Certified resources upgrade offshore Brazil

 2 November 2010

Certified resources upgrade of 2.7 bboe to Tupi, Iracema and Guará fields, offshore Brazil

BG Group today announced a 2.7 billion barrels of oil equivalent (boe) upgrade to estimates of gross resources for the Tupi, Iracema, and Guará fields in the Santos Basin, offshore Brazil. BG Group's new aggregate best estimate of economically recoverable gross resources* for these fields amounts to 10.8 billion boe, representing a 34% increase to the 8.1 billion boe mid-point of the Group's previous indicative resource range.

As a result of the upgrade, BG Group's aggregate best estimate of its economically recoverable net resources on Tupi, Iracema and Guará now stands at 2.8 billion boe.

BG Group's latest analysis is based on the development by the Group of new and significantly more sophisticated reservoir models which have assimilated and interpreted substantial amounts of information (much of it new and gathered over the last year) including:

·; 3 200 square kilometres of 3D seismic data;

·; results from 9 completed wells (including the 2 original discovery wells on Tupi and Guará);

·; 10 drill stem tests; and

·; the detailed insights gained from the extended well test on Tupi, which has produced7.6 million boe to date.

BG Group engaged the oil and gas consulting firm Miller and Lents, Ltd (MLL) to provide expert independent verification of the estimates of resources on Tupi, Iracema and Guará. MLL were provided with full access to BG Group's data and development models for these fields and have certified their best estimate** for gross resources for these fields to be 10.8 billion boe in aggregate.

Additionally, BG Group has provided guidance today on its P90*** and P10*** gross resource estimates for Tupi, Iracema and Guará. BG Group's gross resource estimates by field and the certified gross estimates from MLL are summarised in the table below.

BG Group's net resource position on these estimates is summarised below:

The figures in the tables above are estimates for the full fields. BG Group considers that approximately 94% of gross resources on Tupi and Iracema and 90% of gross resources on Guará are recoverable during the concession periods for those fields. Detailed development plans for those fields are subject to agreement with partners and the Brazilian regulator, the ANP.

Development progress

The certified resources upgrade on Tupi, Iracema and Guará comes as BG Group and partners continue to make significant progress with the commercialisation of these resources. Key field development planning and implementation highlights to date include:

·; the first permanent Floating Production, Storage and Offloading (FPSO) facility is now on station on Tupi and commenced production in October 2010****;

·; two further FPSOs have been ordered, to be deployed on the Tupi field and on Guará;

·; negotiations are progressing on the deployment of additional production modules for Tupi, Iracema and Guará; and

·; the gas export pipeline to Mexilhao has been completed.

BG Group Chief Executive Frank Chapman said: "This is a material upgrade to what was already a world-class resources position. Only four years have elapsed from first discovery to first production in a play that is at the centre of BG Group's growth plans over the decade ahead. We now have a materially enhanced resource position, production underway from permanent facilities on Tupi and first-phase development plans coming to fruition on fields which we expect to deliver substantial shareholder value for many years to come."

-ends-

Notes to Editors:

* 'Resources' are defined by BG Group as the aggregate of proved and probable reserves and discovered resources. These terms are defined in the BG Group Annual Report and Accounts 2009 available online at www.bg-group.com/ara

** The MLL letter of certification to BG Group is available online at http://www.bg-group.com/MediaCentre/Press/Documents/Miller-and-Lents-letter.pdf

*** A P90 estimate is a low-case resources estimate with a 90% probability of being realised. A P10 estimate is a high-case estimate with a 10% probability of being realised.

**** http://www.bg-group.com/MEDIACENTRE/PRESS/Pages/28Oct2010.aspx

BG Group

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), transmission and distribution and power generation 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 has a 25% interest in the Tupi and Iracema fields in BM-S-11 concession, offshore Brazil (Petrobras, operator 65%, Petrogal 10%). The Group has a 30% interest in the Guará field in the BM-S-9 concession, offshore Brazil (Petrobras, operator 45%, Repsol 25%).

Miller and Lents

Miller and Lents, Ltd. is an international oil and gas consulting firm offering services and expertise in virtually all phases of the upstream petroleum industry. The scope of the firm's activities is worldwide, with significant experience in all of the geologic basins in the United States as well as in most of the major producing areas of the world. For further information, visit www.millerandlents.com

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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 to BG Group's Annual Report and Accounts for the year ended 31 December 2009. 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.