BG Group says Brazil and Oz projects are 'immediate priority'

FTSE 100-listed natural gas provider BG Group has reported that its immediate priority going forwards is the delivery of its 2013 milestones and growth projects in Australia and Brazil.

FTSE 100-listed natural gas provider BG Group has reported that its immediate priority going forwards is the delivery of its 2013 milestones and growth projects in Australia and Brazil.

In a strategic update issued on Tuesday, the group, which has assets in South America, Europe, the Caribbean, North Africa and the US, said that it was making "good progress" and expected to see "significant volume and cash flow growth" in 2014 and 2015.

It added that it would continue to grow exploration spend over the next three years to $1.8bn per annum and would manage the portfolio more actively, monetising assets at different stages in their life cycle and bringing in partners to accelerate the value delivery.

The group reaffirmed its 2013 group production range of 630 to 660 thousand barrels of oil equivalent per day (kboed) excluding portfolio changes and further forecast that the 2015 group production range would be 775 to 825 kboed excluding portfolio changes.

It also forecast that the 2013-2015 average production range from base assets would be expected to be 530 to 580 kboed.

Average capital expenditure of $2-3bn per annum is expected to go on base assets between 2013 and 2015.

Going forwards, the group said that dividends would rise broadly in line with underlying earnings growth with cash returned to shareholders in the medium term.

Chris Finlayson, Chief Executive of BG Group, said: "BG Group is a great company with a strong pipeline of projects and deep-set skills and expertise that differentiate us, particularly in exploration and LNG [liquefied natural gas]. We are big enough to explore the best frontier acreage but small enough to be agile - valuable attributes, which I intend to keep".

MF

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