bg data book 08

Our vision

Natural gas is our business.

We are a rapidly growing company, with expertise throughout the gas chain.

We are a leading natural gas company in the global energy market – operatingresponsibly and delivering value to our shareholders.

We do this by connecting competitivelypriced resources to high value markets.

Cover image – Exploration and Production reserves and resources(a) base

Long-term reservesThe cover image represents BG Group’s reserves and resource base,which grew by over 2 billion barrels of oil equivalent during 2007, an increase of around 25%. This resource base has the potential todeliver 46 years of production at 2007 rates.

CAGR 19% 2005-2007 2007 RESERVES/PRODUCTION*

46 years

30 years

16 years

9.3 years

11 000

10 000

9 000

8 000

7 000

6 000

5 000

4 000

3 000

2 000

1 000

0

05 06 07

(mmboe)

7 0

71 8 0

17

10 0

46

Risked exploration

Un-booked resources

Probable reserves

Proved reserves

*Based on 2007 production of 220.3 mmboe and cumulative reserves/resources.

(a) For an explanation of these terms, refer to page 56.

1

BG Group Data Book 2008

BG Group – Oil and gas production 2007

Generating future growth

CAGR 11% 1998-2007

700

600

500

400

300

200

100

098 01 0499 02 0500 03 06 07

(kboed )

238

240 28

0

298

373 42

8 457 50

4

60

4

60

1

CAGR 43% 1999-2007

0

1

2

3

4

5

6

7

98 01 0499 02 0500 03 06 07

(mtpa)

8

0.4 0.

7 0.8 1.1

2.8 3.

2

4.1

6.7 7.

0

T&D, LNG, Power and Other

E&P

CAGR 34% 1998-2007

3 500

3 000

2 500

2 000

1 500

1 000

500

098 01 0499 02 0500 03 06 07

(£m)

229 33

0

688 82

3

888

1 28

7(c)

1 52

0

2 38

9

3 10

3

3 24

8

Total operating profit(a)(b)

LNG liquefaction volumesE&P production volumes

Total oil and gas production

%

UK 27

Egypt 26

Kazakhstan 18

Trinidad and Tobago 10

India 6

Tunisia 5

Thailand 4

Bolivia 3

Canada 1

Total 100

Countries A-Z Page Page Statistical supplement Page

Introduction and legal notices 40

Social and environment data 41

Group financial data 42

Exploration and Production (E&P) 45

Liquefied Natural Gas (LNG) 51

Transmission and Distribution (T&D) 53

Power Generation 53

Corporate information 54

Definitions 56

Algeria 22

Argentina 34

Australia 38

Bolivia 36

Brazil 31

Canada and Alaska 37

Chile 35

China and Hong Kong 24

Egypt 13

India 16

Israel and areas of Palestinian Authority 23

Italy 12

Kazakhstan 8

Libya 22

Madagascar 23

Malaysia 25

Nigeria 20

Norway 11

Oman 21

Philippines 25

Singapore 24

Thailand 19

Trinidad and Tobago 26

Tunisia 18

UK Downstream 10

UK Upstream 4

United States of America 29

Uruguay 35

(a) Including share of pre-tax operating results from joint ventures and associates.(b) Business Performance – see page 40 for a description.(c) Restated under IFRS and for IFRIC 4.

2 Group at a glance

www.bg-group.com

CAGR 6-8% 2005-12

680-710 kboed 2009

2012200920062005

BG Group net production (kboed)

1 000

800

600

400

200

0

MEDIUM-TERM2007-09

LONG-TERM2010-12

100

200

300

400

500

600

700

04 05 06 07

457 50

4

60

1

60

4

Total production

604 000 boed

Total operating profit(a)

Business Performance(b)

£2 387m

MEDIUM-TERM Key projects:BuzzardKarachaganakTrinidad and TobagoPanna/Mukta/TaptiHasdrubal

LONG-TERM Key opportunities:Karachaganak TupiBongkot SouthDolphinBongkot NorthBream

JasmineAbu ButabulPanna/Mukta expansionRosettaHassi Ba HamouRisked exploration

Exploration and Production (E&P) Liquefied Natural Gas (LNG)

BG Group explores for, develops, produces and markets gasand oil around the world. Around 70% of 2007 productionwas gas. The Group uses its technical, commercial and gaschain skills to deliver projects at industry-leading cost levels,whilst maximising the sales value of its hydrocarbons.



£521m16

12

8

4

04 05 06 07

6.4

6.4

9.9

13.0

Managed volumes (mtpa)

BG Group has the skills and assets to deliver low cost LNGinto high value markets around the world.

Liquefaction: Egypt; and Trinidad and Tobago

Purchased LNG: Egypt; Equatorial Guinea; Nigeria; andTrinidad and Tobago

Regasification: Elba Island (USA); and Lake Charles (USA).

BG Group is a producer and marketer of LNG. It has a highly flexible portfolio of LNG and markets LNGglobally. In 2007, BG Group substantially increasedprofitability by targeting the highest value markets.

BG Group’s high performing E&P business is the centre of gravity for the Group.

Production volumes increased to 604 kboed in 2007.

BG Group’s E&P activities achieved top quartileperformance in operating costs compared to its industry peers in 2007.

Production: Bolivia; Canada; Egypt; India; Kazakhstan;Thailand; Trinidad and Tobago; Tunisia; and UK.

Performance highlights

Main markets and activities

Outlook



Outlook

(a) Including share of pre-tax operating results from joint ventures and associates. (b) Business Performance – see page 40 for a description.

