(Corrects company name in penultimate paragraph.)
May 16 (Bloomberg) -- BG Group Plc, the U.K.’s third-largest energy producer, is stepping up exploration off Brazil as part of a plan to add as much as 1 billion barrels of global resources a year.
BG agreed to pay $200 million for 10 exploration licenses in the Barreirinhas Basin at the latest auction in Brazil, said Kim Blomley, a spokesman for the Reading, England-based company. It owns six of them and has a partnership with Petroleo Brasileiro SA and Galp Energia SGPS SA regarding four blocks off the northern coastline.
“It’s similar to Africa’s Ghana Cretaceous play” where Tullow Oil Plc is producing at the Jubilee field, Blomley said by phone. “If you look at the tectonic plates you can see how they connect.”
Tullow has been drilling on both sides of the Atlantic Ocean in an effort to prove that African and South American fields mirror each other from when the continents split apart from Gondwanaland millions of years ago.
BG plans to spend as much as $1.8 billion a year through 2015 on exploration to boost resources, Chief Executive Officer Chris Finlayson said May 14.
Together with Petrobras and Galp, BG has discovered Brazil’s largest oil fields, Lula and Iara, at the BM-S-11 block in the pre-salt geology in the Santos Basin. BG is now examining plans to expand development of the two fields, Finlayson said.
The partners aim to repeat the joint venture’s success at the new blocks, Blomley said. “It’s a new basin.”
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