download - Data Book 2012

20 

Egypt 

60 

40 

20 

Areas of operation 

0 

Gas 

Scarab Saffron 

Sapphire 

Saurus 

Sequoia 

Rashid -1,-2,-3 

BG Group net production (mmboe) 

58.1 

54.1 

49.4 

2009 2010 2011 

Oil & liquids 

ALEXANDRIA 

SimSat P2 

Solar 

Serpent 

IDKU 

Egyptian LNG Trains 1 & 2 

CAIRO 

Africa, Central and South Asia 

Data Book 2012 

Simian Sienna 

SimSat P1 

Silva 

Mina-1 

Sienna-Up 

Rashid North 

DAMIETTA LNG 

EGYPT 

www.bg-group.com BG Group 

A global portfolio 

BG Group has played a leading role in the development 

of Egypt’s natural gas industry and is responsible for 

around a third of all gas produced in Egypt. The Group’s 

activities in Egypt span the gas chain from exploration, 

through development and production, to LNG. 

0 100km 

MEDITERRANEAN SEA 

PORT SAID 

N. Gamasa 

El Burg 

Harmattan Deep-1 

El Manzala 

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 50%, Dana Petroleum 50%); 

– El Burg Offshore 

(BG Group 70%, PETRONAS 30%); and 

– North Gamasa Offshore 

(BG Group 100%). 

● Major shareholdings in the Egyptian LNG 

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

New information 

● West Delta Deep Marine (WDDM) Phase 7 

compression project onstream 

● WDDM Phases 8a and 8b onstream 

Key dates 

1995 Rosetta and WDDM Concessions 

awarded 

2001 Rosetta onstream 

2003 Scarab Saffron onstream 

2004 Additional 40% in Rosetta acquired 

2005 Egyptian LNG Trains 1 and 2 

exports began 

Key to operations 

Gas 

Gas pipeline 

Simian, Sienna and Sapphire onstream 

El Burg Offshore and El Manzala 

Offshore Concessions awarded 

2009 Start-up of WDDM Phase 5 and 

Sequoia field unitised development 

2011 WDDM Phase 7 pipeline 

project onstream 

Oil pipeline 

BG Group-operated block 

Upstream development and production 

activities in Egypt are undertaken through 

joint operating companies. In the case of 

Rosetta, this is through Rashid Petroleum 

Company (Rashpetco) in which BG Group has 

a 40% shareholding, and in the case of WDDM, 

this is through 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%.

Partners (%) 

Rosetta Concession* 

Rashid Petroleum Company 

WDDM Concession* 

Burullus Gas Company 

25 

40 

BG Group Edison 

* BG Group operator 

10 

50 

80 

20 

50 

50 

25 50 

EGPC PETRONAS 

E&P 

Rosetta Concession 

Rosetta started production in 2001 and supplies 

Egypt’s domestic market. In 2004, BG Group 

acquired a further 40% interest in Rosetta. 

Sequoia 

The unitised development (Rosetta 

Phase 4/WDDM Phase 6) of the Sequoia 

field (BG Group 62.99%) which lies across 

the boundary of the WDDM and Rosetta 

Concessions was sanctioned in 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 2009, with production delivered to both 

the domestic and export markets. 

WDDM Concession 

Since 1994, BG Group and partners have 

discovered 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-1 and 

Silva discoveries. 

WDDM supplies gas to the domestic market, 

Egyptian LNG at Idku and the third-party 

Damietta LNG plant. 

Scarab Saffron 

Scarab Saffron started production in 2003. 

The field supplies gas to the domestic market 

and 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. 

Concession Field 

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 additional phases 

The WDDM fields have undergone a number of 

development phases to maximise hydrocarbon 

recovery. Phase 4 brought seven additional 

wells onstream during 2008, while Phase 6 

added three Sequoia wells in 2009. 

In 2009, BG Group started incremental 

gas production through the WDDM Phase 5 

compression project. The project included 

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. 

The Group started execution of the Phase 7 

additional third pipeline and compression 

project in 2010. Phase 7 comprises a new 

68 kilometre, 36-inch offshore pipeline with 

associated onshore gas receiving facilities, 

a slug-catcher, adjacent to the two existing 

WDDM pipelines, and five new compressors. 

Incremental gas through the 36-inch pipeline 

came onstream in 2011 and the compression 

plant came into operation in January 2012. 

BG Group 


BG Group 

interest (%) Supplying DCQ gross 

Rosetta Rosetta 80 Domestic market 345 mmscfd 

WDDM Scarab Saffron 50 Domestic market 750 mmscfd 

WDDM 1 Scarab Saffron 50 Damietta LNG (Union 

Fenosa JV Co SEGAS) 

WDDM Simian, Sienna, 

Sapphire, Sequoia 

WDDM Simian, Sienna, 

Sapphire, Sequoia 

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

21 

150 mmscfd 

50 Egyptian LNG Train 1 565 mmscfd 

50 Egyptian LNG Train 2 565 mmscfd 

Phase 8a, comprising the drilling, completion 

and tie-back of an additional nine sub-sea wells 

across WDDM came onstream in late 2011. 