Production (kboed)

BG Group LNG supply (mtpa)

0

5

10

15

20

25

FutureExisting

Nigeria LNGTrain 7

Australia

OKLNG& Brass

Egypt& T&T

Egyptian LNG Train 2

Atlantic LNG Train 4

Atlantic LNG Trains 2/3

Other term supply

Nigeria LNG Trains 4/5

Equatorial Guinea

3


Transmission & Distribution (T&D)

BG Group’s T&D activities develop markets for natural gasand provide them with supply from its own and others’production through transmission and distribution networks.



£247m

200

400

600

800

1 000

1 200

070605040

Customers (‘000s)

Power Generation

A large proportion of the worldwide demand for gas isattributable to power generation. BG Group develops,owns and operates gas-fired power generation plants.



£130m

Power capacity (GW)

5

4

3

2

1

04 05 06 07

2.8

2.8

4.1 4.

3

The Group’s T&D businesses are focused on high growthdeveloping markets – principally in Brazil and India.

Transmission and distribution: Argentina; Brazil; India; and UK.





BG Group has a 4.3 GW portfolio of mostly gas-fired power generation.

Power: Italy; Malaysia; Philippines; UK; and USA. Co-generation: India.

UK UpstreamKazakhstanUK DownstreamNorwayItaly

Trinidad and TobagoUnited States of America and Global LNGBrazilArgentina ChileUruguayBoliviaCanada AlaskaAustralia

EgyptIndiaTunisiaThailandNigeriaOmanAlgeriaLibyaIsrael and areas of Palestinian AuthorityMadagascarChina and Hong KongSingaporePhilippinesMalaysia

STATISTICAL SUPPLEMENTSocial and environment dataGroup financial dataExploration and Production (E&P)Liquefied Natural Gas (LNG)Transmission and Distribution (T&D)Power GenerationCorporate informationDefinitions

EUROPE AND CENTRAL ASIA

AFRICA, MIDDLE EAST AND ASIA

AMERICAS AND GLOBAL LNG

BG Group manages its business segmentson an integrated regional basis.

p4

p13

p26

p40

Mahanagar Gas

Gujarat Gas

Comgas

UK Upstream

www.bg-group.com

Europe and Central Asia

www.bg-group.com

With interests in more than 20 UKContinental Shelf (UKCS) fields, BG Grouphas one of the most significant explorationand production businesses in the offshorewaters of the UK. BG Group operates: theArmada fields (Fleming, Drake and Hawkins),the Maria field and the Seymour field in thecentral North Sea; the Blake and Atlanticfields in the Outer Moray Firth; and theNeptune, Mercury, Minerva and Apollo fieldsin the Easington Catchment Area (ECA) in the southern North Sea. During 2007, theBuzzard field in the Outer Moray Firth cameonstream. Production also commenced at the West Franklin and Maria fields.

BG Group believes there is significantremaining potential in the UKCS and isactively pursuing opportunities aroundexisting infrastructure hubs.

In addition to the core production hubs and exploration and appraisal interests onthe UKCS, BG Group has a 51.18% interest inthe Central Area Transmission System (CATS)offshore pipeline and onshore processingfacilities, and a 7.86% stake in the ShearwaterElgin Area Line (SEAL).

PRODUCING ASSETSAmethystBG Group has a 24.15% interest in theBP-operated Amethyst field located in the southern North Sea. Amethyst Eaststarted production in 1990 and Amethyst

05 06 07

60

45

30

15

0

59.2

55.6

54.8

UK: BG Group 3 year productionTotal production mmboe (net)

Gas

Oil & liquids

West in 1991. The development’s fouroffshore platforms are unmanned, withproduction being controlled via the onshoreterminal facilities.

Production is exported from the A2Dplatform via a 40 kilometre dedicated 30 inch diameter line to the Easingtonterminal, where it is processed. The average daily rate in 2007 was 53 mmscfd.

Amethyst gas is sold under a life of field contract.

Armada/SeymourThe BG Group-operated Armada gascondensate fields (Fleming, Drake andHawkins) extend over 31 square kilometresand span five exploration blocks. Productionbegan in 1997.

Completed in 2002, the Armada Phase 2drilling programme added a further threewells, extending the production plateau and lengthening the field life. An average rate of 82 mmscfd and 2 453 bopd wasachieved in 2007.

The SW Seymour area of the BG Group-operated Seymour field (BG Group 57%equity) was appraised successfully and drilled from the Armada platform in 2002.First production was achieved in March 2003. A second well drilled in 2004 into the NW Seymour area was brought onproduction in 2006.

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5

The commingled stream of Armada and Seymour gas is exported via the CATS pipeline to Teesside. Liquids aretransported through the Forties PipelineSystem (Forties) to the Kinneil processingplant at Grangemouth.

In March 2007, BG Group completed thepurchase of ConocoPhillips’ 11.45% interest in the Armada fields, along with an increasedstake in the Everest field. This transactionincreased BG Group’s shareholding inArmada to 58.22%.

Atlantic/CromartyBG Group has a 75% interest in the Atlanticfield in the Outer Moray Firth. BG Group alsoholds 10% in the adjacent Cromarty field. Thefields have been developed with three wellsand a long sub-sea multi-phase flow pipeline,the Western Area Gas Evacuation System(WAGES), tied into the Scottish Area GasEvacuation (SAGE) terminal at St Fergus.Production began in 2006, with a plateaurate of 220 mmscfd.

Blake and Blake FlankBG Group has a 44% interest in, and isoperator of, the Blake field. The field islocated 100 kilometres from Aberdeen in the Outer Moray Firth. First production was achieved in 2001.

The field was developed in two phases. Thefirst phase was the Blake Channel, which is a sub-sea development of six producingwells and two water-injection wells, tied back to an existing floating production,storage and off-loading (FPSO) vessel locatedover the Ross field some 9.5 kilometres away.

