BG to acquire operatorship of new Norwegian blocks

BG Group PLC has signed a sale and purchase agreement with Lundin Petroleum AB under which BG is to acquire 60% equity in Lundin's wholly owned License Area PL 292 in the central Norwegian North Sea, with an option to acquire a further 10% interest.

Aug. 16, 2004

By OGJ editors

HOUSTON, Aug. 16 -- BG Group PLC has signed a sale and purchase agreement with Lundin Petroleum AB under which BG is to acquire 60% equity in Lundin's wholly owned License Area PL 292 in the central Norwegian North Sea, with an option to acquire a further 10% interest.

PL 292 incorporates Blocks N6/3 and N15/12d. Block N6/3 contains the Pi oil and natural gas discovery and is nearby existing UK central North Sea infrastructure, including the BG-operated Armada complex.

BG also will acquire operatorship of the licence area by transfer effective either Apr. 11, 2005 or the partners' decision to drill a well, whichever date comes first.

Completion is expected in the fourth quarter.