BG to Boost Oil Reserves on Brazil Discoveries, Exploration

By Eduard Gismatullin

Nov. 4 (Bloomberg) -- BG Group Plc, the U.K.'s third- largest gas producer, said it expects its oil and gas reserves to rise on discoveries in Brazil and exploration progress in some other counties.

The company plans to increase is proved and probable reserves by more than 2 billion barrels of oil equivalent, or about 60 percent, this year, the Reading, England-based BG said today in a statement distributed by the Regulatory News Service. Total reserves and resources will gain by about 3 billion barrels of oil equivalent, or 30 percent, this year.

It had ``excellent exploration and appraisal results with success in eight countries so far in 2008,'' BG said today. ``Increasing resource base underpins potential to sustain'' a 6 percent to 8 percent annual growth rate in exploration and production to 2020.

Together with Petroleo Brasileiro SA and Portugal's Galp Energia SGPS SA, BG reported on Sept. 11 the discovery of ``another first-class'' oil field in the Santos Basin offshore Brazil. The Iara deposit is to the north of BG's Tupi field, whose 5 billion to 8 billion barrels of oil makes it the largest find in the Americas since 1976.

BG's net share of reserves and resources in Brazil totals more than 3 billion barrels of oil equivalent, the company said.

BG will hold a Webcast earnings presentation at 12 p.m. London time.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net