BG exploration and production (E&P) activities in Australia continued to ramp up in 4Q15, according to the company’s latest quarterly report, averaging 117 000 barrels of oil equivalent per day (boe/d) and hitting a daily record of 140 000 boe/d in January.
As a result, less than 20% of the gas supplied to its Queensland Curtis LNG (QCLNG) plant, which turns coalbed methane (CBM: called coal seam gas in Australia) into liquefied natural gas (LNG) for export to Asia, was sourced from third-party contracts.
In November, BG assumed operational control of Train 2 at QCLNG and commenced full commercial operations. Both LNG trains are now running at plateau with 31 cargoes produced in 4Q15 and 32 cargoes delivered. Overall, a total of 83 cargoes were produced in 2015.
“We are pleased to have delivered excellent operational performance in 2015 with results in ling with, or ahead of, our guidance for the year,” said BG CEO, Helge Lund. “The ramp up of both LNG trains and out QCLNG project in Australia […] drove strong E&P operational performance.”
BG and its Australian partners also announced the approval of a US$1.4 billion development programme, known as Charlie, to continue development of tenements in the Surat Basin to sustain gas supply to QCLNG. The development includes the construction of 300 – 400 new wells, a large field compression station and associated pipelines and faciltiies to feed into existing gas processing and water infrastructure.
Overall, the company produced 704 000 boe/d in 4Q15, an increase of 16%, with 282 LNG cargoes delivered, up 58%. Lower commodity prices hit the company’s earnings, however, with quarterly EBITDA down 22% at US$1.4 billion and full year EBITDA down 39% at US$5.6 billion.
BG is currently the subject of a takeover by Royal Dutch Shell. The takeover has been approved by Shell’s shareholders and is expected to be approved by BG’s shareholders later this month.
Edited by Jonathan Rowland.