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Second stage of WDDM Phase 7 starts gas production

BG Egypt today announced gas production had started on 30 January 2012 from the second stage of West Delta Deep Marine (WDDM) Concession Phase 7, representing another successful milestone in the phased development of WDDM.

Managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50%, BG Group 25%, PETRONAS 25%), the second stage of Phase 7 comprises onshore gas receiving facilities, five new compressors and a new power plant (the first stage comprised a new 36" pipeline to the onshore receiving facilities).

This latest phase of the WDDM (BG Group 50%, PETRONAS 50%) development is designed to help maintain plateau gas production from the Concession and, in the longer term, these new compression facilities will access incremental reserves as offshore reservoir pressures drop.

The compressors use aero-derivative gas turbine technology, a first for an E&P facility in Egypt, reducing impacts on the environment. The new power plant supplements the existing power facility in Idku, and comprises three gas turbine units operating at 11Kv.

Commenting on the final delivery of Phase 7 Project, BG Egypt President Arshad Sufi said: "We are very pleased with this latest field development phase, which has been delivered within budget, and commissioned and constructed ahead of schedule during a challenging year for Egypt. The successful delivery was made possible through the support of BG Egypt and its partners."

General Electric supplied the compressors, while the new power plant was supplied by Siemens. EGPC affiliate companies performed key roles across the project. ENPPI were responsible for the design and procurement; Petrojet performed the construction work; while EMC undertook commissioning.

During peak activity, the project generated employment for 1,500 people. Since July 2010, the project has delivered over five million manhours without a Lost Time Injury.

-Ends-

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 more information visit www.bg-group.com

BG Egypt , a business of BG Group, is one of the principal British investors in Egypt. It is a leading player in the development of the local natural gas industry with investments spanning the gas chain from exploration through development and production to downstream projects in LNG. The company operates the largest share of Egypt's gas production, accounting for over a third of the country's gas output, which supplies both domestic and international markets.

The West Delta Deep Marine Concession was awarded to BG Egypt in 1995. The Scarab and Saffron fields were brought on-stream in March 2003 delivering gas to the domestic market. Subsequently, the Simian, Sienna and Sapphire fields entered production. Completed in February 2008, WDDM Phase 4 brought into development seven additional deepwater wells in the Scarab/Saffron and Simian subsea fields. Phase 5, an onshore booster compression project, came onstream in May 2009, while Sequoia, a unique project representing Phase 6 of the development of WDDM and Phase 4 of the development of BG Egypt 's other Concession, Rosetta, came onstream in August 2009, bringing six additional wells, three on each Concession.

Gas from Phase 8a, a deepwater development project and an extension of the existing deepwater subsea infrastructure comprising nine subsea wells entered operations on 17 October 2011.

BG Egypt is the operator of the Concession and holds 50 per cent equity. PETRONAS holds the remaining 50 per cent. Burullus Gas Company S.A.E a Joint Operating Company of EGPC, BG Egypt , and PETRONAS conducts operations on behalf of the WDDM partners.

Contact:
Manal el-Jesri
Communications Manager
Tel: + 2 22522 0318
Mobile: +2 0128 464 66 99
Email: Manal.Eljesri@bg-group.com

There are matters discussed in this media information 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 the 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.

© Press Release 2012