1st Jun 2007 13:21
BG GROUP plc01 June 2007 News Release 1 June 2007 BG Group and partners agree terms of Karachaganak Gas Sales Agreement BG Group and partners today agreed the terms of the Phase III Karachaganak GasSales Agreement (GSA) with KazRosGaz, a joint venture between Gazprom andKazMunaiGaz. The agreement, which is subject to approvals, sets out the commercial termsgoverning the sale of gas over a 15 year period commencing during the fourthquarter of 2007. Volumes under the agreement will increase to 16 billion cubicmetres per annum (bcma) following completion of the US$8 billion KarachaganakPhase III expansion, which is expected onstream in 2012. Mark Carne, BG Group Executive Vice President, Europe and Central Asia said: "This agreement is a significant milestone in the continued development of thegiant Karachaganak field in Kazakhstan and represents the commercialisation ofover 7 trillion cubic feet of gas. It secures enhanced value for theKarachaganak partners and the Republic of Kazakhstan. Additional gas salesresulting from the expansion will also enable the venture to increase liquidsproduction for export to high value western markets." Background The Karachaganak Phase III expansion project is due to be sanctioned in 2008 andwill see gas and liquids sales increase to 16 bcma and 16.5 million tonnes perannum (mtpa) respectively. Currently 8 bcma of untreated Karachaganak gas isexported to the Orenburg processing facility in Russia. The expansion of theOrenburg facility to accommodate the increased volumes as a result of Phase IIIwill be completed by the KazRosGaz joint venture. There are matters discussed in this press release that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2006. TheCompany does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in 25countries, it operates four business segments - Exploration and Production, LNG,Transmission and Distribution and Power. BG Group has been active in Kazakhstan for more than a decade. It is the jointoperator of the Karachaganak gas condensate field in north-west Kazakhstan inwhich it owns a 32.5 per cent interest. Karachaganak holds estimated grossreserves of over 2.4 billion barrels condensate and 48 trillion cubic feet ofgas. The company also holds a 2 per cent interest in the Caspian PipelineConsortium oil pipeline which transports oil from western Kazakhstan to theBlack Sea. Enquiries: Communications: +44 (0) 118 929 3717Out of hours media mobile: +44 (0) 791 718 5707Investor Relations: +44 (0) 118 929 3025 Website: www.bg-group.com - ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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