Last updated at 11:01 AM on 09th September 2009
UK-based oil and gas explorer BG has found a 'supergiant' oil field off the coast of Brazil.
It will provide up to two billion barrels of oil, the company says.
That would mean it would dwarf Tiber, the new oil field BP found last week which contains 500million recoverable barrels' worth.
BG, helped by partners Petrobras and Repsol, is doing well in that particular area of the south Atlantic - called the Santos Basin - where the new Guara oil find lies.
Frank Chapman, BG Group CEO: 'It is clear the Santos Basin will make a very material contribution to the production and cash flow of BG'
Its Tupi field is thought to hold up to 30billion barrels, though how much of that is recoverable is uncertain.
These finds are an indication that Brazil's reserves could potentially rival the Middle Eastern states' fields.
BG chief executive Frank Chapman said: 'The well test results on Guara were excellent and underscore again the outstanding potential in BG Group’s extensive position in the world-class Santos Basin.
'It is clear the Santos Basin will make a very material contribution to the
production and cash flow of BG Group for many years to come.'
BG thinks production rates at Guara could be up to 50,000 barrels a day initially, potentially starting from 2012.
It would come on-stream after Tupi, scheduled to produce 100,000 barrels a day by the end of 2010.
BG shares jumped 18p to 1073p.
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