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Producing assets | UKCS Exploration | Offshore Pipelines | Operations Map

New information


  • Increased stake in Jackdaw Block 30/2a

  • Operating Jackdaw appraisal drilling programme

  • Successful well in the Jasmine North Terrace

  • Buzzard Enhancement Project sanctioned

  • West Franklin and Maria began production in 2007

BG North Sea

With interests in more than
20 UK Continental Shelf (UKCS) fields, BG Group has one of the most significant exploration and production businesses in the offshore waters of the UK. BG Group operates: the Armada fields (Fleming, Drake and Hawkins), the Maria field and the Seymour field in the central North Sea; the Blake and Atlantic fields in the Outer Moray Firth; and the Neptune, Mercury, Minerva and Apollo fields in the Easington Catchment Area (ECA) in the southern North Sea. During 2007, the Buzzard field in the Outer Moray Firth came onstream. Production also commenced at the West Franklin and Maria fields.

BG Group believes there is significant remaining potential in
the UKCS and is actively pursuing opportunities around existing infrastructure hubs.

Chart. UK: BG Group 3 year productionIn addition to the core production hubs and exploration and appraisal interests on the UKCS, BG Group has a 51.18% interest in the Central Area Transmission System (CATS) offshore pipeline and onshore processing facilities, and a
7.86% stake in the Shearwater Elgin Area Line (SEAL).

Key dates

1997 Armada began production

1999 ECA Phase 1 first gas

2001 Blake first oil

2002 ECA Phase 2 first gas

2003 Seymour first gas

2006 Atlantic/Cromarty first gas

2007 Buzzard first oil


PRODUCING ASSETS

Amethyst

BG Group has a 24.15% interest in the BP-operated Amethyst field located in the southern North Sea. Amethyst East started production in 1990 and Amethyst West in 1991. The development’s four offshore platforms are unmanned, with production being controlled via the onshore terminal facilities.

Production is exported from the A2D platform via a 40 kilometre dedicated
30 inch diameter line to the Easington terminal, where it is processed. The average daily rate in 2007 was 53 mmscfd.

Amethyst gas is sold under a life of field contract.

Armada/Seymour

Pie chart: Armada Partners %The BG Group-operated Armada gas condensate fields (Fleming, Drake and Hawkins) extend over
31 square kilometres and span five exploration blocks. Production began in 1997.

Completed in 2002, the Armada Phase 2 drilling programme added a further three wells, extending the production plateau and lengthening the field life. An average rate of
82 mmscfd and 2 453 bopd was achieved in 2007.

The SW Seymour area of the
BG Group operated Seymour field (BG Group 57% equity) was appraised successfully and drilled from the Armada platform in 2002. First production was achieved in March 2003. A second well drilled in 2004 into the NW Seymour area was brought on production in 2006.

Pie chart - partners Seymour %The commingled stream of Armada and Seymour gas is exported via the CATS pipeline to Teesside. Liquids are transported through the Forties Pipeline System (Forties) to the Kinneil processing plant at Grangemouth.

In March 2007, BG Group completed the purchase of ConocoPhillips’ 11.45% interest in the Armada fields, along with an increased stake in the Everest field. This transaction increased
BG Group’s shareholding in Armada to 58.22%.

Atlantic/Cromarty

BG Group has a 75% interest in the Atlantic field in the Outer Moray Firth. BG Group also holds 10% in the adjacent Cromarty field. The fields have been developed with three wells and a long sub-sea multi-phase flow pipeline, the Western Area Gas Evacuation System (WAGES), tied into the Scottish Area Gas Evacuation (SAGE) terminal at St Fergus. Production began in 2006, with a plateau rate of 220 mmscfd.

Blake and Blake Flank

pie chart: partners Blake %BG Group has a 44% interest in, and is operator of, the Blake field. The field is located
100 kilometres from Aberdeen in the Outer Moray Firth. First production was achieved in 2001.

The field was developed in two phases. The first phase was the Blake Channel, which is a sub-sea development of six producing wells and two water-injection wells, tied back to an existing floating production, storage and off-loading (FPSO) vessel located over the Ross field some 9.5 kilometres away.

Development of the second phase, Blake Flank, was completed and production commenced from two wells in second half 2003.
This sub-sea development is tied back through the existing Blake facilities to the Ross FPSO vessel. An average total field rate of 21 700 bopd was achieved in 2007.

