Profile: BG Group PLC (BRGYY.PK)

BG Group plc (BG Group) is a natural gas company. The Company is engaged in the exploration, development and production of natural gas and oil. The Company operates in three business segments: Exploration and Production (E&P), Liquefied Natural Gas (LNG) and Transmission and Distribution (T&D). Effective January 1, 2012, the Company was managed across three regions: Americas and Europe; Africa, Central and South Asia, and Australia and East Asia, supported by Global Energy Marketing and Shipping (GEMS) and BG Advance. The Company has interests in 25 countries on five continents. During the year ended December 31, 2011, the Company acquired an interest in, and operatorship of, offshore blocks L10A (BG Group 40%) and L10B (BG Group 45%) in Kenya. During 2011, the Company acquired additional Marcellus shale properties in partnership with EXCO Resources, Inc. (EXCO). In 2011, the Company disposed of its interest in Genting Sanyen Power in Malaysia.

Exploration and Production

E&P consists of exploration, development, production and marketing of hydrocarbons with a focus on natural gas. During 2011, the Company had net production of 49.4 million barrels of oil equivalent in Egypt; 38.2 million barrels of oil equivalent in the United Kingdom; 37.4 million barrels of oil equivalent in Kazakhstan: 27.4 million barrels of oil equivalent in Trinidad and Tobago; 26.7 million barrels of oil equivalent in the United States; 14.6 million barrels of oil equivalent in Tunisia; 4.9 million barrels of oil equivalent in Brazil; 11.2 million barrels of oil equivalent in India; 9.9 million barrels of oil equivalent in Thailand; 7.6 million barrels of oil equivalent in Australia, and 6.8 million barrels of oil equivalent in Bolivia. The Company is a joint operator of Karachaganak oil and gas condensate field, wherein BG Group had 32.5% interest during 2011. In Trinidad and Tobago; it had three concessions with fields producing - Central Block, East Coast Marine Area (ECMA) and North Coast Marine Area (NCMA). As of December 31, 2011, in the United States, the Company and partners operated 26 rigs and drilled 211 wells. During 2011, in Bolivia, three wells were drilled in XX Tarija East - one in the Palo Marcado field and two in Ibibobo.

Liquefied Natural Gas

BG Group’s LNG activities combine liquefaction and regasification facilities with the purchasing, shipping, marketing and sale of LNG. The Company has interest in liquefaction facilities in Egypt and Trinidad and Tobago. During 2011, its interest in liquefaction volumes from these interests was 5.7 million tons per annum. As of December 31, 2011, the Company was developing a two-train 8.5 million tons per annum liquefaction plant on Curtis Island in Queensland, Australia. As of December 31, 2011, in Chile, the Company had 40% interest in GNL Quintero S.A (GNLQ), which owned and operated the 2.5 million tons per annum LNG import terminal located in Quintero Bay. During 2011, the Company delivered 208 LNG cargoes to 13 countries. BG Group is engaged in marketing LNG both on a long and short-term basis. BG Group has a fleet of double-hulled LNG carriers that it owns or operates under long-term charter.

Transmission and Distribution

BG Group’s T&D activities are focused on Brazil and India, developing both markets and infrastructure for the delivery of gas to residential, commercial and industrial customers. In 2011, the BG Group fleet travelled 4.77 million kilometers delivering LNG cargoes worldwide. During 2011, BG Group had a 60.1% interest in Control of Companhia de Gas de Sao Paulo (Comgas), a gas distributor in Brazil. Comgas serves natural gas to residential, industrial and commercial customers through a pipeline network of over 8 000 kilometers. In 2011, Comgas added approximately 1,100 kilometers to its pipeline network. Comgas also supplies over 350 natural gas vehicle (NGV) filling stations, gas-fired power stations and co-generation plants. In 2011, Comgas supplied gas to 1,000 industrial customers, over 10,400 commercial customers and over 820,000 residential customers. BG Group has interests in two gas distribution companies in lndia: Gujarat Gas Company Limited (GGCL) in the Surat and Bharuch regions of Gujarat state, and Mahanagar Gas Ltd (MGL) in the city of Mumbai and adjoining areas in Maharashtra state. As of December 31, 2011, BG Group held a 65.1% interest in GGCL, India’s private natural gas distribution company. As of December 31, 2011, BG Group and GAIL (India) Limited each had a 49.75% interest in MGL. MGL owns and controls over 3,400 kilometers of pipeline.