BG Exploration & Production Ltd. is to sell all exploration and production assets in seven of 16 countries in which it operates, in a bid to tidy up its portfolio.
BG was formed when British Gas plc split earlier this year, holding an E&P portfolio built up hurriedly to counterbalance the U.K. government's scrapping of the company's domestic gas supply monopoly (OGJ, Sept. 4, 1995, p. 31).
Although BG has not revealed which assets are earmarked for sale, a BG official confirmed they are likely to be small-scale projects where the company is not operator.
The assets are intended to be sold in packages during the next 12 months and are expected to earn BG a total $500 million-1 billion. The official said the company is already in discussions for sale of some of the assets.
Core areas retained
BG plans to release more details of the sale later this year but says it will retain nine core operating areas.
The official said the disposal will reduce the value of the company's assets by less than 10%.
Among areas where BG has plans to increase investment, the official listed the U.K., an exploration license and liquefied natural gas project in Trinidad and Tobago, Rosetta discovery off Egypt, Bongkot field off Thailand, Muturi discovery in Indonesia, and Karachaganak field in Kazakhstan.
In Karachaganak, BG has agreed to cut its share to 32.5% from 42.5% through a sale to Texaco Inc. The deal is waiting on approval by the Kazakh government.
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