Development of the second phase, BlakeFlank, was completed and productioncommenced from two wells in second half2003. This sub-sea development is tied backthrough the existing Blake facilities to theRoss FPSO vessel. An average total field rate of 21 700 bopd was achieved in 2007.

BuzzardBG Group has a 21.73% interest in the Nexen-operated Buzzard oil field, located in theOuter Moray Firth, 100 kilometres north-eastof Aberdeen. The field was discovered in 2001 and came onstream in 2007.

The facilities consist of a complex of threebridge-linked platforms with oil export viaForties and gas export via the Frigg system.Gross capital expenditure for the project was £1.5 billion.

With total estimated proved and probablereserves exceeding 600 mmboe, the field is


6

UK Upstream continued


www.bg-group.com

believed to be one of the largest discovered in the North Sea in more than ten years.Current production is 220 000 boepd gross.

During 2008, BG Group and partnerssanctioned the Buzzard Enhancement Project which involves the construction of an additional processing platform toremove hydrogen sulphide and extendplateau production beyond 2010.

Easington Catchment Area (ECA)The Neptune, Mercury, Minerva, Apollo,Wollaston and Whittle gas fields in thesouthern North Sea are collectively referredto as the ECA.

Neptune and Mercury are BG Group-operated and were developed as the firstphase of the ECA project. First productioncommenced in 1999.

The ECA Phase 1 facilities consist of a sub-seaproduction system at Mercury, a normallyunmanned platform at Neptune, the ECARiser Tower platform installed adjacent tothe existing BP-operated Cleeton facilitiesand pipelines connecting the platforms andproduction systems.

The Mercury sub-sea wells are tied back via a manifold and pipeline to the Neptuneplatform. The fluids produced from Mercuryare commingled with fluids from theNeptune production wells before export toCleeton for final separation, metering andonward transmission through the SouthernNorth Sea Pipeline System to the Dimlingtononshore processing terminal. BG Group holds73.33% in Mercury and 79% in Neptune.

Phase 2 of the ECA project consists of the BG Group-operated Minerva Hub fields,Minerva and Apollo (BG Group 65%), and the BP-operated Whittle Hub Fields,Wollaston and Whittle (BG Group 30.77%).Making use of the existing ECAinfrastructure, the ECA Phase 2 facilitiesconsist of a normally unmanned platform atMinerva and a sub-sea production manifoldat Apollo, tied back to the Minerva platform.The platform exports all production to theECA Riser Tower. The Wollaston and WhittleField wells are tied back via a manifold andpipeline directly to the ECA Riser Tower. Allproduction from the Minerva and WhittleHubs is then commingled with Neptune and Mercury production at Cleeton. Firstproduction from the Whittle Hubcommenced in 2002, with first productionfrom the Minerva Hub following shortly after,in 2003. A combined average production rateof 154 mmscfd was achieved by ECA in 2007.

Elgin/Franklin AreaThe Elgin/Franklin high pressure and hightemperature (HPHT) gas condensate fieldsare located in the central North Sea. Thefields began production in 2001.

A total of 14 wells, six in Elgin and eight inFranklin, produced at an average rate of 421 mmscfd and 84 000 bopd during 2007.Total operates the Elgin/Franklin fields in which BG Group has a 14.11% interest. A separate field, West Franklin, startedproduction in third quarter 2007. A furtherwell was drilled and brought into productionin third quarter 2008.

The HPHT Glenelg field (BG Group 14.7%), in Block 29/4d, started production in March2006. The field has been developed through a single high departure well drilled from theElgin wellhead platform.

Elgin/Franklin and Glenelg gas is exportedthrough SEAL, a common export pipelineshared with the nearby Shell-operatedShearwater field, to the onshore gasreception facilities at Bacton in Norfolk.Liquids are exported through Forties to theKinneil processing plant at Grangemouth.Gas and liquids from West Franklin followthe same export routes.

Everest and LomondAlso situated in the central North Sea are the BP-operated Everest and Lomond fields. BG Group holds a 59.32% stake in Everest,increased following the purchase inDecember 2006 of ConocoPhillips’ 1.01%stake, and a 61.11% interest in Lomond. Thefields were developed in parallel, with firstproduction in 1993.

In 2001, two additional wells were added to each of Everest and Lomond as part of the four well Phase 2 programme. Thesewells extended plateau production levels and accessed reserves in South Everest. A further Everest platform well was drilled and brought into production in 2007.

A combined average production rate of 182 mmscfd and 4 036 bopd was achieved in 2007. Everest and Lomond gas is exportedvia the CATS pipeline and is currently soldunder contract to Teesside Power Limited.The contract expires in September 2008.Produced liquids go via Forties to Kinneil.

J-Block and JadeThe ConocoPhillips-operated Judy/Joanne (J-Block) (gas condensate/oil) and Jade (gascondensate) fields are located in the centralNorth Sea. BG Group has a 30.5% interest in J-Block and a 35% interest in Jade. Production

Partners Armada (%)

BG Group (operator) 58.22

BP 18.20

Total 12.53

Centrica 11.05

Partners Blake (%)


Talisman 53.6

Petro Summit 2.4

Partners Seymour (%)

BG Group (operator) 57

Total 25

Centrica 18

Partners Armada (%)


BP 18.20

Total 12.53

Centrica 11.05

Partners Armada (%)


BP 18.20

Total 12.53

Centrica 11.05

Partners Seymour (%)


Total 25

Centrica 18

Partners Blake (%)


Talisman 53.6

Petro Summit 2.4

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began from J-Block in 1997 and from Jade in2002. The 2007 combined average productionrate from the fields was 335 mmscfd and 32 800 bopd.

Jade was developed using a normallyunmanned wellhead platform and currentlyproduces from six wells.

