BG Group Outlines Positive Picture for LNG Market
BG Group, the UK-based natural gas-focused energy firm, outlined a positive picture for its markets Thursday, with Chief Executive Sir Frank Chapman saying: "The outlook for global gas and LNG demand is strong. BG Group is well set to capitalise on these opportunities and is making good progress with delivering its plans."
BG, which also announced its 2011 results Thursday, is set to see its LNG (liquefied natural gas) supply exceed its 2015 target of 20 million tons per annum, with Chapman pointing out that the firm believes a "supply portfolio of 30 Mtpa by 2020 is now within reach".
He added: "The near-term picture is also very positive and we are raising our LNG profit guidance for 2012 by over 30 percent to between $2.6 billion and $2.8 billion. Our LNG business is set fair with the prospect of excellent profit momentum for many years."
BG, which made discoveries in Norway, Tanzania and the UK last year, said that its reserves and resources now stand at 17.1 billion barrels of oil equivalent (which equates to 73 years production at 2011 levels).
"In 2012, we'll invest $1.5 billion in our exploration programme, targeting prospects in seven countries including new frontier plays in Australia, Egypt and Tanzania," said Sir Frank.
On production, Sir Frank said that in 2012 the firm's base assets will continue to make a material contribution that will be bolstered by new production that is set to come on-stream in Bolivia, Egypt, Norway, Thailand and the UK.
"In terms of production for this year, we start the year with a production run rate of some 650 000 barrels of oil equivalent per day [boepd] and we expect to exit the year with a rate of some 750,000 boepd," he said. "Key factors will be improved production from the UK, alongside six new projects coming onstream progressively through the year."
Contributions from Australia and Brazil are expected to deliver production of more than one million boepd by 2015 and 1.4 million boepd by 2020, added Sir Frank.
BG's full-year results for 2011 showed that total operating profit was up 19 percent to $8.2 billion, with cash flow from operations up 17 percent to $9.8 billion.
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