British Gas plc (BG) is rapidly expanding its inventory of exploration acreage.
Last week it disclosed it has signed agreements calling for exploration programs off Egypt, Gabon, and Yemen.
In addition, it is heading a group of companies set to acquire a 70% interest in a major Argentine gas distribution company. Acquiring a share of Metropolitana gas distribution company will give BG an interest in an overseas gas company with significant opportunity for growth, company officials said.
BG and Egyptian General Petroleum Corp. initialed an agreement Dec. 2 covering an 8,500 sq km North Sinai concession area in the Mediterranean Sea. The agreement calls for a 3 year initial exploration phase with two optional 2 year exploration periods.
In Gabon, BG on Dec. 10 signed a production sharing contract (PSA) covering the 4,000 sq km Permis du Chaillu, H91, about 40 km offshore. The block is one of the first deepwater tracts awarded in Gabon's fifth bidding round, which closed late in 1991.
The PSA provides for an initial 5 year exploration period with an optional 3 year extension.
BG also signed a PSA with the Yemeni government covering Block 38 off South Socotra. It is the company's third block acquisition in an area it calls a key in development of its exploration and production business.
The 17,500 sq km tract lies southwest of Socotra Island in the Gulf of Aden. BG's initial work commitment includes acquisition of 3,000 km of seismic data and drilling two wells. Initial exploration period is 3 years, with an option to extend for 3 years.
The block formerly was held by Siebens Oil & Gas, which drilled one well with oil and gas shows.
A group including BG, Argentine conglomerate Perez Companc, and Astra, one of Argentina's top 10 privately held companies, offered $300 million for a 70% interest in the Metropolitana gas distribution company, formed in the breakup of the former Gas del Estado state gas transmission and distribution company.
Metropolitana serves 1.7 million customers, mainly in downtown Buenos Aires. BG will act as operator and place senior managers from the U.K. in the company.
As much as one third of the remaining 30% of Metropolitana's share will be allocated to employees. The balance will be held by the Argentine government for later sale.
BG's exploration and production division has operated in Argentina since 1989 in partnership with local companies.
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