Production from Jade is exported via a sub-sea pipeline to the manned Judy platformwhere it is commingled and processed withJudy and Joanne production. The combinedgas stream is then exported via the CATSpipeline to Teesside and the combined liquidsstream exported via Norpipe to the Norsea oilterminal at Teesside.

The Judy/Joanne fields currently producefrom 16 wells, three of which were broughtinto production in 2006.

In 2005 and 2006, BG Group announced two discoveries, Jackdaw and Jasmine, in the central North Sea. Jackdaw is close to the Jade field and straddles blocks 30/2a (BG Group’s stake increased in December 2007from 34.4% to 43.1%) and 30/2c (BG Group36%). The first appraisal well on Jackdawcompleted drilling in second quarter 2008 and will be followed by a second appraisalwell that is planned to be completed towardsthe end of 2008. BG Group estimates grossreserves from Jackdaw to be between 20 and 250 mmbbls.

The Jasmine discovery straddles blocks 30/6 and 30/7a (BG Group 30.5%). BG Group and partners announced asuccessful well in the Jasmine North Terrace in February 2008. Further appraisal by sidetracking is in progress. BG Groupestimates gross reserves from Jasmine to be between 100 and 275 mmbbls.

MariaIn 2003, BG Group assumed operatorship, on behalf of a consortium with Total andCentrica, of the fallow Maria 16/29a-11Ydiscovery. An appraisal well drilled in 2004identified and confirmed the viability of the discovery. Sidetrack drilling thenconfirmed an extension into the adjacentMaria Horst prospect.

In December 2007, production from Mariabegan. It is tied back to Armada, with gasexported via the CATS pipeline to Teessideand liquids through Forties to the Kinneilprocessing plant at Grangemouth.

UKCS EXPLORATIONA central North Sea exploration drillingcampaign has led to the discovery of


gas and condensate at the Moth prospect within the Upper Jurassic Fulmar reservoir,immediately south of the Lomond field. An appraisal program is currently being planned.

BG Group has applied for exploration licences in the central North Sea adjacent to existing acreage positions in the 25thlicensing round. The licence awardannouncement is anticipated in fourthquarter 2008.

OFFSHORE PIPELINESCATSBG Group has a 51.18% interest in the CATSpipeline and terminal, which is operated byBP. The 404 kilometre 36 inch diameter CATSoffshore pipeline became operational in 1993and now transports gas to Teesside from theEverest, Lomond, Andrew, Armada, Seymour,Judy/Joanne, Jade, Erskine, Banff and EasternTrough Area Project (ETAP) fields (all in thecentral North Sea). The pipeline has a peakgas capacity of around 1 700 mmscfd.

Onshore, the CATS Teesside terminal includes two trains of gas processingequipment for the Armada, Seymour, Erskine, ETAP and Banff fields. Train 1 became operational in 1997, originally for Armada and Erskine, and Train 2 wasbrought onstream in 1998 for ETAP andBanff. The total processing capacity of the terminal is around 1 200 mmscfd.

The CATS owners have contracted additionalbusiness from the Maria and MontroseArbroath fields.

SEAL and SILKBG Group has a 7.86% interest in SEAL, a 480 kilometre 34 inch diameter gas export pipeline to Bacton. The pipeline wascompleted in 2000 for the Elgin/Franklin and Shearwater fields. With capacity ofaround 1 150 mmscfd of NTS-quality dry gas, it has been transporting gas since 2001.

BG Group also has a 15.98% interest in the 900 metre 34 inch diameter SEALInterconnector Link (SILK) pipeline thatprovides direct access from SEAL into the UK-Continent Interconnector pipeline.

Partners Buzzard (%)

Figures rounded to 2 decimal places.

BG Group 21.73

Nexen (operator) 43.21

PetroCanada 29.89

Edinburgh Oil and Gas Limited 5.16

Partners Jasmine (%)

BG Group 30.5

ConocoPhillips (operator) 36.5

Eni 33.0

Partners Buzzard (%)

Figures rounded to 2 decimal places.

BG Group 21.73

Nexen (operator) 43.21

PetroCanada 29.89

Edinburgh Oil and Gas Limited 5.16

Partners Jasmine (%)

BG Group 30.5

ConocoPhillips (operator) 36.5

Eni 33.0

8

Kazakhstan


www.bg-group.com

BG Group has been active in Kazakhstan for over 15 years. It is joint operator of thegiant Karachaganak gas condensate field in north-west Kazakhstan, where it has a 40 year concession, and is a shareholder in the Caspian Pipeline Consortium (CPC). The CPC pipeline links reserves in westernKazakhstan to the Black Sea, providingaccess to world markets.

KARACHAGANAKThe Karachaganak field, discovered in 1979, is one of the world’s largest gas andcondensate fields. Located in north-westKazakhstan, it holds estimated hydrocarbonsinitially in place (HIIP) of 9 billion bbls of condensate and 48 tcf of gas, with estimated gross reserves of over 2.4 billionbbls condensate and 16 tcf of gas.

Since the signing of the Final ProductionSharing Agreement (FPSA) in 1997, theKarachaganak partners have madesubstantial investment in wells, facilities and pipelines. In addition to its size,Karachaganak presents the operators with formidable challenges due to extremeclimate swings (+/- 40 degrees centigrade)and the requirement to reinject high pressure sour gas. BG Group’s share ofproduction from Karachaganak in 2007 was a record 39.6 mmboe, an increase of 9%compared with 2006. In first quarter 2008, afurther production record was reached, with BG Group’s share amounting to 11.3 mmboe.

Production from the Karachaganak fieldbegan in 1984 when Kazakhstan was still part of the Soviet Union. In 1995, a ProductionSharing Principles Agreement (PSPA) wassigned under which BG Group and Agip (now Eni) took over operatorship of the fieldin order to halt rapid production decline andto improve the safety and environmentalperformance of the facilities.

