BG Group to invest up to $30 billion in Brazil over the next decade
The BG Group announced it is to invest $30 billion in Brazil in the next decade, as it moves to secure investments in the fast-growing reserves of crude and natural gas in Brazil. Speaking Monday, Reuters quoted BG Group chairman Robert Wilson, stating the firm was planning major investments to tap into growing oil and gas reserves in Latin America’s largest economy.
According to BG Group, Brazil is one of its significant investment locations, as it looks into the future. The London-based energy group said the investments will include $1.5 billion in spending on a new global technology center through 2025. Wilson’s announcement followed a meeting the chairman had with Brazilian President Dilma Rousseff in Brasilia.
In a statement, BG Group noted that the investments will likely mark the firm’s first measure aimed at making Brazil a global provider of technological solutions. In addition, BG will also invest in training in Brazil, said the statement.
According to Reuters, the BG Group has invested $5 billion in Brazil since 1994, including in development of some of the country’s important pre-salt oil finds, in conjunction with Brazilian oil giant Petroleo Brasileiro SA, or Petrobras. These are located under a layer of salt in the Atlantic Ocean seabed, where total reserves are estimated at as much as 50 billion barrels of oil.
The BG Group expects to generate 550,000 barrels of oil equivalent a day in Brazil by 2020, making this one of the group’s most significant production centers. BG is also a majority shareholder in Brazil’s biggest natural gas producer, named Comgas, and a shareholder in the Brazil-Bolivia gas pipeline.
BG Group PLC is a London based integrated natural-gas producer. The firm is a leading player in the global energy market, with dynamic growing business and operations in more than 25 countries over five continents. The firm has operations in all aspects of the energy sector, particularly natural gas, where it has experience across the entire gas chain – from exploration to delivery to the consumer.
Currently, BG Group’s high performing Exploration and Production business remains the core focus of its activities. The increasingly opportunity-rich Liquefied Natural Gas (LNG) segment, together with Transmission and Distribution and Power form the Group’s downstream activities and give it the complete range of skills across the gas chain.
(Invest In Brazil)