In June 2012, gas production from the 

Phase 8b deep water development project 

came onstream. Phase 8b is an extension of 

the existing deep water sub-sea infrastructure 

and will tie in eight sub-sea wells by the end 

of 2012. With the completion of the Phase 8a 

and 8b projects, the WDDM Concession will 

have a total of 51 sub-sea wells. 

WDDM Phase 9 is currently being assessed 

and is planned to include additional infill wells, 

new development wells and further workover 

programmes in order to continue development 

of the concession. 

El Manzala Offshore and El Burg 

Offshore Concessions 

In 2005, BG Group signed the El Burg Offshore 

(EBO) and El Manzala Offshore (EMO) concession 

agreements for the exploration of gas and oil 

with the Egyptian Natural Gas Holding Company 

(EGAS). Exploration drilling on EBO and EMO 

commenced in 2008. 

In 2010, BG Group farmed-out a 50% stake 

in the EMO concession to Dana Petroleum. 

BG Group retains 50% in EMO. The Zonda 

well was drilled in 2011 on EMO but failed to 

discover commercial hydrocarbons. A two-well 

programme on EBO commenced in 2012. The 

first well, Harmattan Deep-1, was declared a 

discovery in July, while the high impact Notus 

well is expected to be drilled in late 2012. 

North Gamasa Offshore Concession 

In 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 concession agreement formalising the 

award was signed in early 2010. 3D seismic 

acquisition was completed in 2010. 

www.bg-group.com 

Africa, Central and South Asia

22 

WDDM: integrated upstream and downstream 



Gas supply Liquefaction output LNG purchase 

Train 1 (start date 2005) 

565 mmscfd 

– WDDM 

Gas 

BG Group 50% 

Train 2 (start date 2005) 

565 mmscfd 

– WDDM 

Gas 

BG Group 50% 

Train 1 – 3.6 mtpa 

Tolling plant 

BG Group 35.5% 

PETRONAS 35.5% 

EGPC 12% 

EGAS 12% 

GDF SUEZ 5% 

Train 2 – 3.6 mtpa 

Tolling plant 

Upstream Liquefaction output Downstream 

LNG 

Egyptian LNG 

BG Group and partners supply Trains 1 and 2 

of Egyptian LNG with gas from the Simian, 

Sienna, Sapphire and Sequoia fields in WDDM. 

Together, these trains have a productive 

capacity of 7.2 mtpa of LNG. 

The 3.6 mtpa productive capacity of 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 productive capacity of Train 2 has 

been sold to BGGM, a wholly owned BG Group 

subsidiary which is operated by GEMS, 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. 

BG Group 38% 

PETRONAS 38% 

EGPC 12% 

EGAS 12% 



LNG 

GDF SUEZ 100% 

LNG 

BG Group 100% 

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. 

Egyptian LNG Company owns both the 

Egyptian LNG site and common facilities. 

Its sister company, The Egyptian Operating 

Company for Natural Gas Liquefaction Projects 

(Opco) (BG Group 35.5%) undertakes the 

operation of all trains and common facilities. 

El Beheira Natural Gas Liquefaction Company 

(Train 1 Co.) (BG Group 35.5%) owns Train 1 

and Idku Natural Gas Liquefaction Company 

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

Tunisia 

16 

12 



8 

4 

0 

ALGERIA 

Gas 

12.7 

16.0 

14.6 

2009 2010 2011 

Oil & liquids 

TUNISIA TUNISIA 

Hannibal plant 

Hasdrubal plant 

LPG facility 

E&P 

Miskar 

Gas from the Miskar field (100% BG Group) 

is processed at the BG Group-operated 

Hannibal plant 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 

TUNIS 

BG Group is the largest producer of gas in Tunisia, 

supplying over 60% of Tunisia’s domestic gas production 

through the Miskar and Hasdrubal operations. 

BIZERTE 

LA SKHIRA 

GABÈS 

SFAX 

SOUSSE 

GULF OF GABÈS 

BG Group 


0 200km 


SICILY 

Amilcar 

Miskar 

Hasdrubal 

a long-term basis. Offshore compression 

was commissioned in 2005 to maintain the 

production plateau of the field. Six infill wells 

have been drilled between 2007 and 2010, 

with a workover campaign completed in 2011. 

A 60 kilometre condensate pipeline was 

completed LIBYA in 2007 to transport Miskar 

condensate from Hannibal to the La Skhira 

storage terminal. The condensate is mainly 

exported to the international market. 

Hasdrubal 

Hasdrubal (BG Group 50%, Entreprise 

Tunisienne d’Activités Pétrolières (ETAP) 50%) 

came onstream in 2009. 

