BG today announced the integration of its international businesses and revised responsibilities for two Executive Directors, Stephen Brandon and Frank Chapman.

The Exploration and Production and International Downstream businesses will be merged under Frank Chapman, as Executive Director and President, BG International.

Stephen Brandon will assume a new role as Executive Director, Corporate Development with responsibility for leading the identification and creation of new sources of shareholder value throughout the Group. Complementary to this, BG Technology, BG Property and BG Energy Services will report to Stephen Brandon.

Both appointments will take effect from 1 May 1999.

Commenting on these changes, David Varney, BG's Chief Executive, said: "In the two years since demerger, we have accomplished considerable performance improvement in our businesses. BG's future development will take place in a particularly formative period for the energy and utility sectors, both in the UK and internationally.

"The organisational changes announced today underline our determination to build on the achievements of the past two years while striving for new sources of profitable growth. The merging of E&P and International Downstream to form BG International, principally engaged in the integrated development and supply of gas markets, will strengthen our competitive advantage at a time when everyone is working hard to reduce unit costs.

"Against a background of structural change, gas and electricity market liberalisation and advancing technology, the new Corporate Development Directorate will enable us to realise the full potential of our gas-related expertise and capital resources to create and grow new sources of shareholder value. In today's tough business environment, we will need this if BG is to sustain the superior performance we aspire to."

Notes to Editors

Stephen Brandon is currently Executive Director and President, BG International Downstream. Aged 51, he was appointed to the Board of the then British Gas in August 1995. He was previously a Principal of McKinsey and Co and a corporate Vice President for GE.

Frank Chapman is currently Executive Director and President, BG Exploration and Production.

Aged 45, he joined the Board in February 1997, having joined the company in November 1996. He has an international exploration and production career spanning some 25 years and spent 18 years in Shell.