Texaco (now Chevron) acquired a 20% sharein Karachaganak from BG Group and Agip inAugust 1997, and two months later LUKoiltook the 15% share that was formerly held by Gazprom. In November 1997, the FPSA was signed (effective 27 January 1998),superseding the PSPA and providing for the full development of the field.

The FPSA envisaged a phased developmentprogramme, of which the first two phaseshave been completed. Phase II involvedinvestment to enhance the existing facilities,construct new gas and liquids processing and gas injection facilities, work-over morethan 100 wells, construct a 120 MW powerstation and lay a new 650 kilometre pipelineto connect the field to the CPC pipeline at Atyrau.

Phase II facilities came fully onstream in2004. Historically, virtually all production was sold into Russia, but now most liquidsare exported (currently around 70%), with

05 06 07

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Kazakhstan: BG Group 3 year productionTotal production mmboe (net)

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some condensate and all raw sales gascontinuing to be sold into Russia. Exports are mainly via the CPC pipeline and achieveinternational prices that are substantiallyhigher than those secured in the Russianmarket. An additional oil export route, via the Atyrau Samara pipeline leading into theRussian Transneft system, subsequentlybecame available, and oil exports throughthis route began in 2006, enabling additionalsales at international prices.

The Phase IIM drilling programme,incorporating an additional 16 productionwells, was sanctioned in 2005. A fourthstabilisation train project, sanctioned in2006, has been expanded to include 13additional wells and a rail export facility with an initial capacity of 3.8 mtpa. This is expected to increase Western exportvolumes to more than 10 mtpa and developgross reserves of 250 mmboe. It is planned to be onstream in 2009. In 2006, pre-FEEDwork for the Phase III development of theKarachaganak field was completed. Furtherwork is now underway, designed to increaseliquids and gas production rates and torecover additional reserves. The multi-billiondollar Phase III development is expected toincrease liquids sales to 16.5 mtpa and gassales to 16 bcma.

In May 2007, BG Group and partners agreedthe terms of the Phase III Karachaganak GasSales Agreement with KazRosGaz, a jointventure between Gazprom and KazMunaiGaz.The agreement sets out the commercialterms governing the sale of gas over a 15 year period.

CASPIAN PIPELINE CONSORTIUMThe CPC was formed to build a pipelinesystem to transport oil from westernKazakhstan to the Black Sea near Novorossiyskin Russia. The pipeline system, whichcommenced operations along its full lengthin 2001, consists of a new-build line, newmarine terminal facilities near Novorossiyskand an upgraded pipeline. The first phase of the system, known as the InitialConstruction Project (ICP), has a capacity of 28.2 mtpa (560 000 bopd), all of which has been allocated to CPC shareholders.However, CPC is able to accept more oil thaninitially expected (now in excess of 30 mtpa)as a result of improved operating efficiency.

Karachaganak, operating via theKarachaganak Petroleum OperatingCompany (KPO), began delivering liquids into CPC in 2004.


Karachaganakfield

Atyrau Samara

2 mtpa

3.3 mtpa

CPC

7.6 mtpa*

7 mtpa

Small Refinery

0.4 mtpa

0.6 mtpa

Rail

0 mtpa

3.8 mtpa

Orenburg

8 bcm

16 bcm

Orenburg

4 mtpa

4 mtpa

Gasre-injection

Stabilised Oil

Gas

Un-stabilised Oil

StabilisedOil future route

Capacity 2007

Planned Capacity 2012

*6.5 mtpa firm capacity plus access to additional capacity.

BG Group has a 2% equity share in the linebut is entitled to 2.75 mtpa (55 000 bopd) of CPC initial capacity (around 10% of the total) which, along with otherKarachaganak partners’ entitlements, isbeing used to transport liquids from theKarachaganak field.

An expansion of the pipeline system to over60 mtpa is the next step, and FEED and CPCshareholder discussions related to this areongoing. The first phase of expansion willincrease BG Group’s preferential capacityrights to 3 mtpa (60 000 bopd), and there is potential to increase the total grosscapacity of the pipeline to some 67 mtpa (1.5 million bopd) over time. In 2007, liquidsfrom Karachaganak yielded 7.6 million tonnesgross (BG Group 2.5 million) at Novorossiysk.First quarter 2008 marked the successful KPO loading of the 300th tanker, with theloading of some 200 million barrels (gross)since exports commenced in 2004.

Karachaganak: Additional export capacity secured

BG Group 2.00

Russian Government 24.00

Kazakh Government 19.00

Chevron 15.00

LUKARCO 12.50

ExxonMobil 7.50

Rosneft-Shell 7.50

Omani Government 7.00

Eni 2.00

Oryx 1.75

KPV 1.75

Partners Karachaganak (%)

BG Group ( joint operator) 32.5

Eni ( joint operator) 32.5

Chevron 20.0

LUKoil 15.0

Shareholders CPC (%)

Partners Karachaganak (%)

BG Group ( joint operator) 32.5

Eni ( joint operator) 32.5

Chevron 20.0

LUKoil 15.0

10

UK Downstream


www.bg-group.com

PREMIER POWER LIMITEDThe Ballylumford power station, near Larne,has a potential maximum capacity of 1 316 MW. The power station is gas-fired with dual-fuel capability and is owned andoperated by Premier Power Limited, a whollyowned subsidiary of BG Group. The 600 MWCCGT plant was commissioned in 2003.

