download - BG Group

Data Book 

2009 

A global portfolio

Our vision 

Natural gas is our business. 

We are a rapidly growing company, with 

expertise throughout the gas chain. 

We are a leading natural gas company in the 

global energy market – operating responsibly 

and delivering value to our shareholders. 

We do this by connecting competitively priced 

resources to high-value markets. 

Cover image 

E&P reserves and resources (mmboe) 

15 000 

12 000 

9 000 

6 000 

3 000 

0 

8 017 

2006 

Probable reserves (a) 

SEC proved reserves (a) 

Risked exploration (a) 

Un-booked resources (a) 

Total operating profit (b)(c) 

(£m) 

6 000 

5 000 

4 000 

3 000 

2 000 

1 000 

0 

330 

E&P 

688 

10 046 

2007 

CAGR 36% 1999-2008 

833 

888 

1 287 

1 520 

2 389 

3 103 

13 126 

2008 

99 00 01 02 03 04 05 06 07 08 

T&D, LNG, Power and Other 

For more information visit 

www.bg-group.com/investors 

3 248 

5 355 

Oil and gas production 2008 

E&P production volumes 

(kboed) 

700 

600 

500 

400 

300 

200 

100 

0 

240 

280 

CAGR 11% 1999-2008 

298 

373 

428 

457 

504 

Total oil and 

gas production % 

UK 27 

Egypt 25 

Kazakhstan 18 

Trinidad and Tobago 11 

India 7 

Tunisia 5 

Thailand 4 

Bolivia 3 

Canada

Contents 

Europe and Central Asia 

Africa, Middle East and Asia 

Americas and Global LNG 

Australia 

Statistical supplement 

UK Upstream 4 

UK Downstream 7 

Kazakhstan 8 

Norway 10 

Italy 11 

Egypt 12 

Tunisia 15 

India 16 

Thailand 18 

Nigeria 19 

Oman 20 

Algeria 21 

Libya 21 

Trinidad and Tobago 25 

United States of America 

and Global LNG 28 

Brazil 30 

Bolivia 33 

Australia 36 

Introduction and legal notices 39 

Social and environment data 40 

Group financial data 42 

Exploration and Production (E&P) 45 

Liquefied Natural Gas (LNG) 51 

Transmission and Distribution (T&D) 53 

Power Generation (Power) 53 

Corporate information 54 

Definitions 56 

China 22 

Singapore 22 

Philippines 23 

Malaysia 23 

Areas of Palestinian 

Authority and Israel 24 

Madagascar 24 

Chile 34 

Uruguay 34 

Argentina 34 

Canada 35 

Alaska 35 

BG Group Data Book 2009 

1

2 

Group at a glance 

Our business 

BG Group is engaged in the exploration, 

development, production, transmission, 

distribution and supply of natural gas and 

oil. The Group also has a number of power 

generation interests. 

BG Group’s operations are organised on a 

regional basis and BG Advance supports the 

regions in achieving technical excellence and 

building long-term competitive advantage. 

www.bg-group.com 

Exploration and Production (E&P) 

BG Group explores for, develops, produces 

and markets gas and oil around the world. 

The Group uses its technical, commercial 

and gas chain skills to deliver projects at 

competitive cost and to maximise the 

sales value of its hydrocarbons. 

Liquefied Natural Gas (LNG) 

BG Group’s LNG activities combine 

liquefaction and regasification facilities 

with the purchasing, shipping, 

marketing and sale of LNG. 

Transmission and Distribution (T&D) 

BG Group’s T&D activities are focused 

in fast-growing markets, developing 

both markets and infrastructure for 

the delivery of gas. 

Power Generation (Power) 

BG Group develops, owns and operates 

gas-fired power generation plants. 

Total operating profit 

£3 512m 2008 

£2 387m 2007 


£1 585m 2008 

£521m 2007 


£160m 2008 

£247m 2007 


£118m 2008 

£130m 2007 

Alaska 

Business Performance – see page 39 for a description. 

Total operating profit includes BG Group’s share of pre-tax results from joint ventures and associates. 

Canada 

USA 

Bolivia 

Chile 


Trinidad and 

Tobago 

Uruguay 

Key activities 

• Gas producer in Trinidad and Tobago, supplying both 

the domestic market and exporting gas as LNG 

• Appraising major oil discoveries and continuing 

exploration activity in Brazil 

• Interests in shale gas in Louisiana and Texas and in 

complementary gas-gathering and transportation assets 

• Exploration assets in Alaska and Canada 

• Regasification capacity in the USA and Chile 

• Major global LNG marketer 

• Control of Comgás, Brazil’s largest gas distribution company 

BG Advance 

Argentina 


• Group Technical functions: Exploration, Petroleum Engineering 

and Developments, Engineering Projects, Operations and 

Well Engineering, Commercial and Assurance, Strategy 

and Portfolio Development, IT and Technology 

• Promoting health, safety, security and environment (HSSE), 

and asset integrity across the Group 

• Coordination and development of BG Group strategy 

• Longer-term planning and development of technical 

and commercial capabilities 

• Managing the Group’s technical assurance processes 

• Optimising deployment of people across the Group 

Brazil

Norway 

UK 

Italy 

Algeria Libya 

Tunisia 

Egypt 

Nigeria 

Areas of PA 

Oman 

Kazakhstan 

Madagascar 

India 


• Interests in more than 15 UK Continental Shelf fields 

• Joint operator of the super-giant Karachaganak oil 

and gas condensate field in Kazakhstan 

• Exploration portfolio in Norway of 20 licences; 15 as operator 

• Power generation interests in the UK and Italy 

• Dragon LNG terminal in the UK and developing regasification 

terminal in Italy 

• Gas marketing and pipeline capacity in the UK 


• Queensland Gas Company Limited, a leading 

coal seam gas company 

• Total reserves and resources of more than 13 tcf 

• Developing two-train 7.4 mtpa LNG project on Curtis Island, 

near Gladstone 

• Gas supplier to the domestic market 

• Power generation fuelled by coal seam gas 

China 

Thailand 

Malaysia 

Philippines 

Australia 

Europe and Central Asia Africa, Middle East and Asia 

Australia 

† Exclusive right to supply only. 

Singapore † 


• Major gas supplier to the Egyptian and Tunisian markets 

• Exporting gas as LNG from Egypt 

• Gas production in India and Thailand 

• Exploration acreage and/or discovered reserves located in 

Algeria, Areas of Palestinian Authority, China, Egypt, Libya, 

Madagascar, Nigeria, Oman, Thailand and Tunisia 

• Interests in two Indian gas distribution companies 

• Power generation activities in Malaysia and the Philippines 

Key 

Exploration 

and Production 

Liquefied 

Natural Gas 

Transmission 

and Distribution 

Power 

Generation 

Europe and 

Central Asia 

Americas and 

Global LNG 

Africa, Middle 

East and Asia 

Australia 

3 

BG Group Data Book 2009

4 

Europe and Central Asia 

UK Upstream 

BG Group has one of the most significant exploration and 

production businesses in the offshore waters of the UK. 

BG Group’s interests are focused on the central North Sea 

and the Group employs a hub strategy to most effectively 

maximise value from its UK portfolio. 

Areas of operation 

FLOTTA 

Atlantic 

Blake 

Cromarty 

Buzzard 


ST. FERGUS 

ABERDEEN 

Key to operations 

Gas 

BG Group- 

Oil 

operated 

block 

Gas pipeline BG Group 

Oil pipeline non-operated 

block 

0 100km 

IRISH SEA 

FLOTTA 

NORTH SEA 

TEESSIDE 

ST. FERGUS 

ABERDEEN 

UK 

READING 

New information 

LONDON 

FLAGS 

BACTON 

• Asset exchange with BP, which 

concentrates operations in the 

central North Sea 

Key dates 

WAGES 

FRIGG 

SAGE 

BRITANNIA 

FORTIES 

FULMAR 

NORTH SEA 

1993 Everest and Lomond onstream 

1997 Armada and J-Block first production 

Glenelg 

Franklin 

Jasmine 

Judy/Joanne 

LANGELED 

CATS 

SEAL 

Maria 

Armada 

Seymour 

Everest 

NORPIPE 

Lomond 

Elgin 

Erskine 

Jackdaw 

Jade 

2001 Blake and Elgin/Franklin 

first production 

2002 Jade first production 

2003 Seymour first gas 

2006 Atlantic/Cromarty first gas 

2007 Buzzard, West Franklin and 

Maria first production 

UK: BG Group 3 year production 

Total production mmboe (net) 

80 

60 

40 

20 

0 

Oil & liquids 

Gas 

55.6 

2006 

59.2 

2007 

BG Group believes there is significant 

remaining potential in the UK Continental 

Shelf (UKCS). The Group is actively pursuing 

opportunities around its infrastructure 

hubs by identifying nearby exploration 

prospectivity and third-party business. 

In December 2008, BG Group announced 

an asset exchange with BP which completed 

on 31 August 2009. BG Group acquired BP’s 

equity in the Everest, Lomond and Armada 

fields and part of BP’s equity in the Erskine 

field, all located in the UK central North Sea. 

In return, BG Group transferred its equity 

interests and operatorship in fields in the 

southern North Sea to BP. This transaction 

concentrates BG Group’s position in the 

central North Sea and gives the Group 

control of key infrastructure hubs. 

As part of the transaction, BG Group took 

over operatorship of Everest and Lomond. 

BG Group also operates the Armada 

(Fleming, Drake and Hawkins), Maria and 

Seymour fields in the central North Sea; 

and the Blake and Atlantic fields in the 

Outer Moray Firth. In addition, BG Group 

retains significant non-operated holdings 

in the J-Block and Elgin/Franklin areas in 

the central North Sea, and the Buzzard 

field in the Outer Moray Firth. These are 

operated by ConocoPhillips, Total and 

Nexen respectively. 

60.8 

2008 

In addition to the core production hubs and 

exploration and appraisal interests on the 

UKCS, BG Group has a 51.18% interest in the 

Central Area Transmission System (CATS) 

offshore pipeline and onshore processing 

facilities, a 7.86% stake in the Shearwater 

Elgin Area Line (SEAL), and a 15.98% interest in 

the SEAL Interconnector Link (SILK) pipeline.

OPERATED ASSETS 

Armada Hub Area 

The BG Group-operated Armada gas 

condensate fields (Fleming, Drake and 

Hawkins) extend over 31 square kilometres 

and span five exploration blocks. Production 

began in 1997. Following the asset swap with 

BP, BG Group now owns 76.42% in Armada. 

The SW Seymour area of the BG Groupoperated 

Seymour field (BG Group 57%) was 

appraised successfully and drilled from the 

Armada platform, with first production in 

2003. A second well in the NW Seymour area 

was brought into production in 2006. Plans 

for further development are under review. 

In 2003, BG Group assumed operatorship, 

on behalf of a consortium with Total and 

Centrica, of the fallow Maria 16/29a-11Y 

discovery. Appraisal drilling identified and 

confirmed the viability of the discovery. 

Sidetrack drilling then confirmed an 

extension into the adjacent Maria Horst 

prospect. Maria (BG Group 36%) was 

developed via two sub-sea wells and 

tied back to the Armada platform, with 

production beginning in December 2007. 

The commingled stream of Armada, 

Seymour and Maria gas is exported via 

the CATS pipeline to Teesside. Liquids are 

transported through the Forties Pipeline 

System (Forties) to the Kinneil processing 

plant at Grangemouth. In 2008, a combined 

peak rate of 227 mmscfd and 17 544 bopd 

was achieved. 

The Rev field, a third-party two-well sub-sea 

development in the Norwegian sector of the 

North Sea, has been tied back to the Armada 

platform. Production began in January 2009. 

BG Group receives a tariff payment for 

processing this production. 

Everest and Lomond 

On 31 August 2009, BG Group took over 

operatorship of the Everest field, and 

increased its interest to 80.46%. Everest 

is situated in the central North Sea and 

first production began in 1993. An average 

production rate of 91 mmscfd and 2 783 bopd 

was achieved in 2008. Gas is exported via the 

CATS pipeline. Produced liquids go via Forties 

to Kinneil. 

On 31 August 2009, BG Group took over 

operatorship of the Lomond field, and 

increased its equity stake to 83.33%. Lomond 

is situated in the central North Sea and 

first production began in 1993. An average 

production rate of 92 mmscfd and 1 702 bopd 

was achieved in 2008. In addition, production 

from the Erskine field is processed on the 

Lomond facility. Gas is exported via the 

CATS pipeline. Produced liquids go via 

Forties to Kinneil. 

Everest and Lomond were developed in 

parallel. From October 2008, BG Group’s 

equity gas from the two fields has been 

sold uncontracted into the UK market. 

Atlantic/Cromarty 

BG Group has a 75% interest in the Atlantic 

field in the Outer Moray Firth, and 10% in 

the adjacent Cromarty field. The fields have 

been developed with three wells and a long 

sub-sea multi-phase flow pipeline, the 

Western Area Gas Evacuation System 

(WAGES), tied into the Scottish Area Gas 

Evacuation (SAGE) terminal at St Fergus. 

Production began in 2006. As expected, 

wells have been on intermittent production 

in 2009 and plans for end-of-life operations 

are in progress. 

Blake 

BG Group has a 44% interest in, and is 

operator of, the Blake field, which is located 

100 kilometres from Aberdeen in the Outer 

Moray Firth. Production started in 2001. 

The field was developed in two phases. The 

first phase was the Blake Channel, which 

is a sub-sea development of six producing 

wells and two water-injection wells, tied 

back to an existing floating production, 

storage and off-loading (FPSO) vessel located 

over the Ross field some 9.5 kilometres away. 

Development of the second phase, Blake 

Flank, was completed and production 

commenced from two wells in 2003. 

This sub-sea development is tied back 

through the existing Blake facilities to 

the Ross FPSO vessel. An average total field 

rate of 16 225 bopd was achieved in 2008. 

Jackdaw 

In 2008, exploration and appraisal work 

continued on the Jackdaw discovery in 

the central North Sea. Jackdaw (BG Groupoperated) 

straddles Blocks 30/2a (pre-tertiary, 

BG Group 44.1%) and 30/2c (BG Group 35%). 

Results from the exploration and appraisal 

programme wells are being utilised to 

evaluate potential development concepts. 

Partners Armada (%) 

BG Group (operator) 76.42 

Total 12.53 

Centrica 11.05 

Partners Everest (%) 


Hess 18.67 

Total 0.87 

Partners Lomond (%) 


Hess 16.67 


5 

EUROPE AND CENTRAL ASIA

6 Europe and Central Asia 

UK Upstream continued 

Partners Erskine (%) 

BG Group 32.00 

Chevron (operator) 50.00 

BP 18.00 

Partners Buzzard (%) 


Nexen (operator) 43.21 

PetroCanada 29.89 

Edinburgh Oil and Gas Limited 5.16 

Figures rounded to 2 decimal places. 

NON-OPERATED ASSETS 

Elgin/Franklin area 

The Elgin/Franklin high-pressure/ 

high-temperature (HPHT) gas condensate 

fields are located in the central North Sea. 

The fields began production in 2001. A total 

of 16 wells, seven from Elgin and nine from 

the Franklin platforms (including the two 

wells from the West Franklin field), produced 

at an average rate of 388 mmscfd and 

73 000 bopd during 2008. Total operates 

the Elgin/Franklin fields in which BG Group 

has a 14.11% interest. 

A separate field, West Franklin (BG Group 

14.11%), started production in 2007 and a 

further well was brought into production in 

2008. In 2008, the West Franklin B appraisal 

well identified additional potential reserves. 

Ultimate resources have been significantly 

increased and are now estimated at close 

to 200 mmboe with additional drilling. 

The HPHT Glenelg field (BG Group 14.7%), in 

Block 29/4d, started production in 2006. The 


field has been developed through a single 

high-departure well drilled from the Elgin 

wellhead platform. 

Elgin/Franklin, West Franklin and Glenelg 

gas is exported through SEAL, a common 

export pipeline shared with the nearby 

Shell-operated Shearwater field, to the 

onshore gas reception facilities at Bacton 

in Norfolk. Liquids are exported through 

Forties to the Kinneil processing plant 

at Grangemouth. 

J-Block and Jade Area 

The ConocoPhillips-operated Judy/Joanne 

(J-Block) (gas condensate/oil) and Jade (gas 

condensate) fields are located in the central 

North Sea. BG Group has a 30.5% interest in 

J-Block and 35% in Jade. Production began 

from J-Block in 1997 and from Jade in 2002. 

The Joanne field is a sub-sea development 

tied back to the manned Judy platform 

through two 5.5 kilometre pipelines. The 

Judy/Joanne fields currently produce from 

16 wells. Jade was developed using a normally 

unmanned wellhead platform and currently 

produces from seven wells. Production from 

Jade is exported via a sub-sea pipeline to the 

Judy platform where it is commingled and 

processed with Judy and Joanne production. 

The combined gas stream is then exported 

via the CATS pipeline to Teesside and the 

combined liquids stream exported via Norpipe 

to the Norsea oil terminal at Teesside. The 

2008 combined average production rate from 

the fields was 336 mmscfd and 26 900 bopd. 

In 2008, exploration and appraisal work 

continued on the Jasmine discovery, 

9 kilometres east of the Judy platform. 

The Jasmine discovery straddles Blocks 30/6 

and 30/7a (BG Group 30.5%). The Jasmine 

development will comprise a wellhead 

platform, with separate bridge-linked 

accommodation, tied back via a multi-phase 

pipeline and a new riser platform to the 

existing Judy production facilities. First 

production is anticipated in 2012. 

Buzzard 

BG Group has a 21.73% interest in the 

Nexen-operated Buzzard oil field, located 

in the Outer Moray Firth, 100 kilometres 

north-east of Aberdeen. The field was 

discovered in 2001 and came onstream 

in 2007. 

The facilities consist of a complex of three 

bridge-linked platforms, with oil export via 

Forties and gas export via the Frigg system. 

With total estimated ultimate resources 

exceeding 700 mmboe, the field is one of the 

largest discovered in the UKCS in more than 

ten years. 2008 average production was 

207 000 boed gross. In early 2008, BG Group 

and partners sanctioned the Buzzard 

Enhancement Project, an additional 

processing platform to remove hydrogen 

sulphide and extend plateau production. 

This is due to be installed in 2010. 

Erskine 

Following the asset swap with BP, BG Group 

owns a 32% interest in the Chevron-operated 

HPHT Erskine field. Gas and liquids produced 

from the field are processed on the Lomond 

platform, with the gas then transported via 

the CATS pipeline, and liquids via Forties. 

OFFSHORE PIPELINES 

CATS 

BG Group has a 51.18% interest in the CATS 

pipeline and terminal, which is operated by 

BP. The 404 kilometre CATS offshore pipeline 

became operational in 1993, and transports 

gas to Teesside from the Everest, Lomond, 

Andrew, Armada, Seymour, Judy/Joanne, 

Jade, Erskine, Banff, Eastern Trough Area 

Project (ETAP), Maria and Montrose Arbroath 

fields (all in the central North Sea). In January 

2009, CATS also started transporting gas 

from the Rev field, in the Norwegian sector 

of the North Sea. The pipeline has a peak 

gas capacity of around 1 700 mmscfd. 

Onshore, the CATS Teesside terminal includes 

two trains of gas processing equipment, 

with a total capacity of around 1 200 mmscfd. 

Train 1 became operational in 1997 and 

Train 2 was brought onstream in 1998. 

SEAL and SILK 

BG Group has a 7.86% interest in SEAL, a 

480 kilometre gas export pipeline to Bacton. 

With capacity of around 1 150 mmscfd of 

dry gas, it has been transporting gas from 

the Elgin/Franklin and Shearwater fields 

since 2001. 

BG Group also has a 15.98% interest in the 

900 metre SEAL Interconnector Link (SILK) 

pipeline that provides direct access from SEAL 

to the UK-Continent Interconnector pipeline. 

Easington Catchment Area and Amethyst 

As part of the asset exchange agreement 

with BP, BG Group has transferred its 

exploration and production interests in 

the southern North Sea to BP. These include 

the Easington Catchment Area fields 

(Apollo, Artemis, Mercury, Minerva, Neptune, 

Wollaston and Whittle) and the Amethyst 

field. BG Group also transferred its 

operatorship of the Apollo, Artemis, Mercury, 

Minerva and Neptune fields to BP.

UK Downstream 

BG Group’s UK Downstream activities encompass LNG 

importation, energy marketing and power generation. 

BG Group sells gas on a wholesale basis and exports gas 

for sale to, and purchases gas for import from, mainland 

Europe via the Interconnector. The Group owns interests 

in two gas-fired power stations. 



• Dragon LNG operational 

Key dates 

LARNE 

Premier Power 

BELFAST 

IRISH SEA 

Dragon LNG 

Seabank 

1997 Premier Power Limited converted 

from oil to natural gas 

2001 Seabank Phases 1 and 2 entered 

full operation 

2003 600 MW CCGT plant at Premier 

Power completed 

2007 Equity stake in Interconnector 

(UK) Limited sold 

ABERDEEN 

TEESSIDE 

UK 

READING 

CATS 

EASINGTON 

LANGELED 

SEAL 

BACTON 

LONDON 


Gas pipeline 

0 200km 

Shareholders Dragon LNG (%) 

INTERCONNECTOR 

ZEEBRUGGE 

BG Group 50 

PETRONAS 30 

4Gas 20 

DRAGON LNG 

In third quarter 2009, the Dragon LNG import 

terminal at Milford Haven in Wales became 

operational, with the terminal receiving its 

first commissioning cargo in July 2009. 

Ownership of the terminal is BG Group 50%, 

PETRONAS 30% and 4Gas 20% and there are 

20-year arrangements in place governing 

the use of capacity rights (BG Group 50%, 

PETRONAS 50%), allowing BG Group and 

PETRONAS to each send out up to 3 bcm 

(106 bcf) gas per year, from around 2.2 mtpa 

LNG. BG Group has contracted pipeline 

capacity with National Grid. BG Group’s 

intention is to use the Dragon terminal 

capacity when UK prices are internationally 

attractive, sourcing the LNG from its global 

supply portfolio. 

ENERGY MARKETING 

In 2008, BG Group produced 5.2 bcm gas 

from the UK Continental Shelf (UKCS), the 

equivalent of approximately 6% of UK gas 

demand. The Group sells gas on a wholesale 

basis principally at the UK National Balancing 

Point under contracts with varying durations. 

BG Group is an active participant in the entry 

capacity auctions held by National Grid and 

in the on-the-day commodity market and 

other electronic trading systems that help 

shippers balance their supply and demand. 

BG Group owns both import and export 

capacity in the Interconnector pipeline, 

which it uses to ship gas to take advantage 

of market price differentials and for sub-lets 

to third parties. 

PREMIER POWER LIMITED 

BG Group purchased Premier Power in 1992 

and converted Ballylumford power station 

to gas. The power station near Larne, has a 

potential maximum capacity of 1 316 MW. 

The power station is gas-fired with dual-fuel 

capability and is owned and operated by 

Premier Power, a wholly owned subsidiary 

of BG Group. The 600 MW CCGT plant was 

commissioned in 2003. Output from Premier 

Power is sold into the Irish Single Electricity 

market, both directly and via sales to NIE 

Energy, and in total satisfies around 9% of 

the island of Ireland’s demand and represents 

around 12% of installed Irish capacity. 

SEABANK POWER LIMITED 

Built in two phases, Seabank is a 1 130 MW 

CCGT power station near Bristol. It is owned 

and operated by Seabank Power, a 50:50 joint 

venture between BG Group and Scottish 

and Southern Energy. Phase 1 of Seabank 

(750 MW) entered full commercial operation 

in 2000 and Phase 2 (380 MW) in 2001. 


7 



Kazakhstan 

BG Group has been active in Kazakhstan for over 17 years. 

It is joint operator of the giant Karachaganak gas 

condensate field, where it has a 40-year concession, and 

is a shareholder in the Caspian Pipeline Consortium (CPC). 

The CPC pipeline links reserves in western Kazakhstan 

to the Black Sea, providing access to world markets. 



