2007 was a transformational year for BG Group in Brazil, with significant drilling success on two blocks – Tupi and Carioca.
In 2006, BG Group announced the Tupi oil discovery in Block BM-S-11 (BG Group 25%) in the Santos Basin, offshore Brazil. During 2007, an appraisal well, Tupi Sul, was drilled that confirmed that Tupi is a large structure with significant reserves potential. Tupi may be the largest discovery worldwide since Kashagan with gross hydrocarbons initially in place (HIIP) estimated to be between 12 and 30 or more billion boe.
During 2007, BG Group and partners also announced an oil discovery in Block BM-S-9 called Carioca (BG Group 30%). This follows the discovery of oil on the Parati prospect in Block BM-S-10 (BG Group 25%) in 2006.
Drilling offshore Brazil has established a world class field and has been a notable success for BG Group. The Group has the second largest exposure to the play in the Santos Basin area, which covers an extensive area offshore Brazil.
(a) Total operating profit includes the Group’s share of pre-tax operating profits in joint ventures and associates. (b) Includes other operating income of £(24) million (2006 £26 million) in the E&P segment, £61 million (2006 £108 million) in the LNG segment and £2 million (2006 £nil) in the Power segment. (c) Includes the Group’s share in joint ventures and associates.
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