BG Group Strategy to Deliver Long-Term Growth Over Next Decade

BG Group's earnings per share up 11% in 2007, with continued strong outlook for earnings potential to 2009; significant and sustained value contribution from the Group's flexible global LNG portfolio, with 2007 operating profits up 48%, supply positions secured to 2020 and beyond, and financial outlook substantially improved; and production in 2009 expected to be in a range between 680 000 and 710 000 barrels of oil equivalent per day; production growth from 2005 to 2012 is expected to show a compound annual growth rate of between 6% and 8%.

BG Group total reserves and resources have increased by around 3 billion barrels of oil equivalent in two years (up 42%), and now exceed 10 billion barrels of oil equivalent, amounting to 46 years of production at 2007 levels.

The Group's total reserves and resources could support a compound growth rate in production volumes of between 6% and 8% per year out to 2020.

BG Group Chief Executive Frank Chapman said, "We see a positive outlook across our diverse global portfolio and have confidence in our long range prospects."

He added, "Our portfolio demonstrates the advantages of a strong production foundation, a leadership position in LNG, a proven understanding of global gas markets, the significant expansion of our reserves and resources base and the potential of our exploration program. I believe the Group has a very encouraging future over near, medium and long-term time horizons."

The Group's plans will be presented to analysts and investors at 1400 GMT on 7 February 2008 at an event hosted by BG Group Chairman Sir Robert Wilson, Chief Executive Frank Chapman and Chief Financial Officer Ashley Almanza. The presentation will be webcast live at www.bg-group.com, after which a recording of the event and a copy of the slide presentation will be available online.

Global demand for gas continues to increase, driven by the energy needs of established economies, rapid growth in emerging economies and by public policy responses to concerns about climate change. As the hydrocarbon fuel with the lowest carbon emissions impact, gas plays an important role in efforts to address global warming.

BG Group is strongly positioned to respond to these trends, with a successful strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, the Group has a broad portfolio of upstream and downstream assets.

Contracted supply volumes of 12.6 million tonnes per annum through to 2020 and beyond; plans to extend current supply position through additional contracted feedstock in Nigeria as well as potential from other sources, including Australia.

Flexible global portfolio yields ability to respond swiftly to demand in high-value, premium markets; one-third of all cargoes were re-marketed to capture higher-margin opportunities in 2007. EBITDA guidance increased to 30% for both 2008 and 2009.