7th Jun 2006 11:39
BG GROUP plc07 June 2006 Media Information 7 June 2006 BG Group signs Chinese Production Sharing Contracts BG Group today announced that it has signed two Production SharingContracts (PSCs) with China National Offshore Oil Corporation (CNOOC) coveringdeepwater Blocks 64/11 and 53/16 and a Geophysical Survey Agreement for Block 41/06, offshore China. Under the terms of the PSCs, BG Group will be the operator and willretain a 100 per cent interest during the exploration phase. In the event of acommercial discovery CNOOC has an option to take an interest of up to 51 percent in that field. Under the terms of the Geophysical Survey Agreement, uponcompletion of the mandated work programme, BG has an exclusive option to enterinto a Production Sharing Contract for Block 41/06. The agreements are subjectto final government approval. BG Group Chief Executive Frank Chapman said: "These largely unexplored blocksare well placed with respect to the robust and high growth gas markets ofSouthern China. The signing of these agreements represents BG's first investmentin China and we look forward to working with CNOOC in evaluating theseprospects." The exploration work programs for the PSC blocks will be carried out inthree phases. This will involve the acquisition of both 2D and 3D seismic andthe drilling of one exploration well on each block in the first phase. TheGeophysical Survey Agreement involves the acquisition and processing of 2Dseismic. The three blocks cover a total area of approximately 25,800 squarekilometres and are located in the Qiongdongnan and Pearl River Mouth basins ofthe South China Sea. Water depth on the blocks ranges from 180 to 2100 metres. There are matters discussed in this media information that are forward looking statements.Such statements are only predictions and actual events or results maydiffer materially. For a discussion of important factors which could causeactual results to differ from the forward looking statements, refer to theCompany's annual report and accounts for the year ended 31 Dec 2005. Note to Editors: Block 64/11 (7546 sq km) is located in water depths ranging from 180 to1500 metres while Block 53/16 (8671 sq km) is located in water depths rangingfrom 200 to 2100 metres. Both the aforementioned blocks are located in theQiongdongnan basin. Block 41/06 (9601 sq km) is located in water depths rangingfrom 300 to 2000 metres in the Pearl River Mouth basin. The blocks areapproximately 200-300 kilometres offshore Guangdong Province and Hong Kong inthe South China Sea. BG Group is a global natural gas business. Active on five continents in over 20countries, it operates four business segments - Exploration and Production, LNG,Transmission and Distribution and Power. Enquiries: BG Group, UK Communications +44 118 929 3717Out of hours media mobile: +44 7917 185 707Investor Relations +44 118 929 3025 BG Asia Pacific, SingaporePravin Tandon +65 6830 78047804 Website: www.bg-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BG..L