• Wednesday, 16 May, 2012

BG Group to invest $30bn in Brazil

BG Group: $30bn Brazil inves

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By News Wires

 14 March 2011 21:27 GMT

BG Group will invest up to $30 billion in Brazil over the next decade, looking to tap fast-growing reserves of crude and natural gas, Chairman Sir Robert Wilson said today.



The London-based oil and gas group, which recently named Brazil-born executive Fabio Barbosa as chief executive, will spend $1.5 billion on a technology center through 2025, as "a first step towards making Brazil a provider of technological solutions globally," BG said in a statement.

Wilson, speaking to reporters in Brasilia after visiting Brazilian President Dilma Rousseff, said he expects that about 30% of BG's revenues will come from Brazil by the end of the decade, Reuters reported.

BG has focused on Brazil's so-called pre-salt region, home to the largest oil discovery in the Americas in more than 30 years.

Brazil, poised to become a large crude exporter with massive offshore oil finds, is an "important part of the group's growth strategy," Wilson noted.

His remarks come the same day that Portuguese rival Galp announced a plan to raise $2.8 billion to bolster its Brazilian unit.

Both companies are partners of state oil company Petrobras in the pre-salt -- an area believed to hold more than 50 billion barrels of oil buried as much as 7000 kilometres (4350 miles) beneath the ocean's surface under a thick layer of salt.

BG expects to produce 550,000 barrels of oil per day by 2020.

The UK company operates in another 24 countries.

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