BG Lowers Outlook on Delays in Norway and Egypt

BG Lowers Outlook on Delays in Norway and Egypt
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Δευ, 9 Σεπτεμβρίου 2013 - 18:24
Shares in BG Group PLC (BG.LN) fell more than 5% Monday after the company lowered its production outlook for next year, citing delays bringing on new production from projects in Norway and Egypt.
Shares in BG Group PLC (BG.LN) fell more than 5% Monday after the company lowered its production outlook for next year, citing delays bringing on new production from projects in Norway and Egypt .

The company said around 30,000 barrels of oil equivalent per day of production could be affected by the delays in
Egypt and Norway in 2014. Around two thirds of that relates to Egypt , where recent unrest has made it more difficult for BG to bring in the people and equipment needed to drill new wells at a key offshore gas field, the company said.

The delay to new production from phase 9a in the West Delta Deep Marine concession in
Egypt is significant for BG because the company had been expecting to keep overall output from the field from declining.

The production downgrade comes after the company's new Chief Executive Chris Finlayson announced in May a strategy shift meant to address investor criticism for big cost overruns at a key liquefied natural gas project in
Australia , and previous downgrades to its production forecasts that have dogged the company's share price.

Last year, BG cut its oil and gas production for 2013 and scrapped a 2015 target of producing one million barrels of oil equivalent per day.

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