BG Group 2013 Production Milestones Delivery Remains on Track
BG Group is today hosting a Capital Markets Day for analysts and investors focussing on its world-class exploration business and unique LNG model. In addition, the Group also updates on progress against milestones; operations; and, the delivery of its key growth projects.
All guidance for 2013 remains unchanged. Delivery of all the 2013 production milestones remains on track, with seven already delivered. Most recently, production commenced from Bongkot North Phase 3k in Thailand and Margarita Phase 2 in Bolivia, the latter coming onstream four weeks ahead of schedule. The Itau Phase 2 project, also in Bolivia, is now due onstream in November and the remaining two milestones for the year, including the start-up of Jasmine in the North Sea, are on schedule.
The QCLNG project in Australia remains on schedule, with first gas into the plant expected around the year end. In Brazil, the second and third FPSOs came onstream as planned, and work continues on further well hook-ups.
With regards to 2014 milestones, due to the on-going political and social instability in Egypt, phase 9a of West Delta Deep Marine has suffered delay, resulting in first production commencing later than expected in 2014, provided no further disruption is caused to the programme. In Norway, first production from the Knarr project is likely to be delayed by approximately four months into the second half of 2014. The Group anticipates that the combined impact from Egypt and Norway in 2014 will be a reduction of approximately 30 000 barrels of oil equivalent per day (boed).
In line with the Group’s strategy of pursuing value over volume and the continuing low natural gas price in the USA, BG Group expects to continue to operate fewer rigs in the USA. The Group now expects 2014 volumes from the USA to be reduced by approximately 17 000 boed.
The Group’s 775 000 – 825 000 boed 2015 production guidance remains unchanged, but this is subject to a recovery in natural gas prices in the USA and future events in Egypt.
Exploration and LNG Capital Markets Day
The Exploration update, hosted by Malcolm Brown, will include a detailed review of the Group’s hub exploration opportunities and new basin prospects. It will also give greater detail on how BG Group’s exploration expertise and execution has delivered 15 giant discoveries in 15 years; total net unrisked potential resources of approximately 22 billion barrels of oil equivalent; and, an average three-year reserves replacement of 200%.
The LNG update, hosted by Matt Schatzman and Martin Houston, will give detail on BG Group’s view of a tighter global LNG market stretching into the next decade; will show in greater detail how the Group’s unique LNG model, which is backed by physical assets, delivers value; and, will provide an update on the four LNG growth projects the Group currently has in various stages of development.
Press Release, September 09, 2013