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Press Release 23 April 2002

BG and Partners sign Production Sharing Contract in Trinidad & Tobago


BG Group plc has signed today a Production Sharing Contract (PSC) for Block 3(a), offshore Trinidad, with the Government of the Republic of Trinidad & Tobago and partners. BG has a 30 per cent interest in the Block.

BG's partners are operator BHP Billiton Limited, which has a 30 per cent interest, Talisman Energy Inc., which also has a 30 per cent interest and TotalFinaElf S.A., which has a ten per cent interest.

Block 3(a), comprising 614 square kilometres, is located 40 kilometres off the east coast of Trinidad in water depths of 30-90 metres. The Block, which is regarded as highly prospective, is adjacent to Block 2(c) where BHP Billiton and partners have made gas and oil discoveries recently.

Peter Dranfield, President, BG Trinidad and Tobago said: "We are pleased to be moving forward with exploration of this acreage through signature of this Production Sharing Contract. Our upstream portfolio, which has producing and developing assets, is further enhanced by this agreement. Together with our partners, we plan to carry out an extensive exploration programme in Block 3(a) as part of our continued commitment to the development of the energy industry in Trinidad & Tobago."

The consortium was awarded rights to negotiate for the PSC in October 2001 and this has resulted in agreement to acquire 300 sq km of seismic data and a six-well exploratory drilling programme.

Notes to Editors

BG Trinidad & Tobago (BG T&T) has been operating in the region since 1989. It is operator and has 50 per cent equity in the Dolphin field, off the east coast of Trinidad. The field supplies up to 264 million standard cubic feet of gas per day to the National Gas Company of Trinidad and Tobago under a 20-year supply contract. A development plan for the Dolphin Deep and Starfish fields in the East Coast Marine Area has been submitted to the Government of Trinidad & Tobago.

BG T&T is operator and 45.9 per cent equity holder in the North Coast Marine Area (NCMA) development. NCMA is being developed to supply gas to the two-train expansion of the Atlantic LNG (ALNG) plant in Point Fortin.

BG T&T is also a 26 per cent shareholder in Train 1 of the US$1 billion ALNG plant in south west Trinidad. Presently, the plant produces three million tonnes of liquefied natural gas per annum for export to markets in the USA, Puerto Rico and Spain. Construction of a further two trains is underway and are due on stream in the third quarter of 2002 and the second quarter of 2003 respectively. Government approval is being sought for a 4.8 mtpa capacity fourth train. A Front End Engineering and Design study was completed at the end of January 2002.

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