British oil and gas company BG Group expects to post full year E&P production volumes at an average of 704 thousand barrels of oil equivalent per day in 2015, around 16% higher than 2014.
In its operational update on Wednesday, the company said the growth in production, ahead of guidance of 680-700 kboed, reflected growth primarily in Australia, Brazil and Norway.
Volumes in Australia more than doubled to 88 kboed and in Brazil, almost doubled to 146 kboed. In Norway, Knarr came onstream in March and has produced an average of 12 kboed during 2015. This growth was partially offset by the expected decline in Egypt, down 18 kboed to 44 kboed, combined with lower volumes in Trinidad & Tobago, down 13 kboed to 52 kboed.
Helge Lund, BG Group’s Chief Executive, said:
“Our excellent operational performance in 2015 is expected to deliver results in line with, or ahead of, our guidance for the year. Ramp up of both LNG trains at our QCLNG project in Australia and the start-up of our sixth FPSO in Brazil drove a strong E&P operational performance while our LNG Shipping & Marketing business delivered 282 cargoes, an increase of 58% on 2014, in difficult market conditions.”
The company expects to post total results earnings of at least $2.3 billion, which are expected to include a post-tax gain of at least $0.6 billion in respect of disposals, re-measurements and impairment. Capital investment on a cash basis of around $6.4 billion, lower than guidance of around $6.5 billion.
BG Group explained that expected total results for the year does not include the impact of future transaction fees and other financial implications of the completion of the recommended cash and share offer for BG Group plc by Royal Dutch Shell plc.