BG Group and its partners today announced the delivery of first gas from two offshore fields in Egypt. On 15 April 2005, BG and its partners PETRONAS and the Egyptian Natural Gas Holding company (EGAS) delivered first gas from the Simian Sienna fields to Egyptian LNG (ELNG) Train One at Idku. Also on 15 April 2005, BG and its partners Edison International and EGAS delivered first gas from Rosetta Phase Two to the Egyptian domestic market.
The BG-operated Simian Sienna fields is located in the West Delta Deep Marine (WDDM) Concession approximately 120 kilometres offshore from Alexandria in the Mediterranean Sea. The offshore facilities consist of eight sub sea wells tied in to the existing WDDM gas gathering network. In addition there is a shallow water control platform. The onshore processing facilities form part of the Idku Gas Hub where the ELNG facilities are also located.
The BG-operated Rosetta field is located 60 kilometres offshore. ItUnder an amendment to the Rosetta Gas Sales Agreement, the daily contracted quantity of gas production from Rosetta rises to 345 million standard cubit feet per day (mmscfd) from the current 275 mmscfd after 120 days from the first gas date. The Rosetta field started production in January 2001 and supplies the domestic market. The Rosetta Phase Two development consists of an unmanned minimum facilities wellhead platform tied back to the existing Rosetta platform. Under an amendment to the Rosetta Gas Sales Agreement, the daily contracted quantity of gas production from Rosetta will rise to 345 million standard cubic feet per day (mmscfd) from the current 275 mmscfd after 120 days from the first gas date.
Speaking today, Stuart Fysh, BG Group's Executive Vice President and Managing Director, Mediterranean Basin and Africa, said, "Both projects mark significant milestones in the development of the Egyptian natural gas industry. First gas from Simian Sienna is the latest link in the chain that will connect WDDM reserves with high value export markets in Western Europe and the US. Completing this chain required the synchronisation of $1.3 billion of upstream capital expenditure and
$1.9 billion of capital expenditure on the LNG facilities. Both elements have been accelerated in a world class example of project management that has created additional value for Egypt, BG and its partners.
"First gas from Rosetta Phase Two secures additional production for the growing Egyptian domestic market. I am delighted that weBG and its partners were able to source much of the required design, engineering and installation skills amongst Egyptian contractors."
ELNG Train One is scheduled to produce its first LNG cargo before the end of June 2005. The entire 3.6 million tonnes per annum (mtpa) output of Train One has been sold to Gaz de France under a 20 year sales and purchase agreement. ELNG Train 2 is due to produce its first LNG cargo before the end of 2005. The BG-operated Sapphire field in WDDM will supply gas to Train Two. Sapphire is due to produce its first gas in Q3, 2005. The 3.6 mtpa output of Train Two has been sold to BG Gas Marketing for supply to the US initially and later to Italy.
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 the Company's annual report and accounts for the year ended 31 December 2004.
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Notes to Editors:
BG Group plc works across the spectrum of the gas chainis a global natural gas business. Active on five continents in oversome 20 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power. BG is a significant holder of hydrocarbon reserves on the UK Continental Shelf, where it operates the Blake and Armada fields, as well as fields in the Easington Catchment Area. The company's core geographical areas are the UK, Egypt, North America, South America, Kazakhstan, India and Trinidad & Tobago.
BG is an important participant in the development of the gas business in Egypt, with both upstream and downstream investments. It has interests in two gas producing areas offshore the Nile Delta - the Rosetta fields and the West Delta Deep Marine (WDDM) Concession. The first WDDM fields - Scarab and Saffron - started production in March 2003. The Simian Sienna and Sapphire fields in WDDM are under development to supply the $1.9 billion Egyptian LNG (ELNG) project in which BG is also a major shareholder. The commissioning of ELNG Train One started in January 2005 using gas from the Scarab Saffron fields, which will now be replaced by Simian Sienna gas.
In November 2004, BG announced the completion of its purchase of Shell's 40% stake in Rosetta. BG has an 80% share and is the operator. Edison International has a 20% share. Operation and development of the Rosetta field is undertaken by the Rashid Petroleum Company (Rashpetco) on behalf of the partners. The shareholders in Rashpetco are BG (40%), Edison (10%) and EGAS (50%).
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© Press Release 2005
