Nigeria

In 2007, BG Group entered into a Production Sharing Contract (PSC) and associated downstream Memorandum of Understanding (MoU) for Block OPL 286-DO with the Nigerian National Petroleum Corporation (NNPC) after being awarded the licence in the 2006 Nigerian Oil Block mini-licensing round. OPL 286-DO is located in water with depths of 200-1 000 metres, offshore western Niger Delta. BG Group is the operator with a 66% participating interest, along with partners Sahara Energy Exploration and Production Limited (Sahara 24%) and Equinox Exploration Limited (10%). OPL 286-DO contains an existing discovery, Boi-1. Exploration and appraisal began in late 2008 and continued into 2009 with two wells drilled (Ogide 1x and Boi-2), both of which encountered non-commercial hydrocarbons. New seismic data was acquired in 2009 and processing commenced in 2010 to help image deeper events.

In January 2009, BG Group acquired a 45% participating interest in Block OPL 284-DO from Sahara. Sahara retains a 45% interest, with the remaining 10% held by Lotus Energy Limited. BG Group assumes the role of Technical Partner in the block while Sahara is the operator. OPL 284-DO is located in water with depths of 200-1 000 metres, offshore western Niger Delta. Full block reprocessing of existing seismic data is underway, with acquisition of new 3D seismic scheduled for late 2011.

In 2006, BG Group acquired a 45% participating interest in, and operatorship of, Block OPL 332 from Sahara. This block has now been relinquished to NNPC.

BG Group and its partners are developing Olokola LNG (OKLNG), a liquefaction plant at Olokola, on the south-western coast of Nigeria. In 2007, the SHA was signed between NNPC, Shell, Chevron and BG Group. 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. 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 commenced taking delivery under a 20-year SPA for 2.3 mtpa LNG from Nigeria LNG Trains 4 and 5, located on Bonny Island.

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.