BG Group PLC (BG.LN) said Wednesday it is targeting initial production of 120,000 barrels of oil a day from the Guara field discovered offshore Brazil, which contains between 1.1 billion and 2 billion barrels of oil equivalent of recoverable reserves.

BG Group, field operator Petroleo Brasileiro SA (PBR) and other partner Repsol YPF SA (REP) have agreed a schedule for the installation of a floating production, storage and offloading vessel on Guara, BG said in a statement.

"Partners are fully aligned on continuing work to accelerate the full appraisal and development of these resources," said BG Chief Executive Frank Chapman.

"With activities ongoing and planned at Tupi, Abare-West, Corcovado, Iracema, Iara, Carioca and Parati, it is clear that the Santos Basin pre-salt will make a very material contribution to the production and cash flow of BG Group for many years to come."

Company Web site: http://www.bg-group.com

-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com