BG Signs Production Sharing Contract in Trinidad

BG Group plc has signed a Production Sharing Contract for Block 3(a), offshore Trinidad, with the Government of the Republic of Trinidad & Tobago and partners. BG has a 30 percent interest in the Block.

BG's partners are operator BHP Billiton Limited, which has a 30 percent interest, Talisman Energy Inc., which also has a 30 percent interest and TotalFinaElf S.A., which has a ten percent interest.

Block 3(a), comprising 614 square kilometers, is located 40 kilometers off the east coast of Trinidad in water depths of 30-90 meters. The Block, which is regarded as highly prospective, is adjacent to Block 2(c) where BHP Billiton and partners have made gas and oil discoveries recently.

Peter Dranfield, President, BG Trinidad and Tobago said: "We are pleased to be moving forward with exploration of this acreage through signature of this Production Sharing Contract. Our upstream portfolio, which has producing and developing assets, is further enhanced by this agreement. Together with our partners, we plan to carry out an extensive exploration program in Block 3(a) as part of our continued commitment to the development of the energy industry in Trinidad & Tobago."

The consortium was awarded rights to negotiate for the PSC in October 2001 and this has resulted in agreement to acquire 300 sq km of seismic data and a six-well exploratory drilling program.