The Hasdrubal onshore gas processing facility 

(BG Group 50%, ETAP 50%) and LPG production 

facility (100% BG Group) have been built 

adjacent to the Hannibal plant. Gas is sold to 

STEG while liquids and LPG are exported or 

sold in the local market. Production is delivered 

from three gas wells and one oil well through 

an unmanned offshore platform to dedicated 


● LPG pipelines start-up 

Key dates 

1989 Tenneco assets acquired 

1996 Miskar field first production 

2009 Hasdrubal field first production 


Gas 

Oil 

Gas pipeline 

Oil pipeline 

23 


offtake facilities. Condensate from Hasdrubal is 

transported to the La Skhira storage terminal 

through the Hannibal condensate pipeline. 

The condensate is mainly exported to the 

international market. A BG Group 100%-owned 

LPG storage terminal has been constructed 

in Gabès to receive and export butane and 

propane. Two 6-inch 130 kilometre parallel 

pipelines commissioned in 2011 are used to 

deliver LPG to the terminal from Hasdrubal. 

Amilcar permit 

BG Group is operator and joint permit 

holder with ETAP, the Tunisian state-owned 

company, of the 1 016 square kilometre Amilcar 

exploration permit, offshore Sfax in the Gulf 

of Gabès. This permit expired in December 2011 

and a one year extension has been applied 

for and has received Directorate General of 

Energy Ministry and Hydrocarbon Consultative 

Committee approval, with the decree 

publication pending. 



24 

Tanzania 


TANZANIA 

E&P 

In 2010, BG Group completed a farm-in to 

Blocks 1, 3 and 4, offshore southern Tanzania. 

BG Group acquired 60% of Ophir Energy’s 

interests in each of the offshore blocks. 

Blocks 1, 3 and 4 cover approximately 

20 850 square kilometres of the Mafia Deep 

Offshore Basin and northern portion of the 

Rovuma Basin. 

In 2010, two gas discoveries were made in 

Block 4: Pweza-1, located approximately 

85 kilometres offshore southern Tanzania 

and in a water depth of around 1 400 metres; 

and Chewa-1, approximately 80 kilometres 

offshore southern Tanzania in a water 

depth of around 1 300 metres. 

In 2011, the Chaza-1 gas discovery was made, 

located in Block 1 approximately 18 kilometres 

offshore southern Tanzania in a water depth 

MTWARA 

MOZAMBIQUE 





BG Group entered Tanzania in 2010, and is the 

operator of offshore Blocks 1, 3 and 4, in which 

it has a 60% interest. 

Chewa-1 

Block 4 

Pweza-1 

Block 3 

Papa-1 

Block 1 

Mzia-1 

Jodari-1 

Chaza-1 

0 100km 

INDIAN 

OCEAN 

of around 950 metres. The discovery is 

approximately 200 kilometres south of 

the Pweza and Chewa discoveries. 

A 3 250 square kilometre 3D seismic survey 

was acquired in Blocks 3 and 4, and a second 

3D survey of 1 850 square kilometres was 

acquired in Block 1. 

In addition, BG Group received approval 

from the government of Tanzania for it 

to take over the role of operator of 

Blocks 1, 3 and 4, effective from July 2011. 

In 2012, there has been further exploration 

success. The Jodari-1 gas discovery is located 

in Block 1 approximately 39 kilometres 

offshore Tanzania in a water depth of 

around 1 150 metres. With this success, 

mean total resources from the first four 

Tanzanian discoveries are approaching 

some 7 trillion cubic feet of gas. 


● Jodari-1 gas discovery in Block 1 

● Mzia-1 gas discovery in Block 1 

● 2 500 square kilometres of 3D seismic 

acquired in Block 1 

● Papa-1 gas discovery in Block 3 

Key dates 

2010 BG Group farmed into Blocks 1, 3 and 4 

Two gas discoveries in Block 4 

2011 First gas discovery in Block 1 

BG Group became operator of 

Blocks 1, 3 and 4 


Gas BG Group-operated block 

Further, the Mzia-1 gas discovery is located in 

Block 1, approximately 24 kilometres north of 

Jodari-1 in water depths of around 1 600 metres. 

Mzia-1 is the first Cretaceous discovery in 

Tanzania for BG Group and opens a new 

play fairway within the Group’s acreage. 

The Papa-1 gas discovery is located 

approximately 100 kilometres offshore 

Tanzania and 53 kilometeres south-east of 

the Pweza-1 discovery, in water depths of 

around 2 180 metres. It is the first well drilled 

in Block 3 and BG Group’s second discovery 

in the deeper Cretaceous section. 

In addition, a 2 500 square kilometre 

3D seismic survey was acquired on Block 1 

exploring the potential continuation of the 

Tertiary basin floor fan prospectivity in the 

Rovuma basin found in Mozambique.

Kenya Madagascar 

BG Group entered Kenya in 2011, 

acquiring an interest in offshore 

Blocks L10A and L10B. 


