BG Group to Miss 1 MMboepd Target

BG Group warned Tuesday that previous guidance given by the company that it would produce in excess of one million barrels of oil equivalent per day (boepd) in 2015 will not now be achieved.

BG Group indicated that the continuing uncertainty about the timing for the resumption of production at the Total-operated Elgin/Franklin field was partially to blame for the revision of its guidance. BG Group had already warned in October that its production was being held back by the shutdown of Elgin/Franklin, where a major gas leak occurred in March last year. The firm's production for 2012 of 658,000 boepd was in line with the revised guidance it gave in its 3Q 2012 results.

BG Group also pointed out that production during the first half of 2013 will be slightly down on 1H 2012 and even lower during 3Q 2013, when the firm performs most of its maintenance program. However, the firm added that it expects production growth to be strong during 4Q 2013 thanks to the planned ramp up of two FPSO vessels in Brazil and significant volumes from its Jasmine and Margarita fields.

The company also saw first production achieved from the 120,000 bopd FPSO vessel on the Sapinhoá field, operated by Petrobras, in January.

For 2013 as a whole, BG Group expects to produce at a rate of between 630,000 boepd and 660,000 boepd.