UK offers $1 billion credit line for deepwater South Atlantic drilling
BY SARAH KENT
LONDON -- The U.K. government has offered a $1 billion to credit line to help drill for oil and natural gas in the South Atlantic, The Guardian newspaper reports Thursday. It is expected that BG Group is likely to be one of the main British beneficiaries of the credit line. BG has placed ultra-deepwater drilling off the coast of Brazil at the heart of its ambitious strategy and it is actively developing many sites in partnership with Petrobras. A BG spokesman said the company had not yet received any UK financing for its projects in Brazil.
The funding was revealed in the annual report of Vince Cable's export credit guarantee department, despite a warning from the department's own advisors that the deep-sea projects carries significant environmental risks, the paper writes.
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