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BG issues force majeure notices in Egypt

Oilfield Technology,

BG Group has today provided guidance for the company’s 2013 earnings, and said that it has issued force majeure notices under its liquefied natural gas (LNG) agreements in Egypt due to diversions of gas volumes to the domestic market in excess of existing arrangements.

The company expects to report full year 2013 production volume of 633 000 barrels of oil equivalent per day (boed), in line with its previous guidance.

BG expects 2013 business performance earnings, or earnings before disposals, impairments and certain other items, to be flat at US$ 4.4 billion, or 130 cents per share. Total results earnings, after impairments, is expected to be US$ 2.2 billion, or 65 cents per share.

The company expects to record total non-cash, post-tax impairments of US$ 2.4 billion in 2013.

Future production?
BG Group also said that 2014 production volumes are expected in the range of 590 000 boed and 630 000 boed. For 2015, BG Group expects production volumes to be in the range of 710 000 boed and 750 000 boed, excluding portfolio changes.

BG Group CEO, Chris Finlayson, commented: "Despite the good progress we have made in 2013 we face short term issues which are reflected in our revised 2014 guidance. 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 company will publish its preliminary 2013 Q4 and full year results on 4th February.

Adapted from press release by Katie Woodward

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