In its annual strategy update released alongside its full-year results this morning, oil and gas giant BG Group has given a bullish outlook, in which it hiked its near-term LNG (liquefied natural gas) profit guidance.
According to the firm's Chief Executive, Frank Chapman, the outlook for global gas and LNG demand is strong. "BG Group is well set to capitalise on these opportunities and is making good progress with delivering its plans," he said.
He said that BG's LNG supply is set to beat its 2015 target of 20m tonnes per annum (mtpa), and expects the supply portfolio will hit 30mtpa by 2020.
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The group has now raised its LNG profit guidance for 2012 by over 30% to between $2.6bn and $2.8bn. "Our LNG business is set fair with the prospect of excellent profit momentum for many years," Chapman said.
BG is to invest some $1.5bn in its exploration programme in 2012, targeting prospects in seven countries including new frontier plays in Australia, Egypt and Tanzania. The group started 2012 with a production run rate of 650,000 barrels of oil equivalent per day (bopped) and expects this to rise to 750,000 bopped by year-end, helping by improved output in the UK alongside six new projects estimated to come onstream during the year.
"Our proven and distinct capabilities - grounded in market knowledge, commercial agility, exploration performance and fast-track project development - position us to realise the opportunities within our growth portfolio. We are well set to continue the trend of value creation based on already discovered resources and named projects," Chapman concluded.
BC
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