Gas and 

Oil/Condensate 

Gas pipeline 

Oil pipeline 

0 400km 

BLACK SEA 


• Upstream and downstream 

co-operation agreements 

with KazMunayGas signed 

• Agreement on the principle of the 

CPC pipeline expansion reached 

by CPC shareholders 


ASTRAKHAN 

BOLSHOI CHAGAN 

CASPIAN SEA 

AKTAU 

ORENBURG 

UKRAINE 

Atyrau Samara 

pipeline 

Karachaganakto-CPC 

pipeline 

KAZAKHSTAN 

RUSSIA 

CPC 

ATYRAU 

NOVOROSSIYSK 

CPC 

GEORGIA 

Key dates 

Karachaganak 

TENGIZ 

1996 2% stake in restructured 

CPC acquired 

1997 Karachaganak PSA signed 

2001 CPC fully operational 

2003 First liquids from new 

Karachaganak facilities 

2004 Phase II Karachaganak 

development completed 

First exports via Novorossiysk 

on the Black Sea 

2006 Oil exports commenced via 

the Atyrau Samara pipeline 

Kazakhstan: BG Group 3 year production 


40 

30 

20 

10 

0 

Oil & liquids 

Gas 

36.3 

2006 

39.6 

2007 

KARACHAGANAK 

Karachaganak, discovered in 1979, is one of 

the world’s largest gas and condensate fields. 

Located in north-west Kazakhstan, it holds 

estimated hydrocarbons initially in place of 

9 billion bbls of condensate and 48 tcf of 

gas, with estimated gross reserves of over 

2.4 billion bbls of condensate and 16 tcf 

of gas. 

Production from the Karachaganak field 

began in 1984. Since the signing of the Final 

Production Sharing Agreement (FPSA) in 

1997, the Karachaganak partners have made 

substantial investment in wells, facilities and 

pipelines. In addition to its size, Karachaganak 

presents the operators with formidable 

challenges due to extreme climate swings 

(+/- 40 degrees centigrade) and the 

requirement to reinject high pressure sour 

gas. BG Group’s share of production from 

Karachaganak in 2008 was a record 

39.8 mmboe. 

The FPSA envisaged a phased development 

programme, of which Phase I and the 

initial investment for Phase II have been 

completed. Phase II, which came onstream 

in 2004, involved investment to enhance 

the existing facilities, construct new gas 

and liquids processing and gas injection 

facilities, work-over of more than 100 wells, 

construct a 120 MW power station and lay 

a new 650 kilometre pipeline to connect 

the field to the CPC pipeline at Atyrau. 

39.8 

2008 

Until 2004, virtually all production was 

sold into Russia, but now most liquids are 

exported to the west (currently around 70%), 

with some condensate and all raw gas 

continuing to be sold into Russia. Since 2004,

condensate exports are mainly via the CPC 

pipeline and, since 2006, additional oil 

exports are routed via the Atyrau Samara 

pipeline leading into the Russian Transneft 

system, enabling sales to achieve 

international prices. 

The Phase IIM drilling programme consisted 

of 16 production wells, the first of which 

came onstream in 2004. A fourth 

stabilisation train project, sanctioned in 

2006, is due to be completed in 2010 and 

onstream in first quarter 2011. It includes 

13 wells and is expected to increase western 

export volumes to more than 10 mtpa and 

develop gross reserves of 300 mmboe. 

In relation to the next phase of development, 

BG Group and its partners have initiated 

discussions with KazMunayGas on 

alternative phasing of the original project 

expenditure. This is to ensure that the full 

capital commitment is not made at the peak 

of the cost cycle. The first stage will involve 

a new drilling programme and is expected 

to increase gas injection and gas sales. 

KAZMUNAYGAS AGREEMENTS 

In December 2008, BG Group announced 

an agreement with JSC National Company 

KazMunayGas (KMG) and KMG subsidiary 

KazMunayGas Exploration and Production 

to co-operate in exploring a range of 

upstream opportunities. The agreement 

sets out the principles of a joint study of 

the hydrocarbon reserves potential of 

specific areas in Kazakhstan and other 

countries. The companies are working in 

partnership to identify opportunities across 

a range of potential oil and gas exploration 

and production projects. A joint team 

examines specifically targeted regions 

and recommends prospective acreage 

to partners for their consideration. 

A second, downstream, co-operation 

agreement has been signed with KMG to 

examine ways to increase gas utilisation 

in Kazakhstan. Work is underway on a CNG 

pilot project in Almaty aimed at increasing 

gas usage and improving the environment 

by reducing vehicle emissions. Further work 

has commenced on gas industry regulation. 

CASPIAN PIPELINE CONSORTIUM 

The CPC was formed to build a pipeline 

system to transport oil from western 

Kazakhstan to the Black Sea near 

Novorossiysk in Russia. The pipeline system, 

which commenced operations along its 

full length in 2001, consists of a new-build 

line, new marine terminal facilities near 

Novorossiysk and an upgraded pipeline. The 

system currently has a capacity of 33 mtpa. 

BG Group has a 2% equity share in the 

pipeline but is entitled to 2.75 mtpa 

(55 000 bopd) of capacity (around 10% of 

the total) which is used to transport liquids 

from Karachaganak. Karachaganak, operating 

via the Karachaganak Petroleum Operating 

Company (KPO), began delivering liquids 

into CPC in 2004. In 2008, liquids from 

Karachaganak yielded 7.5 million tonnes 

gross (BG Group 2.5 million tonnes). 

In December 2008, the CPC shareholders 

reached agreement on the principles of 

the CPC pipeline expansion, to increase its 

throughput capacity from its current 33 mtpa 

to 67 mtpa. The expansion project includes 

the addition of 10 pump stations in Russia 

and Kazakhstan, six crude oil storage tanks 

near Novorossiysk and a third single-point 

mooring at the CPC Marine Terminal. 

The shareholders are working towards 

sanctioning the expansion by the end of 

2009. The expansion will be phased and 

its completion is expected to occur in 2013. 

Karachaganak export routes 

Atyrau Samara 

2 mtpa 

3.3 mtpa 

CPC 

7.6 mtpa* 

7 mtpa 

Stabilised oil 

Karachaganak 

field 

Un-stabilised oil 

Capacity 2009 

Planned capacity 

2013 

* Firm capacity of 6.5 mtpa plus access to additional capacity. 

Partners Karachaganak (%) 

BG Group (joint operator) 32.5 

Eni (joint operator) 32.5 

Chevron 20.0 

LUKoil 15.0 

Shareholders CPC (%) 


Russian government 24.00 

Kazakh government 19.00 

Chevron 15.00 

LUKARCO 12.50 

ExxonMobil 7.50 

Rosneft-Shell 7.50 

CPC Company 7.00 

Eni 2.00 

Oryx 1.75 

KPV 1.75 

Orenburg 

8 bcm 

16 bcm 

Orenburg 

4 mtpa 

4 mtpa 

Gas 

re-injection 

Small Refinery 

0.4 mtpa 

0.6 mtpa 

Gas 


9 



Norway 

BG Group entered Norway in 2004, with the award of 

PL297 in the North Sea. The Group now has 20 licences 

(15 as operator), gained predominantly through licensing 

rounds and located in four core areas. 


PL396 

PL395 

PL534 

PL393 


• Two licences in the 20th Licensing 

Round awarded 

• Bream appraisal well completed 


UK 

PL522 

PL392 

PL388 

PL374S 

PL373S 

PL274BS 

Langeled 

Pipeline 

PL467S 

PL423S 

PL391 

PL382 

PL390 

KRISTIANSUND 

NYHAMNA 

NORWAY 

HAUGESUND 

STAVANGER 

PL407 

PL292B 

PL292 

PL143 

PL297 

Key dates 


Gas 

Oil 

Gas pipeline 

Pipeline – proposed 

or under construction 

Oil pipeline 

BG Groupoperated 

block 

BG Group 

non-operated block 

0 500km 

SWEDEN 

2004 First licence, PL297, awarded 

Opened office in Stavanger 

2006 Eight licences in the 19th 

Licensing Round awarded 

2007 Operatorship of the Bream 

licence (PL407) awarded 

2008 Discoveries made at Pi North, 

Ververis and Jordbær 

SOUTHERN NORTH SEA 

(6 licences, 5 operated) 

This was the entry point into Norway, with 

BG Group applying its UK Central Graben 

expertise and experience across the 

Norwegian median line area. Many of the 

plays being explored in Norway are similar 

to those developed and matured in the UK. 

In 2008, a discovery of a gas and oil 

accumulation was declared on Pi North 

(PL292) (BG Group 60% and operator). Field 

development studies have been initiated to 

progress a potential development of the 

discovery. Given its proximity to the median 

line, a tie-back to existing UK infrastructure 

such as the Armada platform is probable. 

In third quarter 2009, an appraisal well was 

completed on the Bream oil discovery on 

licence PL407 (BG Group 40% and operator). 

In late 2009, BG Group expects to spud the 

high-pressure/high-temperature Mandarin 

prospect (BG Group 96% and operator), with 

completion expected in first half 2010. 

NORTH TAMPEN 


In 2008, a discovery was made on the 

Jordbær exploration well (PL373S) 

(BG Group 45% and operator). The Jordbær 

discovery, where gross reserves are estimated 

at 60-110 mmboe, is regarded as a potential 

play opener, with a number of similar 

prospects in BG Group-held licences in the 

vicinity. Analysis is ongoing and further 

drilling is planned in fourth quarter 2009. 

MID-NORWAY 


BG Group drilled its first commitment well 

in this area in 2007 and in 2008 completed 

three large operated 3D surveys. A new 

licence (PL522) was awarded to BG Group 

(40% and operator) in the 20th Licensing 

Round. Seismic will be acquired in 2009. 

BARENTS SEA 


BG Group completed its first Barents Sea 

well in 2007 with the Nucula well in PL393 

(BG Group 20%). It was declared an oil and 

gas discovery. In 2008, an appraisal well 

found hydrocarbons. The licence remains 

under assessment for potential future 

opportunities. In July 2008, BG Group 

completed its second exploration well in 

the Barents Sea, on the Ververis prospect on 

licence PL395 (BG Group 30%). The well was 

declared a discovery and post-well analysis 

is ongoing. A new licence (PL534) (BG Group 

40% and operator) was awarded in the 20th 

Licensing Round.

Italy 

BG Group has been active in Italy since 1992. Current 

activity in Italy includes: E&P, where BG Group holds one 

exploration permit in the Po Valley; LNG, where BG Group 

is developing a LNG import terminal on the south-eastern 

coast; and Power, where BG Group owns and operates 

five co-generation plants. 


TURIN 

RIVALTA 

Key dates 

Po Valley 

MILAN 


Gas 

Oil pipeline 

Oil 


Gas pipeline 

non-operated 

block 

0 250km 

ROME 

1998 Serene S.p.A. power stations 

began operation 

2004 EPC contract for Brindisi 

LNG awarded 

2005 Construction of Brindisi 

LNG began 

2007 Acquired remaining 66.32% 

equity in Serene S.p.A. power 

plants taking ownership to 100%. 

Renamed BG Italia Power S.p.A. 

ITALY 

SULMONA 

CASSINO 

NAPLES 

SLOVENIA 

TYRRHENIAN SEA 

ADRIATIC SEA 

TERMOLI 

MELFI 

CROATIA 

HUNGARY 

BOSNIA & 

HERZEGOVINA 

Brindisi LNG 

BRINDISI 

LNG 

BG Group is proposing the development of 

an 8 bcma (6 mtpa) LNG import terminal 

in the outer harbour of the port of Brindisi 

(BG Group 100%). 

BG Group will have the rights to 80% of the 

capacity in the terminal on a priority basis, 

while the remainder will be subject to 

regulated third-party access. The terminal 

is strategically located to receive LNG from 

the Mediterranean and Atlantic Basins and 

the Gulf States. 

In February 2007, the Brindisi LNG site 

was seized in connection with a criminal 

investigation by Italian authorities into 

allegations of improper conduct related 

to the authorisation process. Criminal 

charges have been brought against certain 

current and former employees of BG Group, 

and against BG Italia S.p.A.. Construction 

work has been suspended since February 

2007 and the site has been seized by the 

Italian authorities. 

In January 2008, BG Group filed an 

Environmental Impact Assessment (EIA). 

This followed the suspension of the original 

Article 8 authorisation in October 2007. 

Approval of the EIA and revalidation of the 

Article 8 authorisation is awaited. 

The timing of first deliveries to the Brindisi 

terminal is dependent on how soon access 

to the site can be restored, approval of the 

EIA and resolution of the various outstanding 

legal matters. 

POWER 

BG Italia Power S.p.A., a wholly owned 

BG Group subsidiary, owns and operates 

approximately 400 MW of co-generation 

at five locations. 100 MW power stations 

are located at Melfi, Termoli and Cassino, 

with 50 MW stations at Sulmona and Rivalta. 

The plants have been in operation for 11 years 

and are located to supply steam to Fiat Auto 

plants and other adjacent steam offtakers. 

BG Italia Power S.p.A. supplies around 

2 600 GWh per year of electricity to the 

grid operator, GRTN, and 400 000 tonnes 

of steam, primarily to Fiat. 


11 


12 Africa, Middle East and Asia 

Egypt 

Egypt is a core part of BG Group’s global portfolio and a 

cornerstone of its Atlantic Basin LNG strategy. BG Group 

is also one of the largest investors in Egypt’s natural gas 

business. BG Group’s activities in Egypt span the gas chain 

from exploration, through development and production, 

to downstream projects in LNG. 


Scarab Saffron 

Sapphire 

Saurus 

Sequoia 

Rashid -1,-2,-3 

ALEXANDRIA 


• Start-up of the West Delta Deep Marine 

(WDDM) Phase V project 

• Start-up of the Sequoia field unitised 

development project 

• North Gamasa Offshore Concession 

was awarded (and is awaiting signature) 


MEDITERRANEAN SEA 

SimSat P2 

Solar 

Serpent 

IDKU 

EGYPT 

North Gamasa 

Offshore 

Egyptian LNG 

Trains 1 & 2 

Rashid North 

CAIRO 

Simian Sienna 

SimSat P1 

Sienna-Up 

DAMIETTA LNG 

Key dates 

PORT SAID 


Gas 

Gas 

pipeline 

El Burg Offshore 

El Manzala Offshore 

Oil pipeline 


block 

0 100km 

1995 Rosetta and WDDM 

Concessions awarded 

2001 Rosetta onstream 

2003 Scarab Saffron onstream 

2004 Additional 40% in Rosetta 

Concession acquired 

2005 Egyptian LNG Trains 1 and 

2 exports began 

Simian, Sienna and Sapphire 

onstream 

El Burg Offshore and El Manzala 

Offshore Concessions awarded 

2008 New domestic pricing terms agreed 

with Egyptian government 

Egypt: BG Group 3 year production 


80 

60 

40 

20 

0 

Oil & liquids 

Gas 

62.4 

2006 

56.6 

2007 

BG Group’s business in Egypt comprises: 

• Operatorship of two gas-producing areas 

offshore the Nile Delta: 

– the Rosetta Concession (BG Group 80%, 

Edison 20%); and 

– the WDDM Concession (BG Group 50%, 

PETRONAS 50%); 

• Operatorship of three other concessions 

offshore the Nile Delta: 

– El Manzala Offshore (BG Group 100%); 

– El Burg Offshore (BG Group 70%, 

PETRONAS 30%); and 

2008 

– North Gamasa Offshore (BG Group 100%) 

(concession awarded and is awaiting 

signature); 

• Major shareholdings in the Egyptian LNG 

project (Train 1 at 35.5% and Train 2 at 38%). 

BG Group undertakes upstream development 

and production activities in Egypt through 

joint operating companies. In the case of 

Rosetta, this is the Rashid Petroleum Company 

(Rashpetco) in which BG Group has a 40% 

shareholding, and in the case of WDDM, this 

is Burullus Gas Company (Burullus) in which 

BG Group has a 25% shareholding. 

These operating companies are 50% owned 

by the Egyptian General Petroleum 

Corporation (EGPC), the body representing 

the Egyptian government in the petroleum 

sector. BG Group and its partners in each 

concession hold the remaining 50%. 

57.2

UPSTREAM PRODUCTION 

Rosetta Concession 

Rosetta started production in 2001 and 

supplies Egypt’s domestic network. In 2004, 

BG Group acquired a further 40% interest 

in Rosetta. 

In first quarter 2008, BG Group delivered 

first gas from the Rosetta Phase III field 

development plan which completed in third 

quarter 2008. The project consists of five 

wells tied back to the first two phases of 

Rosetta. The next phase of development 

is that of the Sequoia field. 

Sequoia 

The unitised development (Rosetta 

Phase IV/WDDM Phase VI) of the Sequoia 

field (BG Group 62.99%) which lies across 

the boundary of the WDDM and Rosetta 

Concessions was sanctioned in second 

quarter 2008. It consists of six sub-sea wells: 

three wells on each of WDDM and Rosetta 

which are tied back to existing infrastructure. 

First gas came onstream in August 2009, with 

production delivered to both the domestic 

and export markets. 

WDDM Concession 

BG Group and partners have drilled 

34 successful exploration and appraisal 

wells in WDDM since 1997, discovering 

14 gas fields: Scarab, Saffron, Simian, Sienna, 

Sapphire, Serpent, Saurus, Sequoia, SimSat-P1 

and SimSat-P2. Additional development 

leases were granted in 2007 for the Solar, 

Sienna-Up, Mina and Silva discoveries. 

Scarab Saffron 

Scarab Saffron started production in 2003 

and supplies gas to the domestic market and 

Damietta LNG. BG Group currently supplies 

900 mmscfd under the domestic GSA. 

Under an agreement signed with EGAS in 

2004, gas has been de-dedicated for five 

years from the domestic GSA so that, since 

February 2005, some of the gas has been 

processed through the Damietta LNG plant 

for a tolling fee. In 2009, this amounts to 

150 mmscfd. BG Group through its wholly 

owned subsidiary BG Gas Marketing (BGGM) 

and its WDDM partner PETRONAS lift the 

corresponding volume (1 mtpa) of LNG. 

BGGM lifted its first cargo from Damietta 

in March 2005. 

Scarab Saffron was the first deep water 

sub-sea development in Egypt. These 

facilities consist of eight sub-sea wells 

connected to a sub-sea manifold, in turn 

connected by pipelines to an onshore 

processing terminal. Electrical and hydraulic 

lines connect the wells to the onshore control 

room. The fields are located approximately 

90 kilometres from the shore and in water 

depths of more than 700 metres. 

Simian, Sienna and Sapphire 

The Simian and Sienna fields produced first 

gas in 2005, for supply to Egyptian LNG 

Train 1 at Idku. The Sapphire field produced 

first gas in 2005, for supply to Egyptian LNG 

Train 2. The Simian, Sienna and Sapphire 

fields are located in WDDM approximately 

120 kilometres offshore Idku, near Alexandria, 

in the Mediterranean Sea. The facilities 

consist of 16 sub-sea wells tied into the 

existing WDDM gas gathering network and 

a shallow water control platform. The 

onshore processing facilities form part of 

the Idku Gas Hub where the Egyptian LNG 

facilities are located. 

WDDM Phase IV and Phase V 

The WDDM fields have undergone a number 

of development phases to maximise 

hydrocarbon recovery. Phase IV brought 

onstream seven additional wells during 

2008, bringing the total number of sub-sea 

wells in WDDM to 31. 

In May 2009, BG Group started incremental 

gas production through WDDM Phase V, a 

compression project in this concession. The 

project includes installation of two onshore 

gas turbine-driven compression sets, new 

absorption towers and associated equipment 

to extend plateau production from WDDM 

reservoirs. The project was designed to boost 

the pressure of processed gas into the grid, 

allowing field operations at lower pressures. 

BG Group is currently evaluating future 

phases of WDDM that will extend the 

current production plateau. The Group 

sanctioned Phase VII in 2009. 

Concession Field 


Interest (%) Supplying DCQ gross 

Rosetta Rosetta 80% Domestic market 345 mmscfd 

WDDM Scarab Saffron 50% Domestic market 750 mmscfd 

WDDM1 Scarab Saffron 50% Damietta LNG (Union 

Fenosa JV Co SEGAS) 

150 mmscfd 

WDDM Simian, Sienna, Sapphire, Sequoia 50% Egyptian LNG Train 1 565 mmscfd 

WDDM Simian, Sienna, Sapphire, Sequoia 50% Egyptian LNG Train 2 565 mmscfd 

1 BG Group and PETRONAS lift the corresponding volume of LNG. 

Partners (%) 

Rosetta Concession* 

Rashid Petroleum Company 

40 

WDDM Concession* 

Burullus Gas Company 

25 

El Burg Concession* 


Edison 

EGPC 

PETRONAS 

* BG Group operator. 

80 20 

10 50 

50 50 

50 25 

70 30 

In September 2008, the Government 

(through EGPC) agreed new pricing terms 

for the gas sold into the domestic market. 

The price increase is being phased in over 

the period 2008-2011. 

EXPLORATION 

El Manzala Offshore and El Burg 

Offshore Concessions 

In 2005, BG Group signed El Burg Offshore 

and El Manzala Offshore concession 

agreements for the exploration of gas and 

oil with the Egyptian Natural Gas Holding 

Company (EGAS). Exploration drilling on 

El Manzala Offshore and El Burg Offshore 

commenced in 2008. BG Group is currently 

planning the forward exploration programme 

for these areas for 2010. 

North Gamasa Offshore Concession 

In April 2009, BG Group was awarded 100% 

of Block 1 (North Gamasa Offshore). The block 

covers an area of 281 square kilometres and 

is located 20 kilometres from the coast in 

shallow water. The initial work programme 

will most likely involve the acquisition of 3D 

seismic data. 

North Sidi Kerir Deep Concession 

BG Group notified EGAS of its intention to 

relinquish its interest in the North Sidi Kerir 

Deep Concession, effective July 2009. 


13 

AFRICA, MIDDLE EAST AND ASIA


Egypt continued 

DOWNSTREAM PROJECTS 

Egyptian LNG 

BG Group and partners supply Trains 1 and 2 

of Egyptian LNG with gas from the Simian, 

Sienna and Sapphire fields in WDDM, 

producing a total of 7.2 mtpa of LNG. 

The 3.6 mtpa output from Train 1 has been 

sold to GDF SUEZ under a 20-year SPA. The 

first LNG cargo was lifted in May 2005. 

The 3.6 mtpa output of Train 2 has been 

sold to BGGM, a wholly owned BG Group 

subsidiary, under a 20-year agreement. 

BGGM, may deliver this output to its capacity 

at Lake Charles in the USA or divert to other 

markets, as part of its flexible portfolio 

approach. The first LNG cargo was lifted 

in September 2005. 

The Egyptian LNG facilities, located at Idku, 

comprise the two LNG production trains 

and include the common facilities such 

as storage tanks, loading jetty and utilities. 

There is sufficient space at the Idku site for 

a further four LNG trains. The commercial 

structure of Egyptian LNG has been designed 

to allow future expansion without the need 

to involve all existing partners, and it is 

possible that third parties could supply gas 

to future Egyptian LNG trains. 

WDDM: integrated upstream and downstream 

TRAIN 1 

Start date 2005 

TRAIN 2 


Gas 


BG Group 50% 

Gas 

Egyptian LNG Company owns both the 

Egyptian LNG site and common facilities. 

Its sister company, Egyptian Operating 

Company for Natural Gas Liquefaction 

Projects (Opco) (BG Group 35.5%), undertakes 

the operation of all trains. El Beheira Natural 

Gas Liquefaction Company (Train 1 Co.) 

(BG Group 35.5%) owns Train 1 and the Idku 

Natural Gas Liquefaction Company (Train 2 

Co.) (BG Group 38%) owns Train 2. 

GAS SUPPLY LIQUEFACTION OUTPUT LNG PURCHASE 

565 mmscfd – WDDM 

565 mmscfd – WDDM 


Train 1 – 3.6 mtpa 

Tolling plant 

BG Group 35.5% 

PETRONAS 35.5% 

EGPC 12% 

EGAS 12% 

GDF SUEZ 5% 


Tolling plant 


PETRONAS 38% 

EGPC 12% 

EGAS 12% 

GDF SUEZ 100% 

UPSTREAM LIQUEFACTION OUTPUT DOWNSTREAM 

LNG 

LNG 

BG Group 100%

Tunisia 

BG Group is the largest producer of gas in Tunisia. The 

Miskar field, through the Hannibal gas treatment plant, 

currently provides around 40% of Tunisian domestic gas 

demand. The recently completed Hasdrubal development 

will take BG Group's share of local demand to over 50%. 