Buzzard

pie chart: partners Buzzard %BG Group has a 21.73% interest in the Nexenoperated Buzzard oil field, located in the Outer Moray Firth, 100 kilometres north-east of Aberdeen. The field was discovered in 2001 and came onstream in 2007.

The facilities consist of a complex of three bridge-linked platforms with oil export via Forties and gas export via the Frigg system. Gross capital expenditure for the project was £1.5 billion.

With total estimated proved and probable reserves exceeding
600 mmboe, the field is believed to be one of the largest discovered in the North Sea in more than ten years. Current production is
220 000 boepd gross.

During 2008, BG Group and partners sanctioned the Buzzard Enhancement Project which involves the construction of an additional processing platform to remove hydrogen sulphide and extend plateau production beyond 2010.

Easington Catchment Area (ECA)

The Neptune, Mercury, Minerva, Apollo, Wollaston and Whittle gas fields in the southern North Sea are collectively referred to as the ECA.

Neptune and Mercury are BG Group operated and were developed as the first phase of the ECA project. First production commenced in 1999.

The ECA Phase 1 facilities consist of a sub-sea production system at Mercury, a normally unmanned platform at Neptune, the ECA Riser Tower platform installed adjacent to the existing BP-operated Cleeton facilities and pipelines connecting the platforms and production systems.

The Mercury sub-sea wells are tied back via a manifold and pipeline to the Neptune platform. The fluids produced from Mercury are commingled with fluids from the Neptune production wells before export to Cleeton for final separation, metering and onward transmission through the Southern North Sea Pipeline System to the Dimlington onshore processing terminal.
BG Group holds 73.33% in Mercury and 79% in Neptune.

Phase 2 of the ECA project consists of the BG Group-operated Minerva Hub fields, Minerva and Apollo (BG Group 65%), and the BP-operated Whittle Hub Fields, Wollaston and Whittle (BG Group 30.77%). Making use of the existing ECA infrastructure, the ECA Phase 2 facilities consist of a normally unmanned platform at Minerva and a sub-sea production manifold at Apollo, tied back to the Minerva platform. The platform exports all production to the ECA Riser Tower. The Wollaston and Whittle Field wells are tied back via a manifold and pipeline directly to the ECA Riser Tower. All production from the Minerva and Whittle Hubs is then commingled with Neptune and Mercury production at Cleeton. First production from the Whittle Hub commenced in 2002, with first production from the Minerva Hub following shortly after, in 2003. A combined average production rate of 154 mmscfd was achieved by ECA in 2007.

Elgin/Franklin Area

The Elgin/Franklin high pressure and high temperature (HPHT) gas condensate fields are located in the central North Sea. The fields began production in 2001.

A total of 14 wells, six in Elgin and eight in Franklin, produced at an average rate of 421 mmscfd and 84 000 bopd during 2007. Total operates the Elgin/Franklin fields in which BG Group has a 14.11% interest. A separate field, West Franklin, started production in third quarter 2007. A further well was drilled and brought into production in third quarter 2008.

The HPHT Glenelg field (BG Group 14.7%), in Block 29/4d, started production in March 2006. The field has been developed through a single high departure well drilled from the Elgin wellhead platform.

Elgin/Franklin and Glenelg gas is exported through SEAL, a common export pipeline shared with the nearby Shell-operated Shearwater field, to the onshore gas reception facilities at Bacton in Norfolk. Liquids are exported through Forties to the Kinneil processing plant at Grangemouth. Gas and liquids from West Franklin follow the same export routes.

Everest and Lomond

Also situated in the central North Sea are the BP-operated Everest and Lomond fields. BG Group holds a 59.32% stake in Everest, increased following the purchase in December 2006 of ConocoPhillips’ 1.01% stake, and a 61.11% interest in Lomond. The fields were developed in parallel, with first production in 1993.

In 2001, two additional wells were added to each of Everest and Lomond as part of the four well Phase 2 programme. These wells extended plateau production levels and accessed reserves in South Everest. A further Everest platform well was drilled and brought into production in 2007.

A combined average production rate of 182 mmscfd and 4 036 bopd was achieved in 2007. Everest and Lomond gas is exported via the CATS pipeline and is currently sold under contract to Teesside Power Limited. The contract expires in September 2008. Produced liquids go via Forties to Kinneil.

