BG Group has received initial approval from the Brazilian Development Bank (BNDES) for up to $1.8 billion of long-term finance to fund part of the company’s interests in the pre-salt Santos Basin, offshore Brazil.

Subject to further approvals and the completion of a final agreement, the funding facility will be allocated to BG Group’s share of local procurement and construction costs for the eight floating production, storage and offload (FPSO) facilities that will be owned by BG Group and its Santos Basin partners.

The 150 000 barrels of oil per day capacity vessels are part of the wider first phase, fast-track development programme in the Santos Basin that will deliver 2.3 million barrels of oil equivalent per day of capacity by 2017.

By the second quarter of 2012, BG Group expects to agree terms with BNDES on finance with a 14 year term.

BG Group Chief Financial Officer Fabio Barbosa said: "We are delighted to have received this initial approval from BNDES for long-term financing of up to $1.8 billion which will add to the diverse funding options already in place as we progress our global growth programme. In particular, the funds will help underpin BG Group’s investments for the successful development of our world-class pre-salt Santos Basin interests. Finally, it also represents the support of one of the key players in the Brazilian government to our partnership with Petrobras and the country."

Tags: BG Group