Gas 

Oil 

Gas pipeline 

Oil pipeline 


• Hasdrubal field onstream 

Key dates 

A L G E R I A 

Proposed 

pipeline 


block 

0 200km 

Hannibal 

1989 Tenneco assets acquired 

1996 Miskar field first production 

2006 Hasdrubal development 

plan approved 

TUNISIA 

Hasdrubal Plant 

LPG Facility 

TUNIS 

BIZERTE 

LA SKHIRA 

GABES 

SFAX 

SOUSSE 

GULF OF GABES 


Amilcar 

Miskar 

Hasdrubal 

Tunisia: BG Group 3 year production 


16 

12 

8 

4 

0 

Oil & liquids 

Gas 

12.4 

2006 

11.9 

2007 

11.0 

2008 

AMILCAR PERMIT 

BG Group is operator and joint permit holder 

with Entreprise Tunisienne d'Activités 

Pétrolières (ETAP), the Tunisian state-owned 

company, of the 1 016 square kilometre 

Amilcar exploration permit, offshore Sfax 

in the Gulf of Gabès. In 2006, BG Group 

was granted a new extension to this permit, 

which now expires in December 2009. An 

application for a further extension of up 

to two years is underway. Granted from this 

permit are the Miskar concession (BG Group 

100%) and the Hasdrubal concession 

(BG Group 50%, ETAP 50%). 

MISKAR GAS FIELD 

BG Group net production in 2008 from its 

Miskar field was 11.0 mmboe. Gas from the 

field is processed at the BG Group-operated 

Hannibal plant, 21 kilometres south of 

Sfax, and sold into the Tunisian gas system. 

BG Group has a gas sales contract with the 

Tunisian state electricity and gas company, 

Société Tunisienne de l’Electricité et du Gaz 

(STEG), which gives BG Group the right to 

supply up to 230 mmscfd from Miskar on a 

long-term basis. Offshore compression was 

commissioned in 2005 to maintain the 

production plateau of the field. 

BG Group has drilled five wells as part of 

the Miskar infill drilling campaign between 

2007 and 2009. These wells further extend 

the field production plateau. 

An upgrade of the Hannibal production 

facilities to process varying compositions 

of gas is complete. Other works include 

Hannibal plant and Miskar platform upgrades, 

resulting in an additional facilities capacity 

of 5%. Hydrogen sulphide will be processed into 

sulphuric acid, a more environmentally friendly 

solution. A 60 kilometre condensate pipeline 

was commissioned in 2007 to transport Miskar 

condensate from Hannibal to La Skhira port. 

HASDRUBAL DEVELOPMENT 

First gas production from Hasdrubal 

is expected in September 2009. Gross 

production from this joint project (BG Group 

50%, ETAP 50%) is expected to average 

approximately 32 000 boed. Gas will be 

sold to STEG at rates of up to approximately 

100 mmscfd gross, whilst liquids and LPG 

amounting to a further 16 000 boed gross 

will be exported or sold in the local market. 

Production will be delivered from six wells 

on an offshore platform through dedicated 

offtake facilities. An onshore gas processing 

facility and LPG production facility have been 

established adjacent to the Hannibal plant 

and an LPG storage terminal has been 

constructed in Gabès to receive and export 

butane and propane. 


15 



India 

BG Group is a key player within the gas industry in India, 

with a significant presence in both the E&P and T&D 

segments. BG Group has increased its exposure in India’s 

growing natural gas sector by developing its upstream 

position through licensing rounds and acquisitions. 



Gas 


Oil 

block 

Gas pipeline BG Group 

non-operated 

block 

INDIA 1 

KAKINADA 

INDIA 

KG-DWN-98/4 

KG-OSN-2004/1 

Key dates 

0 100km 


Mukta 

ARABIAN SEA 

BHUBANESHWAR 

PURI 

MN-DWN-2002/02 

ANKLESHWAR 

GGCL transmission pipeline 

Tapti 

GULF OF CAMBAY 

INDIA 2 

1995 Mahanagar Gas Ltd (MGL) formed 

1997 Majority stake in GGCL acquired 

2002 Enron Oil and Gas India Limited 

acquired and thereby a 30% 

participating interest in the 

Panna/Mukta and Tapti 

(PMT) fields 

AHMEDABAD 

HAZIRA 

Panna 

VADODARA 

1 

SURAT 

BHARUCH 

Gujarat Gas 

Tapti gas pipeline 

INDIA 

HVJ pipeline 

MUMBAI 

Mahanagar Gas 

INDIA 

2 

2007 PSC for Block KG-OSN-2004/1 

signed 

2008 New agreements signed with 

GAIL to take PMT gas production 

Farm-ins to Blocks KG-DWN-98/4 

and MN-DWN-2002/02 off the 

Indian east coast signed 

India: BG Group 3 year production 


20 

15 

10 

5 

0 

Oil & liquids 

Gas 

10.3 

2006 

13.7 

2007 

UPSTREAM 

BG Group has held a 30% interest in the 

mid and south Tapti gas fields and the 

Panna/Mukta oil and gas fields since 2002. 

In 2008, the combined fields produced 

around 15.5 mmboe (net to BG Group). 

Gross production from PMT fields has 

doubled in the past five years since BG Group 

took over the management of technical 

operations. BG Group’s aim is to optimise 

recovery from the PMT fields through 

ongoing field development as well as 

new projects. 

The Panna infill programme (26 wells) was 

successfully completed in 2006 and has 

increased recovery by around 50 mmbbl 

and 200 bcf gas. As a part of the first 

phase of the approved Expanded Plan 

of Development (EPOD) for Panna, two 

wellhead platforms have been installed 

and development wells are being drilled. 

First production from EPOD was achieved 

in 2007. The EPOD for Panna also involved 

the drilling of 21 wells, which completed 

in third quarter 2008. 

15.5 

2008 

Panna K started production in August 2009 

and the south-west Panna installation is 

scheduled to be completed by end first 

quarter 2010. Future developments will focus 

on development of Panna L and the next 

phase of the Mukta reservoir (Mukta B). 

The fourth wellhead platform on the south 

Tapti field became functional in 2006, helping 

to maintain a 250 mmscfd production rate. 

In 2007, the next phase of development of the 

mid Tapti gas field was completed and first 

gas produced. The new facilities enabled the 

supply of an additional 200 mmscfd of gas to 

markets in the western region. The total gas

supplied increased to 450 mmscfd along with 

7 000 bbls of condensate. Current production 

is 300 mmscfd of gas and 4 100 bbls of 

condensate. A further three development 

wells are planned in Tapti by end first quarter 

2010 to improve recovery from the fields. 

From April 2005 to March 2008, gas produced 

from the PMT fields was sold directly into the 

domestic market. In April 2008, following the 

re-nomination of GAIL (India) Limited as the 

government of India nominee to take the gas 

deliverable from the PMT fields, BG Group 

and other PMT co-venturers entered into a 

gas sales agreement with GAIL to supply gas 

from the PMT fields. 

In the 2006 NELP VI licensing round, BG Group 

acquired a 45% interest in exploration block 

KG-OSN-2004/1 in the Krishna Godavari Basin. 

The shallow water block, which covers an 

area of approximately 1 131 square kilometres, 

is located off the east coast of India. Oil and 

Natural Gas Corporation Limited (ONGC) 

holds the remaining 55% and is operator of 

the block. 

In 2008, BG Group signed two farm-in 

agreements with ONGC to acquire a 

participating interest in two deep water 

blocks off the Indian east coast – a 30% 

interest in KG-DWN-98/4 block and a 25% 

interest in MN-DWN-2002/02 block. 

DOWNSTREAM 

Gujarat Gas Company Limited (GGCL) 

BG Group has a 65.12% controlling stake in 

GGCL, with the remaining 34.88% publicly 

owned. GGCL is India’s largest private sector 

natural gas distribution company in terms 

of sales volume. GGCL currently has more 

than 255 000 residential, commercial and 

industrial customers and fuels CNG to more 

than 95 000 NGVs. 

In 2008, its distribution sales volumes were 

1 093 mmcm (2007 1 202 mmcm), the slight 

decline being due to constraints in gas 

availability. Despite this decline, GGCL was 

able to grow revenues and profits through 

optimisation of sales mix to the markets 

and enhancement of gas margins. Demand 

for gas in the company’s markets exceeds 

supply and GGCL continues to make efforts 

to contract additional gas to enable growth, 

including gas from the RIL D-6 fields on the 

east coast and short-term LNG. 

In April 2008, following the re-nomination of 

GAIL as the government of India nominee to 

purchase PMT gas production, an agreement 

was entered into with GAIL for it to supply 

gas to GGCL. The current supply level is 

1.85 mmscmd. GGCL meets the rest of its 

requirements from a range of suppliers. 

Investment to enlarge and upgrade 

GGCL’s pipeline network and associated 

infrastructure continued throughout 

2008. In 2008, the Ministry of Petroleum 

and Natural Gas confirmed GGCL’s status 

as an entity authorised by the government 

of India to lay, build and operate city gas 

distribution networks in the cities of Surat, 

Bharuch and Ankleshwar in south Gujarat. 

GGCL is in the process of receiving its 

regulatory authorisation from the downstream 

regulator for its City Gas Distribution network 

in the districts of Surat and Bharuch and for its 

73 kilometre high pressure Hazira-Ankleshwar 

transmission pipeline. 

Mahanagar Gas Ltd (MGL) 

MGL is based in India’s commercial capital, 

Mumbai. It is India’s largest gas distribution 

company in terms of size of customer base. 

BG Group and GAIL (India) each have a 49.75% 

stake in MGL, with the residual stake held by 

the government of Maharashtra. 

MGL’s 2008 volumes rose 9% to 550 mmcm 

(2007 506 mmcm). Volume growth was 

supported by the expansion of CNG through 

the installation of five new refuelling outlets 

and the conversion of public transport buses 

to CNG, taking MGL’s total number of outlets 

to 136. There are 685 dispensing points in 

Mumbai, Thane and Mira-Bhayander which 

serve 192 000 vehicles (as at 30 June 2009). 

MGL owns and controls around 

2 700 kilometres of pipeline and has been 

extending its network beyond Mumbai 

into the neighbouring cities of Thane, 

Mira-Bhayander and Navi-Mumbai. As a 

result, the number of connected domestic 

customers has risen to 374 500 as at 

30 June 2009. MGL also supplies gas 

to 1 032 commercial and industrial 

establishments in Mumbai. 

Following the introduction of regulation into 

City Gas Distribution (downstream business), 

MGL has received confirmation from the 

regulator for the operation of its business 

in the Greater Mumbai City area and the 

surrounding areas to the east – Navi-Mumbai 

plus the conurbation of Ambernath-Kalyan, 

an area identified for major growth in the 

next two to three years. 

To support the large business expansion 

plans of the company, MGL is in the final 

stages of signing gas supply purchase 

contracts for the supply of additional 

gas from the RIL D-6 gas field and from 

the C Series gas fields operated by ONGC. 

The construction of the second City Gate 

Station at Mahape is due for commissioning 

in September 2009. It will link MGL to the 

national pipeline network, thereby providing 

access to all the major sources of gas and 

greater security of supply. 

Partners Panna/Mukta and Tapti (%) 

BG Group* 30 

ONGC* 40 

Reliance Industries* 30 

* joint operator. 

Partners KG-OSN-2004/1 (%) 


ONGC (operator) 55 

Partners KG-DWN-98/4 (%) 


ONGC (operator) 55 

Oil India Limited 15 


17 



Thailand 

BG Group’s investment in Thailand is focused on 

upstream activities, including an interest in the large 

offshore Bongkot field, which supplies approximately 

20% of the country’s gas demand. 



• Increased equity interest in 

Blocks 7, 8 and 9 

• Gas Sales Agreement for Bongkot 

South signed 

Key dates 

ANDAMAN SEA 


Gas 

Oil 

Gas pipeline 

Oil pipeline 

Gas and Oil/ 

Condensate 

0 250km 

1990 Participation and Operating 

Agreement (POA) with partners 

entered into 

1993 Bongkot first production 

2001 Memorandum of Understanding 

(MoU) between Thailand 

and Cambodia for a Joint 

Development Area 

2007 Supplementary Petroleum 

Concession Agreements signed 


MYANMAR 


block 


non-operated 

block 

RATCHABURI 

Block 9A 

KHANOM 

12 

9 

6 

3 

0 

THAILAND 

BANGKOK 

RAYONG 

Bongkot 

Oil & liquids 

Gas 

Blocks 7, 8, 9 

GULF OF 

THAILAND 

B13/38 

9.8 

2006 

CAMBODIA 

Thailand: BG Group 3 year production 


9.9 

2007 

9.8 

2008 

BONGKOT GAS FIELD 

BG Group has a 22.22% interest in the 

Bongkot field in the Gulf of Thailand, which 

came onstream in 1993. The field is operated 

by PTT Exploration and Production (PTTEP). 

Production to date is from Bongkot North 

where the DCQ has risen to 550 mmscfd 

(from an initial 150 mmscfd) through 

phased development. The Bongkot North 

development consists of a central complex 

for gas gathering, processing, export and 

accommodation; a condensate floating 

storage and offloading vessel; and 22 

remote wellhead platforms. 

In 2007, the Thai Government granted an 

extension of Bongkot’s production periods for 

Blocks B15, B16 and B17 until 2022 and 2023. 

Further development is planned to extend 

the life of the field: in 2008 the partnership 

successfully drilled three exploration wells on 

Bongkot North to define the next phase of 

development, and further exploration drilling 

in 2009 and beyond is aimed at discovering 

reserves for additional development phases. 

Bongkot South is an important part of the 

development plan and is being developed 

independently from the existing Bongkot 

North facilities. It will comprise a central 

processing facility, a quarters platform 

and 13 wellhead platforms. The Gas Sales 

Agreement for Bongkot South was signed 

in July 2009. First gas is scheduled for 2012. 

EXPLORATION 

BG Group is the operator of Blocks 7, 8 and 9 

in the Gulf of Thailand, in an area subject to 

overlapping claims by Thailand and Cambodia. 

In March 2009, BG Group completed the 

acquisition of Rio Tinto’s 16.67% interest in 

Blocks 7, 8 and 9. The acquisition increases 

BG Group’s equity in the blocks from 50% 

to 66.67%. 

In 2001, a MoU was signed by the governments 

of Thailand and Cambodia aimed at concluding 

an agreement for the exploration and 

development of hydrocarbons in the 

overlapping claims area. A Joint Technical 

Committee is working to agree a mutually 

acceptable basis for resolution.

Nigeria 

BG Group commenced business development activities 

in Nigeria in 2004. Nigeria offers the potential for 

an excellent strategic fit with BG Group’s gas chain 

capability and Atlantic Basin position in light of its 

hydrocarbon potential. 


ABEOKUTA 

PORTO 

NOVO 

LAGOS 

OPL 332 

IBADAN 

OPL 284-DO 

OKLNG 

ESCRAVOS 

OPL 286-DO 


Gas 


Oil 

operated 

block 

Gas pipeline 


Oil pipeline 

non-operated 

block 

0 100km 


• Exploration and appraisal drilling 

commenced on OPL 286-DO 

• Farm-in to OPL 284-DO 

Key dates 

AKURE 

2006 PSC signed for OPL 332 

Contracted LNG deliveries from 

Nigeria LNG Trains 4/5 began 

Memorandum of Understanding 

(MoU) to buy LNG from Brass LNG 

2007 SPA signed for Nigeria LNG Train 7 

PSC and associated Downstream 

MoU signed for OPL 286-DO 

OKLNG Shareholders’ Agreement 

(SHA) signed 

BENIN 

CITY 

BRASS LNG 

PORT 

HARCOURT 

NIGERIA 

LNG 

NIGERIA 

CALABAR 

LUBA 

UPSTREAM 

In 2006, BG Group acquired a 45% 

participating interest in, and operatorship 

of, Block OPL 332 from Sahara Energy 

Exploration and Production Limited (Sahara), 

which retains a 35% participating interest. 

Other partners with participating interests 

in OPL 332 are the Nigeria Petroleum 

Development Company with 10%, and Seven 

Energy Nigeria Limited with 10%. OPL 332 

is located in up to 1 000 metres of water. 

Acquisition of 3D seismic on the block was 

completed in 2007, with the drilling of an 

exploration well targeted for 2011. 

In 2007, BG Group entered into a PSC 

and associated downstream MoU for 

Block OPL 286-DO with NNPC. BG Group, 

together with Sahara, was awarded licence 

OPL 286-DO in the 2006 Nigerian Oil Block 

Mini-licensing round. OPL 286-DO is located 

in deep water (200–1 000 metres), offshore 

the western Niger Delta. BG Group is 

the operator with a 66% participating 

interest, along with partners Sahara (24%) 

and Equinox Exploration Limited (10%). 

OPL 286-DO contains an existing discovery, 

Boi-1. Exploration and appraisal began in 

late 2008. The first well, Ogide 1X, 

encountered hydrocarbons and reached 

a target depth of 1 511 metres. Drilling of the 

second well, Boi-2A, began in February 2009 

and successfully reached a target depth of 

3 810 metres. Further seismic acquisition 

aimed at imaging deeper potentials is 

planned for late 2009. 

In January 2009, BG Group acquired a 45% 

participating interest in Block OPL 284-DO 

from Sahara. Sahara will retain a 45% interest, 

with the remaining 10% being held by Lotus 

Energy Limited. BG Group assumes the role 

of Technical Partner in the block while Sahara 

remains Operator. OPL 284-DO is located in 

deep water (200–1 000 metres) offshore the 

western Niger Delta. 

BG Group continues to evaluate further 

upstream opportunities in Nigeria. 

LNG 

BG Group and its partners are developing 

OKLNG, a liquefaction plant at Olokola, on 

the south-western coast of Nigeria. In March 

2007, the SHA was signed between NNPC, 

Shell, Chevron and BG Group, which includes 

the development of the launch project and 

any future expansions, and sets out the 

governance within the project company and 

the shareholders’ rights to supply gas and 

offtake LNG. 

The OKLNG launch project is two trains, 

each with a capacity of 6.3 mtpa of LNG, 

and expandable in the future to a multi-train 

natural gas liquefaction facility and marine 

terminal. Additional technical work is being 

done to optimise the final design. BG Group 

has a 14.25% share in the project. All 

shareholders will have the right to lift their 

equity share of LNG. 

In 2006, BG Group announced a MoU 

with Brass LNG for the acquisition of LNG. 

Volumes are expected to be 1.67 mtpa LNG. 

The proposed agreement will be for 20 years. 

These purchases complement the earlier 

signing of a 20-year SPA for 2.3 mtpa LNG 

from Nigeria LNG Trains 4 and 5 located 

on Bonny Island. Deliveries under this 

agreement commenced in 2006. 

In 2007, BG Group signed a SPA with Nigeria 

LNG for the acquisition of 2.25 mtpa of LNG 

for a 20-year term that will be produced by 

Nigeria LNG’s proposed Train 7 project in 

Finima, Bonny Island. 


19 



Oman 

BG Group holds a 100% interest in, and operatorship 

of, Block 60 onshore Oman, following the signature of 

an EPSA with the government of the Sultanate of Oman 

in April 2006. 


YEMEN 

Key dates 

UNITED 

ARAB 

EMIRATES 

SAUDI 

ARABIA 


OMAN 

2006 Signed an Exploration and 

Production Sharing Agreement 

(EPSA) for Block 60 

2007 Seismic data acquisition 

commenced 

First Abu Butabul appraisal 

well spudded 

Block 60 

IRAN 

GULF OF 

OMAN 

MUSCAT 


Gas 

Oil 

Gas pipeline 

Oil pipeline 

ARABIAN 

SEA 

Proposed 

pipeline 


block 

0 200km 

Block 60, which covers almost 1 500 square 

kilometres, contains the Abu Butabul gas and 

condensate discovery which was made in 

1998. In addition to this discovery, there are 

other exploration prospects within the block. 

Following ratification of the EPSA by His 

Majesty Sultan Qaboos in 2006, BG Group 

established an office in Muscat to both 

deliver the Block 60 work programme and 

act as a regional base to assess future 

opportunities in Oman and other Gulf 

Cooperation Council States. 

In 2007, BG Group commenced acquisition 

of seismic data over Block 60, including 

both the appraisal area of the Abu Butabul 

structure and the exploration area in the 

northern part of the block. Acquisition of 

3D seismic covering 1 500 square kilometres 

was completed in early 2008. 

The first appraisal well was spudded in 

December 2007 and completed in March 

2008. In total, seven appraisal wells have 

been drilled to target depth during 

2008-2009 and all found gas condensate. 

No further wells are planned to be drilled 

as focus now shifts to finding optimum 

ways to develop gas from the field. 

Abu Butabul is a tight gas discovery and 

the ability to get gas to flow effectively 

and efficiently will be key to determining 

commercial viability. The Group is aiming 

to move to project sanction, and targeting 

commissioning of the facility towards the 

second half of 2012. 

The Block 60 project marks BG Group’s 

entry into the natural gas sector in Oman, 

with the intention of appraising and 

commercialising potential reserves for 

supply into the domestic market.

Algeria 

BG Group has a 36.75% interest in, and is 

operator of, the Hassi Ba Hamou (HBH) 

block. BG Group was successful in the first 

Algerian licence round held under the new 

hydrocarbon law, securing the Guern el 

Guessa (GEG) permit north-west of HBH. 


MOROCCO 

Guern el Guessa 

PROPOSED 

GR5 PIPELINE 


ALGIERS 

Hassi Ba Hamou 

A L G E R I A 

A L G E R I A 

ALGERIA 


TUNISIA 

TUNISIA 

LIBYA LIBYA 

Gas 

Proposed 

Oil 

gas pipeline 

Gas pipeline 


Oil pipeline 

block 

0 500km 

BG Group entered Algeria through an agreement with Gulf Keystone 

in 2006 to acquire a 36.75% interest in the HBH permit. The permit, 

in central Algeria, consists of four blocks (317b, 347b, 348 and 349b), 

covers approximately 12 833 square kilometres and contains the 

HBH gas discovery. Under the first phase drilling programme, 

three appraisal and three exploration wells were drilled. The RM-1 

exploration well was a new gas discovery, in addition to the existing 

HBH discovery appraised by three appraisal wells. The first exploration 

phase on the HBH Perimeter was completed and BG Group and 

partners entered the two-year second exploration period and 

relinquished 30% of the original block area. Since entering this 

second phase, the RM-1 discovery has been appraised and BG Group 

is now looking to commercialise both HBH and RM-1 discoveries with 

evacuation through the new proposed GR5 pipeline. 

BG Group holds 49%, and is operator of, the GEG permit which 

contains two blocks (316a and 317a). Sonatrach holds a 51% interest. 

The contract for the GEG permit became effective in May 2009 and 

the first exploration phase will run for three years. The award of this 

new permit represented a significant step for the Group in building 

a material business in Algeria. 

Libya 

In 2005, BG Group acquired a mix of 

acreage in both an established basin 

and a frontier area, in Libya’s second 

licensing round. 


R I A 

A L G E R I A 

TUNISIA 

N I G E R 

TRIPOLI 

LIBYA 

CHAD 


Gas 

Oil pipeline 

Oil 


Gas and Oil/ 

Condensate 

operated 

block 

Gas pipeline 


non-operated 

block 

0 600km 

Area 123 

Block 1 

Area 171 

Blocks 1,2,3,4 

Area 123 

Block 2 

EGYPT 

BG Group was awarded a 100% interest in, and operatorship 

of, Area 123 (Blocks 1 and 2), covering 4 900 square kilometres in 

Libya’s onshore Sirt Basin. 3D seismic operations were completed 

for both areas in 2007 and two exploration wells were drilled in 

2008, both of which were dry. BG Group has served a notice to 

relinquish both areas. 

BG Group was awarded a 50% non-operated interest in Area 171, 

containing Blocks 1, 2, 3 and 4, covering 11 300 square kilometres 

onshore in the frontier Kufra Basin. Initial 2D seismic operations were 

completed in 2007. A well was drilled in late 2008 which was dry. 

E G 


21 



China Singapore 

BG Group entered China in 2006 following 

the signing of two PSCs with China 

National Offshore Oil Corp (CNOOC) 

for deep water Blocks 64/11 and 53/16. 



Gas 


Oil 

Pipeline – 

Gas pipeline proposed or 

under 

construction 

0 250km 

DONGFANG 

TERMINAL 

YANGPU 

EXPLORATION 

BG Group is the operator of the two PSC blocks and has a 100% 

interest during the exploration phase. In the event of a commercial 

discovery, CNOOC has the right to take an interest of up to 51% in 

the newly discovered field. 

