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BG Group signed a joint venture agreement with Brazil's Petrobras to vet proposals to develop a floating liquefied natural gas vessel in the Santos Basin.
BG Group announced it signed a joint venture agreement with Petrobras to focus on developing an FLNG vessel to advance commercial operations for natural gas reserves in the Santos Basin off the coast of Brazil.
The company said it expects the capacity of the FLNG vessel to process 494 million cubic feet of associated gas per day. LNG produced through the operation would go to either Petrobras facilities for Brazilian consumption or for global exports.
Spanish energy giant Repsol along with its BG Group and Petrobras partners concluded production tests at the offshore Guara field in the Santos Basin. Estimated recoverable reserves of light crude and gas are between 1.1 billion and 2 billion barrels of oil equivalent.
Hydrocarbon traces in several wells associated with the Carioca and Guara fields make offshore Brazil one of the largest sources of new hydrocarbon reserves in the world.
BG and Petrobras said they would award front-end engineering and design contracts and final investment decisions on the FLNG vessel by 2011.
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