TANZANIA 



KENYA 

MOMBASA 

PEMBA ISLAND 

0 100km 

INDIAN 

OCEAN 

L10A 

L10B 

E&P 

In 2011, BG Group signed Production Sharing Contracts with the 

government of Kenya for two offshore exploration blocks – L10A 

and L10B. BG Group is operator on both blocks and holds a 40% 

equity interest in Block L10A (Cove Energy 25%, Premier Oil 20%, 

Pancontinental 15%) and a 45% interest in Block L10B (Premier 

Oil 25%, Cove Energy 15%, Pancontinental 15%). In line with the 

initial work programme commitment, 2D and 3D seismic data 

acquisition commenced in late 2011 and will continue to be 

processed during 2012, with a view to drilling a first exploration 

well in 2013. 

Blocks L10A and L10B together cover an area of more than 

10 400 square kilometres in the southern portion of the 

Lamu Basin, located in water depths ranging from around 

200 metres to in excess of 1 900 metres. 

BG Group 


ETHIOPIA 

SOMALIA 


SOUTH 

AFRICA 

TANZANIA 


Gas pipeline 

Oil pipeline 

KENYA 

MOZAMBIQUE 

Majunga Offshore Profond 

MADAGASCAR 

ANTANANARIVO 

BG Group non-operated block 

0 1 000km 

25 

BG Group owns a 30% interest in 

the Majunga Offshore Profond 

exploration block in Madagascar. 

E&P 

BG Group (30%) partners with ExxonMobil (50% and operator), 

SK Innovation (10%) and PVEP Corp (10%) in the Majunga Offshore 

Profond exploration block. 

The block covers around 15 840 square kilometres in water depths 

ranging from around 200 metres to in excess of 3 000 metres, 

offshore the north-west coast of Madagascar. The block is believed 

to be oil-prone and it forms part of a largely unexplored frontier basin. 



26 

Nigeria 


PORTO NOVO 

ABEOKUTA 

LAGOS 

IBADAN 

OPL 284-DO 

AKURE 

ESCRAVOS 

OPL 286-DO 

E&P 

In 2007, BG Group entered into a 

Production Sharing Contract (PSC) and 

associated downstream Memorandum 

of Understanding for Block OPL 286-DO 

(BG Group 66% and operator) with the 

Nigerian National Petroleum Corporation 

(NNPC). The first exploration period of the 

PSC concluded in March 2012 and BG Group 

has elected not to proceed into the second 

exploration period for the block. In 2009, 

BG Group acquired a 45% participating interest 

in Block OPL 284-DO. The first exploration 

period for this PSC concluded in May 2012 

and BG Group has decided not to proceed 

into the second exploration period for 

the block. 



BENIN 

CITY 



BG Group commenced business development 

activities in Nigeria in 2004. The Group has interests 

in two offshore blocks and purchases LNG supply. 

NIGERIA 

PORT 

HARCOURT 

NIGERIA 

LNG 

0 100km 

CALABAR 

LNG 

In 2006, BG Group commenced taking 

delivery under a 20-year SPA for 2.3 mtpa 

LNG from Nigeria LNG Trains 4 and 5, 

located on Bonny Island. 

LUBA 

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 on 

Bonny Island. 

In May 2012, BG Group gave notice to NNPC 

and its partners of its withdrawal from the 

Olokola LNG project. 

Key dates 

2006 Contracted LNG deliveries from 

Nigeria LNG Trains 4/5 began 

2007 SPA signed for Nigeria LNG Train 7 

PSC and associated downstream 

MoU signed for OPL 286-DO 

2009 Farm-in to OPL 284-DO 


Gas 

Oil 

Gas pipeline 

Oil pipeline 


BG Group non-operated block

Algeria Areas of PA 

SPAIN SPAIN SPAIN SPAIN 

MOROCCO MOROCCO MOROCCO MOROCCO 

Hassi Ba Hamou 

RM-1 


Gas 

Oil 

BG Group holds an interest in, 

and is operator of, the Hassi Ba 

Hamou (HBH) permit. 

Areas of operation Areas of operation 

Gas pipeline 

Oil pipeline 

MEDITERRANEAN 

SEA 

ALGIERS 

A L G E R I A 

A L G E R I A 

EL GOLEA 

ALGERIA ALGERIA 

Proposed gas pipeline 

0 500km 0 50km 


TUNISIA TUNISIA TUNISIA TUNISIA 

E&P 

BG Group entered Algeria through an agreement with Gulf Keystone 

in 2006 to acquire a 36.75% interest in the HBH permit (originally 

Blocks 317b, 322b3, 347b, 348 and 349b). Gulf Keystone retained 

38.25% and Sonatrach, the Algerian national oil and gas company, 

held the remaining 25%. 