The initial exploration work programme commitment for the two 

PSCs is expected to be carried out in three phases and involves the 

acquisition of 2D and 3D seismic data and the drilling of exploration 

wells. A 2D seismic acquisition programme across the two blocks 

was completed in 2007 and a 3D seismic programme completed in 

2008, with drilling on the two PSCs expected in 2010. The two blocks, 

covering 16 217 square kilometres, are largely unexplored and, should 

commercial discoveries be made, are well placed to supply the 

high-growth markets of southern China. 

LNG 

In May 2009, the Group signed a LNG Project Development Agreement 

with CNOOC, focused on BG Group’s Queensland Curtis LNG (QCLNG) 

Project in Australia. The agreement sets out the basis on which 

CNOOC will purchase 3.6 mtpa of LNG for a period of 20 years from 

the start-up of QCLNG (see pages 36-37). 


DANZHOU 

DONGFANG 

HAIKOU 

GUANGZHOU 

SANYA 53/16 

64/11 

CHINA 

MACAO HONG KONG 

Qiongdongnan Basin 

BG Group’s Asia Pacific headquarters are 

located in Singapore. In 2008, BG Group 

was appointed as the aggregator of LNG 

demand for the Singaporean market. 


SUMATRA 

0 250km 

MALAYSIA 

SINGAPORE 

In April 2008, the Energy Market Authority (EMA) of Singapore 

appointed BG Group as the aggregator of LNG demand for the 

Singaporean market. Under the agreement, BG Group will be 

responsible for sourcing and supplying up to 3 mtpa of LNG for up 

to 20 years. Initial deliveries are expected to begin in 2012/13 upon 

completion of the LNG import terminal, which will be located on 

Jurong Island in Singapore. BG Group and the EMA signed the 

Aggregator Agreement in June 2009. 

BG Group will source LNG supply for Singapore from its large, 

growing and diversified flexible portfolio. It is envisaged that 

BG Group’s proposed QCLNG facility in Australia will serve as 

one of the sources of supply for Singapore.

Philippines Malaysia 

BG Group has interests in two gas-fired 

power generation plants, Santa Rita and 

San Lorenzo, located on the island of Luzon, 

80 kilometres south of Manila. The two 

plants represent over 12% of the generation 

capacity for Luzon Island, including Manila. 



Gas pipeline 

Gas 

Oil 

Proposed pipeline 

0 200km 

SOUTH CHINA SEA 

MINDORO 

MALAMPAYA FIELDS 

Santa Rita/ 

San Lorenzo 

LUZON 

PALAWAN 

MANILA 

BATANGAS 

SULU SEA 

PHILIPPINE SEA 

PANAY 

SANTA RITA POWER STATION 

Santa Rita power station is owned by First Gas Power Corporation 

(FGPC), a 100% subsidiary of First Gas Holdings Corporation (FGHC), 

in which BG Group has a 40% interest. The remaining 60% of FGHC 

is owned by First Gen Holdings Corporation (First Gen), a subsidiary 

of First Philippines Holdings Corporation. The Santa Rita 1 000 MW 

power plant entered full operation in 2000 and, in 2002, the plant 

switched to natural gas operations when gas became available from 

the Malampaya field. Electricity is sold to the Manila Electric Company 

(Meralco) under a PPA that is effective until 2025. Siemens AG operates 

the plant on behalf of First Gas. 

SAN LORENZO POWER STATION 

BG Group, in partnership with Unified Holdings Corporation (UHC), 

a 100% subsidiary of First Gen, developed, financed and constructed 

the San Lorenzo power plant. BG Group owns a 40% interest in FGP 

Corp, and UHC owns the remaining 60% of the San Lorenzo project 

company. The San Lorenzo plant is co-located with the Santa Rita 

power plant and has a capacity of approximately 500 MW. Siemens 

AG operates the plant. San Lorenzo entered full commercial operation 

in 2002, selling power to Meralco under a PPA until 2027. 

BG Group has an interest in Genting 

Sanyen Power, one of the country’s 

main power stations located south 

of Kuala Lumpur. 


0 300km 

MALAYSIA 

KUALA 

LUMPUR 

SUMATRA 

Genting 

Sanyen Power 

GENTING SANYEN POWER 

BG Group was co-developer of this 795 MW combined cycle gas-fired 

power station and retains a 20% interest. Mastika Lengenda (a wholly 

owned subsidiary of Genting Group) owns 60% and Worldwide 

Holdings Bhd owns 20%. Genting Sanyen is located in Kuala Langat, 

70 kilometres south of Kuala Lumpur, and began operations in 1995 

with a 21-year contract to sell power to Tenaga Nasional Berhad, the 

Malaysian national power company. 


23 



Areas of Palestinian 

Authority and Israel Madagascar 

BG Group has been active in the areas 

of Palestinian Authority and Israel since 

1996, with current activities focused upon 

the commercialisation of its offshore Gaza 

Marine field. 



Gas 

BG Group-operated block 

0 50km 

Offshore Gaza 

Gaza Marine 

AREAS OF PALESTINIAN AUTHORITY 

Offshore Gaza 

BG Group is operator of an exploration licence covering the entire marine 

area offshore the Gaza Strip. Following acquisition of over 1 000 square 

kilometres of 3D seismic data, BG Group drilled two successful wells 

in 2000 (Gaza Marine-1 and Gaza Marine-2). Reserves are estimated 

to be around 1 tcf. In 2001, a technical review recommended a sub-sea 

development and pipeline to an onshore processing terminal. In 2002, 

an outline Development Plan was approved by the Palestinian Authority. 

BG Group holds 90% equity in the licence, which would be reduced 

to 60% if the Consolidated Contractors Company (its current 10% 

partner in the licence) and the Palestine Investment Fund exercise 

their options at development sanction. 

In December 2007, BG Group withdrew from negotiations with 

the government of Israel for the sale of gas from the Gaza Marine 

field to Israel. In January 2008, BG Group closed its office in Israel. 

The Group is evaluating options for commercialising the gas. 

ISRAEL 

Med Yavne licence 

BG Group relinquished its Med Yavne licence in April 2009. 



EGYPT 

GAZA 

ISRAEL 

In 2006, BG Group acquired a 30% interest 

in the Majunga Offshore Profonde 

exploration block in Madagascar under 

a farm-in agreement. 


TANZANIA 

MOZAMBIQUE 

ETHIOPIA 

SOMALIA 

KENYA 

Majunga Offshore Profonde 

MADAGASCAR 

ANTANANARIVO 


Gas pipeline 

Oil pipeline 



0 1000km 

SEYCHELLES 

BG Group’s partners are ExxonMobil (50% and operator), SK Energy 

(10%) and PVEP Corp (10%). 

The block covers around 15 840 square kilometres in deep water 

(200-3 000 metres) off north-west Madagascar. Believed to be 

oil prone, it forms part of a largely unexplored frontier basin. 

Technical evaluation is ongoing, utilising 2D and 3D seismic data.


Trinidad and Tobago 

BG Group has been operating in Trinidad and Tobago 

since 1989, and is a key gas producer in the country. 

BG Group currently supplies gas to the domestic market 

and to Atlantic LNG. In 2008, approximately two thirds 

of production was exported as LNG with the remainder 

going to the domestic market. 



Gas 

Oil pipeline 

Gas pipeline 

BG Group-operated 

block 

0 100km 

Petrotrin Refinery Pointe-à-Pierre 


NCMA Unit Area 

Poinsettia 

Chaconia 

Hibiscus 

Ixora 

GULF OFF 

PARIA 

Atlantic LNG 

POINT 

FORTIN 

VENEZUELA 

• Assumed operatorship of Block 5(c) 

and increased stake by 45% to 75% 

• First gas from Poinsettia 

• New 220 mmscfd contract to supply 

NGC commenced 

• Endeavour well on Block 5(c) successful 

ATLANTIC OCEAN 

CARIBBEAN SEA 

PORT OF SPAIN 

TRINIDAD 

PHOENIX PARK 

Central Block 

BEACHFIELD 

TRINIDAD 

VENEZUELA 

Key dates 

TOBAGO 

Starfish 

Block E 

Block 6(b) 

Block 5(a) 

Dolphin 

ECMA 

Endeavour 

Bounty 

Loran/ 

Manatee 

Block 6(d) 

Block 5(c) 

Victory 

Dolphin Deep 

1996 First Dolphin production 

1999 Atlantic LNG Train 1 start-up 



2004 Acquisition of Central Block 

2005 Manatee-1 discovery 

Atlantic LNG Train 4 start-up 

2006 Dolphin Deep onstream 

2007 Signed farm-in to Block 5(c) and 

began drilling programme 

2008 Victory and Bounty wells on 

Block 5(c) successful 

Trinidad andTobago: BG Group 3 year production 

Total production mmboe(net) 

30 

20 

10 

0 

Oil & liquids 

Gas 

22.6 

2006 

23.0 

2007 

EAST COAST MARINE AREA (ECMA) 

The BG Group-operated Dolphin gas 

field, located 83 kilometres off the east 

coast of Trinidad in Block 6(b), commenced 

production in 1996. The asset is contracted 

to supply 250 mmscfd gas to the National 

Gas Company (NGC) under a 20-year supply 

contract together with 100 mmscfd to 

Atlantic Train 3 and 120 mmscfd to Atlantic 

Train 4. A new production contract to supply 

220 mmscfd of gas to NGC for up to 15 years 

commenced in July 2009. To enable delivery 

of this new supply, the drilling of five further 

development wells in the Dolphin field was 

completed in April 2009. 

The gas is produced under a Combined 

Development Plan for the fields in Blocks 5(a), 

6 and E. Production is currently delivered 

from the Dolphin field through 13 platform 

wells and the Dolphin Deep field from two 

sub-sea wells. These wells were the first 

sub-sea completions in Trinidad and Tobago. 

The Dolphin Deep sub-sea facilities are tied 

back to facilities on the Dolphin platform. 

ECMA gas is delivered to NGC via a pipeline 

to the Poui platform where it connects 

to the domestic network. Gas is delivered 

to Atlantic LNG through a second offshore 

pipeline bringing gas from the Dolphin 

platform to shore at the Beachfield 

receiving terminal. It then connects to 

NGC’s 76 kilometre onshore Cross Island 

Pipeline extending from Beachfield to 

Atlantic LNG at Point Fortin. 

26.1 

2008 

In 2005, BG Group and partner completed 

the Manatee-1 well in Block 6(d) in the ECMA, 

which indicated gross reserves of 1.8 tcf. This 

discovery demonstrated the extension of the 

Loran field from Venezuela into Block 6(d) in 


25 

AMERICAS AND GLOBAL LNG

26 Americas and Global LNG 

Trinidad and Tobago continued 

Partners ECMA (%) 

BG Group (operator) 50 

Chevron 50 

Partners NCMA (%) 


Petrotrin 19.50 

Eni 17.31 

PetroCanada 17.31 

Partners Central Block (%) 

BG Group (operator) 65 

Petrotrin 35 


Concession Field 


Interest (%) Supplying DCQ gross 

ECMA Dolphin 50 NGC 275 mmscfd 

Dolphin Deep Atlantic LNG Train 3 100 mmscfd 

Atlantic LNG Train 4 120 mmscfd 

NGC 220 mmscfd 

NCMA Hibiscus 45.88 Atlantic LNG Train 2 240 mmscfd 

Poinsettia Atlantic LNG Train 3 45 mmscfd 

Chaconia 

Ixora 


Central Block Carapal Ridge 65 Petrotrin 20 mmscfd 

Petrotrin 1 000 bopd 


Trinidad and Tobago. In 2007, the 

governments of Venezuela and Trinidad 

and Tobago signed a Framework Unitisation 

Treaty for cross-border developments. 

BLOCK 5(C) 

In 2007, BG Group signed a farm-in agreement 

with Canadian Superior Energy Inc. for 

Block 5(c), 94 kilometres off the east coast of 

Trinidad. Under the terms of the agreement, 

BG Group took a 30% working interest in the 

PSC and assumed operatorship in April 2009. 

In July 2009, BG Group exercised its 

pre-emption rights under the Joint Operating 

Agreement (JOA) to increase its stake in the 

block to 75% (anticipated to close in third 

quarter, subject to conditions precedent). 

Each of the three wells drilled on Block 5(c) 

since mid-2007 have encountered 

hydrocarbons and have been successfully 

tested. The first well, Victory-1, was drilled 

10 kilometres north-east of the Dolphin 

platform. The second well, Bounty, was 

spudded in February 2008 and targeted 

a separate prospect, approximately 

4 kilometres away from the Victory well. 

The third exploration well, Endeavour-1 was 

spudded in August 2008. Drilling and testing 

was completed in first quarter 2009 and the 

results are currently under evaluation. The 

well targeted the same reservoir section 

as Bounty-1 but on a separate structure, 

approximately 9 kilometres north-west of 

the Bounty discovery. The data from all three 

exploration wells is being collectively evaluated 

before deciding on commercial viability. 

NORTH COAST MARINE AREA (NCMA) 

The BG Group-operated NCMA development, 

located 40 kilometres off the north coast 

of Trinidad, includes six gas fields: Hibiscus, 

Poinsettia, Chaconia, Ixora, Heliconia 

and Bougainvillea. There is a Unitisation 

Agreement with Petrotrin for the 

development of accumulations within 

the NCMA Unit Area. In December 2000, 

the government of Trinidad and Tobago 

approved the development of the first 

three fields. These fields are being developed 

in up to four phases to supply gas to Atlantic 

LNG Trains 2, 3 and 4. 

The Hibiscus platform was installed in 2001, 

together with a pipeline from NCMA to 

Atlantic LNG at Point Fortin. De-bottlenecking 

in 2003 increased the capacity of the pipeline 

to 30% above the original design. 

In 2002, BG Group and its partners 

announced first gas production from the 

NCMA Hibiscus field into Atlantic Train 2. 

NCMA is contracted to supply 240 mmscfd 

gas to Train 2 for up to 20 years, in addition 

to 45 mmscfd to Train 3. Production into 

Train 3 started in 2003. NCMA started to 

supply gas to Atlantic LNG Train 4 in 2005. 

The Train 4 supply contract is for 

approximately 80 mmscfd for ten years. 

Since 2003, there has been further 

development activity on the Ixora, 

Chaconia and Hibiscus fields. 

The key project during 2008 was the phased 

development of the NCMA. Activity has 

included the development of the Poinsettia 

field as part of Phase 3c and will include 

accessing Heliconia and Bougainvillea fields 

as part of Phase 3d. This has involved building 

a new drilling and production platform, the 

largest structure installed in Trinidadian 

waters, with the 4 200 tonne topsides built 

entirely in Trinidad, and with initial 

production from a single sub-sea well. A new 

pipeline connects the new platform to the 

existing Hibiscus platform 20 kilometres 

away. First gas from Phase 3c was achieved 

in January 2009. 

CENTRAL BLOCK 

BG Group holds a 65% interest and 

operatorship of this 111 square kilometre 

block. State-owned company Petrotrin holds 

the remaining 35% under an Exploration and 

Production Licence. The discoveries in the 

onshore block include the currently producing 

Carapal Ridge field, as well as Baraka, Baraka 

East and Corosan.

BG Group currently supplies 20 mmscfd gas 

and approximately 1 000 bopd condensate 

to Petrotrin, for use in its refinery at 

Pointe-à-Pierre. Gas is transported via a 

12 kilometre pipeline that connects to the 

NGC network. 

A new gas plant with a capacity of 

approximately 65 mmscfd was commissioned 

in 2007, near the existing production site 

at Carapal Ridge. This increased capacity 

supplies approximately 23 mmscfd to 

BG Group’s capacity in Atlantic LNG Train 4, 

in addition to the supply to Petrotrin’s refinery. 

Pre-sanction studies are currently ongoing 

for compression and the development of 

the Baraka and Baraka East discoveries. 

ATLANTIC LNG 

The Atlantic LNG Company of Trinidad and 

Tobago, in which BG Group is a shareholder, 

constructed its LNG plant at Point Fortin, 

NCMA, ECMA, Central Block and Atlantic LNG: integrated upstream and downstream 

TRAIN 1 


TRAIN 2 


TRAIN 3 


TRAIN 4 


south-west Trinidad, which began operating 

in 1999. 

The first train has a productive capacity of 

3.1 mtpa LNG. Train 2 commenced production 

in 2002 and Train 3 in 2003, these additional 

two trains having a productive capacity of 

approximately 6.6 mtpa. 

With the completion of the 5.2 mtpa Train 4 

in December 2005, the total LNG production 

capacity of Atlantic LNG is approximately 

15 mtpa. 

The LNG produced from gas supplied to 

Trains 2 and 3 by BG Group and its partners is 

sold to BG Gas Marketing (BGGM), a wholly 

owned BG Group subsidiary, under a longterm 

contract for import into the Elba Island 

LNG receiving terminal in Georgia, USA. 

LNG produced from the BG Group 

liquefaction capacity in Train 4 is sold under 

a long-term contract to BGGM for delivery 

into the US market via the Lake Charles 

import terminal in Louisiana. 

Atlantic LNG Trains 2, 3 and 4 represent fully 

integrated projects for BG Group, involving 

the production and liquefaction of gas in 

Trinidad and Tobago, the shipping of LNG to 

the USA and the subsequent regasification 

for onward sale into the US market. 

GAS SUPPLY LIQUEFACTION OUTPUT LNG PURCHASE 

c520 mmscfd (non-BG Group supply) 


Gas Merchant plant 

LNG 


BP 

Repsol 

26% 

34% 

20% 

GDF SUEZ 

Gas Natural 

60% 

40% 

GDF SUEZ 10% 

NGC 10% 

c560 mmscfd 


Gas Tolling plant 

LNG 

BG Group and 

upstream partners 50% 


BP 

Repsol 

32.5% 

42.5% 

25.0% 


BP 

50% 

50% 

c560 mmscfd 



LNG 


upstream partners 25% 


BP 

Repsol 

32.5% 

42.5% 

25.0% 


BP 

25% 

75% 

c800 mmscfd 



LNG 


upstream partners 28.9% 


BP 

Repsol 

NGC 

28.89% 

37.78% 

22.22% 

11.11% 

BG Group 28.89% 

Other Train 4 partners 

off-take equity entitlement 71.11% 

UPSTREAM LIQUEFACTION OUTPUT DOWNSTREAM 


27 



United States of America and Global LNG 

BG Group has been one of the leading LNG importers 

to the USA in recent years, with supply from both equity 

and third party projects. Additionally, BG Group supplied 

around 8.4 million tonnes of LNG to the Pacific Basin, 

again making the Group the largest Atlantic Basin supplier 

of cargoes into the Pacific Basin in 2008. 


USA 1 

SMITH 

TITUS 

CAMP 

UPSHUR 

GREGG 


• Alliance with EXCO Resources 

to develop US shale gas 

• QCLNG project commenced 

• LNG supply agreement signed 

with CNOOC 

Key dates 

MORRIS 

Longview 

RUSK 

MEXICO 

2001 22-year lease signed for Lake 

Charles capacity 

2003 Access to Elba Island terminal 

2006 Two expansions of Lake Charles, 

increasing capacity to 13.4 mtpa 

Dighton power plant acquired 

2007 Lake Road and Masspower power 

plants acquired 

2008 LNG supply agreement signed 

with the EMA of Singapore 


CASS 

MARION 

HARRISON 

PANOLA 

SHELBY 

HOUSTON 

USA 1 

LAFAYETTE 

CADDO Bossier City 

DE SOTO 

BOSSIER 

Shreveport 

Lake Charles 

COLUM 

WEBSTER 

RED 

RIVER 

USA 

GULF OF MEXICO 

CANADA 

JACKSONVILLE 

Masspower 

WASHINGTON D.C. 

Elba Island 

Lake Road 

BOSTON 

Dighton 


Approximate 

BG Group/EXCO joint 

venture acreage 

Gas pipeline 

0 500km 

USA 

In June 2009, BG Group announced an 

alliance with EXCO Resources (EXCO) to 

develop US shale gas. The agreement 

provides BG Group with access to US onshore 

shale gas and complementary gas-gathering 

and transmission infrastructure. 

BG Group owns a US power generation 

portfolio in New England with capacity 

of 1 234 MW. 

Shale gas 

BG Group entered the shale gas business 

via an alliance with EXCO in June 2009. The 

alliance brings material new resources and 

supply to the Group’s existing US business at 

a competitive price and in a prime location 

at the heart of the world’s largest gas market. 

These domestic exploration and production 

activities yield strong synergies with the 

Group’s established LNG import and US gas 

marketing business. Furthermore, the 

transaction increases BG Group’s exposure 

to long-term unconventional gas resources 

and skills. 

BG Group: 

• Acquired a 50% interest in approximately 

120 000 net acres in east Texas and north 

Louisiana, of which 84 000 net acres cover 

the Haynesville shale gas formation; 

• Entered into a joint development agreement 

with EXCO to co-operate in the further 

development and production of shale gas 

in east Texas and north Louisiana; and 

• Acquired a 50% interest in related and 

complementary EXCO gas-gathering 

and transportation assets. 

The acquisition adds 2.6 tcf of net potential 

resource to BG Group’s resources. 

Additionally, BG Group and EXCO believe 

there is substantial potential for growth in 

resources through further exploration and 

appraisal. EXCO will operate the jointly held 

upstream acreage. 

Lake Charles 

In 2001, BG LNG Services (BGLS), signed a 

22-year LNG Terminalling Service Agreement 

to utilise the capacity of the LNG import 

facility at Lake Charles, Louisiana, USA. 

The agreement was extended in 2004 to 

cover 100% of the terminal capacity for the 

term of the agreement. The terminal has 

access to 15 major intra-state and inter-state 

natural gas pipelines through the Trunkline 

Gas Pipeline system. 

The Lake Charles facility has undergone 

two expansions, the latest of which was 

completed in 2006 and increased sustainable 

baseload capacity to 1.8 bcfd (with peak 

capacity of 2.1 bcfd) and added a second 

unloading berth. All of the capacity of the 

expansions is committed to BGLS. 

In 2006, BGLS signed an agreement with 

Trunkline LNG, the owner of the Lake Charles 

terminal, for upgrades to the facility including 

an ambient air vapourisation system and a 

natural gas liquids (NGL) extraction plant to 

remove higher Btu products such as ethane, 

propane and butane from the LNG. The new 

system is expected to reduce fuel gas 

consumption by up to 85%, thus enhancing 

margins, reducing emissions and providing 

an additional revenue stream from NGL sales 

that is expected to start in second half 2009. 

As part of the agreement, Trunkline has also 

extended BGLS’s rights as the sole capacity 

holder by six years until 2029.

Elba Island 

Beginning in 2004, BGLS established itself 

as the marketer of regasified LNG at Elba 

Island in Georgia after taking over contracted 

capacity and long-term LNG supply from 

El Paso in 2003. Additionally, BG Energy 

Merchants (BGEM) entered into a long-term 

transportation arrangement with Southern 

Natural Gas to construct the Cypress pipeline 

expansion of the Southern Natural Gas 

Pipeline system running from Elba Island to 

Jacksonville, Florida. Cypress Phases I and II are 

now up and running with the ability to supply 

approximately 336 000 mmbtud of natural 

gas to southern Georgia and Florida markets. 

In 2007, approval was received to expand the 

terminal and construct the new Elba Express 

Pipeline in eastern Georgia. After the Elba 

Island expansion, BG Group expects to have 

storage capacity of 8.2 bcf and send-out 

capacity of 1.2 bcfd. The Elba Express Pipeline, 

approximately 190 miles of pipeline with a 

capacity of 1.2 bcfd, will transport natural gas 

from Elba Island to markets in south-eastern 

and eastern USA. The facilities will be 

constructed in two phases, with the initial 

in-service date expected to be mid 2010. 

Power 

In 2006, BG Group entered the north-east 

US power market, chosen because it is both 

mature and transparent, with no dominant 

incumbents. The assets selected have been 

chosen to generate additional synergies from 

BG Group’s existing integrated gas business. 

Dighton (165 MW) is located in Massachusetts 

and is designed to run on natural gas, which 

can be supplied by BG Group through the 

Algonquin pipeline system. 

