Oil Egypt accountACCOUNT King Tut

BG Group Declares Force Majeure in Egypt

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

Share |
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

Egypt >>  5/14/2018 - Last week, the Minister of Energy of Cyprus, Mr. George Lakkotrypis, and the Minister of Petroleum and Mineral Resources of Egypt, Eng. Tarek El Molla...
Egypt >>  5/14/2018 - Governor of Egypt's Central Bank Tarek Amer said that the country is expected to make an $850 million payment on its debts to foreign oil companies. ...

Egypt >>  5/10/2018 - Eni announces the start-up of the third production unit (T-2) of the Zohr project, increasing the installed capacity to 1.2 bcfd. Zohr is now producin...
Egypt >>  5/10/2018 - China’s GCL Group has signed a memorandum of understanding (MOU) with Egypt’s ministry of military production to build a solar panel facility at a cos...

Egypt >>  5/9/2018 - Egypt has approved an exploration agreement with Italy’s Eni and the Egyptian Tharwa company to search for oil and gas in the Mediterranean off the co...
Egypt >>  5/9/2018 - Egypt and Uganda signed a number of cooperation agreements on Tuesday in a ceremony in Cairo attended by ministers of both countries and presided over...

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 Treating  General  GTL Processing  LNG Processing  Phase Separation 

More News

Oil & Gas Projects in Egypt >>

Oil & Gas Companies in Egypt >>

Related Links

Oil Egypt E-Marketplace - Subscription Packages - Benefits

Copyright © Universal Solutions S.A.E. All rights reserved. Privacy Policy. - Career Opportunities - Feedback - Contact Us