BG sells Mauritanian interests

Offshore staff

READING, UK -- BG Group has completed the sale of Mauritania Holdings BV to Kuwait Foreign Exploration Company for $128 million. The agreement marks the disposal of all BG Group's interests in Mauritania, West Africa.

BG Group has increased its worldwide exploration acreage significantly in the last 18 months and believes that its Mauritanian assets no longer fit strategically within its exploration portfolio.

BG Group purchased Mauritania Holdings BV from Hardman Resources Ltd. in 2004 for $132 million. The company operated as a subsidiary of BG Group, managing its interests in production-sharing contracts A and B covering blocks 3, 4, and 5 offshore Mauritania. Interests included 13% equity in PSC A, 11% equity in PSC B, and 10% equity in the Chinguetti Exclusive Exploitation Authorisation.

PSC A covers block 3 and shallow-water blocks 4 and 5. The Banda gas field was discovered in PSC A.

PSC B covers deepwater blocks 4 and 5. Five oil discoveries, including Chinguetti, Tiof, Tevet, Tevet Deep and Labeidna, have been made in PSC B. The Chinguetti field began production in Feb. 2006. Development studies on the Tiof field are ongoing.

1/27/2006