25th October 2011 - 3rd Quarter results
BG Group's Chief Executive, Sir Frank Chapman said:
"Our third quarter total operating profit was up 17% year-on-year to $1.9 billion driven by higher realised prices and a one percent increase in E&P volumes."
"In LNG, we now expect total operating profit for 2011 to be some $2.4 billion, exceeding previous guidance."
Sir Frank said, "we are advancing our growth programme with material progress, particularly in Brazil and Australia, alongside work to improve longer term production from existing assets."
"In Australia, where we have invested $1.3 billion in the quarter", he said, "engineering procurement and construction are all moving ahead in line with a 2014 first production goal for our Queensland Curtis LNG (QCLNG) project. Upstream, we drilled 51 wells and progressed construction on water and compression facilities. Site preparation for the LNG plant is complete and construction of foundations for the LNG storage tanks is underway", he added, "progress is being made with the harbour dredging and the main 42 inch steel pipeline is in location, ready for welding and trenching."
"We are therefore making good progress with our strategic objective to globalise our LNG business through this Asia-Pacific equity LNG position."
"In Brazil, we made significant advances in the quarter. Commercial production at the first permanent FPSO on Lula field increased, with over 35 000 barrels of oil equivalent per day (boed) from one producing well being achieved. Further wells are due onstream by year end."
Sir Frank added, "construction of the next two FPSO modules is on track at around 70% complete. We have also signed letters of intent for a further two 150 000 barrels of oil per day (bopd) modules which means that all of the 13 first phase FPSOs, which will deliver an aggregate production capacity of some 2.3 million boed by 2017, have now been committed."
"Similar progress and delivery is being mirrored across our global portfolio. In India, one of the world's fastest growing energy markets, we reached a landmark agreement for long-term LNG sales to Gujarat State Petroleum Corporation. In Egypt, the successful commencement of
Phase 8a in the West Delta Deep Marine concession represents a further milestone in the development of our interests there - excellent progress especially in light of the civil unrest earlier in the year. Elsewhere in the portfolio, other projects continued to make progress, with new facilities for the Bongkot South development in Thailand on schedule and, in the UK, we saw good results from drilling at the Jasmine field and facilities construction advanced. Finally, in the US, the Department of Energy granted authorisation for potential LNG export from the Lake Charles terminal."
"In the UK North Sea, all facilities are now back onstream following outages that marred production in the first nine months of the year. Outside the UK, overall production has grown in line with plans."
Sir Frank concluded, "I am pleased with the progress we are making on delivering our key growth projects, underpinned by our strong resource base, and also on the work being undertaken to improve future production performance from existing assets."
