Declaration of Commerciality: Tupi & Iracema areas

29 December 2010

Declaration of Commerciality for Tupi and Iracema areas, offshore Brazil

BG Group today announced that its partner Petroleo Brasileiro S.A., as the operator of BM-S-11 block in Santos Basin, has filed the Declaration of Commerciality (DoC) with the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) for the accumulations of light oil and gas in the Tupi and Iracema areas. In the proposal sent to the regulatory body, the names "Lula" field and "Cernambi" field have been suggested for Tupi and Iracema respectively.

Evaluation and Development Plans for both fields are being submitted jointly with the DoC to ANP. The DoC notification to the ANP also includes the operator's estimates of total recoverable volumes associated with the initial stage of development of the two fields.

The DoC was made after the execution of the exploration and appraisal program in the area which started with the first well drilled in October 2006. The 11 wells drilled in both areas and the Extended Well Test (EWT) within the Tupi area, which started in April 2009, provided the main information for the basis for the volume estimates and development plans for the Lula and Cernambi fields.

The DoC is another significant milestone in the development of the Group's significant interests in the region, marking the start of the production phase for the fields.

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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), 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 BM-S-11 concession, offshore Brazil (Petrobras, operator 65%, Petrogal 10%).

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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 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.