BG Group today announces the Board has accepted Chris Finlayson's resignation as Chief Executive and as an Executive Director of the Board with immediate effect, for personal reasons.
Until a permanent replacement is appointed, Andrew Gould, BG Group's Non-Executive Chairman, will take over as interim Executive Chairman. A recruitment process to find an external successor to Chris is now underway. Andrew will revert to the role of Non-Executive Chairman once the new Chief Executive is appointed.
Andrew Gould said: "I would like to thank Chris for his contribution to the Group over the past four years and we wish him well for the future. The Board of Directors is fully committed to the Group's strategy, which is built upon a portfolio of high-quality assets. The Company must accelerate the creation and delivery of the longer-term value for our shareholders, while delivering the Group's business plans. The Board felt that it was in the best interests of the Group to accept Chris' resignation and seek fresh leadership to deliver both of these priorities."
Chris will not receive any payment beyond his contractual entitlement, details of which will be available on the Group's website.
Business update and outlook
BG Group will announce its first quarter results on 1 May, including an update on the Group's key projects which remain on schedule.
In Australia, good progress continues, with the start-up of the Ruby Jo central processing plant and in Brazil, all four buoyancy supported risers are in position on FPSOs 2 and 3, with two new permanent wells connected. Commissioning of Bongkot South Phase 4b, the Group's other first quarter milestone, was completed in February.
Egypt remains challenging, with volumes in the first quarter declining 35% from the fourth quarter of 2013 to 66 thousand barrels of oil equivalent per day (kboed). This is a result of deteriorating reservoir performance and the high level of diversions to the domestic market, where the Group is entitled to a lower share of production.
The Group's 2014 production guidance remains unchanged at 590 - 630 kboed*, although production is now expected to be at the lower end of the range given the issues in Egypt. The deterioration in Egypt will similarly impact 2015 production.
The Group is reviewing its operational, investment and portfolio management plans and will not provide 2015 guidance until its full year results in February 2015.
The resolution to re-elect Chris Finlayson as a Director of the Company at its 2014 Annual General Meeting, as set out in the notice of that meeting, will be withdrawn.
- ends –
Notes to Editors
* At the Group's reference conditions 2014 and 2015
- Brent Oil price real (1/1/2014): 2014 and 2015: $100/bbl
- US Henry Hub real (1/1/2014): 2014: $4.0/mmbtu; 2015 $4.25/mmbtu
- US/UK exchange rates of $1.55:£1
- US/AUD exchange rates of $1:$A1.05
- US/BRL exchange rates of $1:BRL2.10
- Prepared under International Financial Reporting Standards
- All production includes fuel gas
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com
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There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer to BG Group's Annual Report and Accounts for the year ended 31 December 2013. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.