E&P: Operated Assets | Non-Operated Assets  | Offshore Pipelines | LNG | Marketing | Power | Operations Map

Commercial operations commenced at theMilford Energy Limited power plant Disposal of Seabank Power Limited Disposal of Premier Power Limited

BG Group has one of the most significant exploration and production businesses in the offshore waters of the UK. BG Group’s interests are focused on the central North Sea and the Group employs a hub strategy to maximise value most effectively from its UK portfolio.

Key dates

1993
Everest and Lomond onstream

1997
Armada and J-Block first production

2001
Blake and Elgin/Franklin first production

2002
Jade first production

2003
Seymour first gas

2006
Atlantic/Cromarty first gas

2007
Buzzard, West Franklin and Maria first production

2009
Asset exchange with BP, concentrating operations in the central North Sea

2009
Dragon LNG operational

BG Group believes there is significant remaining potential in the UK Continental Shelf (UKCS). The Group is actively pursuing opportunities around its infrastructure hubs by identifying nearby exploration prospectivity, infill wells and third-party business. Tie-backs to these hubs are possible for opportunities across the median line in the Norwegian Continental Shelf, as well as in the UKCS. The Group aims to continue producing around 50mmboe every year to at least 2014.

In 2009, BG Group completed an asset exchange with BP. BG Group acquired BP’s equity and operatorship in the Everest and Lomond fields as well as acquiring BP’s equity in the Armada field and part of BP’s equity in the Erskine field, all located in the UK central North Sea. In return, BG Group transferred its equity interests and operatorship in fields in the southern North Sea to BP. The asset exchange consolidates and strengthens BG Group’s position in the central North Sea and gives the Group control of key infrastructure hubs, allowing the operational performance of mature fields to be optimised and the development of other opportunities in the surrounding area.

In addition to 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, a 7.86% stake in the Shearwater Elgin Area Line (SEAL), and a 15.98% interest in the SEAL Interconnector Link (SILK) pipeline.

BG Group’s UK downstream activities encompass LNG importation, energy marketing and power generation. BG Group sells gas on a wholesale basis and exports gas for sale to, and purchases gas for import from, mainland Europe via the Interconnector.

Armada Hub Area

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. BG Group owns 76.42% in Armada.

The SW Seymour area of the BG Group-operated Seymour field (BG Group 57%) was appraised successfully and drilled from the Armada platform, with first production in 2003. A second well in the NW Seymour area was brought into production in 2006. A NW Seymour sidetrack development was sanctioned in second quarter 2010, with first production scheduled by 2012.

In 2003, BG Group assumed operatorship of the fallow Maria 16/29a-11Y discovery. Appraisal drilling identified and confirmed the viability of the discovery. Sidetrack drilling then confirmed the adjacent Maria Horst prospect. Maria (BG Group 36%) was developed via two sub-sea wells and tied back to the Armada platform, with production beginning in 2007.

The commingled stream of Armada, Seymour and Maria 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 2009, a combined average rate of 165mmscfd and 12 282 bopd was achieved.

The Rev field, a third-party two-well sub-sea development in the Norwegian sector of the North Sea, has been tied back to the Armada platform. Production began in 2009. BG Group receives a tariff payment for processing this production.

The Norwegian government has approved the Gaupe project (BG Group 60% and operator), a two-well sub-sea development in the Norwegian sector of the North Sea, which will be tied back to the Armada platform. Hydrocarbons are expected to begin flowing by 2012.

Everest and Lomond

In 2009, BG Group took over operatorship of the Everest field, and increased its interest to 80.46%. Everest is situated in the central North Sea and first production began in 1993. An average production rate of 69mmscfd and 3 540 bopd was achieved in 2009. Gas is exported via the CATS pipeline. Produced liquids go via Forties to Kinneil.

In 2009, BG Group also took over operatorship of the Lomond field, and increased its equity stake to 83.33%. Lomond is situated in the central North Sea and first production began in 1993. An average production rate of 74mmscfd and 2 517 bopd was achieved in 2009. Gas is exported via the CATS pipeline. Produced liquids go via Forties to Kinneil.

Atlantic/Cromarty

BG Group has a 75% interest in the Atlantic field in the Outer Moray Firth, and 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. Plans for end of life operation are being prepared with a view to finalising production sometime towards the end of 2010.

Blake

BG Group has a 44% interest in, and is operator of, the Blake field, which is located 100 kilometres from Aberdeen in the Outer Moray Firth. Production started 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 2003. This sub-sea development is tied back through the existing Blake facilities to the Ross FPSO vessel. An average total field rate of 16 269 bopd was achieved in 2009.

Jackdaw

The Jackdaw discovery straddles Blocks 30/2a (BG Group 44.1%), 30/2c (BG Group 35%), 30/3a and 30/3b (BG Group 30.5%). Appraisal work continues on Jackdaw with another appraisal well in 2010. Results from the exploration and appraisal programme wells are being utilised to evaluate potential development concepts. Gross recoverable resources are estimated at 60 to 170mmboe. First production is being targeted for 2016.

Elgin/Franklin area

The Elgin/Franklin high-pressure/high temperature (HPHT) gas condensate fields are located in the central North Sea. The fields began production in 2001. A total of 14 wells, seven from Elgin and seven from the Franklin platforms (including two wells from the West Franklin field), produced at an average rate of 468mmscfd and 86 557 bopd during 2009. Total operates the Elgin/Franklin fields in which BG Group has a 14.11% interest.

