major ventures in Australia, the US and across our global portfolio--will transform the scope, scale, and value of BG Group."

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