Santos basin

UK energy company BG Group has received initial approval for up to $1.8bn of long-term finance from the Brazilian Development Bank (BNDES) to fund its interests in the pre-salt Santos Basin, off the coast of Brazil.

Subject to a final agreement, the loan facility will be allocated to BG Group’s share of local procurement and construction costs for eight floating, production, storage and offload platforms.

BG Group chief financial officer Fabio Barbosa said the BNDES funds would add to the financial options already in place and boost to the company’s progress in its global growth programme.

"The funds will help underpin BG Group’s investments for the successful development of our world-class pre-salt Santos Basin interests," said Barbosa. "It also represents the support of one of the key players in the Brazilian Government to our partnership with Petrobras and the country."

Last year, BG increased its estimate for its interest in the Santos Basin field to six billion barrels of oil equivalent (BOE), with the potential of a further upside to eight billion boe.

The vessels, with capacities of 150,000 barrels of oil a day, are part of the wider first phase, fast-track development programme in the Santos Basin, which will deliver a capacity of 2.3 million BOE a day by 2017.

The terms of a 14-year agreement are expected be decided by the second quarter of this year.


Image: The Santos Basin is a 352,260km2 offshore pre-salt basin, located south-east off São Paulo, Brazil. Photo: courtesy of Wikipedia user mmm.