Both Lake Road (805 MW) in Connecticut and 

Masspower (264 MW) in Massachusetts are 

dual-fuel capable plants designed to run on 

natural gas or distillate oil. Fuel to Lake Road 

is supplied through the Algonquin pipeline 

system while Masspower is supplied through 

the Tennessee Gas pipeline system. With both 

plants, the primary fuel is natural gas with 

distillate as the back-up fuel. 

All three plants operate as merchant plants 

selling energy, capacity and ancillary services 

to the New England power market. 

Storage 

In addition to the significant inherent 

storage facilities at Lake Charles and 

Elba Island, BG Group will from time 

to time contract for natural gas storage 

capacity on a seasonal and/or medium 

to long-term basis to facilitate its 

operational and commercial requirements. 

GLOBAL LNG 

BG Group’s successful LNG business has 

been built around a portfolio of flexible LNG 

supplies that can be deployed globally in 

order to capture greater margin opportunities. 

Central to this business model was the 

Group’s decision to take 100% of the capacity 

rights at the Lake Charles regasification 

terminal in the USA. This means that 

BG Group has a material point of access to 

the US gas market – the largest and most 

liquid in the world. This provides an economic 

bedrock for the Group’s LNG business model, 

giving the Group certainty that it can always 

achieve the prevailing US market price for its 

flexible volumes. 

LNG supply 

BG Group pursues a number of options to 

create a diversified supply portfolio. These 

options include buying LNG from third 

parties as well as from BG Group equity 

LNG liquefaction projects. The portfolio 

has a variety of contract periods and 

shipping arrangements. 

In early 2009, BG Group completed the 

acquisition of Queensland Gas Company. 

The acquisition gives BG Group control of 

the Queensland Curtis LNG (QCLNG) project. 

BG Group expects to sanction a 7.4 mtpa, 

two-train LNG project in 2010, with first 

cargoes in 2014 (see page 36). 

The Group’s current contracted LNG supply 

is 12.6 mtpa, with a target of 20 mtpa to be 

achieved when QCLNG comes onstream 

from 2014. By 2015, excluding national oil 

companies, it is estimated that BG Group 

will be the second largest holder of 

contracted LNG volumes. 

Marketing 

BG LNG Trading (BGLT) in conjunction with 

the Group’s LNG shipping organisation is 

engaged in marketing LNG to buyers 

throughout the world. During 2008, BGLT 

directed over three quarters of its cargoes 

from their intended destinations in the 

USA to global markets. The combination 

of flexible supply, shipping capacity and 

commercial capability contributes towards 

a strategic advantage for BG Group. 

In 2008/09, BG Group made its first 

deliveries of LNG to Argentina, Brazil, Chile, 

China, Greece, Portugal and Turkey. The 

Group has now delivered to 19 of the 22 

current LNG importing countries. BG Group 

has also bought LNG from 11 of the 16 LNG 

producing countries. 

In 2008, BG Group was selected to source and 

supply the EMA of Singapore on an exclusive 

basis with up to 3 mtpa of LNG for up to 

20 years (see page 22). In 2009, BG Group 

signed a LNG Project Development 

Agreement with China National Offshore 

Oil Corporation (CNOOC), focused on 

BG Group’s QCLNG Project in Australia. 

The agreement sets out the basis on 

which CNOOC will purchase 3.6 mtpa 

of LNG for a period of 20 years from the 

start-up of QCLNG (see page 37). 

BGEM has a 3.5 bcfd US gas marketing 

business which markets regasified LNG 

from Lake Charles and Elba Island, along 

with indigenous gas supplies, to multiple 

intermediary and end-use customers via 

delivery through the US natural gas pipeline 

infrastructure. Sales are made under various 

short, medium and long-term arrangements. 

BGEM’s customers include leading gas and 

electric utilities, as well as industrial and 

wholesale gas merchants. 

Shipping 

BG Group has a long history in LNG shipping, 

having been involved in the development 

of both the prototype and the first working 

LNG carriers in the industry. BG Group’s 

shipping activities are primarily directed 

towards meeting the needs of the Group’s 

LNG trading. The Global Shipping 

organisation also provides governance, 

assurance and HSSE services to other 

BG Group marine operations and projects. 

Four new owned LNG ships have been 

ordered for delivery in 2010. These new ships 

will be larger (170 000 cubic metres) than 

those currently owned, and will be powered 

by tri-fuel diesel-electric engines that are 

more efficient and produce fewer emissions 

than conventional steam vessels. 

BG Group’s shipping is a key enabler for the 

LNG business to ensure delivery and provide 

flexibility to market cargoes. BG Group has a 

core fleet of ships that it owns or has under 

long-term charter. In addition, it contracts 

additional shipping as required on a short, 

medium and long-term basis in order to 

capture business opportunities and maintain 

a balanced shipping position (see page 52). 


29 



Brazil 

Brazil is BG Group’s most significant asset in South 

America. BG Group aims to build a material business in 

Brazil through equity in oil and gas reserves and growth 

of Comgás. Brazil is a core asset in the Group portfolio, 

offering significant oil and gas reserves, ease of access to 

world crude markets, and a growing domestic gas market. 


Bolivia-Brazil Pipeline 

PARAGUAY 

ARGENTINA 

URUGUAY 


BRAZIL 

Bolivia-Brazil Pipeline 

PORTO ALEGRE 

Pre-salt licences 

BM-S-13 

BM-S-47 

BM-S-52 

BM-S-50 

SÃO PAULO 

CURITIBA 

BT-SF-2 

BELO HORIZONTE 

Comgás 

BM-S-47 

Parati 

RIO DE JANEIRO 

BM-S-50, 52 

BM-S-13 

BM-S-10 

Carioca 

BM-S-9, 10, 11 

Guará 

BM-S-9 

Iara 


Gas 

Oil 

Gas pipeline 

Oil pipeline 


block 



Licensed block 

0 500km 

BM-S-11 

Tupi 


• First oil produced from Tupi 

• Further exploration success at 

Iguaçu, Iracema and Corcovado 

• BG Group estimated net share 

of reserves and resources at over 

3 billion boe 

• BG Group supplied first LNG to Brazil 

• Completion of Comgás tariff review 

Key dates 

1999 Purchased controlling stake 

in Comgás 

Bolivia-Brazil pipeline connected 

to São Paulo 

2000 Acquired pre-salt non-operated 

acreage in Santos Basin 

2005 Drilling programme began in 

deep water Santos Basin 

2006 Secured four licences in the ANP 

7th licensing round. Oil and gas 

discoveries in the Santos Basin – 

Parati (BM-S-10) and Tupi (BM-S-11) 

2007 Further discoveries announced: 

Carioca (BM-S-9) and Tupi Sul 

(BM-S-11) 

2008 Guará announced as the second 

oil discovery on BM-S-9 

Iara announced as a material oil 

discovery on BM-S-11 

Exploration continued during 2008/09 

offshore Brazil, where exploration success 

and scale of resources discovered have been 

exceptional. BG Group currently estimates 

that its net share of reserves and resources 

is over 3 billion boe. 

BG Group has a controlling stake in 

Companhia de Gás de São Paulo (Comgás), 

Brazil’s largest gas distribution company. 

At the end of 2008, Comgás had around 

630 000 customers in São Paulo. The 

concession area has a population of over 

29 million and Comgás anticipates continued 

growth opportunities in future. 

Other important areas for BG Group’s 

future business in Brazil include: 

development of gas infrastructure associated 

with production from the Santos Basin (with 

the aim of supplying Comgás); supply of 

imported LNG to the local market; and 

further exploration, both in the established 

basin and new frontiers. 

BG Group has an equity position in the 

Bolivia-Brazil Pipeline (BBP).

EXPLORATION 

The scale of discoveries BG Group has made 

in the Santos Basin offers the opportunity to 

build a material, long-term E&P business in 

Brazil with net production from the first 

three major developments planned to reach 

over 400 000 boed in 2020. The Group is also 

confident that the planned developments 

are economic at oil prices below $40 a barrel. 

In addition, there remains in BG Group’s 

portfolio a number of significant untested 

exploration prospects in the Santos Basin presalt 

play, as well as further reserves potential 

from the appraisal of existing discoveries. 

In 2006, the Parati well in BM-S-10 (BG Group 

25%) and the Tupi well in BM-S-11 (BG Group 

25%) were both declared as discoveries. In 

2007, the Carioca well on BM-S-9 (BG Group 

30%) was declared a discovery and the Tupi 

appraisal well, Tupi Sul (BM-S-11), confirmed 

the 2006 Tupi discovery. 

Tupi is a large structure with significant 

reserves potential requiring further appraisal 

drilling and evaluation. Initial estimates by 

BG Group and partners are that Tupi could 

contain from 12 billion boe to more than 

30 billion boe gross hydrocarbons initially in 

place and gross reserves of 5 to 8 billion boe. 

The Tupi consortium is currently undertaking 

further evaluation of the field under an 

Evaluation Plan approved by the National 

Petroleum Agency of Brazil (ANP). 

An extended well test (EWT) and initial 

development phase for Tupi were sanctioned 

in 2008. The EWT started in May 2009 and is 

planned to last 15 months, with production 

expected to peak at around 14 000 bopd. The 

EWT flowed first commercial oil production 

from Tupi to the FPSO (BW Cidade de São 

Vicente) in May 2009. The initial development 

phase is expected to commence in late 2010, 

with initial production of up to 100 000 bopd. 

The full field development of Tupi may 

involve up to 300 producing and injector 

wells and up to ten FPSO modules with a 

gross oil production up to 1 million bopd 

and up to 1 bcfd of gas. Development activity 

is advancing rapidly on Tupi with the award 

of drilling and facilities contracts. 

In BM-S-9, the Guará well was announced as 

a discovery in June 2008 and in September 

2009, BG Group announced that Guará is 

estimated to contain recoverable volumes 

of 1.1-2.0 billion boe. In September 2008, 

BG Group announced the completion of 

drilling on the Iara well in the BM-S-11 

concession and estimated gross recoverable 

volumes to be three to four billion boe. The 

exploration success with Guará and Iara has 

Block BG Group (%) Partners (%) Wells/prospects 

BM-S-9 30 Petrobras 45, Repsol YPF Brasil S.A. 25 Carioca, Guará, Abaré West, Iguaçu 

BM-S-10 25 Petrobras 65, Partex 10 Parati 

BM-S-11 25 Petrobras 65, Petrogal 10 Tupi, Tupi Sul, Iara, Iracema 

BM-S-13 60 Repsol YPF Brasil S.A. 40 – 

BM-S-47 50 Repsol YPF Brasil S.A. 25, Vale 25 Saleta 

BM-S-50 20 Petrobras 60, Repsol YPF Brasil S.A. 20 Sagittario 

BM-S-52 40 Petrobras 60 Corcovado-1, Corcovado-2 

BT-SF-2 50 Petrobras 50 – 

led the partnership to fast track planning 

on two 120 000 boed initial development 

phases, with the objective of achieving first 

production in 2012 on Guará and 2013 on Iara. 

Evaluation Plans for the Carioca, Guará and 

Iara discoveries have been approved by the 

ANP (regulator). Further development phases 

on Guará and Iara are expected to lead to 

production of up to 150 000 bopd and 

500 000 bopd respectively. 

During 2009, there has been further drilling 

activity on BM-S-9, with an exploration well, 

Iguaçu, completed in April 2009. The Iguaçu 

well has proven the presence of another 

accumulation of light oil. Future operations 

continue to determine the ultimate potential 

and comply with Evaluation Plan obligations. 

A further exploration well, Abaré West, also 

on BM-S-9, has begun drilling. In June 2009, 

BG Group announced that the Iracema well 

on BM-S-11 had encountered hydrocarbons. 

An exploration well is planned to commence 

in 2009 on Sagittario (BM-S-50). On BM-S-52, 

two exploration wells are being drilled in 2009. 

BG Group has a 40% interest in the concession 

and is operator during the exploration phase. 

The first well, Corcovado-1 encountered 

hydrocarbons in April 2009. The rig then 

went on to drill a second well, Corcovado-2. 

Evaluation of these two wells continues. 

LNG 

In June 2008, BG Group and Petrobras signed 

a Master Sales and Purchase Agreement and 

two confirmation memoranda to supply 

LNG to Petrobras terminals in Pecem (State 

of Ceará) and in Guanabara Bay (State of 

Rio de Janeiro). 

BG Group supplied the commissioning 

cargoes to the Pecem terminal in July 2008 

and to the Guanabara Bay terminal in 

May 2009. In future, LNG will be supplied to 

either the Pecem or Guanabara terminals 

as required by Petrobras, subject to local 

market demand. 

BOLIVIA-BRAZIL PIPELINE (BTB) 

With total capacity of 30 mmcmd, the 

BTB is 3 150 kilometres long, of which 

2 593 kilometres are in Brazil. The project 

was developed through two different 

companies: Gas Transboliviano (GTB), which 

owns and operates the assets in Bolivia, and 

Transportadora Brasileira Gasoduto Bolivia 

Brasil (TBG), which owns and operates the 

Brazilian portion of the pipeline. Operation 

of the two pipelines is coordinated through 

an Interconnection Agreement. 

BG Group participates in TBG through BBPP 

Holdings, together with El Paso and Total. 

BG Group’s one-third equity in BBPP Holdings 

represents a 9.67% interest in TBG. BG Group 

holds a 2% interest in GTB. BG Group has an 

effective overall interest of 7.65%, although 

this does not represent a direct equity 

holding, as GTB and TBG are two separate 

entities. Construction of the pipeline was 

completed in 2000, opening the Brazilian 

energy market to Bolivian gas reserves. 

Effective shareholders BTB (%) 


Petrobras 40.46 

Transredes 22.27 

El Paso 7.65 

Ashmore Energy 7.42 

Shell 7.42 

Total 7.12 

Figures rounded to 2 decimal places and are a result 

of adding GTB’s and TBG’s equity positions. 


31 



Brazil continued 

COMGÁS 

Summary of Comgás 2008 results: 

• 6% increase in the total volume of 

gas sales to 5.3 bcm; 

• 10% increase in residential customers; 

• 4% increase in commercial customers; and 

• 449 kilometres of network expansion. 

BG Group has a 60.1% majority interest in 

Comgás, Brazil’s largest gas distribution 

company. Comgás is listed on the São Paulo 

stock exchange. 

At end 2008, Comgás had 5 704 kilometres 

of pipelines covering 67 municipalities 

and supplied gas to 1 004 industrial, 

8 885 commercial and 620 191 residential 

customers in the state of São Paulo. 

Additionally, Comgás supplied 401 NGV 

filling stations, 20 customers in co-generation 

and two in the thermo-generation market. 

Comgás has increased its average daily 

volume from 3.0 mmcmd in 1999 to 

14.6 mmcmd in 2008. 

In 2008, Comgás’ operating profit was 

£115 million (2007 £211 million) and volumes 

increased by 6%. A strong underlying 

performance was obscured by a significant 

increase in the cost of gas. Regulatory 

mechanisms allow the higher cost of gas 

incurred by Comgás to be passed through 

to customers in future periods. At the end 

of 2008, the balance of gas costs to be 

recovered in 2009 and 2010 was £161 million. 

Excluding the impact of the timing effect 

of increased cost of gas at Comgás, the 

operating profit increased by 15% in 2008, 

reflecting volume growth and better margin 

performance at Comgás. 

The Comgás concession is a 30-year franchise, 

with a potential for a further 20 years. 

The concession area contains 7.7 million 

households and is in the industrial heartland 

of Brazil, accounting for about 25% of Brazil’s 

GDP. The current business focus continues 

to be the connection of higher-margin 

commercial and residential customers. 

The concession contract requires a tariff 

review every five years. Since privatisation 

in 1999, Comgás has invested more than 

BRL 2.9 billion. In May 2009, the regulator, 

ARSESP, published the details of the final 

outcome of Comgás’ tariff review covering 

the period 2009-2014. The tariff review 

resulted in some reductions in Comgás’ 

margins, mainly reflecting the pass through 

of reduced cost of gas seen in the last six 

months and some reduction of the 


maximum allowed margin. As a result of 

the reduction, competitiveness of natural 

gas is expected to improve. 

Comgás purchases gas at prices indexed to 

a basket of oil-related fuels. Brazilian gas 

supplies from Petrobras of 3.5 mmcmd are 

contracted until December 2012. Bolivian gas 

supplies from Petrobras began in July 1999 

under a 20-year contract, with volume 

increasing from 4.0 mmcmd in 1999 to 

8.7 mmcmd in 2007, and they are contracted 

until July 2019. Comgás has two further 

gas supply contracts with Petrobras: a firm 

energy contract (1.0 mmcmd until December 

2012) and an interruptible contract (up to 

1.5 mmcmd until December 2010). 

In May 2008, a new supply agreement 

for 0.65 mmcmd was agreed between 

BG Group’s gas marketing arm, BG Comercio, 

and Comgás to replace an earlier agreement 

that needed to be restructured as a result of 

changes to the Bolivian regulatory regime. 

In 2009, industrial and commercial demand 

reduced due to the fall in economic activity 

and high rainfall benefiting competing 

hydro electric generation. The residential 

segment continues to add connections. 

Growth in the industrial and commercial 

segments is expected to resume as the 

economic outlook improves. 

Effective shareholders Comgás (%) 

6 

5 

4 

3 

2 

1 

0 


Public 21.8 

Shell 18.1 

Comgás volumes (bcm) 

Thermal 

Co-generation 

NGV 

Commercial 

Residential 

Industrial 

4.8 

2006 

5.0 

2007 

5.3 

2008 

Financial and operating summary – Comgás 

2008 2007 2006 

Revenue 

(£ million) 

EBIT 

1 206 810 739 

(£ million) 

Customers at 

115 211 186 

year end (‘000) 

Sales volume 

630 572 517 

(bcm) 5.3 5.0 4.8

Bolivia 

BG Group has interests in six exploration and exploitation 

licences in Bolivia. BG Group operates three gas areas, 

which include six fields, and holds a participating interest 

in another three areas, which include two of the largest 

discovered natural gas condensate fields in the country, 

Margarita and Itau. 


Key dates 

Caipipendi 

BOLIVIA 

TARIJA 

XX Tarija West 

VILLAMONTES 

ARGENTINA 

1998 Margarita discovered 

1999 Itau field discovered 

2004 First production from Margarita 

Early Production Facility 

2006 Supreme Decree (No. 28701/6) 

on Nationalisation issued 

New Operations Contracts signed 

2007 New contracts approved 

by Congress 

Successful drilling of Huacaya X-1 

well in Caipipendi Block 

2008 Declaration of Commerciality 

on Huacaya and Palo Marcado 

discoveries 

2009 Declaration of Commerciality 

issued on the XX Tarija West block 

Charagua 

La Vertiente 

XX Tarija East 


Los Suris 

PARAGUAY 


Gas 

Oil 

Gas pipeline 

Oil pipeline 


block 



0 100km 

Bolivia: BG Group 3 year production 


6.0 

4.5 

3.0 

1.5 

0.0 

Oil & liquids 

Gas 

5.3 

2006 

5.5 

2007 

5.7 

2008 

Following congressional approval in 2007, 

new Operations Contracts became effective, 

replacing the Shared Risk Contracts. Gas 

and liquids are delivered to the National Oil 

Company, YPFB, from fields in the La Vertiente, 

Los Suris and Caipipendi blocks to supply 

Brazilian, Argentine and domestic markets. 

OPERATED BLOCKS 

La Vertiente 

The 375 square kilometre La Vertiente 

exploitation block contains the La Vertiente, 

Escondido and Taiguati gas fields. BG Group 

is in the process of obtaining an environmental 

permit to drill up to two new wells in the 

Taiguati Field and has recently drilled two 

new production wells, EDD8 and LVT 12, in 

the La Vertiente block. Production from these 

fields is processed at the La Vertiente plant 

and the natural gas and stabilised condensate 

are delivered to YPFB for subsequent marketing. 

Los Suris 

The 50 square kilometre Los Suris 

exploitation block contains the Los Suris 

gas field. Production from this field is 

processed at the La Vertiente plant. 


The 151 square kilometre XX Tarija East licence 

area contains two discovered gas fields, 

Ibibobo and Palo Marcado. YPFB approved 

the Declaration of Commerciality for Palo 

Marcado in December 2008, all permits are 

in place and development is underway. 

NON-OPERATED BLOCKS 

Caipipendi 

BG Group has a 37.5% share in this block, 

which contains the large Margarita gas 

field lying in the 874 square kilometre 

Margarita exploitation area. In 2007, a new 

discovery was made in the northern part of 

this block with the successful drilling of the 

Huacaya X-1 well. In 2008, the partnership 

issued a Declaration of Commerciality in 

respect of this discovery. 

XX Tarija West 

BG Group has a 25% interest in the XX Tarija 

West block, which contains the Itau gas field 

in respect of which a commercial declaration 

was made in 2009. 

Charagua 

BG Group has a 20% interest in the 

992 square kilometre Charagua Block, 

which contains the Itatiqui Retention Area. 


33 



Chile, Uruguay and Argentina 

The Quintero LNG terminal, in Chile, expands BG Group’s 

operations in South America and provides a long-term, 

counter-seasonal market for the Group’s global LNG portfolio. 



Gas 

Oil 

Gas pipeline 

0 700km 


• First LNG to Quintero LNG 

Key dates 

PACIFIC OCEAN 

2006 BG Group selected to supply 

and participate in a LNG 

regasification plant 

2007 GNL Quintero S.A. incorporated 

and project sanctioned 

EPC contract signed and import 

terminal construction started 


CHILE 

BOLIVIA 

PARAGUAY 

ATLANTIC OCEAN 

BRAZIL 

ARGENTINA 

MetroGAS 

Quintero LNG 

SANTIAGO 

BUENOS AIRES URUGUAY 

MONTEVIDEO 

Southern Cross and 

Gas Link Pipelines 

CHILE 

In 2007, BG Group and partners incorporated 

GNL Quintero S.A. and executed the 

shareholders’ agreement. BG Group holds 

a 40% ownership (ENAP 20%, Endesa 20%, 

Metrogas S.A. of Santiago 20%). GNL Quintero 

S.A. owns and operates the 2.5 mtpa LNG 

import terminal located in Quintero Bay, 

110 kilometres from Santiago. 

BG Group’s partners in GNL Quintero S.A. 

have secured capacity rights in the terminal 

and have arranged to off-take the gas via 

21-year agreements, with 1.7 mtpa LNG 

supplied by BG Group from its supply portfolio. 

In July 2009, BG Group delivered the first 

cargo of LNG to Chile. The first shipment 

of gas was used as the commissioning cargo 

for the Quintero LNG regasification terminal. 

The terminal, which is the first onshore LNG 

import terminal to begin operations in the 

southern hemisphere, is in its commissioning 

phase, with full construction scheduled to be 

completed during third quarter 2010. 

The regasification plant will include two 

160 000 cubic metre LNG storage tanks 

and will have an initial send-out capacity 

of 340 mmscfd on a sustainable basis 

and 510 mmscfd on a peaking basis, the 

equivalent of approximately 40% of the 

country’s demand for natural gas. 

The new import terminal will provide a vital 

new source of energy supply for Chile. 

URUGUAY 

BG Group is operator with a 40% share in 

the Southern Cross Pipeline (SCP) linking 

Punta Lara in Argentina to Montevideo. 

The pipeline became operational in 2002 

at the start of a 30-year concession period. 

Through its holding in Dinarel, BG Group 

holds a 25.5% interest in Gas Link, a 

40 kilometre gas pipeline connecting the 

SCP to the Argentine transportation network. 

ARGENTINA 

MetroGAS is the largest natural gas 

distribution company in South America and 

supplies over two million customers in the 

city of Buenos Aires and Southern Greater 

Buenos Aires. 

BG Group ceased to be the Technical Operator 

of MetroGAS in December 2008. Gas 

Argentino S.A., the holding company of 

MetroGAS, is in a court-supervised voluntary 

reorganisation insolvency process in 

Argentina. MetroGAS' distribution tariffs 

remain frozen at 1999 levels. 

Shareholders GNL Quintero S.A. (%) 


ENAP 20 

Endesa 20 

Metrogas S.A. of Santiago 20

Canada and Alaska 

BG Group’s Canadian exploration activities are focused in 

Alberta, British Columbia and the Northwest Territories. 

The Group’s Alaskan activities are focused in the eastern 

North Slope and the foothills of the North Slope. 



