Binding agreement signed for sale of Comgas stake

29 May 2012

Definitive binding agreement signed for sale of Comgás stake

BG Group today announced it had signed a definitive binding agreement with Cosan S.A. Indústria e Comércio (Cosan) for the sale of the Group's entire 60.1% holding in Comgás for Brazilian reais 3.4 billion in cash, or approximately $1.7 billion at current exchange rates. In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion.

The definitive agreement follows BG Group's announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the Group's interest in Comgás, Brazil's largest gas distribution company.

BG Group Chief Executive Sir Frank Chapman said: "This transaction, when completed, will release capital of around $2.8 billion which, along with other planned divestments, represents significant progress towards our two-year goal to release $5 billion of capital from BG Group's balance sheet."

The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012.

Further, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil. The co-operation agreement reflects BG Group's long-term commitment to Brazil, where the Group and its partners are developing world-class oil discoveries offshore in the Santos Basin.Shareholders in Comgás are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the São Paulo stock exchange.

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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

Advisors:

BG Group is being advised on the transaction by Bank of America Merrill Lynch.

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Contact:

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

Kim Blomley: +44 (0) 118 938 6568 [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 2011. 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.