BG, Partners Approve Key FPSO Contracts Worth USD 4.5 Bln, Offshore Brazil

BG Group, and partners, have approved the signature of contracts totaling $4.5 billion for the 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 Guará 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%).

[mappress]
Press Release, July 20, 2012