BG Group

From Oil4All
Jump to: navigation, search
Type Public Limited Company
Traded as LSE:BG GRP
Founded

1997 (Demerger of Centrica)

2000 (Demerger of Lattice Group from BG Group)
Headquarters Reading, UK
Key People

Andrew Gould (Chairman),

Helge Lund (Chief Executive)
Revenue US$19.289 billion (2014)[1]
Total Operating Profit US$6.537 million (2014)[2]
% change over previous year -14%
Total Assets US $61.846 billion (2014)[3]
Employees 5,200 (2015)[4]
Website www.bg-group.com


Global Snapshot

BG Group was a British multinational natural gas company and one of the top-20 global oil and gas groups, according to Reuters.[5] It was also the UK's third largest oil and gas producer[6] and was listed 44th in the Global Energy Company Ranking in 2014.[7] In April 2015, Shell announced that it had reached an agreement to acquire BG Group for $70 billion.[8] The sale was completed on 15 February 2016.[9] BG Group's origins trace to the state-run British Gas Corporation. The Corporation was privatised in 1986 and renamed British Gas plc; that company then split into BG plc and Centrica in 1997. In December 1999, BG plc completed a financial restructuring which resulted in the creation of a new parent company, BG Group plc.[10]

With headquarters in the United Kingdom, BG Group operated in more than 25 countries across Africa, Asia, Australia, Europe, North and South America. BG Group produced about 680,000 barrels of oil equivalent a day (boe/d) in 2014.[11] In 2014 it had total proven reserves of around 3 billion barrels of oil equivalent about half of which lie in Egypt and the United Kingdom.[12]

Company Report Highlights

BG Groups Full Year Results[13] reveal that the company's total operating profit decreased by 14 percent to US $6.5 billion in 2014, mainly due to a 4% decrease in production volumes, combined with higher operating costs and depreciation in Upstream, lower oil and liquids pices that were not fully hedged, and a higher cost of supply in LNG.[14]

BG Group in Gaza

BG Group was at the center of a dispute over the exploitation of a gas field offshore the Gaza Strip, in which it was the main shareholder. The Group and its partner, the Consolidated Contractors International Company (CCC), were initially granted oil and gas exploration access in 1999 through the Palestinian Authority (PA). Since the Group successfully drilled two wells with reserves of approximately 1.4 trillion cubic feet in 2000, there has been political controversy between the Israeli government, the PA, and Gaza ruling Hamas over production, consumption and revenues.[15]

In 2007, BG Group stopped negotiations with the Israeli government for the gas sales from the Gaza Marine field and closed its office in Israel in 2008.[16] According to a leaked US diplomatic cable from 2008, a senior BG Egypt official said the company didn't expect any movement in the near future on the development of the gas field "in light of Israeli intransigence on price, and political developments in Gaza".[17]. In 2013 Israeli economic daily Globes reported that BG Group is holding "secret talks" on the possible development of the Gaza-Marine offshore gas field.[18]

Takeover by Shell

In April 2015 Royal Dutch Shell announced a deal to buy BG Group in a cash and stock deal worth $69.6 billion. Under the terms of the deal, BG Shareholders received 383 pence in cash for each BG Share and 0.4454 Shell B shares, a 50 per cent premium to BG's closing share price on the day of the agreement of 910.4 pence. Post closing, BG shareholders held 19 per cent of the enlarged company, while the remaining are held by Shell shareholders. Shell expects the merger to generate pre-tax synergies of approximately $2.5 billion per annum and has also identified further significant opportunities. According to Ben van Beurden, CEO of Shell BG will accelerate Shell's financial growth strategy, particularly in deep water and liquefied natural gas.[19] The sale was completed on 15 February 2016.[20]

Global Reputation

What BG Group says about its corporate citizenship

In 2010 BG Group introduced the annual Sustainability Report, in which it reports on its performance in key areas, including Ethical Conduct, Safety/Health/Security and Environment. BG Group has claimed it is especially concerned with water management, oil spill reponse, biodiversity and its emissions performance.[21]

What others say about BG Group's corporate citizenship

External memberships and rankings

EITI Supporter Status

BG Group was a supporting company of the Extractive Industries Transparency Initiative.[22]

UN Global Compact

BG Group was an active member of the UN Global Compact initiative.ref>"BG Group Company Profile", UN Global Compact, retrieved 6 March 2013.</ref>

Global Operations by Country

Egypt

Main article: BG Group Operations in Egypt

Kenya

Main article: BG Group Operations in Kenya

Tanzania

Main article: BG Group Operations in Tanzania

References

  1. Fourth Quarter & Full Year Results 2011" BG Group plc.
  2. Fourth Quarter & Full Year Results 2011" BG Group plc.
  3. Fourth Quarter & Full Year Results 2011" BG Group plc.
  4. Sustainability Report 2011" BG Group.
  5. "BG names industry veteran Finlayson as CEO", Reuters, 13 December 2012.
  6. "Argentina Wins Appeal in BG Group MEtrogas Bankruptcy Case", Bloomberg, 17 January 2012.
  7. "Global Engery Company Ranking", platts Top250, retrieved 3 June 2015.
  8. "Royal Dutch Shell to Buy BG Group for Nearly $70 Billion", “The New York Times”, 27 August 2018.
  9. "Shell Annual Report 2016 Note 4 -Acquisition of BG Group Plc", “Shell”, 27 August 2018.
  10. "Demerger History", BG Group, retrieved 7 March 2013.
  11. Annual Report 2014" BG Group plc.
  12. "What Shell Oil Gets From BG Group", Forbes, 6 June 2015.
  13. Fourth Quarter & Full Year Results 2011" BG Group plc.
  14. Annual Report 2014" BG Group plc.
  15. "Palestinians missing out on a £2bn energy fortune",The Week,16 February 2009
  16. "Areas of Palestinian Authority", BG Group website.
  17. "BG Egypt on Gaza Marine Gas Field", WikiLeaks, 1 September 2011.
  18. "[1]", “Platts”, 27 August 2018.
  19. "Shell to buy Britain's BG Group for $69.6 bn", domain-b, 6 June 2015.
  20. "Shell Annual Report 2016 Note 4 -Acquisition of BG Group Plc", “Shell”, 27 August 2018.
  21. "About this report", BG Group, retireved 6 March 2013.
  22. "[http://eiti.org/supporters/companies/bg-group BG Group Company Profile]", EITI, retrieved 6 March 2013.