BG Group announced that it has signed a Sale and Purchase Agreement with El Paso Corporation for the acquisition by BG of an exploration license in the Santos Basin, 140 kilometres offshore Sao Paulo, Brazil.
BG Group will obtain 100 per cent ownership and operatorship of block BM-S-13 for a cash consideration of US$23.5 million, subject to Agência Nacional do Petroleo approval. BM-S-13 is in the gas prone area of the Santos Basin and is on trend with the Merluza gas field (Petrobras), the recent Luana gas discovery (2003, El Paso) and the giant Mexilhio gas discovery (2003, Petrobras) in block BS-400.
Speaking, Rick Waddell, BG Group Managing Director and Executive Vice President South America, said: “BG plans to explore for gas in BM-S-13 to supply the rapidly growing Brazilian market.”
BG Group is already a partner in the Petrobras-operated BM-S-9, 10 and 11 deepwater exploration blocks in the Santos Basin with 20% to 30% interests. BG Group also owns 60.1% of Comgas, which is Brazil’s largest gas distribution company, transporting gas to industrial, natural gas vehicle, residential and commercial customers. At the end of 2003, Comgas was serving approximately 416,000 customers in the Sao Paulo area (378,000 in 2002).