SEABANK POWER LIMITEDBuilt in two phases, Seabank is a 1 130 MWCCGT power station near Bristol. It is ownedand operated by Seabank Power Limited, a50:50 joint venture between BG Group andScottish and Southern Energy. Phase 1 ofSeabank (750 MW) entered full commercialoperation in 2000 and Phase 2 (380 MW) in 2001.

INTERCONNECTOR (UK) LIMITEDIn 2007, BG Group sold its 25% shareholdingin Interconnector (UK) Limited. However, BG Group retains both import and exportcapacity in the pipeline, which runs fromBacton in England to Zeebrugge in Belgium.

BG Group uses its capacity for long-,medium- and shorter-term sub-lets to thirdparties and also ships gas to take advantageof market price differentials.

ENERGY MARKETINGIn 2007, BG Group produced 5.4 bcm gas from the UK Continental Shelf (UKCS),

the equivalent to approximately 6% of UK gas demand. The Group sells gas on a wholesale basis principally at the NBP under long-, medium- and short-termcontracts. BG Group is an active participant in the NTS entry capacity auctions held byNational Grid and in the on-the-daycommodity market and other electronictrading systems that help shippers balancetheir daily supply and demand.

DRAGON LNGIn 2004, BG Group and partners signed theshareholder and other related agreements to develop a LNG import terminal at MilfordHaven in Wales. The agreements confirm the ownership of the terminal (BG Group50%, PETRONAS 30% and 4Gas 20%) and the 20 year arrangements governing the use of capacity rights (BG Group 50%,PETRONAS 50%), allowing BG Group andPETRONAS to each send out up to 3 bcm (106 bcf) gas per year, from around 2.2 mtpaLNG. BG Group has contracted pipelinecapacity with National Grid.

Dragon LNG is expected to be operational in fourth quarter 2008.

BG Group’s UK Downstream activitiesencompass power generation and energymarketing. The Group is also jointlydeveloping a LNG import and regasificationfacility at Milford Haven, Wales.

BG Group purchased Premier Power in 1992 and then converted the plant to gas. BG Group also has a 50% stake in the Seabank power station.

BG Group sells gas on a wholesale basisprincipally at the UK National Balancing Point (NBP). BG Group also exports gas forsale to, and purchases gas for import from,mainland Europe via the Interconnector.

Shareholders Dragon LNG (%)

BG Group 50

PETRONAS 30

4Gas 20

Shareholders Dragon LNG (%)

BG Group 50

PETRONAS 30

4Gas 20

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NORTH TAMPEN(6 licences, 5 operated)A 3D seismic survey was acquired over thePlomme prospect (PL372S) in 2006, which will be used to determine any future drillingplans. A discovery was made on the BG Group-operated Jordbær exploration well (PL373S). One further licence was gained through the award of PL467S in the2007 APA Licence Round, and a 3D seismicsurvey will be acquired in third quarter 2008.

MID-NORWAY(5 licences, 4 operated)BG Group drilled its first commitment well in this area in 2007. In addition, during 2007-2008, BG Group completed three largeoperated 3D surveys. The data will determineif an exploration well is to be drilled on any of these licences.

BARENTS SEA(3 licences, 1 operated)BG Group completed its first Barents Sea well in March 2007 as a participant in theStatoilHydro-operated Nucula well located in PL393. This well is an oil and gas discoveryand post-well work continues to determineany appraisal requirement. Nucula is locatedless than 50 kilometres from the coast andthe well was drilled less than a year after thelicence was awarded. In July 2008, BG Groupcompleted its second exploration well in the

Barents Sea, on the Ververis prospect. Thewell was declared a discovery and post-wellanalysis is now ongoing. In 2008, a 3D surveywas also completed in PL396, which isoperated by BG Group.

BG Group entered Norway in 2004, with the award of PL297 (Mandarin) in the North Sea. The Group now has 19 licences (14 as operator), gained predominantlythrough licensing rounds and located in fourestablished core areas. In 2007, BG Groupstarted its exploration drilling programmeand drilled and completed three wells, withthe Nucula well in the Barents Sea declared atechnical discovery. In 2008, BG Group madediscoveries at Pi North, Ververis and Jordbær.

SOUTHERN NORTH SEA(5 licences, 4 operated)This was the entry point into Norway, withBG Group applying its UK Central Grabenexpertise and experience to the Norwegianmedian line area. Many of the plays beingexplored in the Norway licences are similar to those developed and matured in the UK.Two operated exploration wells, Orange and Pi North were completed here in 2007-2008. Pi North was declared a discovery. A commitment has been made for the drilling of the high pressure/hightemperature Mandarin prospect, scheduledfor 2009.

In January 2007, BG Group was awarded thePL407 licence as operator, which contains the Bream oil discovery. The drilling of anappraisal well on Bream is scheduled for first quarter 2009.

Norway

12

Italy


www.bg-group.com

Mediterranean and Atlantic Basins and the Gulf States.

In February 2007, the Brindisi LNG site was seized in connection with a criminalinvestigation by Italian authorities intoallegations of improper conduct related to the authorisation process. Constructionwork has been suspended since this date.

In October 2007, the Italian Governmentnotified BG Group of the suspension of the Authorisation, granted in January 2003,for the construction and operation of theterminal, pending a new requirement tocomplete an Environmental ImpactAssessment (EIA). Brindisi LNG filed the EIA with the Minister for the Environment in January 2008.

POWERIn 2007, BG Italia acquired the remaining66.32% of Serene S.p.A. shares from Edisonfor €98 million, which increased BG Group’sinterest in Serene S.p.A. (now BG Italia PowerS.p.A.) to 100%.

BG Italia Power S.p.A. owns and operatesapproximately 400 MW of co-generation at five locations. 100 MW power stations are located at Melfi, Termoli and Cassino,with 50 MW stations at Sulmona and Rivalta. The plants have been in operation for ten years and are located to supply steam to Fiat Auto plants and other adjacentsteam offtakers.