In 2011, Gulf Keystone’s withdrawal from the permit was approved, 

resulting in BG Group holding a 65% interest and Sonatrach holding 

35%. The permit, in central Algeria, originally covered 18 380 square 

kilometres and contains the HBH gas discovery. BG Group has drilled 

a total of nine wells in the HBH permit to date. In 2009, the partners 

entered the two-year second exploration period and relinquished 30% 

of the original block area. In this second phase, the RM-1 discovery 

was appraised. At the end of the second exploration phase, another 

relinquishment was made, reducing the size of the permit to 

2 359 square kilometres. In 2010, the partners entered into an 

exploration extension period running to September 2012. 

BG Group 


LIBYA LIBYA LIBYA LIBYA 

Offshore Gaza 

Gaza Marine 


Gas 

BG Group owns a 90% interest 

in, and is operator of, the 

offshore Gaza Marine licence. 


EGYPT 


ISRAEL 

GAZA 

E&P 

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

area offshore the Gaza Strip. BG Group drilled two successful wells in 

2000 (Gaza Marine-1 and Gaza Marine-2) and resources 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 2007, BG Group withdrew from negotiations with the government 

of Israel for the sale of gas from the Gaza Marine field to Israel. In 2008, 

BG Group closed its office in Israel. 

27 


LEBANON 


BLACK SEA 

28 

Kazakhstan 

50 

40 

30 

20 

10 



0 

UKRAINE 

Gas 

NOVOROSSIYSK 

41.5 

37.8 37.4 

2009 2010 2011 

Oil & liquids 

CPC 

RUSSIA 



Atyrau Samara 

pipeline 

Karachaganak 

-to-CPC pipeline 

BOLSHOI CHAGAN 

CPC 

ASTRAKHAN 

CASPIAN SEA 



BG Group has been active in Kazakhstan for 20 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. 

0 400km 

AKTAU 

Karachaganak 

ATYRAU 

ORENBURG 

KAZAKHSTAN 

TENGIZ 

E&P 

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 re-inject high pressure sour 

gas. BG Group’s share of production from 

Karachaganak in 2011 was 37.4 mmboe. 


● Binding settlement agreement resulting in 

KazMunaiGas joining the contractor group 

Key dates 

1997 Karachaganak FPSA 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 

2008 Upstream and downstream 

cooperation agreements 

with KazMunaiGas signed 

2010 CPC expansion project sanctioned 

2011 Start-up of the fourth liquids 

stabilisation train 


Gas and Oil/Condensate 

Gas pipeline 

Oil pipeline 

The FPSA envisaged a phased development 

programme. Phase 2, which came onstream 

in 2004, involved investment to enhance the 

existing facilities, construction of new gas and 

liquids processing and gas injection facilities, 

work-over of more than 100 wells, construction 

of a 120 MW power station and a new 

650 kilometre pipeline to connect the field 

to the CPC pipeline at Atyrau. 

Most of the liquids are exported to the west 

(87% in 2011), with some oil and all raw gas sold 

locally and into Russia. Since 2004, oil 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. 

In 2011, a fourth liquids stabilisation train 

commenced operation. The project increases 

stabilisation capacity by 2.57 million tonnes 

a year (mtpa).

access to 

Partners Karachaganak (%) 

BG Group (joint operator) 29.25 

Eni (joint operator) 29.25 

Chevron 18.0 

LUKOIL 13.50 

KazMunaiGas 10.00 

In June 2012, a settlement agreement between 

the Republic of Kazakshtan (the Republic) and 

the Karachaganak partners was completed. 

Under the terms of the agreement, which is 

effective from 28 June 2012, the Republic has 

acquired a 10% interest in the FPSA from the 

consortium for $2.0 billion cash and $1.0 billion 

non-cash consideration (pre-tax) including 

the final and irrevocable settlement of 

all cost recovery claims, with each of the 

contracting companies’ equity shares 

reducing proportionately. The Republic’s 

interest is now held by a subsidiary of the 

national oil company, KazMunaiGas (KMG). 

The consideration under the agreement also 

includes the allocation of an additional 2 mtpa 

capacity in the CPC export pipeline over the 

remaining life of the FPSA, bringing total 

capacity for the use of the Karachaganak 

project to 10 mtpa on completion of the 

CPC expansion project, expected in 2015. 

BG Group and its partners are working 

with the Republic to define the next phase 

of development. 

KazMunaiGas agreements 

In 2008, BG Group announced an agreement 

with KMG and KMG subsidiary KazMunaiGas 

Exploration and Production (KMG EP) to 

cooperate in exploring a range of upstream 

opportunities. The agreement set out the 

principles of a joint study to identify potential 

opportunities in specific areas in Kazakhstan 

and other countries. In 2010, KMG EP acquired 

a 35% interest in the P1722 licence in the UK 

North Sea, which contains the White Bear 

prospect, the first official venture under this 

agreement. Drilling on the prospect began in 

May 2012. 

