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Sunday, July 20, 2025

BG Group blames T&T for shortfall

by

20140129

British oil and gas com­pa­ny the BG Group said low­er mar­gins from its op­er­a­tions in T&T is among the fac­tors con­tribut­ing to its gloomy out­look for 2014. In a state­ment this week, the en­er­gy gi­ant said oth­er caus­es were the on­go­ing tur­moil in Egypt and short­falls in US pro­duc­tion.Fol­low­ing the news, BG's stocks took a hit on the Lon­don Stock Ex­change, los­ing more than �6 bil­lion of its val­ue.

The BG Group said in its re­lease: "The con­tri­bu­tions from the group's growth as­sets are ex­pect­ed to be off­set by re­duc­tions in Egypt. Ad­di­tion­al­ly, the con­tin­ued low rig count in the US will re­sult in a vol­ume de­cline sim­i­lar to 2013. Over­all, vol­umes from oth­er base as­sets are ex­pect­ed to be broad­ly flat. Pro­duc­tion will grow in the UK de­spite a slow­er ramp up at Jas­mine along with a longer planned shut­down at Buz­zard, and al­so in Nor­way and Bo­livia.

"How­ev­er, this is ex­pect­ed to be off­set by de­clines to the rest of the base, no­tably in Trinidad and To­ba­go, where ex­pect­ed pro­duc­tion shar­ing con­tract (PSC) pro­duc­tion en­ti­tle­ment has been re­duced due to high­er re­alised prices in 2013."The term "re­alised prices" is oil in­dus­try jar­gon for the fi­nal sell­ing price of the oil pro­duced.

BG Group said its "pro­duc­tion vol­umes are ex­pect­ed to be in the range of 590 � 630 thou­sand bar­rels of oil equiv­a­lent per day (kboed) with base as­sets con­tribut­ing in the range of 480 � 520 kboed, ex­clud­ing port­fo­lio changes".This year, unit op­er­at­ing ex­pen­di­ture is ex­pect­ed to be in the range of US$15.50 - US$16.25 per bar­rel of oil equiv­a­lent (boe) at ref­er­ence con­di­tions, up from the US$12.17 per boe ex­pect­ed to be re­port­ed for 2013 full-year up­stream re­sults.

The BG Group re­port­ed to­tal pro­duc­tion from its T&T op­er­a­tions in 2013 to be 25.6 mil­lion bar­rels of oil equiv­a­lent per (mm­boe), down from 26.8 mm­boe in 2012. Its T&T rate of pro­duc­tion fell from 73 kboed in 2012 to 70 kboed in 2013.


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