BG: Another Egypt Blow

BG Group’s first quarter profits took a hit on its Egyptian operations, as the company failed to export a single cargo of liquefied natural gas (LNG) from Egypt.

Profits at the UK-based gas producer fell to $2.01bn, down 6% on the previous quarter. Profits at the LNG division fell by 7% to $1.325bn, while global production also declined, falling by 4% to 633,000 boe/d.

Output at BG’s West Delta Deep Marine (WDDM) and other offshore Egyptian fields slumped by 35% to 400mn cfd, as the company has little incentive to reverse the capacity decline at its high cost production site.

“Production entitlement from Egypt was lower than expected as domestic offtake remains well above contractual commitments and reservoir performance deteriorates,” said interim executive chairman Andrew Gould. BG is currently without a CEO, after Chris Finlayson resigned earlier this week. (CONTINUED - 385 WORDS)