Press Release

Search News 
 
 

Stock Exchange Annnouncement 20 January 2006

BG Group signs Nigerian Production Sharing Contract


BG Group today announced that it has acquired a 45 percent interest in, and operatorship of, Block 332 offshore Nigeria under a farm-in agreement with Sahara Energy Exploration & Production Limited (‘Sahara’).  The agreement marks BG’s entry into the Nigerian upstream sector and comes as BG, along with its partners, Sahara and Seven Energy Nigeria Limited (‘Seven Energy’), yesterday signed a Production Sharing Contract (PSC) for Block 332 with the Nigerian National Petroleum Corporation (NNPC).

Sahara, which will retain a 45 percent interest, secured Block 332 in the 2005 Nigerian Licensing Round held in August.  Seven Energy will hold the remaining 10 percent interest.

BG Group Executive Vice President for the Mediterranean Basin and Africa, Stuart Fysh, said: “Nigeria is a prolific hydrocarbon province which fits well with our market focused Atlantic Basin strategy.  This attractive farm-in opportunity represents BG’s entry into Nigeria’s upstream sector and we look forward to working with our partners to play an active role in the continued development of Nigeria’s energy sector.”

The work programme will be carried out in two phases, the first involving the acquisition of 3D seismic and one exploration well. 

Note to Editors:

Block 332 is located in deep water (100 – 1,000m) offshore western Niger Delta, approximately 100km south-east of the commercial capital Lagos and lies between latitudes 5º 50’N and 6º 20’N. 

BG Group currently has a Memorandum of Understanding with Chevron, Shell and NNPC to examine the feasibility of jointly developing an LNG facility near Olokola in Nigeria’s western states of Ondo and Ogun. Block 332 is located approximately 50 kilometers south-west of the Olokola LNG site.

In October 2003, BG LNG Services signed a Sales and Purchase Agreement with Nigeria LNG to acquire 2.5 million tonnes per annum for 20 years for shipment to the Lake Charles import terminal in Louisiana.  The first LNG shipment from Nigeria LNG to Lake Charles departed in January 2006. 

BG Group is a global natural gas business. Active on five continents in over 20 countries, it operates four business segments – Exploration and Production, LNG, Transmission and Distribution and Power. 


Enquiries:

Communications:
+ 44 (0) 118 929 3717

Out of hours media assistance:
+ 44 (0)7917 185 707

Investor Relations
Chris Lloyd / Helen Parris / Kate Bingham + 44 (0) 118 929 3025

 
 

Share Price

LSE
1478.50p

Market data delayed by 20 minutes