UK-based gas company BG Group has announced another new oil discovery in the Santos Basin, offshore Brazil. The Guara exploration well discovered oil within the BM-S-9 concession area.
This is the second discovery within the BM-S-9 concession area where the BG Group holds a 30% interest, along with operator Petrobras with a 45% stake and Repsol YPF Brasil with a 25% interest.
The Guara exploration well is BG Group's fifth consecutive drilling success in the deep water Santos Basin since the group began its drilling program in 2005.
The BG Group has been present in offshore Brazil since 2000 and has interests in seven concessions in the Santos Basin covering a total area of approximately 7,450sqkm.
Frank Chapman, BG Group's CEO, said: "This new discovery extends the very significant potential of this world class hydrocarbon province. Together with our partners, we will now continue to advance our evaluation and development program, targeting initial production from the pre-salt Santos Basin during 2009."