Approval of key contracts and additional FPSO unit tender, offshore Brazil
BG Group, and partners, have approved the signature of contracts totaling $4.5 billion forthe construction of the first six topside modules and integration packages for the eight domestic floating production, storage and offloading units (FPSOs) to be used on the Santos Basin pre-salt projects in blocks BM-S-9 and BM-S-11, offshore Brazil.
The contracts to be signed via the Tupi BV and Guarį BV consortia affiliates, represent another milestone in the fast-track, first-phase development of the big five pre-salt discoveries in BM-S-9 and BM-S-11.
The contracts for the two remaining topside modules and integration packages are expected to be awarded within the next 18 months.
In addition to these approvals, BG Group confirms that the BM-S-11 consortium have decided to tender for at least one additional chartered FPSO to be used in areas with different topside requirements.
BG Group 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 Group has a 30% interest in Block BM-S-9 (Petrobras, operator, 45% and Repsol Sinopec Brasil 25%). BG Group has a 25% interest in Block BM-S-11 (Petrobras, operator, 65% and Petrogal Brasil 10%).
Notes to Editors:
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 20 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com
There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer to BG Group's Annual Report and Accounts for the year ended 31 December 2011. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
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