Investors in BG Group were pleased to receive news that the reserves estimate for their three oil fields in Brazil was being increased. The additional reserves are expected to be worth an additional 2.5 billion GBP to the British exploration company. Not surprisingly stock shares for the company saw an increase Tuesday by 41.5p to 1,252p.
The three fields receiving the estimated increase to reserves are BG’s Tupi, Iracema and Guara oil fields in the Santos Basin, which is off the coast of Brazil. BG Group holds a 30 per cent share holding in the Guara project and 20 per cent in the other two. Reports from an independent firm estimates the three oil fields to hold 10.8 billion barrels of oil equivalent compared to the previous estimate of 8.1 billion barrels. That is an increase of 34 per cent.
BG has had good news reported for company projects. Last week progress was reported on the Tupi oil field with information released that the company had established its first permanent floating production, storage and offloading vessel. Production is expected to be 100,000 barrels of oil per day and up to 177 million standard cubic feet of gas.
BG’s chief executive, Frank Chapman, said: “We have made significant progress in the delivery of our growth plans for the decade ahead. In Brazil, we have brought on stream the first Tupi permanent facilities and we have announced a very significant resources upgrade on the Tupi, Iracema and Guara fields.”
Another progressive report from BG recently was the approval to proceed on the Queensland Curtis Liquified Natural Gas Project from the Australian federal and state governments. This involves the construction of a 9.5 billion GBP plant that will be the first in the world to produce liquified natural gas from coal-bed methane. Sales contracts have already been secured for Chile, China, Japan and Singapore with shipment to begin in 2014.