Gas 

Oil 

Gas pipeline 

Oil pipeline 

Proposed gas 

pipeline 

TransAlaska Pipeline 

Key dates 

0 500km 

PRUDHOE BAY 

ALASKA 

ANCHORAGE 


block 


non-operated 

block 

BEAUFORT SEA 

ENS Contract Area 

Foothills Contract Area 

CANADA 

Proposed Alaska Gasline 

2005 Awarded acreage in the 

Northwest Territories 

2006 Entry into Alaska via acreage 

in eastern North Slope and 

foothills of North Slope 

2007 Sold Bubbles, Ojay and 

Copton/Lynx assets 

Acquired further acreage in 

the Northwest Territories 

EL 444 

EL 445 

YUKON 

TERRITORY 

Northern 

Foothills 

BRITISH 

COLUMBIA 

FORT ST JOHN 

Central 

Foothills 

Deep West 

NORTHWEST 

TERRITORIES 

VANCOUVER 

ALBERTA 

Waterton 

USA 

CALGARY 

Canada: BG Group 3 year production 


4 

3 

2 

1 

0 

Oil & liquids 

Gas 

3.5 

2006 

0.9 

2007 

0.1 

2008 

CANADA 

In Canada, BG Group has interests in over 

250 000 gross hectares. Exploration activities 

are focused in the Northern and Central 

foothills and the Wild River Basin. BG Group 

also holds interests in the Northwest Territories. 

BG Group operates two licences (EL 444 

and EL 445) in the Colville Lake area of the 

Mackenzie Valley, Northwest Territories, 

about 700 miles north-west of Yellowknife. 

BG Group has an average working interest 

of 87%. 

In 2007, BG Group sold its production assets 

in the Bubbles, Ojay and Copton/Lynx areas 

of the Western Canadian Sedimentary Basin. 

During 2008-2009, BG Group has focused 

drilling in the foothills areas of central British 

Columbia and Alberta. Five wells have been 

brought onstream. 

ALASKA 

In Alaska, BG Group has interests in over 

2.7 million gross acres in the eastern North 

Slope (ENS) and the foothills of the North 

Slope areas. 

In 2006, BG Group signed a Participation 

Agreement for a 33.33% interest in 

2.1 million acres in the foothills area of the 

Alaskan North Slope. Equal partners are 

Anardarko (operator) and Petro-Canada. 

Alaska’s North Slope has estimated discovered 

reserves in excess of 17 billion bbls of oil and 

35 tcf of gas. In 2006, BG Group signed a 

further Exploration Agreement to acquire 

a 40% interest in 208 000 acres of land along 

Alaska’s ENS. Partners are Anardarko with 

50% (operator) and Arctic Slope Regional 

Corporation with 10%. 

Drilling and seismic activities were carried 

out in both of these areas during 2007-2009. 

BG Group is now evaluating the results of 

four wells. 


35 


36 Australia 

Australia 

BG Group entered Australia in early 2008 via an alliance 

with Queensland Gas Company to develop coal seam gas 

acreage and construct and own a LNG liquefaction plant. 

BG Group’s plans are for an initial two-train 7.4 mtpa plant, 

with potential for expansion. Australia is a key growth 

asset and central to BG Group’s Asia Pacific LNG strategy. 


TOWNSVILLE 


• Queensland Gas Company 

(QGC) acquired 

• Pure Energy acquired 

• Project Development Agreement 

with CNOOC 

• Environmental Impact Statement 

(EIS) submitted 


COLLINSVILLE 

BOWEN 

MORANBAN 

EMERALD 

MACKAY 

ROMA 

BLACKWATER 

WALLUMBILLA 

MILES 

CONDAMINE 

SURAT 

ROCKHAMPTON 

MOURA 

TARA 

MOONIE 

CHINCHILLA 

Queensland 

Curtis LNG 

GLADSTONE 

KOGAN 

DALBY 

Key dates 


Gas pipeline 

Proposed gas 

pipeline 

TOOWOOMBA 

0 250km 


acreage 

interests 

2008 Alliance with QGC established 

Queensland Curtis LNG Project 

awarded ‘Significant Project Status’ 

Bechtel appointed for FEED study 

Agreed takeover of QGC 

Australia: BG Group 3 year production 


1.00 

0.75 

0.50 

0.25 

0 

Oil & liquids 

Gas 

2006 

2007 

0.9 

2008 

In 2008, QGC produced 3.8 mmboe and 

supplied around 20% of Queensland’s gas 

market. The development of the Queensland 

Curtis LNG (QCLNG) Project will expand 

production significantly, and in 2015 the 

Group’s Australian production is expected 

to be over 80 mmboe. LNG production will 

enable BG Group to supply its Asia Pacific 

customer base with locally-produced supply, 

accessing high-value markets. Australia is 

intended to be a material, long-term base for 

BG Group and a key driver for the Group’s 

production growth. 

In February 2008, BG Group announced an 

alliance with QGC, a leading coal seam gas 

(CSG) company supplying the Queensland 

market. BG Group acquired a 20% interest 

in QGC’s CSG assets in the Surat Basin, 

southern Queensland, and a 9.9% stake in 

QGC for a total consideration of £316 million. 

Under the agreement, the companies’ plans 

were to develop the CSG acreage to deliver 

to the domestic market and to a new LNG 

production and export facility on the 

Queensland coast, jointly-owned by 

BG Group and QGC. 

Following a successful drilling campaign 

and the decision to develop a multi-train 

LNG project, the Boards of BG Group and 

QGC announced in October 2008 that they 

had agreed the terms of a recommended 

take-over. BG Group acquired all the issued 

shares in QGC at A$5.75 per share by means 

of an unconditional on-market takeover 

bid on the Australian Securities Exchange. 

The offer valued QGC at approximately 

A$5.6 billion (£2.2 billion). In March 2009, 

BG Group completed the acquisition of QGC.

The acquisition of QGC brought 11 tcf of 

resource to the Group. Production is currently 

supplying the domestic market. Future 

production will also supply a LNG liquefaction 

plant so that in 2015, production is expected 

to total 80 mmboe. The QCLNG Project 

includes an initial two-train 7.4 mtpa 

liquefaction plant with potential expansion 

up to 12 mtpa. The plant is to be built on a 

270 hectare site at North China Bay on Curtis 

Island, Gladstone, on the Queensland coast, 

and first LNG for delivery is expected in 2014. 

The project also involves the construction of 

a 380 kilometre underground pipeline to 

Gladstone, additional pipeline capacity to 

link nearby CSG resources, as well as the 

development of the LNG terminal. Bechtel 

has been appointed to work on the FEED 

study and BG Group expects to sanction 

the project in 2010. 

In July 2008, the QCLNG Project was awarded 

‘Significant Project Status’ by the Queensland 

government, which triggers environmental 

impact assessment under Queensland and 

Australian government legislation. In August 

2009, BG Group submitted its Environmental 

Impact Statement for public consultation and 

a decision from the Queensland and Australian 

authorities is expected in early 2010. 

In February 2009, to secure additional 

CSG resource, BG Group made an all-cash 

takeover offer to acquire all of the issued 

shares in Pure Energy Resources Limited 

(Pure Energy) for A$6.40 per share. BG Group 

increased its offer to A$8.25 per share and 

subsequently completed the acquisition 

in May for a total consideration of 

A$1 014 million (£464 million). The acquisition 

adds 2 tcf of CSG resource, making a total 

of more than 13 tcf of reserves and resources 

in Queensland. 

The acquisition of Pure Energy has brought 

additional CSG reserves and resources 

located adjacent to key QGC licences in 

the Surat Basin. In addition, the acquisition 

brings large tracts of prospective coal seam 

gas acreage in Queensland’s Bowen Basin. 

In total, BG Group now owns interests in 

onshore concessions in Australia covering 

more than 130 000 square kilometres. In 

Queensland, the business holds interests 

in more than 40 000 square kilometres of 

acreage. To date, only a fraction of the total 

ground under lease has been explored 

or developed. 

In May 2009, BG Group signed a LNG Project 

Development Agreement with China 

National Offshore Oil Corporation and its 

affiliates (CNOOC), focused on the QCLNG 

Project. The agreement sets out the basis 

on which: 

• CNOOC will purchase 3.6 mtpa of LNG 

for a period of 20 years from the start-up 

of QCLNG; 

• CNOOC will purchase 5% of BG Group’s 

interest in the reserves and resources of 

certain tenements in the Walloons Fairway 

of the Surat Basin in Queensland; 

• CNOOC will become a 10% equity investor 

in one of the two liquefaction trains that 

will form the first phase of QCLNG; and 

• BG Group and CNOOC will jointly 

participate in a consortium formed to 

construct two LNG ships in China that 

would be owned by the consortium. 

BG Group and CNOOC intend to complete 

negotiations and execute fully-termed 

transaction documents prior to the final 

investment decision in 2010 to sanction 

the project. 

QCLNG is firmly underpinned by BG Group’s 

global LNG supply agreements. Upon 

execution of the fully-termed transaction 

documents with CNOOC, BG Group's LNG 

supply commitments with partners and 

customers in Chile, Singapore and China 

will account for up to 8.3 mtpa, firmly 

underpinning development of the two-train 

first phase of the QCLNG Project. 

Condamine Power Station 

Acquired through the take-over of QGC, 

BG Group also operates Condamine Power 

Station, which is fuelled by CSG produced 

at QGC’s gasfields in the Surat Basin. With 

a potential generating capacity of 140 MW, 

the station provides power for the National 

Electricity Market and is expected to be at 

full capacity (combined cycle) operation in 

late 2009. 


37 

AUSTRALIA

38 


Contents 

CONTENTS 

39 Introduction and legal notices 

Social and environment data 

40 Environment 

40 Our people 

41 Conduct 

41 Society 

Group financial data 

42 Summarised BG Group annual results 

43 Summarised BG Group quarterly results 

44 Segmental analysis 

Exploration and Production 

45 Estimated net proved reserves of natural gas 

46 Estimated net proved reserves of oil 

46 Estimated net proved and probable reserves 

47 Operating statistics 

47 Drilling activity 

48 Field interests 

49 Licence and block interests 

LNG 

51 Facilities capacity 

51 Long-term firm supply 

52 Cargoes 

52 Ships 

Transmission and Distribution 

53 Operating statistics 

Power Generation 

53 Capacity 

Corporate information 

54 Principal acquisitions, commitments and divestments 

54 Credit ratings 

55 Issued share capital and dividend history 

55 Investor calendar 

Definitions 

56 Definitions 

57 Index of assets 

www.bg-group.com

Introduction and legal notices 

INTRODUCTION 

Financial and operating statistics 

This financial and operating information 

includes extracts from the BG Group 

Annual Report and Accounts 2008 

(“BG Group ARA”) and quarterly results 

statements. Reference to these reports 

will assist in the understanding of the 

figures in this document. The financial 

information in this document is 

unaudited and is not intended to be the 

statutory accounts of BG Group plc. 

Business Performance 

“Business Performance” excludes 

disposals, certain re-measurements 

and impairments, and exclusion of these 

items provides readers with a clear and 

consistent presentation of the underlying 

operating performance of the Group’s 

ongoing business. 

For further explanation of Business 

Performance and the presentation 

of results from joint ventures and 

associates, please refer to the 

presentation of non-GAAP measures 

on page 135 of the BG Group ARA. 

Translation into US Dollars 

Some of BG Group’s financial figures 

in Sterling have been translated into 

US Dollars. The average rate for each 

period has been used when translating 

the income statement and cash flow 

statement. These translations should 

not be construed as representations that 

the Sterling amounts actually represent 

such US Dollar amounts or could be 

converted into US Dollars at the rate 

indicated or any other rate. 

Reference conditions 

Brent oil price $55/bbl 

US Henry Hub $7.25/mmbtu 

US/UK exchange rate of $1.5:£1 

LEGAL NOTICES 

Steps have been taken to verify the 

information contained in this Data 

Book and, unless otherwise indicated, 

is believed to be accurate as at 

31 August 2009. However, neither 

BG Group plc nor any of its subsidiary 

undertakings, joint ventures or associated 

undertakings or their respective directors, 

partners, employees or agents makes any 

representation or warranty, express or 

implied, or accepts any responsibility, with 

respect to the accuracy or completeness 

of the information in this document. 

Certain statements included in this 

Data Book contain forward-looking 

information concerning BG Group’s 

strategy, operations, financial 

performance or condition, outlook, 

growth opportunities or circumstances 

in the countries, sectors or markets in 

which BG Group operates. By their 

nature, forward-looking statements 

involve uncertainty because they 

depend on future circumstances, 

and relate to events, not all of which 

are within BG Group’s control or can 

be predicted by BG Group. Although 

BG Group believes that the expectations 

reflected in such forward-looking 

statements are reasonable, no assurance 

can be given that such expectations 

will prove to have been correct. Actual 

results could differ materially from those 

set out in the forward-looking statements. 

For a detailed analysis of the factors that 

may affect our business, financial 

performance or results of operations, 

we urge you to look at the “Principal risks 

and uncertainties” included on pages 17 

to 19 of the BG Group ARA. Nothing in 

this Data Book should be construed as 

a profit forecast, and no part of these 

results constitutes, or shall be taken to 

constitute, an invitation or inducement 

to invest in BG Group plc or any other 

entity, and must not be relied upon in 

any way in connection with any investment 

decision. BG Group undertakes no obligation 

to update any forward-looking statements. 

Details of disposals, certain re-measurements and impairments can be found on the BG Group website, www.bg-group.com 

The information contained in the Data Book can also be found on the BG Group website, www.bg-group.com 

EXPLANATORY NOTE FOR US INVESTORS 

RELATING TO GAS AND OIL RESERVES 

AND RESOURCES 

BG Group continues voluntarily to use the 

SEC definition of proved reserves to report 

proved gas and oil reserves. For further 

details of BG Group’s proved reserves 

as at 31 December 2008, and related 

supplemental gas and oil information, see 

Supplementary information – gas and oil, 

included on page 115 of the BG Group 

ARA. This Data Book may also contain 

additional information about other 

BG Group gas and oil reserves and 

resources that would not be permitted in 

SEC filings. For an explanation of terms 

used in connection with such additional 

reserves and resources information, refer 

to page 56. 


39 

STATISTICAL SUPPLEMENT

40 


Social and environment data 

ENVIRONMENT 

The environment data below represents 100% of the direct emissions, discharges and wastes from: 

• Exploration and Production (E&P) operations where BG Group is designated as the operator; and 

• Liquefied Natural Gas (LNG), Transmission and Distribution (T&D) and Power Generation (Power) operations in which BG Group holds a total interest 

of over 50%. This includes MetroGAS S.A., which is controlled by BG Group (although BG Group’s direct shareholding is less than 50%). 

In addition, the figures include 50% of the direct emissions, discharges and wastes from KPO, our joint-operated venture in Kazakhstan. 

Emissions (tonnes) 


Venting Fugitive Flaring Fuel use 

Electricity 

generation 

Distribution 

losses 

Total 

2008 

Total 

(1, 2) 

2007 

Total 

2006 (1) 

t/mmboe 

2008 

t/mmboe 

(1, 2) 

2007 

Carbon dioxide 485 775 2 667 412 2 748 583 3 911 300 1 260 7 814 332 8 328 778 5 216 620 19 336 22 217 15 580 

Carbon monoxide – – 2 170 5 703 2 299 – 10 172 8 918 8 677 25 24 26 

Nitrogen oxides – – 750 13 259 4 146 – 18 155 18 371 13 592 45 49 41 

Sulphur dioxide – – 3 618 9 549 560 – 13 727 10 955 9 216 34 29 28 

Methane 5 156 390 2 407 368 581 36 089 44 991 45 759 44 824 111 122 134 

Volatile organic compounds 5 689 69 732 322 84 3 564 10 460 10 513 10 619 26 28 32 

Greenhouse gases (carbon 

dioxide equivalent) 

Discharges to water (tonnes) 

Waste for disposal (tonnes) 

Energy use (MWh) 

594 053 

8 201 

726 254 

2 777 511 

3 956 088 

Oil in 

process water 

759 134 

Oil on 

cuttings 

8 821 241 

Oil 

spills 

9 355 329 

Process 

water 

6 199 524 

Drill 

cuttings 

21 827 

Total 

2008 

24 955 

Total 

2007 (3) 

t/mmboe 

2006 (1) 

18 515 

Total 

2006 

93 1 332 0.80 3 537 827 45 199 3 584 452 4 573 302 4 381 109 

Liquid Metal General Hazardous Recycled 

Drill 

cuttings 

Total 

2008 (7) 

Total 

2007 (4) 

167 023 4 112 16 997 12 548 10 465 58 655 259 335 41 576 52 425 

Gas Electricity Oil 

Total 

2008 

Total 

2007 (2) 

Total 

2006 (5) 

Total 

2006 (6) 

10 921 759 20 423 4 629 952 15 572 134 11 029 302 9 989 797 

(1) Amended from 2006 and 2007 Report following review and update of support vehicle emission calculations. 

(2) Amended from 2007 Report to include revised fuel consumption/CO 2 emissions for LNG vessels. 

(3) Amended from 2007 Report as a result of revisions to BG Exploration and Production India Limited’s data. 

(4) Amended to include updated Comgás data and Rashpetco data not available at the time of the 2007 Report. 

(5) Amended (reduced) from 2007 Report and amended from 2006 Report to include additional data from BG Bolivia not available at the time of the 2006 Report. 

(6) Amended from 2006 Report to include additional data from BG Trinidad and Tobago not available at the time of the 2006 Report. 

(7) Does not include recycled waste for disposal. 

OUR PEOPLE 

People data refers to direct employees of BG Group 2008 2007 2006 

Employees worldwide (1) 5 395 4 949 4 665 

Employees based outside UK (1) 3 639 3 286 3 030 

Employees working away from home country 623 582 529 

Women in management 10% 8% 9% 

Gender split in global workforce (men/women) 75%/25% 75%/25% 77%/23% 

Core management team: non UK/US nationals 16% 16% 17% 

Employee turnover in global workforce 9% 9% n/a 

(1) Average numbers throughout 2006, 2007 and 2008.

HEALTH AND SAFETY (per million work hours) 

The health and safety data represents 100% of the data from: 

• E&P operations where BG Group is designated as the operator; and 

• LNG, T&D and Power operations in which BG Group holds a total interest of over 50%. This includes MetroGAS S.A., which is controlled by BG Group 

(although BG Group’s direct shareholding is less than 50%). 

In addition, this includes Egyptian LNG, Dragon LNG, UK, and 100% of the data from our Karachaganak joint-operated venture in Kazakhstan. 

2008 2007 (1) 2006 

Total recordable case frequency (TRCF) 1.74 1.58 1.66 

Sickness absence 0.71 0.83 0.43 

Reported occupational related illness frequency (ORIF) 0.14 0.12 0.1 

(1) Amended from the 2007 Report to include two additional cases not available at the time of publication. 

CONDUCT 

2008 2007 2006 

Investigations of fraud allegations 14 6 7 

Whistleblowing/Speak Up cases 70 40 31 

SOCIETY – SOCIAL INVESTMENT (£) 

The following data represents 100% of contributions made by wholly owned BG Group businesses and proportional contributions (according to BG Group’s stake) 

made by operations and joint ventures where BG Group is a shareholder. 

2008 2007 2006 

Local community investment 1 630 881 – – 

Regional development 333 792 – – 

Charitable donations/philanthropy 1 710 605 – – 

Miscellaneous 639 510 – – 

Sub-total voluntary contributions 4 314 788 3 418 639 3 769 423 

Management costs 405 978 459 691 470 966 

Contractual obligations through production-sharing agreements 589 065 1 660 590 1 352 053 

Total contributions 5 309 831 5 538 920 5 592 442 

2008 social investment reporting categories have been revised. As a result, comparisons with prior year categories cannot be made. 

This social investment data consists only of amounts provided by the Group for clearly defined social investment projects. For the avoidance of doubt, this 

expenditure does not include: taxation; foreign direct investment; local content; public infrastructure projects primarily benefiting BG Group activities; impact 

management; recruitment; sponsorship; cause-related marketing; investments made primarily for public relations or brand promotion; employee donations; 

fundraising or legacies or leveraged funding obtained. 


41 


42 


Summarised BG Group annual results 

BUSINESS PERFORMANCE 


2008 2007 2006 

Dated Brent average ($/bbl) 96.98 72.39 65.14 

FX rate ($/£) 1.89 2.00 1.83 

Henry Hub ($/mmbtu) 8.85 6.95 6.74 

BG Group E&P production (mmboe) 226.7 220.3 219.2 

Group revenue and other operating income (£ million) 12 602 8 330 7 270 


Exploration and Production 3 512 2 387 2 457 

Liquefied Natural Gas 1 585 521 352 

Transmission and Distribution 160 247 231 

Power Generation 118 130 106 

Other activities (1) (20) (37) (43) 

Total operating profit on ordinary activities 5 355 3 248 3 103 

Net finance costs (2) 25 (27) (43) 

Profit on ordinary activities before taxation 5 380 3 221 3 060 

Tax on profit on ordinary activities (3) (2 287) (1 385) (1 375) 

Profit on ordinary activities after taxation 3 093 1 836 1 685 

Minority shareholders’ interest (25) (53) (45) 

Earnings 3 068 1 783 1 640 

Earnings per ordinary share 91.6p 52.7p 47.4p 

Net cash flow from operating activities 4 391 2 741 2 381 

Net (borrowings)/funds (972) 25 (103) 

Capital investment 5 444 2 497 1 847 

Capital investment excluding acquisitions 3 037 1 923 1 800 

ROACE after tax (%) 28.7 25.8 26.2 

Gearing (%) 7.1 (0.3) 1.6 

(1) Other activities include new business development expenditure and certain corporate costs. 

(2) Includes share of joint ventures and associates net finance costs. 

(3) Includes share of joint ventures and associates tax.

