Frank Chapman, Chief Executive, BG Group said:
"BG Group is committed to capital discipline and the creation of shareholder value through investment. The strength of our financial position and outlook enables us to return up to £1 billion to shareholders, increase our investment in new growth projects by £500 million and retain the flexibility to take advantage of further investment opportunities as and when they arise.
"Earlier this year, we received £800 million after tax from the sale of our interest in the North Caspian asset. Strong operating performance, the growth in our business and higher commodity prices have also substantially improved the Group's cashflow.
"The £500 million of new investment reflects our recent success in acquiring significant new exploration acreage and opportunities we have identified for accelerating and enhancing our existing portfolio."
The repurchase program will be in accordance with the Group's general authority to make market purchases of its ordinary shares, as approved by shareholders. The Group will seek shareholder approval to renew this authority at the next AGM.
The program is expected to be effected over 12 to 18 months through purchases on the London Stock Exchange and will be dependent on market and economic conditions. It is intended that the shares repurchased will be held as Treasury shares.
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