BG Group, the British oil and gas producer, doubled its estimate for the company's oil and gas reserves in Brazil's oil-rich Santos Basin to six billion barrels following tests that revealed evidence of more hydrocarbons than were previously thought to exist at BG's properties.
London-listed BG co-owns the fields with Portugal's Galp Energia, Repsol YPF (REPYY), Spain's largest oil company, and Petrobras (PBR), Brazil's state-controlled oil giant.
BG said its share of recoverable resources from the fields could represent between four and eight billion barrels and it considers six billion the best estimate, up from an earlier estimate of three billion, Reuters reported. BG said it expects production to rise to more than 2.3 million barrels per day by 2017.
BG said it is also benefiting from lower per-barrel costs due to the newly revised estimates. The company said in a statement it has drilled 29 wells at various Brazilian discoveries, including two in the Lula field, the largest oil discovery in the Americas in three decades.