BG Group's application for seven offshore exploration
licences in Spain has received Cabinet approval from
the Spanish Government.
The licences, covering an area of 6,500 square kilometres,
are located in the Ebro Delta, 90km north east of Valencia
and 100km south east of Barcelona. BG Group will hold
100 per cent equity in the licences.
The effective date of the licence award is expected
in the coming weeks.
Martin Houston, Executive Vice President, said: "This
is an important move for BG Group into the Spanish energy
market complementing our presence in the Mediterranean
region. We have been highly successful elsewhere in the
Mediterranean Basin and we expect to apply our knowledge
and understanding of exploration and development to this
acreage. It is extremely encouraging to be welcomed by
the Spanish Government and we look forward to a long
and successful relationship."
The acreage size is equivalent to 30 North Sea blocks
and shows signs of significant gas potential. Any gas
discoveries will be developed for the Spanish domestic
market. A £20 million exploration programme will
be embarked upon over the next three years. Acquisition
of 3-D seismic data over 1,500sq km is scheduled to be
taken in mid-2002, and exploration drilling is expected
to start towards the end of 2003.
Notes to Editors
The notification of the licence award appeared in an official
public reference following a meeting of the Spanish Government
Cabinet on February 15, 2002.
In the Mediterranean Basin, BG Group is involved in
exploration, production and natural gas market development
in Egypt, Tunisia, Italy, Israel and Areas of Palestinian
Authority.
In Egypt, it produces gas from the Rosetta field and
is developing the West Delta Deep Marine concession for
domestic and export markets. Un-contracted gas reserves
from the concession will underpin Egyptian LNG, which
is developing a liquefied natural gas export project,
due onstream in 2005. The Group is also a shareholder
in Nile Valley Gas Company, a transmission and distribution
company in the Upper Egypt region.
In Tunisia, BG Group supplies about 60 per cent of the
country's current daily gas demand. It operates the offshore
Miskar gas field and holds a 100 per cent interest in
the Miskar production concession. Gas is supplied under
a long-term contract to the state electricity and gas
company. BG Group is also involved in two offshore exploration
permits - Amilcar and Ulysse.
In Italy, BG Group is involved in a major exploration
programme in Po Valley and the Sicily Channel. It is
also a partner in Serene S.p.A., a joint venture company,
which owns and operates 400 megawatts of co-generation
units. It is also promoting a US$300 million LNG importation
terminal in Brindisi on the south east coast of Italy.
In Israel and Offshore Gaza, BG Group is evaluating
data from offshore gas discoveries.
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