BG Doubles Estimate Of Its Brazilian Reserves

BG Group more than doubled the estimate of its oil and gas reserves in Brazil yesterday, sending the resources group's stock soaring nearly 5 percent.

The Santos Basin off the coast of Rio de Janeiro has long been a jewel in BG's crown, after an unprecedented string of exploration successes in its "pre-salt" floor in recent years.

BG is now estimating that its holdings have a mean net potential of 6 billion barrels of oil equivalent (boe) in the region, twice the 3 billion boe estimated in the company's most recent strategy presentation, in February.

BG's CEO Frank Chapman described the upgrade as "significant".

"The doubling of our estimated Santos Basin mean reserves and resources demonstrates the continued rapid evolution of our understanding of these enormous discoveries," he said.

Under its fast-track development program, BG's production capacity in the region is set to grow steadily to more than 2.3 million boe per day 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," Frank said.

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