BG Sells Some North Sea Assets to Perenco

BG Group has agreed to sell a package of its UK southern North Sea gas production assets to Perenco for a $135 million cash consideration.

The sale includes BG's interest in 11 non-operated fields: Indefatigable (Inde) and South West Inde, Bessemer, Bell, Baird, Beaufort, Brown, East Leman, Boyle, Davy and North Davy. It also includes BG's interest in the Inde and Leman joint facilities, as well as the site and onshore processing facilities at Bacton in north Norfolk.

BG's share of proved gas reserves for the fields as of December 31, 2002 was around 25.2 million barrels of oil equivalent. Its share of production in 2002 was 93 million standard cubic feet of gas per day or about 16,000 barrels of oil equivalent per day.

Speaking today, Jon Wormley, BG Executive Vice President for the UK, said:

"The disposal we have announced today is part of BG's ongoing strategy to rationalize its UK portfolio, and to capture value for shareholders. It will also allow us to concentrate on the North Sea assets where we have greater control. BG remains committed to the UK and we will continue to seek opportunities to invest in projects which offer attractive growth and returns."

The sale is subject to DTI consent and the completion of Perenco's purchase of related interests in the southern North Sea. The sale is expected to complete by the end of 2003.