BG Group, its partners Edison International and Shell Egypt NV, and the Egyptian Ministry of Petroleum will hold a ceremony at 09.00 am (local time) on 18 July 2002 at the Ministry of Petroleum's premises in Nasr City, Cairo to sign amendments to the Concession Agreements covering the Rosetta and West Delta Deep Marine (WDDM) Concessions.

The signing ceremony marks the final formality to bring the amendments to both Concession Agreements into force after their ratification by the People's Assembly in March 2002. Amendments to the WDDM Concession Agreement allow for the development of the WDDM Concession to supply gas to both the Egyptian domestic market and the LNG export market and amend the price formula applied to domestic gas production from WDDM. The amendments to the Rosetta concession confirm the gas price formula that has been in use since production started in January 2001 in anticipation of this amendment.

Among those attending the ceremony will be HE Minister of Petroleum Sameh Fahmy and Their Excellencies the British and Italian Ambassadors to Egypt.

Dr Stuart Fysh, President of BG Egypt explained, "The ceremony marks achievement of an important milestone towards implementing the legal framework for gas exports through the Egyptian LNG project, in which BG and Edison are participating along with EGPC, Egyptian Natural Gas Holding Company and Gaz de France. The amendments also give recognition to the domestic gas price formula proposed by the Government of Egypt to protect both buyer and seller from oil price volatility."

There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2001.

Notes to Editors

BG Group has been active in Egypt for over ten years and has achieved a highly successful record in the country via investments in the upstream and downstream sectors.

Significant BG projects include the offshore Rosetta project, which came on-stream in January 2001 and delivers gas into the Egyptian national grid under a 25-year agreement with the Egyptian General Petroleum Corporation; development of the West Delta Deep Marine (WDDM) Concession to supply gas to both the Egyptian domestic market and the LNG export market with first gas from the Scarab Saffron fields on schedule for Q1 2003 for delivery to the domestic grid; and the Nile Valley Gas Company, which delivers gas to customers in the Upper Egypt franchise.

Edison International S.p.A., is a partner of BG Egypt in the Rosetta and WDDM concession and, together with other local partners, in the gas transportation and distribution business through the Nile Valley Gas Company. Edison is Italy's leading private energy group.

Shell Egypt NV, part of the Royal Dutch/Shell Group, is BG's partner in the Rosetta concession and is one of the world's leading energy companies.

The Egyptian General Petroleum Corporation (EGPC) and the recently established Egyptian Natural Gas Holding Company (EGAS) are the State corporations that presently plan, implement and oversee policies relating to oil and gas corporations in Egypt. EGPC and EGAS co-ordinate these activities through their participation in companies involved in exploration, production, refining, processing, petrochemicals, distribution and transportation.

BG Egypt, Edison, EGAS and EGPC are developers of the proposed Egyptian LNG export project. The project is on track for project sanction later this year. The partners signed a Heads of Terms agreement with Gaz de France in January 2002 for the sale of Train 1 output into the French market. The People's Assembly approved the LNG export project agreement earlier this year.