BG Group will today hold a presentation in London for investors and analysts on BG's growing activities in Egypt. The event will be hosted by Frank Chapman, Chief Executive, with presentations by Martin Houston, Executive Vice President, on BG's Egyptian LNG project and Stuart Fysh, Vice President, on exploration and production and domestic market activities.

A webcast of the event can be accessed live at 11.00 am via the BG Group website (www.BG-Group.com) and a copy of the presentation will be available at this site for 30 days following the event.

Main points in brief:

• Egypt is a core area for BG.
  
  

• At 92%, BG has the highest exploration success rate in the Nile Basin.
  
  

• BG's West Delta Deep Marine Concession is the most prolific concession area in Egypt with a 100% E&A success rate.
  
  

• BG and partners are the only upstream producers to have a fully defined LNG Export Agreement in Egypt.
  
  

• Egyptian LNG Train 1 sanction is expected this summer with first deliveries scheduled to commence in 2005. Train 2 is scheduled for 2006.
  
  

• BG expects to be the largest gas Operator in Egypt from 2006 with production of over 2 billion cubic feet of gas per day.

Other information

The presentation also includes the following new information:

• BG's investment in Egypt from 1997-2001 was around $440 million in continuing operations, and planned investment for 2002-2006 is expected to be around $770 million with a peak in 2002 of $250 million.
  
  

• BG expects that for the next two years supply will exceed demand in the Egyptian gas market. Consistent with BG's planning case, the Rosetta and Scarab Saffron fields are likely to produce at or about the 75% guaranteed offtake level.
  
  

• Rosetta Phase 2 is likely to be sanctioned around the end of the year, to underpin future production.
  
  

• BG has negotiated the award of three additional Development Leases over a sizable portion of West Delta Deep Marine area, with formal signature expected shortly.
  
  

• The shareholders in the Nile Valley Gas Company are undertaking a strategic review of the growth options for the company.
  
  

• The LNG Export Agreement allows accelerated cost recovery, improving returns for BG and its partners in the West Delta Deep Marine Concession.
  
  

• The LNG Export Agreement also provides that the LNG facility at Idku will operate within its own Tax Free Zone.
  
  

• The EPC cost of Egyptian LNG Train 2 is expected to be less than half of the EPC cost of Egyptian LNG Train 1.