Company Profile - BG Group - Summary - Q1 2013


Company Overview

BG Group sees Nigeria as playing an important role in its gas supply chain in the Atlantic Basin. However, its upstream commitment has weakened with unsuccessful drilling and its long-term presence in the country is likely to be more limited. The UK company in 2007 signed an agreement with Nigeria LNG for the acquisition of 2.25mn tpa of LNG for a 20-year term that will be produced by Nigeria LNG's proposed Train 7 project on Bonny Island. In 2006, BG commenced taking delivery of 2.3mn tpa of LNG from Nigeria LNG Trains 4 and 5, as part of a 20-year deal. In May 2012, BG gave notice to NNPC and its partners of its withdrawal from the Olokola LNG project. In 2009, the group acquired a 45% participating interest in Block OPL 284-DO. The first exploration period for this PSC concluded in May 2012 and BG decided not to proceed into the second exploration period for the block. Similarly, it has chosen not to continue with exploration efforts on block OPL 286-DO (BG Group 66% and operator).

Strategy

BG now looks set to remain a player in Nigeria just as a participant in LNG sales and purchase schemes, rather than as a large-scale upstream operator.

This article is tagged to:
Sector: Oil & Gas
Geography: Nigeria