First production on Tupi field, offshore Brazil

28 October 2010

BG Group announces first production from 100 000 barrel per day facilities on Tupi field, offshore Brazil

BG Group today announced that production from the first permanent floating production, storage and offloading (FPSO) vessel on the Tupi field in block BM-S-11 in the Santos Basin, offshore Brazil has commenced.

The Cidade de Angra dos Reis FPSO, which is initially connected to well RJS-660 (known as Tupi-P1), is expected to produce up to 100 000 barrels of oil per day and up to 177 million standard cubic feet of gas per day.

The Tupi-P1 FPSO is located close to the 3-RJS-646 well (known as Tupi Sul) where the FPSO Cidade de Sao Vicente has been conducting an extended well test (EWT) since May 2009. The EWT has produced 7 million barrels of oil to date.

BG Group Chief Executive Frank Chapman said: "The extensive exploration and appraisal programme, and subsequent analysis to date, confirms the huge resource potential, excellent reservoir characteristics and robust economics of the Tupi/Iracema discovery. Extended well testing and the commissioning of the first permanent Tupi facilities, delivers tangible momentum and certainty to our development plans in a play that underpins a substantial part of BG Group's growth plan extending over the next decade."

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Notes to Editors:

BG Group has a 25% interest in the BM-S-11 concession, offshore Brazil which contains the Tupi-Iracema discoveries. Petrobras, operator (65%) and Petrogal (10%).

BG Group also has interests in four other concessions in the deep water Santos Basin: BM-S-9, 10 and 50, which are operated by Petrobras; and BM-S-52, which is operated by 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

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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.