BG Group said yesterday it had signed contracts worth £2.8billion to ramp up its operations at huge oil and gas fields offshore Brazil.
The UK-based oil and gas firm said that, along with its partners, it had agreed deals for infrastructure at five developments in the Santos basin.
The contracts are for eight floating production vessels (FPSOs) and six topside modules, which will be built by a string of Brazilian companies.
The new equipment will help BG increase production at the pre-salt fields, which are believed to hold 6billion barrels of oil equivalent net to BG.
Along with partners Petrobras and Petrogal Brazil, BG said it was also tendering for at least one other FPSO to operate at the Santos basin.
Chief executive Sir Frank Chapman said: “Progress with delivering on the vast potential in our world-class fields offshore Brazil continues apace. The approval for these contract awards, along with the tender process for an additional international FPSO, demonstrates the close alignment between partners on the fast-track, first-phase delivery plans for these outstanding resources.”
BG said it expected production from its Brazil assets to increase to 600,000 barrels of oil equivalent per day by 2020. The firm first bought acreage in the Santos basin in 2000, and deepwater drilling started five years later.