Karachaganak export routes and capacity 

Atyrau Samara 

3.3 mtpa 

CPC 

8.1 mtpa* 

Stabilised oil 

Un-stabilised oil 

Gas 

A second, downstream, cooperation 

agreement was signed with KMG to examine 

ways to increase gas utilisation in Kazakhstan. 

As a follow through to this agreement, 

BG Group also signed a cooperation 

agreement with JSC KazTransGas (KTG) on 

implementation of a pilot project to convert 

vehicles in Almaty to compressed natural gas 

(CNG). The CNG pilot project is aimed at 

increasing gas usage and improving the 

environment by reducing vehicle emissions. 

BG Group in partnership with KTG opened 

the first CNG station in Almaty in 2010 and 

currently a fleet of 200 CNG buses operate 

in the Almaty city. 

Partners Karachaganak (%) 

KARACHAGANAK 

FIELD 

Orenburg 

8.4 bcm 

Orenburg 

4 mtpa 

Gas 

re-injection 

Small Refinery 

0.6 mtpa 

Capacity 2011 * Firm capacity of 6.5 mtpa plus access to 

additional capacity. 

T&D 

Shareholders CPC (%) 

Caspian Pipeline Consortium (CPC) 

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 1 500 kilometre length in 2001, 

consists of a new-build line, new marine 

terminal facilities near Novorossiysk BG Group (joint and operator) 29.25 

an upgraded pipeline. The Eni system (joint operator) currently 29.25 

has a design capacity of 28.2 Chevron mtpa. 18.0 

BG Group 

Russian government 

Kazakh government 

Chevron 

LUKARCO 

ExxonMobil 

RosneftShell 

LUKOIL 13.50 

CPC Company 

Kaz MunaiGas 10.00 

Eni 

2.00 

24.00 

19.00 

15.00 

12.50 

7.50 

7.50 

7.00 

2.00 

Oryx 1.75 

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 2011, 7.8 million tonnes of liquids from 

Karachaganak was transported via CPC 

(BG Group 2.1 million tonnes). 

KPV 1.75 

BG Group 


29 

In 2010, the CPC shareholders sanctioned 

the CPC expansion project, which will more 

than double capacity in three phases, with 

completion expected in 2015. Total capacity 

will increase to 67 mtpa. Following expansion, 

BG Group’s entitlement will rise to 

3.0 mtpa (60 000 bopd). BG Group and 

the Karachaganak partners also have the 

opportunity to capture capacity unused by 

other shareholders. 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. 


Partners K 

BG Group 

Eni (joint o 

Chevron 1 


30 

India 

18 

15 

12 

9 

6 

3 

0 


Gas 

INDIA 1 

KAKINADA 

INDIA 

KG-DWN-2009/1 (A) 

Mukta 

ARABIAN SEA 

KG-DWN-2009/1 (B) 

KG-OSN-2004/1 

Tapti 

GULF OF CAMBAY 

CUTTACK 

BHUBANESHWAR 

PURI 

MN-DWN-2002/02 


13.7 

2009 2010 2011 

Oil & liquids 

11.2 11.2 

INDIA 2 



AHMEDABAD 

ANKLESHWAR 

HAZIRA 

Panna 

MUMBAI 

VADODARA 

SURAT 



BG Group has a significant presence across the gas chain 

in India. The Group is seeking to play a greater role in 

India’s growing natural gas sector by developing its 

upstream position and expanding its LNG portfolio. 

1 

BHARUCH 

HVJ pipeline 

Gujarat Gas 

Tapti gas pipeline 

2 

Mahanagar Gas 

INDIA 

0 100km 

E&P 

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 June 2012, the PMT JV announced reaching 

the landmark achievement of crossing the 

500 mmboe of oil and gas production from 

the PMT fields. Enhanced recovery from the 

PMT fields is planned to continue through 

incremental development of the existing 

fields via well intervention and infill drilling 

campaigns, as well as evaluating new projects 


● HoA signed for LNG supply to GSPC for up 

to 2.5 mtpa 

Key dates 

1995 Mahanagar Gas Ltd (MGL) formed 

1997 Majority stake in GGCL acquired 

2002 30% participating interest in the 

Panna/Mukta and Mid and South 

Tapti (PMT) fields acquired 

2008 Agreement signed by BG Group with 

GAIL to take PMT gas 

2010 PSC for Block KG-DWN-2009/1 signed 

2011 Identified as qualifying bidder for 

MB-DWN-2010/1 


Gas 

Oil 

Gas pipeline 

Oil pipeline 



and further development opportunities in 

such fields. BG Group and its partners are 

pursuing a drilling campaign in 2012 and 2013 

at the PMT fields. 

