BG sells Mauritania interests for $128 million

Jan. 18, 2007
BG Group PLC has sold its interests in Mauritania, West Africa for $128 million, transferring Mauritania Holdings BV to Kuwait Foreign Exploration Co.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 18 -- BG Group PLC has sold its interests in Mauritania, West Africa for $128 million, transferring Mauritania Holdings BV to Kuwait Foreign Exploration Co.

BG said it increased its worldwide exploration acreage significantly over the last 18 months and the Mauritanian assets no longer fit strategically within its exploration portfolio.

Mauritania Holdings operated as a wholly owned subsidiary of BG Group, managing its interests in production-sharing contracts A and B covering Blocks 3, 4, and 5 off Mauritania.

The interests include 13.084% equity in PSC A, covering Block 3 and shallow water Blocks 4 and 5. Banda gas field has been discovered in PSC A.

BG's interests also include 11.63% equity in PSC B, covering deepwater Blocks 4 and 5. Five oil discoveries have been made in PSC B—Chinguetti, Tiof, Tevet, Tevet Deep, and Labeidna.

BG's remaining interests include 10.234% equity in the Chinguetti exclusive exploitation authorization. Chinguetti field started production in February 2006, while development studies on the Tiof field are said to be ongoing.

BG Group purchased Mauritania Holdings from Hardman Resources Ltd. in 2004 for $132 million.

Contact Eric Watkins at [email protected].