Gulf Oil and Gas accountACCOUNT

BG Group Declares Force Majeure in Egypt

Source: www.gulfoilandgas.com 1/27/2014, Location: Africa

BG Group has issued Force Majeure notices under its LNG agreements in Egypt reflecting the ongoing diversions of gas volumes to the domestic market in excess of the existing pooling arrangements. The Group will publish its preliminary 2013 fourth quarter and full year results on 4 February 2014.

Currently the Group expects to report:
- 2013 production volumes of around 633 thousand barrels of oil equivalent per day (kboed), in line with guidance
- LNG Shipping & Marketing total operating profit of approximately $2.6 billion, in line with guidance
- Business performance earnings flat at approximately $4.4 billion (around 130 cents per share)
- Non-cash, post-tax impairments of approximately $2.4 billion associated with Egypt (around $1.3 billion) and the US (around $1.1 billion)
- Total results earnings (post impairments) of approximately $2.2 billion (around 65 cents per share)

The Group also today updates on its outlook for 2014:
- 2014 production volumes expected in the range of 590 – 630 kboed
- 2014 E&P unit operating costs expected to be $15.50 – 16.25 per boe
- 2014 E&P unit depreciation costs expected to be $12.25 – 13.00 per boe
- 2014 LNG Shipping & Marketing total operating profit expected in the range of $2.1 - 2.4 billion

For 2015, BG Group expects production volumes to be in the range of 710 – 750 kboed excluding portfolio changes, and continues to expect to be free cash flow positive in 2015 at the Group’s reference conditions.

Commenting on the update Chris Finlayson, BG Group Chief Executive said: 'Despite the good progress we have made in 2013 we face short term issues which are reflected in our revised 2014 guidance. This is very disappointing. We have elected to issue Force Majeure notices in Egypt reflecting the ongoing diversions of gas volumes to the domestic market. Year on year decline in Egypt and the US are the drivers of volume decline from 2013 to 2014, with the rest of the base portfolio broadly flat overall. The contribution from our key growth projects in Brazil and Australia, which remain on budget and schedule, is increasing, but the growing asset base and higher royalties, combined with the decline in production, are leading to higher unit operating costs in 2014. However, our long-term strategy remains unchanged, our capital expenditure level will decline and we continue to expect to be free cash flow positive in 2015.'

For more information about related Opportunities and Key Players visit Egypt Oil and Gas Projects

LNG Processing News in Egypt >>

Brazil >>  7/6/2020 - Golar Power Limited (Golar Power) announces that it has signed an agreement with Galileo Technologies for the provision of LNG liquefaction solutions ...
Brazil >>  7/2/2020 - Golar Power, one of the world’s largest LNG integrated companies, entered into a strategic alliance with Galileo Technologies, which will provide its ...

United States >>  6/19/2020 - Venture Global LNG, Inc. is proud to announce that Calcasieu Pass LNG has begun installing the first equipment to liquefy natural gas at its export fa...
South Africa >>  6/18/2020 - Emerging domestic natural gas and helium producer Renergen is pleased to announce that Total South Africa Proprietary Limited (“Total”) and the Compan...

Related Categories: Deodorization system  Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Related Articles: Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 


Egypt Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 |

Oil & Gas Projects in Egypt >>

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.