9th Sep 2013 07:37
LONDON (Alliance News) - BG Group Monday said its guidance for 2013 remains unchanged, but delays to projects in Egypt and Norway will hit production in 2014 and it will continue to operate fewer rigs in the US, reducing output there.
In an operational update, the oil and gas company said the on-going political and social instability in Egypt means phase 9a of its West Delta Deep Marine project had suffered delay and will now start later than expected in 2014, as long as there aren't further delays.
It said that first production from the Knarr project in Norway is likely to be delayed by approximately four months into the second half of 2014. It didn't give a reason for the delay.
"The group anticipates that the combined impact from Egypt and Norway in 2014 will be a reduction of approximately 30 000 barrels of oil equivalent per day," it said in a statement.
BG also said it expects to continue to operate fewer rigs in the US as it continues pursuing value over volume. It expects 2014 volumes from the US to be down about 17,000 boed on its previous expectations.
"The group's 775 000 - 825 000 boed 2015 production guidance remains unchanged, but this is subject to a recovery in natural gas prices in the USA and future events in Egypt," it warned.
BG Group's shares were down 4.3% at 1,226.7 pence early Monday, the biggest percentage decline on the FTSE 100.
By Steve McGrath; [email protected]; @SteveMcGrath1
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