BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track... More
Wednesday, Mar 512:37 PM
Wednesday, Mar 512:37 PM| 4 Comments
- Royal Dutch Shell (RDS.A, RDS.B), Petrobras (PBR), Anadarko (APC), Ecopetrol (EC), Repsol (REPYF, REPYY), and BG Group (BRGYY, BRGXF) have expressed interest in Colombian deepwater blocks after the country sweetened contract terms, according to the deputy energy minister.
- Companies drilling in deep water now will be able to recover 200M barrels before the government begins taking a 30% royalty, with operators in ultra-deep water allowed 300M barrels.
- Colombia will auction 13 blocks in this year’s bidding round, three located off the Pacific coast and 10 in the Caribbean.
Monday, Mar 312:17 PM
Monday, Mar 312:17 PM| 4 Comments
- Statoil (STO +2.4%), the largest non-Russian supplier of gas to Europe, is a rare bright spot in today's stock market, surging to its highest level in more than five years on hopes it could increase its market share if Russia cuts back gas supplies.
- STO sells an increasing share of its gas at spot market prices, in contrast to Gazprom, which sells much of its gas on long-term contracts and at prices linked to oil.
- STO says it doesn't have any current plans to increase output but is monitoring the situation.
- BG Group (BRGYY, BRGXF) also is considered a potential beneficiary; while it sells much of its liquefied natural gas to markets in Asia, analysts say it could divert additional volumes to Europe if gas prices rose sufficiently.
Friday, Feb 1412:21 PM
Friday, Feb 1412:21 PM| 2 Comments
- Statoil (STO) and BG Group (BRGYY, BRGXF) will build Tanzania’s first liquefied natural gas plant in Lindi and are due to meet with authorities about the project’s schedule and details in April, according to the country's energy minister.
- STO has discovered as much as 20T cf of natural gas in Block 2, and BG believes recoverable volumes are as much as 15T cf in three neighboring blocks.
- Production could start in 2021 or 2022, and investments could hit $20B-$30B, STO has said.
Tuesday, Feb 48:15 AM
Tuesday, Feb 48:15 AM| Comment!
- BG Group (BRGYY, BRGXF) reports a Q4 loss of $1.08B as it wrote down assets in Egypt and its shale gas business in the U.S.
- Despite the loss, BG says it still expects to meet its 2015 target to be cash flow positive, with first liquefied natural gas exports from its QCLNG project in Australia expected later this year, production in Brazil ramping up and capital spending set to decline.
- Q$ revenues rose 15% to $5.45B from $4.74B in the year-ago quarter because of a greater proportion of oil in the portfolio and increased sales of liquefied natural gas to Asian markets.
- BG expects 2013 production will end at 590K-630K boe/day, down from 633K boe/day last year; output next year is forecast at 710K-750K boe/day.
Monday, Jan 277:50 AM
Monday, Jan 277:50 AM| 1 Comment
- BG Group (BRGYY, BRGXF) issues downside guidance for its 2014 oil and gas production and says it wrote down the value of its assets in the U.S. and Egypt by $2.4B.
- BG also declares force majeure on contracts in Egypt, because the country’s government had not honored BG’s share of gas from fields.
- Foresees this year's output at 590K-630K boe/day vs. 633K last year before recovering to 710K-750K bbl/day next year.
- Says preliminary results indicate 2013 earnings fell 33% Y/Y to $0.65/share, or $2.2B.
- Shares -15% in London trading.
Friday, Jan 1711:43 AM
Friday, Jan 1711:43 AM| 4 Comments
- Australia has the most attractive shale gas prospects outside North America, according to Magnum Hunter Resources (MHR -0.5%), which says it has scoured the world looking for deposits of the gas that has revolutionized energy supply in the U.S.
- The Cooper Basin, straddling the border of South Australia and Queensland states, also has lured investment from Chevron (CVX) and BG Group (BRGYY, BRGXF) ahead of expected shortages of the fuel to feed more than $60B of liquefied natural gas projects in eastern Australia that will ship to Asia.
- MHR recently agreed to become the largest shareholder of Australia's New Standard Energy, which will bring its technical expertise to its planned Cooper Basin exploration program.
Monday, Jan 610:41 AM
Monday, Jan 610:41 AM| 5 Comments
- Raymond James sees a better year for oil in 2014, and a better year for ConocoPhillips (COP +1%) - whose rating the firm raises by a notch to Market Perform from Underperform - but warns not to get too excited.
- Analyst Pavel Molchanov's main concern about COP is significant outspending, but he says this becomes less pressing in the context of the improved oil forecast, and he finds valuation metrics more reasonable.
- Molchanov still sees better E&P ideas - among multinational large-caps, he prefers Apache (APA), Anadarko (APC), BG Group (BRGYY, BRGXF), Marathon Oil (MRO) and Occidental (OXY) - but he no longer finds sufficient downside in COP to warrant a continued negative stance.
Monday, Dec 232013, 12:33 PM
Monday, Dec 232013, 12:33 PM| 1 Comment
- Egypt reportedly has made a ~$1B payment on the ~$6.4B it owes to international energy firms, a move designed to revive confidence in the country's economy.
- Egypt is worried that if the payments don't get into the accounts of the foreign energy firms this month, they will either exit the country or take legal action instead of increasing their exploration and production investments.