J-Block and Jade

pie chart: Partners Jasmine (%)The ConocoPhillips-operated Judy/Joanne (J-Block)
(gas condensate/oil) and Jade
(gas condensate) fields are located in the central North Sea. BG Group has a 30.5% interest in J-Block and a 35% interest in Jade. Production began from J-Block in 1997 and from Jade in 2002. The 2007 combined average production rate from the fields was
335 mmscfd and 32 800 bopd.

Jade was developed using a normally unmanned wellhead platform and currently produces from six wells.

Production from Jade is exported via a subsea pipeline to the manned Judy platform where it is commingled and processed with Judy and Joanne production. The combined gas stream is then exported via the CATS pipeline to Teesside and the combined liquids stream exported via Norpipe to the Norsea oil terminal at Teesside.

The Judy/Joanne fields currently produce from 16 wells, three of which were brought into production in 2006.

In 2005 and 2006, BG Group announced two discoveries, Jackdaw and Jasmine, in the central North Sea. Jackdaw is close to the Jade field and straddles blocks 30/2a (BG Group’s stake increased in December 2007 from 34.4% to 43.1%) and 30/2c (BG Group 36%). The first appraisal well on Jackdaw completed drilling in second quarter 2008 and will be followed by a second appraisal well that is planned to be completed towards the end of 2008. BG Group estimates gross reserves from Jackdaw to be between 20 and 250 mmbbls.

The Jasmine discovery straddles blocks 30/6 and 30/7a (BG Group 30.5%).
BG Group and partners announced a successful well in the Jasmine North Terrace in February 2008. Further appraisal by sidetracking is in progress.
BG Group estimates gross reserves from Jasmine to be between 100 and
275 mmbbls.

Maria

In 2003, BG Group assumed operatorship, on behalf of a consortium with Total and Centrica, of the fallow Maria 16/29a-11Y discovery. An appraisal well drilled in 2004 identified and confirmed the viability of the discovery. Sidetrack drilling then confirmed an extension into the adjacent Maria Horst prospect.

In December 2007, production from Maria began. It is tied back to Armada, with gas exported via the CATS pipeline to Teesside and liquids through Forties to the Kinneil processing plant at Grangemouth.


UKCS EXPLORATION

A central North Sea exploration drilling campaign has led to the discovery of gas and condensate at the Moth prospect within the Upper Jurassic Fulmar reservoir, immediately south of the Lomond field. An appraisal program is currently being planned.

BG Group has applied for exploration licences in the central North Sea adjacent to existing acreage positions in the 25th licensing round. The licence award announcement is anticipated in fourth quarter 2008.


OFFSHORE PIPELINES

CATS

BG Group has a 51.18% interest in the CATS pipeline and terminal, which is operated by BP. The 404 kilometre 36 inch diameter CATS offshore pipeline became operational in 1993 and now transports gas to Teesside from the Everest, Lomond, Andrew, Armada, Seymour, Judy/Joanne, Jade, Erskine, Banff and Eastern Trough Area Project (ETAP) fields (all in the central North Sea). The pipeline has a peak gas capacity of around 1 700 mmscfd.

Onshore, the CATS Teesside terminal includes two trains of gas processing equipment for the Armada, Seymour, Erskine, ETAP and Banff fields.
Train 1 became operational in 1997, originally for Armada and Erskine, and Train 2 was brought onstream in 1998 for ETAP and Banff. The total processing capacity of the terminal is around 1 200 mmscfd.

The CATS owners have contracted additional business from the Maria and Montrose Arbroath fields.

SEAL and SILK

BG Group has a 7.86% interest in SEAL, a 480 kilometre 34 inch diameter gas export pipeline to Bacton. The pipeline was completed in 2000 for the Elgin/Franklin and Shearwater fields. With capacity of around 1 150 mmscfd of NTS-quality dry gas, it has been transporting gas since 2001.

BG Group also has a 15.98% interest in the 900 metre 34 inch diameter SEAL Interconnector Link (SILK) pipeline that provides direct access from SEAL into the UK-Continent Interconnector pipeline.

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Office Address

BG Group plc
Thames Valley Park
Reading,
Berkshire,
RG6 1PT
United Kingdom

Tel: +44 (0) 118 935 3222
Fax:
+44 (0) 118 935 3484