BG Group (BG.L, BRGYY.PK) announced the start of commercial production from a third floating production, storage and offloading, or FPSO, vessel on the Group's discoveries offshore Brazil in the pre-salt Santos Basin. The Cidade de Paraty FPSO is the second unit deployed on the giant Lula discovery. The company said the start of production from the FPSO vessel was on time and on budget.
BG Group Chief Executive Chris Finlayson said: ""We now have three FPSO vessels on-stream in the Santos Basin, two of which have started production this year alone. Looking ahead, the remaining 12 FPSOs committed for the first phase development programme are on schedule, with costs tracking on or under budget. The next two dedicated FPSOs in the programme will start production during 2014."
BG Group said the development programme for its offshore interests in Brazil is going very well and expects this first phase to deliver some 500 thousand barrels of oil equivalent per day net to BG Group at current equity levels by 2020.
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