BG Group Discover Gas Condensate Field In Central North Sea

BG Group has signed Sale and Purchase Agreements with ConocoPhillips (COP) for the acquisition of COP's equity stakes in the Armada and Everest fields in the Central North Sea.

BG will acquire COP's 11.45% interest in the Armada field (BG operated), increasing its stake to 58.22%. In the Everest field (BP operated), BG will acquire a further 1.0134% interest taking its total stake to 59.3234%. As part of the agreement BG also agreed to purchase COP's interest in Block 22/14a (16.89%) which is located to the south west of Everest. Completion of the acquisition is expected in the first quarter of 2007, subject to standard partner and DTI consents. The total consideration is US$143 million.

Mark Carne, Executive Vice President BG Europe and Central Asia, said:

"I am delighted that we have agreed these purchases which increase our stakeholding and control in two key oil and gas fields in the UK Continental Shelf.

"The strengthening of our position in the Armada 'hub' will not only increase our equity share of production from the field but will also enhance value from the tie-backs of the Seymour and Maria fields and prospective future production from our Norwegian interests across the median line.

"The increased stakeholding in Armada and Everest reinforces our commitment to the North Sea and continues our investment in the region."

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Posted 19/12/06

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