BG Group Boosts 1Q Operating Profit by 21%
by Jon Mainwaring
Thursday, May 03, 2012
BG Group was the latest major European energy company to report a strong start to the year when it announced Thursday that its first quarter operating profit for the three months to March 31 2012, $2.4 billion, was greater by 21 percent on 1Q 2011.
BG Group's hydrocarbon production improved 5 percent to 60.9 million barrels of oil equivalent on 1Q 2011. This helped it achieve a 15 percent increase in its E&P operating profit to $1.45 billion, while the firm's LNG operating profit increased by 42 percent to $812 million.
"This year we have brought key new developments into production, continued to make material progress across our major projects, and we announced further exploration success," said BG Group Chief Executive Sir Frank Chapman in a press statement.
Chapman added that four of its 2012 projects have already been brought on stream and have begun production build up.
"In Egypt, phase seven of the West Delta Deep Marine development was brought online; offshore Norway, we achieved first production from the Gaupe field; in Thailand, new facilities at Greater Bongkot South began delivering volumes; and, in Bolivia, the first phase of production from the Margarita field commenced," said Chapman.
"These new sources of production will, at plateau, add around 50,000 barrels of oil equivalent per day net to the Group's production; helping to keep us on track to deliver our 6 percent to 8 percent annual average growth rate through to 2020."
Chapman added that the company was making "rapid progress" in Brazil with the development of the 'big five' Santos Basin discoveries, while in Australia BG Group has increase drilling capacity as planned and delivered more than 70 wells during the first quarter.
Chapman also noted that in Tanzania a fourth consecutive success raised estimated gross mean recoverable resources in the province to approaching some 7 trillion cubic feet of gas.
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