A separate field, West Franklin (BG Group 14.11%), started production in 2007 and a further well was brought into production in 2008. In 2008, the West Franklin B appraisal well identified additional potential reserves. Ultimate resources have been significantly increased and are now estimated at close to 200mmboe with additional drilling.

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

Elgin/Franklin, West Franklin and Glenelg gas is exported through SEAL to the onshore gas reception facilities at Bacton in Norfolk. Liquids are exported through Forties to the Kinneil processing plant at Grangemouth.

J-Block and Jade Area

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 35% in Jade. Production began from J-Block in 1997 and from Jade in 2002. The Joanne field is a sub-sea development tied back to the manned Judy platform through two 5.5 kilometre pipelines.

The Judy/Joanne fields currently produce from16 wells. Jade was developed using a normally unmanned wellhead platform and currently produces from eight wells. Production from Jade is exported via a sub-sea pipeline to the 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 2009 combined average production rate from the fields was 287mmscfd and 31 293 bopd.

The Jasmine discovery lies 9 kilometres east of the Judy platform. The discovery straddles Blocks 30/6 and 30/7a (BG Group 30.5%). The mid-case recoverable reserves are estimated at 170mmboe. The Jasmine development will comprise a wellhead platform, with separate bridge-linked accommodation, tied back via a multi-phase pipeline and a new riser platform to the existing Judy production facilities. First production is anticipated in 2012.

Buzzard

BG Group has a 21.73% interest in the Nexen operated Buzzard oil field, located in the Outer Moray Firth. The field was discovered in 2001 and came onstream in 2007.

The facilities consist of a complex of four bridge-linked platforms, with oil export via Forties and gas export via the Frigg System. With total estimated ultimate resources exceeding 700mmboe, the field is one of the largest discovered in the UKCS in more than ten years. 2009 saw peak production rates in excess of 225 000 bopd gross. In 2008, BG Group and partners sanctioned the Buzzard Enhancement Project, comprising an additional processing platform to remove hydrogen sulphide and extend plateau production. The platform was installed in May 2010.

Commissioning and start-up of this platform is due to be completed by 2011.

Erskine

BG Group owns a 32% interest in the Chevron-operated HPHT Erskine field. Gas and liquids produced from the field are processed on the Lomond platform, with the gas then transported via the CATS pipeline, and liquids via Forties.

CATS

BG Group has a 51.18% interest in the CATS pipeline and terminal, which is operated by BP. The 404 kilometre CATS offshore pipeline transports gas to Teesside from the Everest, Lomond, Andrew, Armada, Seymour, Judy/Joanne, Jade, Erskine, Banff, Eastern Trough Area Project (ETAP),Maria and Montrose Arbroath fields (all in the central North Sea). In 2009, CATS also started transporting gas fromthe Rev field, in the Norwegian sector of the North Sea. The pipeline has a peak gas capacity of around 1 700mmscfd.

Onshore, the CATS Teesside terminal includes two gas processing plants, with a total capacity of around 1 200mmscfd.

SEAL and SILK

BG Group has a 7.86% interest in SEAL, a 480 kilometre gas export pipeline to Bacton. With capacity of around 1 150mmscfd of dry gas, it has been transporting gas from the Elgin/ Franklin and Shearwater fields since 2001.

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

LNG

Dragon LNG In 2009, the Dragon LNG import terminal at Milford Haven in Wales became operational and began receiving LNG cargoes. Ownership of the terminal is BG Group 50%, PETRONAS 30% and 4Gas 20% and there are 20-year arrangements in place governing the use of capacity rights (BG Group 50%, PETRONAS 50%), allowing BG Group and PETRONAS to each send out up to 3 bcm (106 bcf) gas per year, from around 2.2mtpa LNG.
BG Group has contracted pipeline capacity with National Grid. BG Group’s intention is to use the Dragon terminal capacity when UK prices are internationally attractive, sourcing the LNG from its global supply portfolio.

In 2009, BG Group produced 4.5 bcmgas from the UK Continental Shelf (UKCS), the equivalent of approximately 5% of UK gas demand. The Group sells gas on a wholesale basis principally at the UK National Balancing Point under contracts with varying durations. BG Group is an active participant in the entry capacity auctions held by National Grid and in the on-the-day commodity market and other electronic trading systems that help shippers balance their supply and demand. BG Group owns both import and export capacity in the Interconnector pipeline, which it uses to ship gas to take advantage of market price differentials and for sub-lets to third parties.

Milford Energy Limited

At the Dragon LNG terminal, construction of the Milford Energy Limited (MEL) (BG Group 50%) plant was completed and commercial operations commenced in early 2010.
MEL is a combined heat and power plant supplying up to an aggregate of 48MWof electricity to Dragon LNG and the grid and 73Megawatt thermal (MWth) of heat, in the form of hot water, to Dragon LNG. The plant is supplied with natural gas from the Dragon LNG terminal.

Premier Power Limited

In July 2010, BG Group signed a share sale agreement for the sale of Premier Power Limited, a wholly owned subsidiary of BG Group. The transaction completed in third quarter 2010.

Seabank Power Limited

During the first half of 2010, BG Group sold its investment in the Seabank power plant in the UK.