- The government has promised to pay $3B by 2017 to several energy firms, including BP, Apache (APA) and BG Group (BRGYY, BRGXF).
Thursday, Dec 192013, 8:19 AM
Thursday, Dec 192013, 8:19 AM| Comment!
- BG Group (BRGYY, BRGXF) starts commercial gas production from the second phase of its Itau development in Bolivia, marking the delivery of the "final key milestone" set for the group in 2013.
- Phase-2 will raise processing capacity from Itau by ~7K boe/day to 10K boe/day net to BG Group by early 2014 through a new central processing facility and the connection of two new wells.
- The production start-up of Itaú at follows BG's announcement earlier this week of another major project milestone in Australia, with first gas transported to the site for the Queensland Curtis LNG project's liquefaction plant.
Tuesday, Dec 172013, 7:55 AM
Tuesday, Dec 172013, 7:55 AM| 17 Comments
- Canadian federal regulators late Monday approved four new applications to export liquefied natural gas, including for proposed Pacific coast terminals backed by Exxon Mobil (XOM), BG Group (BRGYY, BRGXF) and Malaysia's Petronas.
- The four permits issued Monday, for 25 years each, are among nearly a dozen different plans for LNG terminals in British Columbia, none of which has been built yet or even formally committed to by their corporate sponsors.
- The largest project of the four would be XOM's plan, with its Canadian affiliate Imperial Oil (IMO), to export up to 30M metric tons/year of gas, or 4B cf/day, from a terminal to be located near the remote coastal towns of Kitimat or Prince Rupert, B.C.
Friday, Dec 62013, 3:08 AM
Friday, Dec 62013, 3:08 AM| 1 Comment
- Statoil (STO) and its JV partner ExxonMobil (XOM) make another big gas discovery off Tanzania - their fifth in the region - confirming Tanzania's emergence as a new energy region. The find, called Mronge-1, can be seen here.
- Today's find contains 2-3 trillion cubic feet (tcf) of gas, or 360-540 million barrels of oil equivalent (boe), bringing the total gas resources in the license the firms hold to 17-20 tcf or 3.06-3.6 billion boe.
- BG (BRGYY, BRGXF) and Ophir Energy (OPGYF) have also found gas off Tanzania. BG and Statoil are planning to build an LNG plant in Tanzania to ship the gas to Asia.
- STO operates the area on behalf of Tanzania Petroleum Development Corporation and owns a 65% stake; XOM owns the other 35%.
Wednesday, Dec 42013, 8:17 AM
Wednesday, Dec 42013, 8:17 AM| Comment!
- Egypt promises to pay $1.5B of the $6B it says it owes foreign oil companies, hoping the announcement will revive confidence in an economy battered by three years of political upheaval.
- Financial disclosures by firms including BP, Apache (APA), BG Group (BRGYY, BRGXF) and TransGlobe (TGA) show Egypt owed them more than $5.2 billion at the end of 2012.
- Egypt has repeatedly promised to repay arrears to the oil companies since Morsi's removal in July.
Wednesday, Nov 202013, 11:25 AM
Wednesday, Nov 202013, 11:25 AM| 1 Comment
- ConocoPhillips (COP +0.6%) says it has started gas production from the Jasmine field in the U.K. North Sea, the largest discovery to come onstream in the North Sea since the giant Buzzard field began production in 2007.
- Jasmine has the gross capacity to produce 140K boe/day in 2014; COP expects net production of ~40K boe/day.
- COP is operator of the field and the largest shareholder with a 36.5% interest, while Eni (E) holds 33% and BG Group (BRGYY, BRGXF) has 30.5%.
Thursday, Nov 142013, 9:58 AM
Thursday, Nov 142013, 9:58 AM| Comment!
- Ophir Energy (OPGYF) sells a 20% share of a giant natural gas discovery off the coast of Tanzania to Singapore's state-owned Pavilion Energy for $1.3B, the latest in a string of acquisitions by energy-hungry Asian nations in East Africa.
- The deal will help Singapore in its goal to diversify its energy supplies and become a hub for liquefied natural gas; it is dependent on gas supply for ~85% of its electricity generation.
- Ophir and partner BG Group (BRGYY, BRGXF) plan to build an LNG plant on the Tanzanian coast to ship the fuel to Asia.
Friday, Oct 252013, 5:23 PM
Friday, Oct 252013, 5:23 PM| Comment!
- Natural gas exploration hotspot Tanzania is inviting bids for eight newly offered gas blocks, and plans to take stakes of 65%-75% in each of the new production-sharing contracts, the country's president says.
- The government is offering seven deep-sea offshore blocks and one block in Lake Tanganyika.
- BG Group (BRGYY, BRGXF) and Ophir Energy (OPGYF) have been at the forefront of exploration in Tanzania, while Exxon (XOM) and Statoil (STO) also have found gas there; BG and Statoil are planning to build a $10B liquefied natural gas terminal.
Monday, Oct 212013, 7:58 AM
Monday, Oct 212013, 7:58 AM| Comment!
- BHP Billiton (BHP) plans to pull out of a series of Indian oil and gas explorations projects after being hit by regulatory delays in the country.
- The pullout makes BHP the latest large global company to scale back or end their operations in India because of of bureaucratic delays or disagreements with the government; earlier this month, Wal-Mart pulled out of its Indian joint venture, complaining about overly restrictive regulations on foreign investment.