BG Group Seeks More Active Portfolio Management Strategy
BG Group said Tuesday that it was sticking with a group production estimate of between 630,000 and 660,000 barrels of oil equivalent per day for 2013.
Reporting an update on its strategy, BG said it would continue to focus on areas of "distinct competitive advantage" in its upstream oil and gas and LNG businesses, and that it would continue to grow its exploration budget over the next three years to $1.8 billion per annum.
The firm said that it would also take a more-active approach to managing its portfolio of assets, monetizing them at different stages in their lifecycle and bringing in partners to accelerate value delivery. BG wants to create a focused portfolio of between 10 and 15 high-quality, material assets, it added.
BG Group Chief Executive Chris Finlayson commented in a statement:
"BG Group is a great company with a strong pipeline of projects and deep-set skills and expertise that differentiate us, particularly in exploration and LNG. We are big enough to explore the best frontier acreage but small enough to be agile – valuable attributes, which I intend to keep.
"In a period where LNG demand is expected to grow twice as fast as overall gas demand, with underlying supply needing to grow by nearly nine percent to meet total demand, BG Group is well positioned to capitalize on this growing market through our competitive advantages of world-class exploration and a distinctive LNG business, facilitated by our commercial agility.
"While we expect LNG demand to grow, our exposure to oil is also increasing through our outstanding portfolio in Brazil. We are making good progress with the execution of the program and, as our knowledge of these giant fields grows, we expect further development phases to accelerate production and increase recovery, significantly increasing the value of the assets."
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