BG Awarded Licenses Offshore Spain
BG Group's application for seven offshore exploration licenses in Spain has received Cabinet approval from the Spanish Government. The licenses, covering an area of 6,500 square kilometers, are located in the Ebro Delta, 90 km north east of Valencia and 100 km south east of Barcelona. BG Group will hold 100 percent equity in the licenses. The effective date of the license award is expected in the coming weeks.
Martin Houston, Executive Vice President, said: "This is an important move for BG Group into the Spanish energy market complementing our presence in the Mediterranean region. We have been highly successful elsewhere in the Mediterranean Basin and we expect to apply our knowledge and understanding of exploration and development to this acreage. It is extremely encouraging to be welcomed by the Spanish Government and we look forward to a long and successful relationship."
The acreage size is equivalent to 30 North Sea blocks and shows signs of significant gas potential. Any gas discoveries will be developed for the Spanish domestic market. A £20 million exploration program will be embarked upon over the next three years. Acquisition of 3-D seismic data over 1,500sq km is scheduled to be taken in mid-2002, and exploration drilling is expected to start towards the end of 2003.