Under India’s New Exploration Licensing Policy 

(NELP) 6 licensing round in 2006, BG Group 

acquired a 45% interest in exploration block 

KG-OSN-2004/1 in the Krishna Godavari 

(KG) Basin. Oil and Natural Gas Corporation 

Limited (ONGC) holds the remaining 55% and is 

operator. In 2008, BG Group entered a farm-in 

agreement with ONGC to acquire a 25% interest

in exploration block MN-DWN-2002/02 

in the Mahanadi Basin on the east coast 

of India. However, BG Group has decided 

to exit these two blocks. This arrangement will 

be subject to Government of India (GoI) approval. 

In the NELP 8 licensing round, a consortium led 

by BG Group (30% and operator), was awarded 

an exploration block KG-DWN-2009/1 in deep 

water in the KG Basin. 

The NELP 9 licensing round was launched 

in October 2010. A consortium led by BG Group 

(50% and operator) has been identified as the 

qualifying bidder for an exploration block 

MB-DWN-2010/1 offshore the west coast 

of India. The award of the contract is awaiting 

approval from GoI. 

T&D 

Gujarat Gas Company Limited (GGCL) 

BG Group has a 65.12% controlling stake in 

GGCL. It is India’s largest private sector natural 

gas distribution company in terms of sales 

volume. BG Group is evaluating the potential 

sale of its interest in GGCL. 

GGCL continues to steadily increase its 

customer base. At the end of June 2012, 

GGCL served close to 360 000 residential, 

commercial and industrial customers and 

fuelled more than 180 000 natural gas vehicles 

(NGVs) with compressed natural gas (CNG). 

In 2011, its distribution sales volumes were 

1 246 mmcm. With the declining profile of 

indigenous supplies, GGCL is increasingly 

purchasing significant volumes of LNG 

to fulfil the demand of its customers and 

enable growth. 

The Ministry of Petroleum and Natural 

Gas clarified GGCL’s status as an entity 

authorised by the Central Government in 

August 2008. This authorisation covers the 

cities of Ankleshwar, Bharuch and Surat. 

The downstream regulator (PNGRB) is 

currently processing GGCL’s authorisation 

application for identified areas in the Surat 

and Bharuch districts. 

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. 

Licence BG Group (%) Partners (%) 

Panna/Mukta and Tapti 30 ONGC 40, Reliance Industries Limited (RIL) 30 

KG-OSN-2004/1 45* ONGC 55 

MN-DWN-2002/02 25* ONGC 75 

KG-DWN-2009/1 30 ONGC 45, Oil India Limited 15, AP Gas Infrastructure 10 

* BG Group is pursuing exit arrangements for these blocks. 

MGL’s 2011 volumes rose 11% to 700 mmcm. 

This volume growth was underpinned by 

growth in all market segments, particularly 

CNG and commercial, as well as the expansion 

of MGL’s network to other neighbouring towns 

of Greater Mumbai. 

As at the end of June 2012, MGL served over 

525 000 residential, commercial and industrial 

customers and fuelled over 250 000 vehicles 

with CNG from over 150 CNG stations. 

MGL has been extending its pipeline network 

beyond Greater Mumbai, into neighbouring 

areas of Taloja, Kalyan and Ambernath. 

LNG 

In 2009, BG India Energy Solutions Private 

Limited (BGIES), a wholly owned subsidiary 

of BG Group, commenced midstream gas 

marketing operations in India to undertake 

wholesale marketing and distribution of 

natural gas. 

BGIES continues to pursue LNG business 

opportunities with existing and new potential 

counterparties to source gas in India, and to 

secure global LNG supplies from BG Group’s 

flexible LNG portfolio. At the end of 2011, 

BG Group had supplied 35 LNG cargoes to India. 

In 2011, BG Group announced it had signed 

a Heads of Agreement (HoA) with Gujarat 

State Petroleum Corporation (GSPC) for the 

supply of up to 2.5 mtpa of LNG for up to 

20 years beginning as early as 2014. Discussions 

on the fully termed Sale and Purchase 

Agreement are continuing. This agreement 

would bring essential new supplies of natural 

gas to India and add another important 

new dimension to BG Group’s expanding 

global LNG business. 

BG Group 


31 



32 

Thailand 

10 



8 

6 

4 

2 

0 

Gas 

8.7 

9.8 

9.9 

2009 2010 2011 

Oil & liquids 

ANDAMAN SEA 

MYANMAR 

E&P 

Bongkot Gas Field 

BG Group has a 22.22% interest in the 

Bongkot field in the Gulf of Thailand. The field 

is operated by PTT Exploration and Production 

(PTTEP). In June 2012, the Bongkot South Field 

completed a performance test during which 

the Bongkot Concession passed, for the first 

time, the significant milestone of producing 

over 1 bcf of sales gas per day from the Bongkot 

North and Bongkot South fields combined. 

RATCHABURI 



Block 9A 

KHANOM 

Bongkot 

THAILAND 

BANGKOK 

RAYONG 



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. 

Blocks 7, 8, 9 

GULF OF 

THAILAND 

0 250km 

CAMBODIA 

BG Group combined net production amounted 

to around 46 400 boed. 

