Key Developments: BG Group PLC (BG.L)
1,231.00GBp
9:21am EDT
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Latest Key Developments (Source: Significant Developments)
BG Group PLC Announces Definitive Binding Agreement Signed For Sale Of Comgás Stake To Cosan S.A. Indústria e Comércio
BG Group PLC announced it had signed a definitive binding agreement with Cosan S.A. Indústria e Comércio (Cosan) for the sale of the Group's entire 60.1% holding in Comgás for Brazilian reais 3.4 billion in cash, or approximately $1.7 billion at current exchange rates. In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion. The definitive agreement follows BG Group's announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the Group's interest in Comgás. The transaction is likely to complete by the end of 2012. Further, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil. The co-operation agreement reflects BG Group's long-term commitment to Brazil, where the Group and its partners are developing world-class oil discoveries offshore in the Santos Basin. Shareholders in Comgás are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the São Paulo stock exchange. Full Article
BG Group PLC Appoints Chairman
BG Group PLC announced that Andrew Gould has been appointed as Chairman of BG Group in succession to Sir Robert Wilson. This appointment is with effect from the conclusion of the Company's Annual General Meeting. Full Article
Cosan SA Industria e Comercio Announces Offshore Loan Agreement; Issue of Debentures for Acquisition of 60.1% Stake in Companhia de Gas de Sao Paulo – COMGAS from BG Group plc
Cosan SA Industria e Comercio announced that, on May 8, 2012, its Board of Directors authorized the Company or its affiliates to enter into an Offshore Loan Agreement, which is a financial contract to be signed with Banco Citibank SA or one of its subsidiaries for the period of five years totaling up to GBP 54 million. It also authorized the proposal of the issue of debentures totaling BRL 3.3 million in order to acquire shares of BG Group plc representing a 60.1% stake in the share capital of Companhia de Gas de Sao Paulo – COMGAS. The payment deadline will be eight years. Full Article
BG Group plc To Sell Companhia De Gas De Sao Paulo Comgas To Cosan SA Industria e Comercio For $1.8 Billion-Reuters
Reuters reported that BG Group plc said it had agreed to sell its Brazilian gas distribution business Companhia De Gas De Sao Paulo Comgas to Cosan SA Industria e Comercio for $1.8 billion as it unveiled soaring first quarter profits on the back of higher oil prices and production. BG is selling its controlling stake in Comgas to focus resources on developing major finds in Brazil and elsewhere. Upstream oil production activities are traditionally more profitable than downstream businesses. The Company reported a 55% rise in underlying profits to $1.27 billion, in line with analyst forecasts. BG said production rose 5% in the quarter compared to the same period in 2011, to 670,000 barrels of oil equivalent per day. BG's result compares to falling output at rivals BP Plc, Chevron Corp and ExxonMobil Corp. Full Article
Enagas SA To Partner Up For the Acquisition Of Regasification Plant From BG Group PLC
Enagas SA announced that it has signed an agreement with BG Group PLC for the acquisition of a 40% stake in the GNL Quintero regasification plant in Chile. The transaction will be built in two installments of 20% interest and an amount of EUR 136 million each. In the case of the second tranche, Enagas will perform the operation with another partner, so that from the 40% Enagas would eventually own a 51% and the other partner a 49%. Other details were not disclosed. Full Article
BG Group plc Signs USD500 Million Credit Agreement With Signs Export Development Canada
BG Group plc announced a USD500 million credit agreement with Export Development Canada (EDC). The agreement has an initial term of four years with the option to extend for an additional 12 months. Full Article
Gas Natural SDG SA Denies Talks To Buy Gujarat Gas Stake From BG Group plc-DJ
Dow Jones reported that Gas Natural SDG SA is not negotiating to purchase BG Group plc's stake in an Indian gas distribution company. Full Article
Consortium of Petroleo Brasileiro SA Petrobras, Galp Energia SGPS SA and BG Group PLC Completes Drilling of Well 3-BRSA-1032-RJS
Galp Energia SGPS SA (Galp Energia) announced that it has completed the drilling of the extension exploratory well 3-BRSA-1032-RJS (3-RJS-697), informally known as Iara Oeste, located in the Iara Evaluation Area, in the pre-salt of Santos Basin. The well is 223 kilometers off the coast of Rio de Janeiro, some 9 kilometers from the discovery well, at a water depth of 2,150 meters. The Iara Oeste well is the third well drilled in the Discovery Evaluation Plan of Iara and reached the total depth of 6,050 meters. The result was confirmed through good quality oil samples ranging from 21 and 26 API (American Petroleum Institute) in carbonate reservoirs of the pre-salt, as of 5,430 meters in depth, demonstrating the potential of the pre-salt reservoirs of this area. The consortium will carry on the activities set forth in the Evaluation Plan approved by the National Petroleum, Natural Gas and Biofuels Agency, including formation tests to evaluate the productivity of the reservoir. Galp Energia, through its subsidiary Petrogal Brasil, holds a stake of 10% in the contractor group that explores BM-S-11, while Petroleo Brasileiro SA Petrobras (operator) holds 65% and BG Group PLC the remaining 25%. Galp Energia holds stakes in three other blocks in this basin with high exploratory potential: BM-S-8 (14%), BM-S-21 (20%) and BM-S-24 (20%). Full Article
Gas Natural SDG SA In Talks To Acquire a 65% Stake in Gujarat Gas Co Ltd From BG Group PLC-Reuters
Reuters reported that Gas Natural SDG SA is on talks to acquire a 65% stake in Gujarat Gas Co Ltd from BG Group PLC for a total amount of EUR 900 million. Other details were not disclosed. Full Article
BP Plc, BG Group plc, Total, Tullow Win Uruguay Offshore Bids-Reuters
Reuters reported that Uruguay's state energy company Ancap has awarded contracts for eight offshore exploration blocks in an effort to reduce the country's dependence on imports of oil and natural gas. The discovery of massive deep-water reserves off Brazil's Atlantic coast has encouraged neighboring Uruguay to look for energy resources along its own coastline. The tender was won by BP plc and BG Group plc awarded three blocks each and TOTAL S.A. and Tullow Oil plc one block each. Ancap originally auctioned 15 blocks in the offshore platforms of Oriental del Plata, Punta del Este and Pelotas. Contracts run for 30 years but could be extended by 10 years as long the presence of hydrocarbons is confirmed and firms abide by the agreed minimum exploration plan. An earlier round launched in 2008 fell short of expectations as a global financial crisis worsened, deterring energy companies from risky and expensive offshore exploration. The Ancap state company imports some 900,000 barrels of crude every 25 days from Venezuela, Brazil, Nigeria, Ecuador, Russia and South Africa for refining locally. Uruguay does not import refined fuels. Full Article
UPDATE 2-BG tightens focus on exploration, LNG, dealmaking
* Shares up over 3 pct, lead European oil and gas stocks higher (Writes through with details, CEO comments)
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