Summarised BG Group quarterly results (1) 


Q2 

2009 

Q1 

2009 

Q4 

2008 

Q3 

2008 

Dated Brent assumption ($/bbl) 58.79 44.40 54.91 114.78 121.36 96.89 88.45 74.75 68.76 57.76 59.60 69.60 69.59 61.79 

FX rate ($/£) 1.50 1.43 1.67 1.93 2.00 1.98 2.05 2.02 1.98 1.96 1.90 1.86 1.80 1.75 

Henry Hub ($/mmbtu) 3.81 4.55 6.39 9.11 11.32 8.58 6.92 6.16 7.55 7.16 6.60 6.08 6.54 7.75 

BG Group E&P production (mmboe) 58.5 57.9 57.3 54.0 54.7 60.7 59.7 48.7 53.7 58.2 57.2 50.6 55.6 55.8 

– oil volume (mmboe) 8.0 8.1 8.0 7.5 7.2 7.9 7.7 6.6 7.4 6.5 5.9 4.3 5.3 5.6 

– liquids volume (mmboe) 9.4 8.6 8.7 8.1 9.2 9.3 9.0 8.2 9.7 8.8 8.7 6.9 7.6 7.4 

– gas volume (mmboe) 41.1 41.2 40.6 38.4 38.3 43.5 43.0 33.9 36.6 42.9 42.6 39.4 42.7 42.8 

BG Group avg UK gas price pence per produced therm 36.23 63.58 60.79 35.63 32.79 38.73 38.36 29.46 23.88 37.03 34.41 25.50 26.20 38.84 

BG Group avg Int’l gas price pence per produced therm 16.50 23.84 25.10 23.83 20.43 19.54 16.00 14.54 15.11 16.31 16.69 16.83 17.05 18.40 

Overall BG Group avg gas price pence per 

produced therm 20.03 31.41 32.52 25.62 22.94 23.87 21.40 16.62 17.00 21.50 21.28 18.52 19.09 23.69 

BG Group avg oil price ($/bbl) 59.27 43.46 55.18 115.26 120.93 98.49 88.59 76.47 69.07 58.13 60.13 71.43 69.76 62.53 

BG Group avg liquids price ($/bbl) 

Total operating profit including share of pre-tax 

operating results from joint ventures and associates 

(£ million) 

47.82 33.02 29.76 91.41 97.69 81.35 73.48 61.26 56.72 45.57 46.40 57.56 56.79 50.17 

Exploration and Production 490 583 677 917 976 942 763 433 565 626 575 509 647 726 

Liquefied Natural Gas 311 578 456 367 367 395 163 149 88 121 115 65 34 138 

Transmission and Distribution 127 80 (6) 80 55 31 60 67 70 50 53 56 57 65 

Power Generation 49 25 21 19 40 38 32 29 31 38 28 16 23 39 

Other activities (2) (5) 9 (9) – (7) (4) (12) (6) (7) (12) (11) (13) (9) (10) 

Total operating profit 972 1 275 1 139 1 383 1 431 1 402 1 006 672 747 823 760 633 752 958 

Net finance costs (3) (41) (47) 21 11 4 (11) (4) (8) (6) (9) (17) (13) (14) 1 

Profit before tax 931 1 228 1 160 1 394 1 435 1 391 1 002 664 741 814 743 620 738 959 

Tax on profit on ordinary activities (4) (395) (522) (472) (600) (617) (598) (431) (281) (317) (356) (324) (266) (401) (384) 

Profit for the period 536 706 688 794 818 793 571 383 424 458 419 354 337 575 

Minority interest (29) (16) 7 (17) (11) (4) (13) (15) (15) (10) (9) (12) (12) (12) 

Earnings (BG Group shareholders) (5) 507 690 695 777 807 789 558 368 409 448 410 342 325 563 

Earnings per ordinary share 15.1p 20.5p 20.7p 23.2p 24.1p 23.6p 16.6p 10.9p 12.0p 13.1p 12.0p 10.0p 9.3p 16.0p 

Net cash flow from operating activities 685 953 1 267 606 1 353 1 165 714 486 639 902 577 461 641 702 

Net (borrowings)/funds (2 055) (1 378) (972) 471 629 506 25 (60) 213 (27) (103) (358) 14 183 

Capital investment 1 182 1 311 3 117 730 950 647 628 504 496 869 549 511 401 386 

Capital investment excluding acquisitions 1 182 847 1 026 730 634 647 626 504 422 438 502 511 401 386 

ADDITIONAL INFORMATION: EXPLORATION AND PRODUCTION 

Lifting costs ($/boe) 3.34 3.21 3.69 4.10 3.72 3.11 3.22 3.60 3.44 2.97 2.88 2.69 2.18 2.08 

– lifting costs (£/boe) 2.23 2.24 2.21 2.13 1.87 1.57 1.58 1.78 1.74 1.51 1.51 1.45 1.21 1.19 

Opex ($/boe) 5.42 5.44 6.55 6.91 6.47 5.55 5.10 5.50 5.41 4.92 4.82 4.39 3.72 3.82 

– opex (£/boe) 3.62 3.80 3.93 3.59 3.24 2.80 2.50 2.73 2.74 2.51 2.53 2.36 2.07 2.18 

Development expenditure (£ million) 632 401 537 447 406 407 340 310 301 291 201 229 160 131 

Gross exploration expenditure (£ million) 285 366 307 195 234 187 181 148 102 105 180 103 103 169 

– capitalised 223 302 257 134 180 146 116 83 46 59 129 65 66 136 

– other expenditure 62 64 50 61 54 41 65 65 56 46 51 38 37 33 

Q2 

2008 

(1) All information is prepared under IFRS. 


(3) Includes share of joint ventures and associates net finance costs. 

(4) Includes share of joint ventures and associates tax. 

(5) Q2 2006 includes prior period taxation of £76 million due to increase in North Sea taxation. 

Q1 

2008 

Q4 

2007 

Q3 

2007 

Q2 

2007 

Q1 

2007 

Q4 

2006 

Q3 

2006 

Q2 

2006 

Q1 

2006 


43 


44 


Segmental analysis 


£ million 

Revenue and other 

operating income 


Q2 

2009 

Q1 

2009 

Year 

2008 

Q4 

2008 

Q3 

2008 

Q2 

2008 

Q1 

2008 

Exploration and Production 1 158 1 279 5 682 1 289 1 462 1 476 1 455 4 039 1 241 829 942 1 027 3 928 1 001 870 984 1 073 

Liquefied Natural Gas 754 1 426 5 426 1 305 1 390 1 395 1 336 3 099 788 704 910 697 2 442 675 566 548 653 

Transmission and Distribution 356 328 1 383 361 406 327 289 978 266 258 234 220 877 226 224 224 203 

Power Generation 119 143 622 166 157 160 139 523 145 140 142 96 248 64 42 50 92 

Other activities (1) – – 4 – 1 1 2 7 2 2 1 2 8 1 2 2 3 

Intra-group sales (70) (81) (515) (132) (125) (143) (115) (316) (104) (83) (67) (62) (233) (70) (57) (54) (52) 

Year 

2007 

Q4 

2007 

2 317 3 095 12 602 2 989 3 291 3 216 3 106 8 330 2 338 1 850 2 162 1 980 7 270 1 897 1 647 1 754 1 972 

OPERATING PROFIT 

Group operating profit before 

share of pre-tax results of 

joint ventures and associates 

Exploration and Production 490 583 3 512 677 917 976 942 2 387 763 433 565 626 2 457 575 509 647 726 

Liquefied Natural Gas 258 518 1 445 411 333 331 370 394 125 116 57 96 248 90 40 10 108 

Transmission and Distribution 120 74 132 (13) 72 48 25 213 53 61 59 40 190 44 46 46 54 

Power Generation 23 1 37 2 2 17 16 44 11 5 10 18 18 7 (1) 2 10 

Other activities 

Sub-total Group 

(5) 9 (20) (9) – (7) (4) (37) (12) (6) (7) (12) (43) (11) (13) (9) (10) 

operating profit 

Share of operating profit of 

joint ventures and associates 

886 1 185 5 106 1 068 1 324 1 365 1 349 3 001 940 609 684 768 2 870 705 581 696 888 

Exploration and Production – – – – – – – – – – – – – – – – – 

Liquefied Natural Gas 53 60 140 45 34 36 25 127 38 33 31 25 104 25 25 24 30 

Transmission and Distribution 7 6 28 7 8 7 6 34 7 6 11 10 41 9 10 11 11 

Power Generation 26 24 81 19 17 23 22 86 21 24 21 20 88 21 17 21 29 

Other activities 

Sub-total share of operating 

profit in joint ventures 

– – – – – – – – – – – – – – – – – 

and associates 86 90 249 71 59 66 53 247 66 63 63 55 233 55 52 56 70 

Total operating profit 972 1 275 5 355 1 139 1 383 1 431 1 402 3 248 1 006 672 747 823 3 103 760 633 752 958 


Q3 

2007 

Q2 

2007 

Q1 

2007 

Year 

2006 

Q4 

2006 

Q3 

2006 

Q2 

2006 

Q1 

2006

Exploration and Production: Estimated net 

proved reserves of natural gas 

The allocation of the countries within these areas is: 

Atlantic Basin – Canada, Egypt, Nigeria, Trinidad and Tobago and the USA 

Asia and the Middle East – Australia, China, India, Areas of Palestinian Authority and Israel, Kazakhstan, Oman and Thailand 

Rest of the world – Algeria, Bolivia, Brazil, Italy, Libya, Madagascar, Mauritania, Norway, Spain and Tunisia. 

UK 

bcf 

Atlantic 

Basin 

bcf 

Asia and 

Middle East 

bcf 

As at 31 December 2005 1 124 4 547 2 630 1 366 9 667 (1) 

Movement during the year: 

Revisions of previous estimates (2) 80 583 145 20 828 

Extensions, discoveries and reclassifications 87 – – – 87 

Production (223) (515) (170) (92) (1 000) 

Purchase of reserves-in-place – – – – – 

Sale of reserves-in-place – – – – – 

Rest of 

world 

bcf 

Total 

bcf 

(56) 68 (25) (72) (85) 

As at 31 December 2006 1 068 4 615 2 605 1 294 9 582 (1) 


Revisions of previous estimates (2) 122 469 (192) 25 424 

Extensions, discoveries and reclassifications 5 – 159 – 164 

Production (192) (465) (191) (90) (938) 

Purchase of reserves-in-place 21 – – – 21 

Sale of reserves-in-place – (57) – – (57) 

(44) (53) (224) (65) (386) 

As at 31 December 2007 1 024 4 562 2 381 1 229 9 196 (1) 


Revisions of previous estimates (2) 174 59 947 57 1 237 

Extensions, discoveries and reclassifications 4 – 183 102 289 

Production (182) (486) (210) (87) (965) 

Purchase of reserves-in-place – – 866 – 866 


(4) (427) 1 786 72 1 427 

As at 31 December 2008 1 020 4 135 4 167 1 301 10 623 

Proved developed reserves of natural gas: 

As at 31 December 2005 937 2 267 2 139 929 6 272 

As at 31 December 2006 846 2 232 2 006 844 5 928 

As at 31 December 2007 807 1 897 2 046 822 5 572 

As at 31 December 2008 813 1 915 3 040 1 001 6 769 

(1) Estimates of proved natural gas reserves at 31 December 2008 include fuel gas of 668 bcf (31 December 2007 632 bcf; 31 December 2006 640 bcf; 

31 December 2005 534 bcf). 

(2) Includes effect of oil and gas price changes on PSCs. 


45 


46 



proved reserves of oil 

‘Oil’ includes crude oil, condensate and natural gas liquids. 


UK 

mmbbls 

Atlantic 

Basin 

mmbbls 

Asia and 

Middle East 

mmbbls 

As at 31 December 2005 160.0 18.1 339.9 54.3 572.3 


Rest of 

world 

mmbbls 

Revisions of previous estimates (1) 10.0 (1.5) 18.4 (5.4) 21.5 

Extensions, discoveries and reclassifications 10.2 – – – 10.2 

Production (18.4) (1.8) (28.1) (3.4) (51.7) 



Total 

mmbbls 

1.8 (3.3) (9.7) (8.8) (20.0) 

As at 31 December 2006 161.8 14.8 330.2 45.5 552.3 


Revisions of previous estimates (1) 31.3 1.9 (47.1) (1.7) (15.6) 

Extensions, discoveries and reclassifications 0.3 – 35.7 – 36.0 

Production (27.2) (2.8) (31.4) (2.4) (63.8) 

Purchase of reserves-in-place 1.0 – – – 1.0 

Sale of reserves-in-place – – – (3.5) (3.5) 

5.4 (0.9) (42.8) (7.6) (45.9) 

As at 31 December 2007 167.2 13.9 287.4 37.9 506.4 


Revisions of previous estimates (1) 22.0 1.2 189.9 3.2 216.3 

Extensions, discoveries and reclassifications 0.4 – 6.0 24.9 31.3 

Production (30.5) (2.3) (30.9) (2.2) (65.9) 



(8.1) (1.1) 165.0 25.9 181.7 

As at 31 December 2008 159.1 12.8 452.4 63.8 688.1 

Proved developed reserves of oil: 

As at 31 December 2005 80.9 9.4 313.8 26.3 430.4 

As at 31 December 2006 116.2 7.6 282.2 26.1 432.1 

As at 31 December 2007 138.9 9.0 223.5 21.5 392.9 

As at 31 December 2008 125.7 7.7 373.8 25.5 532.7 

(1) Includes effect of oil and gas price changes on PSCs. 


proved and probable reserves (2) 

DEVELOPMENT STATUS 

Gas 

bcf 

Oil (3) 

mmbbls 

As at 31 December 2008 

Fields in production 17 199 851 3 718 

Fields under development 792 46 178 

Fields awaiting development 2 034 1 607 1 946 

Total 20 025 2 504 5 842 

(2) Gas and oil reserves cannot be measured exactly since estimation of reserves involves subjective judgement. Therefore all estimates are subject to revision. 

(3) ‘Oil’ includes crude oil, condensate and natural gas liquids. 

(4) Conversion rate of 6 bcf gas per mmboe. 

Total (4) 

mmboe

Exploration and Production: Operating statistics 

Production volumes 

Q2 

2009 

Q1 

2009 

Year 

2008 

Q4 

2008 

Q3 

2008 

Q2 

2008 

Q1 

2008 

– oil volume (mmboe) 8.0 8.1 30.6 8.0 7.5 7.2 7.9 28.2 7.7 6.6 7.4 6.5 21.1 5.9 4.3 5.3 5.6 

– liquids volume (mmboe) 9.4 8.6 35.3 8.7 8.1 9.2 9.3 35.7 9.0 8.2 9.7 8.8 30.6 8.7 6.9 7.6 7.4 

– gas volume (mmboe) 41.1 41.2 160.8 40.6 38.4 38.3 43.5 156.4 43.0 33.9 36.6 42.9 167.5 42.6 39.4 42.7 42.8 

Prices 

BG Group avg UK gas price 

(pence per produced therm) 

BG Group avg Int’l gas price 

36.23 63.58 42.69 60.79 35.63 32.79 38.73 33.32 38.36 29.46 23.88 37.03 31.89 34.41 25.50 26.20 38.84 


Overall BG Group avg gas price 

16.50 23.84 22.23 25.10 23.83 20.43 19.54 15.53 16.00 14.54 15.11 16.31 17.23 16.69 16.83 17.05 18.40 


BG Group avg oil price 

20.03 31.41 26.28 32.52 25.62 22.94 23.87 19.36 21.40 16.62 17.00 21.50 20.68 21.28 18.52 19.09 23.69 

($ per barrel) 

BG Group avg liquids price 

59.27 43.46 95.43 55.18 115.26 120.93 98.49 73.39 88.59 76.47 69.07 58.13 65.54 60.13 71.43 69.76 62.53 

($ per barrel) 

47.82 33.02 73.76 29.76 91.41 97.69 81.35 59.07 73.48 61.26 56.72 45.57 52.68 46.40 57.56 56.79 50.17 

Henry Hub ($/mmbtu) 

Unit costs 

3.81 4.55 8.85 6.39 9.11 11.32 8.58 6.95 6.92 6.16 7.55 7.16 6.74 6.60 6.08 6.54 7.75 

Lifting costs ($/boe) 3.34 3.21 3.67 3.69 4.10 3.72 3.11 3.29 3.22 3.60 3.44 2.97 2.45 2.88 2.69 2.18 2.08 

Lifting costs (£/boe) 2.23 2.24 1.94 2.21 2.13 1.87 1.57 1.64 1.58 1.78 1.74 1.51 1.34 1.51 1.45 1.21 1.19 

Opex ($/boe) 5.42 5.44 6.40 6.55 6.91 6.47 5.55 5.22 5.10 5.50 5.41 4.92 4.18 4.82 4.39 3.72 3.82 

Opex (£/boe) 

Finding and development costs 

3.62 3.80 3.38 3.93 3.59 3.24 2.80 2.61 2.50 2.73 2.74 2.51 2.29 2.53 2.36 2.07 2.18 

3 year rolling average ($/boe) (1) 

13.20 (2) 

14.60 (2) 

11.50 (2) 

Reserve replacement 

3 year organic average reserve 

replacement ratio (%) 

121 (2) 

84 (2) 

108 (2) 

Investment 

Development expenditure 

(£ million) 

632 401 1 701 (3) 

Gross exploration expenditure 

537 447 310 407 1 242 340 310 301 291 721 201 229 160 131 

(£ million) 

285 366 923 307 195 234 187 536 181 148 102 105 555 180 103 103 169 

– capitalised 223 302 717 257 134 180 146 304 116 83 46 59 396 129 65 66 136 

– other expenditure 62 64 206 50 61 54 41 232 65 65 56 46 159 51 38 37 33 

(1) The denominator uses the total net proved reserves changes over the three years excluding acquisitions, divestments and production. 

(2) These figures are calculated on a SEC basis, which includes all reserves revisions and fuel gas and is calculated at year end prices. 

(3) Excluding acquisition of QGC. 

Exploration and Production: Drilling activity 

WELL OPERATIONS 

Number of exploration and appraisal wells 2008 2007 2006 2005 2004 

Total 43 20 42 29 28 

Percentage successful (gross well basis) 51 67 56 48 64 

WELLS DRILLED IN 2008: ANALYSIS BY COUNTRY Exploration Appraisal 

Year 

2007 

Q4 

2007 

Q3 

2007 

Q2 

2007 

Q1 

2007 

Year 

2006 

Q4 

2006 

Q3 

2006 

Gross (4) Net (5) Gross (4) 

Algeria 3 1.103 3 1.103 

Brazil 3 1.050 

Canada 2 2.000 1 0.388 

Egypt 2 1.700 

Libya 3 2.500 

Norway 3 1.350 1 0.200 

Oman 1 1.000 

Thailand 3 0.666 

Trinidad and Tobago 3 1.100 1 0.570 

Tunisia 1 0.500 1 0.850 

UK 6 2.904 4 1.310 

USA – Alaska 1 0.333 1 0.333 

Total 27 14.540 16 6.420 

(4) The gross figure is the total number of wells in which BG Group participated. 

(5) The net figure is calculated by applying the licence working interest to each well and taking the sum of the fractional interests. 

In the case of farm-ins and farm-outs, the working interest will be that which applies after completion of the well and consequent re-arrangement of interest. 

Q2 

2006 

Q1 

2006 

Net (5) 


47 


48 


Exploration and Production: Field interests 

PRODUCING FIELDS 


Gas production 

(net) bcf 

Oil and liquids production 

(net) ‘000s barrels 

Total production (1) 

(net) mmboe 

2008 2007 2006 2008 2007 2006 2008 2007 2006 

UKCS Armada and SW Seymour (2), (3) 22.7 21.8 42.3 980 1 111 2 037 4.8 4.7 9.1 

Atlantic Cromarty 19.9 24.0 13.4 460 684 354 3.8 4.7 2.6 

Blake (2) 0.5 0.7 0.8 2 630 3 468 3 841 2.7 3.6 4.0 

Buzzard 3.5 1.4 – 15 470 10 638 – 16.1 10.9 – 

Easington Catchment Area (4) 28.3 36.2 38.6 100 118 123 4.8 6.1 6.6 

Elgin/Franklin 20.9 22.9 24.4 4 270 4 948 5 290 7.8 8.8 9.4 

Everest (3) 

20.3 18.2 18.8 760 579 494 4.1 3.6 3.6 

J-Block and Jade (5) 35.8 36.6 48.5 4 280 4 610 5 413 10.2 10.7 13.5 

Lomond 20.6 22.4 29.4 470 499 539 3.9 4.2 5.4 

Other 9.4 8.0 6.6 1 050 545 346 2.6 1.9 1.4 

UKCS sub-total 181.9 192.2 222.8 30 470 27 200 18 437 60.8 59.2 55.6 

International Australia 5.2 – – 10 – – 0.9 – – 

Bolivia (6) 28.4 27.1 26.5 930 994 918 5.6 5.5 5.3 

Canada 0.5 4.8 19.8 – 56 162 0.1 0.9 3.5 

Egypt (2) 332.0 324.4 365.4 1 870 2 503 1 530 57.2 56.6 62.4 

India (2),(7) 66.0 53.1 37.5 4 460 4 825 4 050 15.4 13.7 10.3 

Kazakhstan (8) 89.6 86.8 82.3 24 840 25 138 22 585 39.8 39.6 36.3 

Mauritania (9) – – 0.2 – 28 949 – – 1.0 

Thailand (10) 49.3 50.7 50.3 1 560 1 448 1 440 9.8 9.9 9.8 

Trinidad and Tobago (2) 153.7 136.5 134.7 450 298 121 26.1 23.0 22.6 

Tunisia (2) 58.1 62.8 65.4 1 310 1 405 1 527 11.0 11.9 12.4 

International sub-total 782.8 746.2 782.1 35 430 36 695 33 282 165.9 161.1 163.6 

Total 964.7 938.4 1 004.9 65 900 63 895 51 719 226.7 220.3 219.2 

OTHER FIELDS AND DISCOVERIES WITH PROVED OR PROBABLE RESERVES: BG GROUP WORKING INTEREST (%) 

AS AT 31 DECEMBER 2008 

Bolivia Palo Marcado 100.00 

Brazil Tupi 25.00 

Egypt Rashid-3, Rashid North, South Sequoia (2) 80.00 

Serpent, near field satellites, Mina, Silva, North Sequoia, Saurus (2) 50.00 

Thailand Bongkot South 22.22 

Trinidad Starfish (2) 50.00 

Tunisia Hasdrubal (2) 50.00 

UKCS Amethyst 24.15 

Glenelg 14.70 

Jasmine 30.50 

(1) Conversion rate of 6 bcf gas per mmboe. 

(2) Operated by BG Group at 31 December 2008. 

(3) BG Group acquired a further 11.45% of Armada and 1.0134% of Everest fields on 30 March 2007. 

(4) Easington Catchment Area project comprises the Apollo, Mercury, Minerva, Neptune and Wollaston and Whittle fields. 

BG Group-operated as at 31 December 2008, except for Wollaston and Whittle. 

(5) J-Block includes Judy and Joanne. 

(6) Includes Margarita Early Production Facility and the BG Group-operated and 100% owned La Vertiente fields. 

(7) Jointly operated with ONGC and Reliance Industries. 

(8) Jointly operated in partnership with Eni. 

(9) All interests in Mauritania sold in January 2007. 

(10) Includes Ton Sak.

Exploration and Production: Licence 

and block interests 

HELD AT 31 JULY 2009 

EUROPE AND CENTRAL ASIA 

Number 

Country 

Interest details 

of blocks Gross area (1) 

Type of fields (2) 

BG Group- BG Group 

operated interest (%) 

Italy Po Valley Permits (Italy Onshore) 1 392 Gas & condensate 0 40 

Kazakhstan Karachaganak 1 280 Various 1 32.5 

Norway Southern North Sea 15 1 781 Various & unknown 14 Various 

North Tampen 10 1 886 Unknown 8 Various 

Mid-Norway 20 7 599 Gas & unknown 16 Various 

Barents Sea 11 3 002 Oil & unknown 5 Various 

United Kingdom (3) Southern North Sea 19 562 Gas & unknown 15 Various 

Central North Sea 72 4 237 Various & unknown 36 Various 

Onshore PEDL 133 5 500 Gas 0 51 















AFRICA, MIDDLE EAST AND ASIA 

Number 

Country 






Algeria Hassi Ba Hamou Perimeter 4 12 832 Gas 4 36.75 

Guern El Guessa Perimeter 2 12 166 Unknown 2 4.9 

Areas of Palestinian Authority Gaza Marine 1 2 000 Gas 1 90 

China Block 53/16 1 8 671 Unknown 1 100 

Block 64/11 1 7 546 Unknown 1 100 

Egypt Rosetta Concession (4) 4 296 Gas 4 80 

West Delta Deep Marine (5) 8 1 355 Gas 8 50 

El Manzala Offshore 1 680 Unknown 1 100 

El Burg Offshore 1 1 463 Unknown 1 70 

India (6) Mid and South Tapti 1 1 471 Gas & condensate 1 30 

Panna/Mukta 2 1 207 Oil & Gas 2 30 

KG-OSN-2004/1 1 1 131 Unknown 0 45 

KG-DWN-98/4 1 5 591 Unknown 0 30 

MN-DWN – 2002/2 1 11 390 Unknown 0 25 

Libya Kufra 4 11 300 Unknown 0 50 

Madagascar Majunga Offshore Profonde 1 15 161 Unknown 1 30 

Nigeria OPL 332–DO 1 1 258 Oil & Gas 1 45 

OPL 286-DO 1 804 Oil 1 66 

OPL 284-DO 1 1 131 Gas 0 45 

Oman Block 60 1 1 485 Gas & condensate 1 100 

Thailand 2/2539/49 (3) 2 34 Various 0 22.22 

3/2515/7 2 1 921 Various 0 22.22 

3/2549/71 1 622 Various 0 22.22 

4/2515/8 (7) 3 10 420 Unknown 3 66.67 

5/2515/9 1 1 279 Various 0 22.22 

Tunisia Amilcar 1 1 016 Unknown 1 50 

Miskar 1 320 Gas & condensate 1 100 

Hasdrubal 1 260 Gas, condensate & oil 1 50 


49 


50 


Exploration and Production: Licence and block interests continued 

AMERICAS AND GLOBAL LNG 

Number 

Country 






Bolivia La Vertiente 1 375 Gas 1 100 

Caipipendi 1 1 950 Gas 0 37.5 

Block XX Tarija West 1 250 Gas 0 25 

Block XX Tarija East 1 150 Gas & Oil 1 100 

Charagua 1 990 Unknown 0 20 

Los Suris 1 50 Gas 1 100 

Brazil BM-S-9 1 1 881 Oil 0 30 

BM-S-10 1 1 192 Gas 0 25 

BM-S-11 1 2 295 Oil 0 25 

BM-S-13 1 350 Oil 1 60 

BM-S-47 2 315 Gas 2 50 

BM-S-50 1 698 Oil 0 20 

BM-S-52 1 700 Oil 1 40 

BT-SF-2 6 17 677 Unknown 0 50 

Canada (8) i) Alberta Waterton 14 11 486 Gas 0 43 

Foothills & Deep West 43 18 572 Unknown 34 82 

ii) British Columbia Foothills 55 82 234 Unknown 38 77 

iii) Northwest Territories Central Mackenzie Valley 2 155 896 Unknown 2 87 

Trinidad and 

Tobago 

Block 5(a) 1 90 Various 1 50 

Block 6 (9) 1 525 Various 1 50 

Block E 1 50 Gas 1 50 

Central Block 1 111 Various 1 65 

NCMA-1 1 342 Gas 1 57 

Block 5c 1 323 Various 0 30 

United States (10) Alaska Foothills & Eastern North Slope 482 2 740 951 Unknown 0 34 

AUSTRALIA 

Number 

Country 






Australia Walloons Fairway 58 4 382 Gas (CSG) 5 Various 

Surat Basin 22 11 498 Unknown 0 Various 

Bowen Basin 11 26 349 Unknown 0 Various 

Pedirka Basin 5 17 352 Unknown 0 Various 

Cooper Basin 8 12 152 Various 4 Various 

Amadeus Basin 7 67 756 Unknown 0 Various 

Tasmania Basin 1 11 295 Unknown 0 Various 

(1) The gross area figures given are approximations only. Gross area figures are in square kilometres unless otherwise indicated. 

