BRITONS TO STEP UP U.S. E&D

British Gas plc, London, plans a significant increase in its exploration and development program in the U.S. Robert Evans, chairman and chief executive, said first sign of the increased effort is an investment of $80 million to participate in 20 wells in 1990-91, mostly in the Gulf of Mexico and the Gulf Coast area. Evans, speaking to the American Business Association in Houston, said acquisitions will play a role in expanding U.S. exploration and production.

Oct. 1, 1990

2 min read

British Gas plc, London, plans a significant increase in its exploration and development program in the U.S.

Robert Evans, chairman and chief executive, said first sign of the increased effort is an investment of $80 million to participate in 20 wells in 1990-91, mostly in the Gulf of Mexico and the Gulf Coast area.

Evans, speaking to the American Business Association in Houston, said acquisitions will play a role in expanding U.S. exploration and production.

British Gas has spent $1,9 billion on four acquisitions in the last 3 years, the biggest of which was Tenneco's international division, The Tenneco purchase gave British Gas acreage in eight countries, a base in Houston, and an international exploration team.

The Houston office is responsible for all British Gas exploration and production in the U.S., South America, and Africa. Total spending by the Houston office in the current fiscal year is to be $250 million, including more than $140 million for exploration.

Most wells in the U.S. program are to be drilled as part of joint ventures with ARCO off Louisiana and Alabama and with BHP Petroleum off Texas and Louisiana.

British Gas hopes to have its first U.S. gas production on stream by yearend. The company's target is to build U,S. gas reserves to at least 500 bcf within the next 5 years.