BG Italia S.p.A. supplies around 2 600 GWhper year of electricity to the grid operator,GRTN, and 400 000 tonnes of steam,primarily to Fiat.

BG Group has been active in Italy since 1992. Italy is a major net importer of gas, a commodity upon which it is becomingincreasingly dependent as the governmentfocuses on environmentally friendly energysources. BG Group seeks to position itselfwithin the Italian market to supply this rising demand.

Current activity in Italy includes: E&P, whereBG Group holds one exploration permit in thePo Valley; LNG, where BG Group is developinga LNG import terminal on the south-easterncoast; and Power, where BG Group owns andoperates five co-generation plants.

EXPLORATIONBG Group has focused recent explorationactivity in the Po Valley, where the Groupholds one exploration permit. Fiveexploration permits and two explorationpermit applications were sold in 2007.

LNGBG Group is developing an 8 bcma (6 mtpa)LNG import terminal in the outer harbour ofthe port of Brindisi (BG Group 100%). The EPCcontract was awarded in 2004. Offsite worksbegan in early 2005, followed by onsite worksin second half 2005.

BG Group will have the rights to 80% of thecapacity in the terminal on a priority basis,whilst the remainder will be subject toregulated third-party access. The terminal isstrategically located to receive LNG from the

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Egypt is a core part of BG Group’s globalportfolio and a cornerstone of its AtlanticBasin LNG strategy. BG Group is also one of the largest investors in Egypt’s natural gas business.

BG Group’s activities in Egypt span the gas chain from exploration, throughdevelopment and production, to downstream projects in LNG. BG Group’sbusiness in Egypt comprises:

• operatorship of two gas-producing areas offshore the Nile Delta:– the Rosetta Concession

(BG Group 80%, Edison 20%); and– the WDDM Concession

(BG Group 50%, PETRONAS 50%);

• operatorship of three other concessionsoffshore the Nile Delta:– El Manzala Offshore (BG Group 100%); – El Burg Offshore (BG Group 70%,

PETRONAS 30%); and – North Sidi Kerir Deep (BG Group 50%,

PETRONAS 50%);• production of gas from the Rosetta

Concession supplying the Egyptiandomestic market at a DCQ of 345 mmscfd;

• production of gas from the Scarab Saffronfields in WDDM to the Egyptian domesticmarket with a current maximum deliveryobligation of 900 mmscfd, of whichapproximately 225 mmscfd (reducing toapproximately 150 mmscfd from 2009) is processed through Damietta LNG (Union Fenosa JV Co SEGAS). BG Group and WDDM partner PETRONAS lift theequivalent volume of LNG from theDamietta plant;

Egypt

Africa, Middle East and Asia

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80

60

40

20

0

56.66

2.4

35.2

Egypt: BG Group 3 year productionTotal production mmboe (net)

Gas

Oil & liquids

120 kilometres offshore Idku, near Alexandria,in the Mediterranean Sea. The facilitiesconsist of 16 sub-sea wells tied into theexisting WDDM gas gathering network and a shallow water control platform. Theonshore processing facilities form part of the Idku Gas Hub where the Egyptian LNGfacilities are located.

WDDM Phase IVThe WDDM fields have undergone a numberof development phases to maximisehydrocarbon recovery. The latest, Phase IV,brought onstream seven additional wellsduring first quarter 2008. The project was delivered a month ahead of schedule,under budget and with an unblemishedsafety record of 2.5 million man hoursachieved with no lost time injuries. Thecompletion of Phase IV brings the totalnumber of sub-sea wells in WDDM to 31.

WDDM Phase VSanctioned in fourth quarter 2007, work toinstall booster compression on the ScarabSaffron facilities is under way to maintain gas supply to the domestic market. First gasis scheduled to be delivered in 2009.

BG Group is currently evaluating futurephases of WDDM that will extend the current production plateau.

14

Egypt continued


www.bg-group.com

• production of gas from the Simian, Siennaand Sapphire fields in WDDM supplyingEgyptian LNG Train 1 at 565 mmscfd andEgyptian LNG Train 2 at 565 mmscfd; and

• major shareholdings in the Egyptian LNG project (Train 1 at 35.5% and Train 2 at 38%).

BG Group undertakes upstream development and production activities in Egypt through joint operating companies.In the case of Rosetta, this is the RashidPetroleum Company (Rashpetco) in which BG Group has a 40% shareholding, and in the case of WDDM, this is Burullus GasCompany (Burullus) in which BG Group has a 25% shareholding.

These operating companies are 50% ownedby the Egyptian state-owned oil companyEgyptian General Petroleum Corporation(EGPC). BG Group and its partners in eachconcession hold the remaining 50%.

EXPLORATIONEl Manzala Offshore and El Burg Offshore ConcessionsIn July 2005, BG Group signed El BurgOffshore and El Manzala Offshore concessionagreements for the exploration of gas and oil in the Mediterranean Sea with theEgyptian Natural Gas Holding Company(EGAS). During 2007, processing of 3D seismic acquired in 2006 was completed, and environmental and site surveys were undertaken. Exploration drilling on El Manzala Offshore and El Burg Offshorecommenced in second quarter 2008.

North Sidi Kerir Deep ConcessionThe North Sidi Kerir Deep concession, signed in July 2006, covers 1 949 squarekilometres in water depths of approximately 1 000 – 2 000 metres, adjacent to WDDM. BG Group acquired 3D seismic in 2006.

UPSTREAM DEVELOPMENT AND PRODUCTIONRosetta Concession Rosetta started production in 2001 andsupplies Egypt’s domestic network. In 2004, BG Group acquired a further 40%interest in Rosetta.