(2) The type of field is given as Various where it relates to oil and/or gas and/or condensate or Unknown where the interest is an exploration interest with no discovery. 

(3) Includes part blocks. 

(4) Rosetta Concession comprises 4 Development Leases (Rosetta Exploration Licence expired May 2003). 

(5) West Delta Deep Marine Concession comprises 8 Development Leases (WDDM Exploration Licence expired Nov 2006). 

(6) Mid and South Tapti and Panna/Mukta are jointly operated with ONGC and Reliance Industries. KG-OSN-2004/1 and KG-DWN-98/4 are operated by ONGC. 

(7) Area is subject to international boundary dispute – obligations under suspension pending resolution. 

(8) Figures given for Gross area are in hectares. 

(9) Block 6, Manatee operated by Chevron Trinidad and Tobago Resources SRL. 

(10) Figures given for Gross area are in acres. 

www.bg-group.com

LNG: Facilities capacity 

AS AT 31 AUGUST 2009 

EXPORT TERMINALS 

Train 


equity (%) 

Total capacity 

(mtpa) 

Gross 


(mtpa) 

Net Status 

Atlantic LNG 1 26.00 3.1 0.806 Since April 1999 



Atlantic LNG 4 28.89 5.2 1.502 Since December 2005 

Egyptian LNG 1 35.50 3.6 1.278 Since May 2005 

Egyptian LNG 2 38.00 3.6 1.368 Since September 2005 

Total operating 7.164 

IMPORT TERMINALS 


(mtpa) 

Gross 


(mtpa) 

Net 

Lake Charles, USA 13.4 13.4 1.80 

Elba Island, USA 4.2 (1) 

4.2 (1) 

(Bcfd) 

Net Status 

0.57 

100% since 1 January 2004 

Phase 2 expansion completed July 2006 

100% since 1 January 2004 

Cypress pipeline de-bottlenecking since May 2007 

Dragon LNG, UK 4.4 2.2 0.30 Operational since July 2009 

Quintero LNG, Chile 2.5 (2) 

0.0 0.00 

Total operating 24.5 19.8 2.67 

Initial capacity of 1.5 mtpa operational since July 2009 

Full capacity of 2.5 mtpa anticipated by third quarter 2010 

Lake Charles IEP 3.9 3.9 0.55 Anticipated by end-2009 

Total planned expansions 3.9 3.9 0.55 

In development: 

Brindisi LNG, Italy 6.0 4.8 (3) 

Elba Island, USA 4.3 (4) 

Total in development 10.3 9.1 1.25 

0.65 TBA 

4.3 0.60 Anticipated in service 2014 

(1) Of which 1.2 mtpa may be supplied by Marathon. 

(2) BG Group currently holds no capacity in the terminal but has the option to acquire capacity if needed to support BG Group’s downstream market development. 

(3) BG Group has 80% access. The remaining 20% is for third-party access. 

(4) Reflects BG Group-held capacity only. 

LNG: Long-term firm supply (5) 

Firm Supply 

(mtpa) 

Commercial 

start-up 

Atlantic LNG Trains 2/3 2.1 2003 20 FOB 

Nigeria LNG Trains 4/5 2.3 Q1 2006 20 CIF 

Egyptian LNG Trains 2 (6) 3.5 Q2 2006 20 FOB 

Atlantic LNG Train 4 (7) 1.5 Q2 2007 20 FOB 

Equatorial Guinea (8) 3.3 Q3 2007 17 FOB 

Queensland Curtis LNG 7.4 2014 

Nigeria LNG Train 7 2.3 20 CIF 

Total firm supply 22.4 

(5) Assumes delivery into US east coast. 

(6) First cargo lifted in September 2005. 

(7) First cargo lifted in January 2006. 

(8) First cargo lifted in May 2007. 

Years 

Shipping 


51 


52 


LNG: Cargoes 

Actual cargoes 


Q2 

2009 

Q1 

2009 

Year 

2008 

Q4 

2008 

Q3 

2008 

Q2 

2008 

Q1 

2008 

Lake Charles 5 1 3 1 2 – – 86 1 21 46 18 50 12 14 22 2 

Elba Island 19 8 49 11 16 16 6 64 10 22 17 15 54 15 16 14 9 

Re-marketed 32 46 175 37 39 47 52 81 37 17 8 19 78 23 13 13 29 

Total 56 55 227 49 57 63 58 231 48 60 71 52 182 50 43 49 40 

Managed volumes (Btu) 

Sales volumes 63 40 140 32 48 42 19 427 31 120 184 92 289 74 88 97 30 

Re-marketed 102 140 534 94 138 144 159 244 114 52 25 53 223 66 39 32 86 

Total managed volumes 164 180 675 125 186 186 178 671 145 172 209 145 512 140 127 129 116 

LNG: Ships 


Year 

2007 

Q4 

2007 

Q3 

2007 

Q2 

2007 

Name Year built Capacity (cm) (1) 

Q1 

2007 

Year 

2006 

Q4 

2006 

Q3 

2006 

Q2 

2006 

Q1 

2006 

Propulsion Containment Contract 

Core fleet Methane Alison Victoria 2007 145 127 ST (2) Mk.III BB (3) 

(5+ years) Methane Heather Sally 2007 145 127 ST Mk.III BB 

Methane Shirley Elisabeth 2007 145 127 ST Mk.III BB 

Methane Jane Elizabeth 2006 145 127 ST Mk.III BB 

Methane Lydon Volney 2006 145 127 ST Mk.III BB 

Methane Rita Andrea 2006 145 127 ST Mk.III BB 

Methane Kari Elin 2004 138 200 ST Mk.III BB 

Methane Princess 2003 137 990 ST No.96 TC (4) 

Methane Nile Eagle 2007 145 127 ST Mk.III TC 

Total 9 1 292 079 TC 

Flexible fleet Various 1976-2009 < 165 500 – – TC 

New builds SHI HN 1745 2010 170 000 DFDE (5) Mk.III Owned 

SHI HN 1746 2010 170 000 DFDE Mk.III Owned 

SHI 1858 2010 170 000 DFDE Mk.III Owned 

SHI 1859 2010 170 000 DFDE Mk.III Owned 

Total 4 680 000 

(1) Capacity – gross 100%. 

(2) ST – steam turbine. 

(3) BB – bareboat charter. 

(4) TC – time charter. 

(5) DFDE – dual-fuel diesel-electric.

Transmission & Distribution: Operating statistics 

Throughput (mmcm per year) 

As at 31 December 

2008 2007 2006 

Net to BG Group 7 354 9 303 11 925 

Customers 

Comgás 630 000 572 000 518 000 

MetroGAS 2 000 000 2 000 000 2 000 000 

Gujarat Gas 337 000 286 000 248 000 

Power Generation: Capacity 


Location Name 

BG Group equity 

(%) 

Operating total 

(MW) 

Operating net to 


Italy BG Italia Power S.p.A. 100 400 400 

Malaysia Genting Sanyen Power (Kuala Langat) 20 794 159 

Philippines First Gas Power (San Lorenzo) 40 500 200 

Philippines First Gas Power (Santa Rita) 40 1 000 400 

UK Premier Power (Ballylumford) 100 1 316 1 316 

UK Seabank Power 50 1 130 565 

USA Dighton 100 165 165 

USA Lake Road (1) 100 805 805 

USA Masspower (1) 100 264 264 

Cogen – secured capacity India – 11 7 

Total operational 6 385 4 281 

(1) ISO-NE weighted average annual installed capacity ratings. 

(MW) 


53 


54 


Principal acquisitions, commitments and divestments 

ACQUISITIONS (TO 31 JULY 2009) 

Announced Details Completion £m 

2009 

February Acquisition of Pure Energy Resources Limited, Australia May 2009 464 

2008 

October Acquired remaining equity in Queensland Gas Company Limited (QGC), Australia March 2009 2 091 

February Acquired 20% interest in QGC’s coal seam gas interests in the Surat Basin, Australia and a 9.9% stake 

in QGC, Australia 

2007 


April 2008 316 

April Acquired Masspower power plant, USA May 2007 74 

2006 

Acquired further 11.45% in Armada and 1.0134% in Everest fields, UK March 2007 67 

December Acquired Lake Road power plant, USA March 2007 351 

Acquired further 66.32% stake in Serene S.p.A. power plants, Italy February 2007 80 

September Acquired Dighton power plant, USA October 2006 47 

2005 

June Acquired remaining 50% in Brindisi LNG import terminal, Italy June 2005 29 

(1) In August 2009, BG Group completed upstream and midstream acquisitions as part of its alliance with EXCO Resources Inc.. The consideration for the upstream portion 

of the alliance is around US$1 127m which includes US$400m to be paid as a carry of 75% of EXCO’s future costs to develop the Haynesville shale gas. The consideration 

for the midstream portion of the alliance is around US$269m. 

COMMITMENTS (TO 31 JULY 2009) 

Announced Details Completion £m 

2008 

May Ordered two new LNG ships 2010 delivery 194 

2007 

DIVESTMENTS (TO 31 JULY 2009) 

Exercised options to purchase two new LNG ships 2009/2010 delivery 

Announced 

2008 

Details Completion £m 

July Sale of Iqara Energy Services July 2008 14 

July 

2007 

Sale of BG GNV do Brasil July 2008 5 

May Sale of entire 25% stake in Interconnector (UK) Limited June 2007 165 

March Sale of producing assets in Canada – Bubbles, Ojay and Copton/Lynx April 2007 228 

January 

2006 

Sale of Mauritania interests January 2007 68 

Sale of 37.5% interest in NVGC November 2006 4 

June 

2005 

Sale of India Telecoms June 2006 1 

(2) 

Sale of Brazil Telecoms November/December 2005 11 

March Sale of entire 50% interest in Premier Transmission Ltd March 2005 26 

(2) In December 2005, on signing a Master Restructuring Agreement with the other shareholders and creditors of Gas Argentino S.A., parent company of MetroGAS S.A., 

BG Group ceased to control these companies and deconsolidated them from that date. 

Credit ratings (BG Energy Holdings Ltd) 

BG Energy Holdings Ltd (BGEH) is rated by three major credit rating agencies, with the following long-term ratings as at 31 July 2009: 

Rating agency Long-term rating Date assigned Outlook 

Fitch A+ September 2007 Stable 

Moody’s A2 August 2005 Stable 

Standard & Poor’s A April 2008 Stable 

BGEH’s objective is to maintain long-term credit ratings equivalent to mid-single A from all the above agencies.

Issued share capital and dividend history 

TOTAL ISSUED ORDINARY SHARE CAPITAL 

2008 2007 2006 

Shares in issue at year end (millions) 3 582 3 575 3 558 

DIVIDEND DATA 

Payment Value Announcement date Ex-dividend date Record date Payment date UK Payment date USA 

Final 1.50p 21 February 2002 24 April 2002 26 April 2002 7 June 2002 17 June 2002 

Interim 1.55p 25 July 2002 23 October 2002 25 October 2002 13 December 2002 23 December 2002 

Final 1.55p 18 February 2003 19 March 2003 21 March 2003 2 May 2003 12 May 2003 

Interim 1.60p 28 July 2003 6 August 2003 8 August 2003 12 September 2003 19 September 2003 

Final 1.86p 17 February 2004 14 April 2004 16 April 2004 28 May 2004 7 June 2004 


Final 2.08p 15 February 2005 30 March 2005 1 April 2005 13 May 2005 20 May 2005 


Final 4.09p 8 February 2006 29 March 2006 31 March 2006 12 May 2006 19 May 2006 








Investor calendar 

Event Type Date 

2009 

Fourth quarter and Full Year 2008 Results and Strategy Presentation Presentation 5 February 2009 

2008 Final dividend Ex-dividend 8 April 2009 

2009 Annual General Meeting Meeting 18 May 2009 

First quarter 2009 Results Announcement 30 April 2009 

2008 Final dividend Dividend paid (UK) 22 May 2009 

Dividend paid (USA ADR) 1 June 2009 

Second quarter 2009 Results Announcement 29 July 2009 

2009 Interim dividend Ex-dividend 5 August 2009 

2009 Interim dividend Dividend paid (UK) 11 September 2009 

Dividend paid (USA ADR) 18 September 2009 

Third quarter 2009 Results Announcement 28 October 2009 

2010 

Fourth quarter and Full Year 2009 Results and Strategy Presentation Presentation 4 February 2010 (1) 

2009 Final dividend Ex-dividend April 2010 (1) 

2010 Annual General Meeting Meeting May 2010 (1) 

First quarter 2010 Results Announcement 29 April 2010 (1) 

2009 Final dividend Dividend paid (UK) May 2010 (1) 

Dividend paid (USA ADR) May 2010 (1) 

Second quarter 2010 Results Announcement 27 July 2010 (1) 

2010 Interim dividend Ex-dividend August 2010 (1) 

2010 Interim dividend Dividend paid (UK) September 2010 (1) 

Dividend paid (USA ADR) September 2010 (1) 

Third quarter 2010 Results Announcement 2 November 2010 (1) 

(1) Provisional dates. 

Registrar and Transfer Office 

Equiniti 

Aspect House, Spencer Road 

Lancing, West Sussex 

BN99 6DA 

Tel: 0871 384 2064 

www.shareview.co.uk 

Email: bg@equiniti.com 

Stock Exchange Information 

London Stock Exchange 

Ticker symbol: BG.L 

SEDOL number: 876289 

One ADR: 5 ordinary shares 

Pink OTC Markets symbol: BRGYY 

American Depositary Receipts 

JPMorgan Chase Bank, N.A. 

P.O. Box 64504 

St. Paul, MN 55164-0504, USA 

Tel: +1 800 990 1135 (for US residents) 

Tel: +1 651 453 2128 (outside USA) 

www.adrs.com 

Email: jpmorgan.adr@wellsfargo.com 


55 


56 


Definitions 

For the purpose of this document the following definitions apply: 

€ Euro 

$ US Dollars 

£ UK Pounds Sterling 

bbls Barrels 

bcf Billion cubic feet 

bcfd Billion cubic feet per day 

bcm Billion cubic metres 

bcma Billion cubic metres per annum 

bcpd Barrels of condensate per day 

BG Group BG Group plc and its subsidiary undertakings, joint 

ventures or associated undertakings 

billion or bn One thousand million 

boe Barrels of oil equivalent 

boed Barrels of oil equivalent per day 

bopd Barrels of oil per day 

bpd Barrels per day 

Btu British thermal units 

CAGR Compound Average Growth Rate 

CCGT Combined Cycle Gas Turbine 

CIF Carriage, insurance and freight 

CNG Compressed Natural Gas 

cm Cubic metre 

DCQ Daily Contracted Quantity 

EPC Engineering Procurement Construction 

FEED Front End Engineering Design 

FOB Free on board 

FPSO Floating production and storage offloading vessel 

GSA Gas Sales Agreement 

GW Gigawatts 

GWh Gigawatt hours 

HIIP Hydrocarbons Initially In Place 

HPHT High Pressure High Temperature 

IFRIC International Financial Reporting 

Interpretations Committee 

kboed Thousand barrels of oil equivalent per day 

RESERVES AND RESOURCES 

The term “gross reserves” means gross Proved reserves plus gross Probable reserves. 

For details of BG Group’s Reserves and Resources as at 31 December 2008, see table on inside cover. 


US investors should refer to the explanatory note on page 39. 

km Kilometres 

LPG Liquefied petroleum gas 

mmbbls Million barrels 

mmboe Million barrels of oil equivalent 

mmbopd Million barrels of oil per day 

mmbtu Million British thermal units 

mmbtud Million British thermal units per day 

mmcmd Million cubic metres per day 

mmcm Million cubic metres 

mmscm Million standard cubic metres 

mmscmd Million standard cubic metres per day 

mmscf Million standard cubic feet 

mmscfd Million standard cubic feet per day 

MoA Memorandum of Agreement 

MoU Memorandum of Understanding 

mtpa Million tonnes per annum 

MW Megawatt 

MWh Megawatt hours 

NGL Natural Gas Liquids 

NGV Natural Gas Vehicle 

partner An entity with whom BG Group has formed 

an incorporated or unincorporated association 

or joint venture for the purposes of pursuing its 

business activities and the term “partner” in this 

context is not intended to, nor shall be deemed 

to, create or constitute a partnership between 

BG Group and any such entity for the purposes 

of the Partnership Act 1890 or any similar law 

in any jurisdiction in which such activities may 

be conducted 

PJ Petajoules 

PPA Power Purchasing Agreement 

PSC/PSA Production Sharing Contract/Production 

Sharing Agreement 

SPA Sale and Purchase Agreement 

sq km Square kilometres 

tcf Trillion cubic feet 

Proved reserves 

BG Group utilises the SEC definition of proved reserves. Further information on proved reserves can be found in BG Group’s Annual Report and Accounts for 2008 on page 115. 

Probable reserves 

Probable reserves are those unproven reserves which analysis of geological and engineering data suggest are more likely than not to be recoverable. Taken together with 

proved reserves, proved plus probable reserves comprise the best estimate of reserves for an asset and will normally be used in business planning. 

Un-booked resources 

Un-booked resources are defined by BG Group as the best estimate of recoverable hydrocarbons where commercial and/or technical maturity are such that project sanction 

is not expected within the next three years. 

Risked exploration 

Risked exploration resources are defined by BG Group as the best estimate (mean value) of recoverable hydrocarbons in a prospect multiplied by the “Chance of Success”.

Index of assets 

EXPLORATION AND PRODUCTION 

Page 

FIELDS, BLOCKS, CONCESSIONS AND 

LICENCES 

Alaska 

Foothills and Eastern North Slope 35 

Algeria 

Hassi Ba Hamou Perimeter 21 

Guern el Guessa Permit 21 

Areas of Palestinian Authority and Israel 

Med Yavne 24 

Gaza Marine 24 

Australia 

Queensland Gas Company Ltd 

Bolivia 

36 

XX Tarija East and West 33 

Caipipendi 33 

Charagua 33 

Escondido 33 

Huacaya X-1 33 

Itau 33 

La Vertiente 33 

Los Suris 33 

Margarita 33 

Palo Marcado 33 

Ibibobo 33 

Taiguati 33 

Brazil 

BM-S-9, 10, 11 and 13 31 

BM-S-47, 50, 52 31 

BT-SF-2 31 

Abaré West 31 

Carioca 31 

Corcovado-1 31 

Corcovado-2 31 

Guará 31 

Iara 31 

Iguaçu 31 

Iracema 31 

Parati 31 

Sagittario 31 

Saleta 31 

Tupi 31 

Tupi Sul 31 

Canada 

Deep West area of the Western 

Canadian Sedimentary Basin 35 

Foothills 35 

Northwest Territories 35 

Waterton 35 

China 

Blocks 64/11, 53/16 22 

Egypt 

El Burg Offshore and 

El Manzala Offshore 13 

Mina and Silva 13 

North Gamasa Offshore 13 

North Sidi Kerir Deep 13 

Rashid North 12 

Rashid -1,-2,-3 12 

Rosetta 13 

Scarab Saffron 13 

Simian, Sienna and Sapphire 13 

SimSat-P2 13 

SimSat-P1 13 

Solar, Serpent, Saurus, Sequoia 

and Sienna-Up 13 

West Delta Deep Marine (WDDM) 13 

Page 

India 

Panna/Mukta and Tapti 16 

Italy 

Po Valley 11 

Kazakhstan 

Karachaganak 8 

Libya 

Area 123 and Area 171 21 

Madagascar 

Majunga Offshore Profonde 24 

Norway 

Bream 10 

Pi North 10 

Jordbær 10 

Mandarin 10 

Ververis 10 

Nigeria 

OPL 332 19 

OPL 286-DO 19 

OPL 284-DO 19 

Oman 

Block 60 20 

Thailand 

Bongkot 18 

Blocks 7, 8, 9 and 9A 18 


Blocks 5(a), 6(b), 6(d) and E 25 

Block 5(c) 26 

Bougainvillea 26 

Central Block 26 

Chaconia 26 

Dolphin and Dolphin Deep 25 

East Coast Marine Area (ECMA) 25 

Heliconia 26 

Hibiscus 26 

Ixora 26 

Loran/Manatee 25 

North Coast Marine Area (NCMA) 26 

Poinsettia 26 

Tunisia 

Amilcar 15 

Hasdrubal 15 

Miskar 15 

Hannibal 15 

UK 

Armada 5 

Atlantic/Cromarty 5 

Blake and Blake Flank 5 

Buzzard 6 

Drake 5 

Elgin/Franklin and Glenelg 6 

Erskine 6 

Everest and Lomond 5 

Fleming 5 

Hawkins 5 

J-Block, Jade, Judy/Joanne 6 

Jackdaw 5 

Jasmine 6 

Maria 5 

NW and SW Seymour 5 

USA 

EXCO Resources 28 

Page 

LIQUEFIED NATURAL GAS 

LIQUEFACTION TERMINALS 

Australia 

Queensland Curtis LNG 36 

Egypt 

Egyptian LNG Trains 1 and 2 14 

Nigeria 

OKLNG 19 


Atlantic LNG Trains 1, 2, 3 and 4 27 

REGASIFICATION TERMINALS 

Chile 

Quintero LNG 34 

Italy 

Brindisi LNG 11 

UK 

Dragon LNG 7 

USA 

Elba Island 29 

Lake Charles 28 

TRANSMISSION 

South America 

Bolivia – Brazil Pipeline 31 

Southern Cross and Gas Link Pipelines 34 

Kazakhstan 

Caspian Pipeline Consortium (CPC) 9 

UK 

CATS 6 

Interconnector UK 7 

SEAL and SILK 6 

DISTRIBUTION 

Argentina 

MetroGAS 34 

Brazil 

Comgás 32 

India 

Gujarat Gas Company (GGCL) 17 

Mahanagar Gas (MGL) 17 

POWER 

Australia 

Condamine Power Station 37 

Italy 

BG Italia Power S.p.A. 11 

Malaysia 

Genting Sanyen 23 

Philippines 

San Lorenzo 23 

Santa Rita 23 

UK 

Premier Power (Ballylumford) 7 

Seabank Power 7 

USA 

Dighton 29 

Lake Road 29 

Masspower 29

Further information 

Further information on BG Group can be found 

in the 2008 Annual Report and Accounts, and 

the 2008 Sustainability Report at 



BG Group plc 

100 Thames Valley Park Drive 

Reading, Berkshire RG6 1PT 


Registered in England & Wales No. 3690065 

A world leader in natural gas 

Annual Report and 

Accounts 2008 

Annual Report and 

Accounts 2008 

Designed and produced by Black Sun plc. Printed by St Ives Westerham Press Ltd. 

Sustainability Report 

2008 

Sustainability 

Report 2008 

Principles into practice 

This Data Book is printed on think 4 bright. This 

paper is produced from 100% ECF (Elemental 

Chlorine Free) pulp that is fully recyclable. It has FSC 

(Forest Stewardship Council) certification and has 

been manufactured within a mill that is registered 

under the British and international quality standard 

of BS EN ISO 9001-2000 and the environmental 

standard of BS EN ISO 14001-1996.

download - BG Group

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?