The Bongkot North development consists of: 

a central complex for gas gathering, processing, 

0 export and accommodation; 200km a condensate 

floating storage and offloading vessel; and 

27 remote wellhead platforms. Production 

commenced in 1993 and daily gas production 

has risen and been sustained at over 

600 mmscfd through a phased programme 

of field development. 

The completion of development Phase 3H 

has contributed new production from three 

wellhead platforms (WP 23, 24 and 25). Progress 

continues on Phase 3J, with the installation 

of a further two wellhead platforms that are 

due to come onstream by the end of 2012. 

BG Group and its partners continue to explore 

further opportunities to extend the Bongkot 

North production plateau. Programmes of well 

intervention, infill drilling and booster 

compression have been implemented to 

improve hydrocarbon recovery and an active 


● Bongkot South production commenced 

Key dates 

1990 Participation and Operating 

Agreement 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 

2009 Increased equity interest in Blocks 7, 8 

and 9 by 16.67% to 66.67% 


Gas 

Oil 

Gas Sales Agreement for Bongkot 

South signed 

Gas pipeline 

Oil pipeline 

Gas and Oil/Condensate 



programme of exploration drilling is underway 

to discover reserves for further incremental 

phases of development. 

Bongkot South is located some 70 kilometres 

to the south of Bongkot North and involves the 

development of further reserves through new 

standalone facilities with processing capacity of 

350 mmscfd and 15 000 barrels of condensate 

per day. Production commenced in the second 

quarter of 2012 and at plateau Bongkot South will 

deliver some 14 000 boed net to BG Group. Gas 

from the project is exported via a new-build spur 

line while condensate is exported to the floating 

storage and offloading vessel at Bongkot North. 

Production is sold to PTT Public Company. 

Blocks 7, 8 and 9 

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

in the Gulf of Thailand (BG Group 66.67%), 

in an area subject to overlapping claims by 

Thailand and Cambodia. Activity in these blocks 

is suspended until these claims are resolved. 

BG Group also has an Overriding Royalty 

Agreement covering production from Block 9a.

China Singapore 

YANGPU 

DONGFANG 

DANZHOU 

DONGFANG TERMINAL 

SANYA 


Gas 

Oil 

BG Group entered China in 

2006 and owns interests in 

two blocks. 


Gas pipeline 

CHINA 

HAIKOU 

GUANGZHOU 

MACAU HONG KONG 

Lingshui 22-1-1 

64/11 

63/16 Qiongdongnan Basin 


Pipeline proposed or 

under construction 

E&P 

BG Group is the operator of deep water Block 64/11 and shallow water 

Block 63/16 in the Qiongdongnan Basin. The PSCs have a seven-year 

exploration and appraisal (E&A) phase and a 20-year production sharing 

period after entering development. BG Group carries 100% interests in both 

blocks during the E&A phase, and China National Offshore Oil Corporation 

(CNOOC) has the right to take up to 51% interest in any field development. 

The two blocks, which cover 10 169 square kilometres, are relatively 

unexplored and, should commercial discoveries be made, are well placed 

to supply the potential high growth markets of southern China. 

In 2010, BG Group announced a discovery on Block 64/11 after the Lingshui 22-1-1 

exploration well, the first drilled by BG Group in China, encountered gas-bearing 

sands. Further 3D seismic acquisition in Block 64/11 was completed in 2011, 

the results from which, along with the results of the discovery well, are being 

evaluated before determining next activities. Further 3D seismic acquisition 

in Block 63/16 is planned for late 2012. 

In February 2012, BG Group relinquished Block 53/16 after assessing the 

results of the Yongle 2-1-1 exploration well which was drilled in 2011. 

LNG 

In 2010, BG Group signed a sales contract with CNOOC, focused on the 

Queensland Curtis LNG project in Australia. The contract sets out the 

basis on which CNOOC will purchase 3.6 mtpa of LNG for a period of 

20 years (see page 35 for full details). 

0 250km 0 250km 

BG Group 



MALAYSIA 

SUMATRA 

SINGAPORE 

33 

BG Group has been appointed as 

the aggregator of LNG demand for 

the Singapore market and runs its 

Asia-Pacific activities from here. 

LNG 

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

BG Group as the aggregator of LNG demand for the Singapore market. 

BG Group will be responsible for supplying up to 3 mtpa of LNG for 

up to 20 years. Initial deliveries are expected to begin in 2013 upon 

completion of the LNG import terminal, which is located on Jurong Island 

in Singapore. BG Group and the EMA signed the Aggregator Agreement 

in 2009. 

Commencing in 2010, BG Group has signed gas sales contracts with 

a variety of customers in Singapore, including six large scale power 

generation companies. The total gas sold by August 2012 was 

approximately 2.7 mtpa for up to 20 years. 

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. 

BG Group has had an office in Singapore for over 15 years.

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