BG Group to boost E&P spending 5-7%/year
BG Group expects to boost its international exploration and production spending by 5-7%/year through 2009 because of project expansion plans and discoveries.
LONDON, Feb. 21 -- BG Group expects to boost its international exploration and production spending by 5-7%/year through 2009 because of project expansion plans and discoveries.
It has increased its 2007-09 capital plan to £5.3 billion from £4.8 billion due to inflation and further development of other projects.
BG Group expects to be producing 500,000 boe/d of oil in 2015 by fully exploiting the potential of its assets in UK North Sea hubs, Tunisia, Karachaganak (Kazakhstan), Egypt, Trinidad, and India. In 2006, the company produced 590,000 boe/d.
In 2006, the company added more than 78,000 sq km of exploration acreage to its holdings and said a recent discovery in Brazil increased its resource base by almost 1 billion bbl.
A promising prospect in the UK North Sea is the high-pressure/high-temperature Jackdaw discovery, which is scheduled to come on stream in 2012. BG said it will drill an appraisal well in 2007-08.
A company spokesman told OGJ that it hopes to become operator of Jackdaw, which is spread across Blocks 30-2a and 30-2d.
BG describes Jasmine gas condensate field, also in the UK North Sea, as "one of the largest discoveries in the [UK Continental Shelf] in recent years." It holds gross estimated recoverable reserves of up to 275 million bbl. First production, using nearby infrastructure, is expected in 2010. BG said Jackdaw's reserves could be as large as Jasmine's.
BG will maintain 2006 production levels through to 2012 in the UK North Sea by developing smaller hydrocarbon accumulations, prolonging the life of existing assets, and making discoveries.
In Tunisia, BG will maintain Miskar gas field production until 2013 by infill drilling. "Further near-field potential has been identified which could extend the plateau to 2020 or underpin a new accelerated development hub," BG said.
The company's Hasdrubal field is expected to become an important contributor to production growth from 2009 and also offers further near-field potential.
Gas production from Panna/Mukta and Tapti fields northwest of Mumbai in India is expected to rise by 60% to 2009 through a major drilling campaign. The fields produced 9 million boe net in 2005.
In Egypt, BG plans to sell an extra 500-700 Bcf of gas in domestic or LNG markets through initial debottlenecking of Egyptian LNG and developing reserves in development leases and West Delta Deep Marine discoveries.
The company also will explore deepwater blocks recently acquired in Nigeria. It is operator of OPL 332 and OPL 286-DO.
In Trinidad and Tobago, Dolphin field 83-km off the east coast of Trinidad has further reserves potential to be realized, according to BG. Gas production began last year and is expected to reach 250 MMcfd. Dolphin gas flows to the Atlantic LNG liquefaction complex. BG is working to secure approval for an LNG expansion feasibility study and to obtain new exploration rights.
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