BG Group signs Kenya Production Sharing Contracts

17 May 2011

BG Group signs Kenya Production Sharing Contracts

BG Group announced today that it has signed Production Sharing Contracts with the Government of Kenya for two offshore exploration blocks - L10A and L10B.

BG Group will be operator on both blocks and will hold a 40% equity interest in block L10A and a 45% interest in block L10B. The initial work programme consists of a commitment to acquire seismic data during an initial exploration period of two years.

Blocks L10A and L10B together cover an area of more than 10,400 square kilometres in the southern portion of the Lamu Basin, offshore Kenya, located in water depths ranging from around 200 metres to in excess of 1 900 metres.

BG Group Executive Vice President and Managing Director, Africa Middle East & Asia, Sami Iskander, said: "BG Group looks forward to working with our partners and the Kenyan Government to play an active role in the exploration for oil and gas offshore Kenya."

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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

BG Group's partners in the Kenya blocks are:

L10A L10B

Premier Oil Investments Limited 20% 25%

Cove Energy plc 25% 15%

Pancontinental Oil & Gas NL 15% 15%.

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Contact:

Mark Todd: +44 (0) 118 929 3110 [email protected]

Neil Burrows: +44 (0) 118 929 2462 [email protected]

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There are matters set out within this announcement 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 these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2010. BG Group 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.