BG to Acquire Interests Offshore Mauritania

BG Group has signed a Sale and Purchase Agreement with Hardman Resources Limited, an Australian independent exploration company, for the acquisition by BG of Mauritania Holdings BV, a Hardman Resources subsidiary that owns interests in Production Sharing Contracts (PSCs) A and B covering blocks 3, 4 and 5 offshore Mauritania, West Africa.

Through this acquisition BG Group will obtain a 13.084 per cent interest in the PSC covering area A and an 11.630 per cent interest in the PSC covering area B for an aggregate cash consideration of US$132 million, plus up to a further US$5.1 million that is contingent on the attainment of certain exploration and production milestones.

Speaking today, BG Group Managing Director and Executive Vice President Mediterranean Basin and Africa, Stuart Fysh, said:

"This transaction adds an attractive upstream position to BG's upstream inventory as these blocks offshore Mauritania have proven oil reserves and good potential for gas reserves. Additionally, they are well positioned in the context of BG's Atlantic Basin strategy. We look forward to working with the existing partners to build on their success to date in these blocks."

The transaction is expected to be completed in the second quarter. It is subject to consent from the other existing participants, Woodside Petroleum Limited, Fusion Oil and Gas plc, and Roc Oil Company.

Recent wells in PSCs A and B offshore Mauritania have made three hydrocarbon discoveries - the Chinguetti Field, the Tiof Field and the Banda Field.

BG Group plc works across the spectrum of the gas chain. Active on five continents in some 20 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power. The company's core geographical areas are the UK, Egypt, South America, Kazakhstan, India and Trinidad and Tobago.