BG Group sanctioned the Rosetta Phase IIIfield development plan in 2006 and deliveredfirst gas from the project in first quarter2008. The project consists of five wells tiedback to the first two phases of Rosetta. Phase III is scheduled to be completed in third quarter 2008.

Sequoia The unitised development of the Sequoiafield which lies across the boundary of theWDDM and Rosetta concessions wassanctioned in the second quarter 2008. Thiswill be a six well sub-sea development; threewells on each of WDDM and Rosetta will betied back to existing infrastructure. First gasis planned for late 2009 with production used to maintain deliveries to the domesticand export markets.

WDDM Concession BG Group and partners have drilled 21successful exploration and appraisal wells inWDDM since 1997, discovering 14 gas fields:Scarab; Saffron; Simian; Sienna; Sapphire;Serpent; Saurus; Sequoia; SimSat-P1 andSimSat-P2. Additional development leaseswere granted in 2007 for the Solar; SiennaUp; Mina; and, Silva discoveries.

Scarab SaffronScarab Saffron started production in 2003and supplies gas to the domestic market and to Damietta LNG. Currently, themaximum delivery obligation under the domestic GSA is 900 mmscfd.

Under an agreement signed with EGAS in2004, gas has been de-dedicated for fiveyears from the domestic GSA so that, sinceFebruary 2005, approximately 225 mmscfd of this gas has been processed through theDamietta LNG plant for a tolling fee. This will reduce to approximately 150 mmscfdfrom 2009. BG Group and its WDDM partnerPETRONAS lift the corresponding volume (1.4 mtpa) of LNG. BG Group lifted its firstcargo from Damietta in March 2005.

Scarab Saffron is the first deep water sub-seadevelopment in Egypt. These facilities consistof eight sub-sea wells connected to a sub-seamanifold, in turn connected by 24 inchdiameter and 36 inch diameter pipelines toan onshore processing terminal. Electricaland hydraulic lines connect the wells to theonshore control room. The fields are locatedapproximately 90 kilometres from the shoreand in water depths of more than 700 metres.

Simian, Sienna and SapphireThe Simian and Sienna fields produced firstgas in 2005, for supply to Egyptian LNG Train1 at Idku. The Sapphire field produced first gas in 2005, for supply to Egyptian LNG Train 2. The Simian, Sienna and Sapphirefields are located in WDDM approximately

Partners (%)

Rosetta Concession*

80 20

Rashid Petroleum Company

1040 50

WDDM Concession

50 50

Burullus Gas Company

5025 25

El Burg Concession*

70 30

BG Group

Edison

EGPC

PETRONAS

*BG Group operator.

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DOWNSTREAM PROJECTSEgyptian LNGBG Group and partners supply Trains 1 and 2of Egyptian LNG with 565 mmscfd gas eachfrom the Simian, Sienna and Sapphire fieldsin WDDM.

The 3.6 mtpa output from Train 1 has beensold to Gaz de France under a 20 year SPA.First LNG from Train 1 was lifted in May 2005.

The 3.6 mtpa output of Train 2 has been sold to BG Group under a 20 year agreement. BG Group may deliver this output to itscapacity at Lake Charles in the USA or divert to other markets, as part of its flexible portfolio approach. The first LNGcargo from Egyptian LNG Train 2 was lifted in September 2005.

The Egyptian LNG facilities, which include the common facilities such as storage tanks,loading jetty and utilities, are located in Idku.The plant produces a total of 7.2 mtpa LNG.

There is sufficient space at the Idku site for a further four LNG trains. The commercialstructure of Egyptian LNG has been designedto allow future expansion without the needto involve all existing partners, and it ispossible that third parties could supply gas to future Egyptian LNG trains.

Simian, Sienna and Sapphire: integrated upstream and downstream

BG Group 50%

UPSTREAM LIQUEFACTION OUTPUT DOWNSTREAM

GAS SUPPLY LIQUEFACTION OUTPUT LNG PURCHASE

Gas

Gaz de France 100%

LNG

Gas

BG Group 100%

LNG

TRA

IN 1

Star

t da

te 2

00

5TR

AIN

2St

art

date

20

05

565 mmscfd – Sapphire

BG Group 50%

565 mmscfd – Simian and SiennaTrain 1 – 3.6 mtpaTolling plant

BG Group 35.5%PETRONAS 35.5%EGPC 12%EGAS 12%Gaz de France 5%

Train 2 – 3.6 mtpaTolling plant

BG Group 38%PETRONAS 38%EGPC 12%EGAS 12%

Egyptian LNG Company owns both theEgyptian LNG site and common facilities. Its sister company, Egyptian OperatingCompany for Natural Gas LiquefactionProjects (Opco) (BG Group 35.5%), undertakesthe operation of all trains. El Beheira NaturalGas Liquefaction Company (Train 1 Co.) (BG Group 35.5%) owns Train 1 and the Idku Natural Gas Liquefaction Company(Train 2 Co.) (BG Group 38%) has a differentownership structure from Train 1 Co.

16

India


www.bg-group.com

BG Group is a key player within the gasindustry in India, with a significant presencein both the E&P and T&D segments. BG Group has increased its exposure inIndia’s growing natural gas sector bydeveloping its upstream position throughlicensing rounds and acquisitions. BG Group is also actively contributing to thedeveloping regulatory debate on the furtherexpansion of downstream markets and isinterested in exploring further opportunitiesin each element of the gas chain.

UPSTREAMIn February 2002, BG Group completed the acquisition of Enron Oil and Gas IndiaLimited, gaining a 30% participating interestin the Tapti gas field and the Panna/Muktaoil and gas fields. In 2007, the combined

fields produced around 45.6 mmboe (gross) –representing approximately 10% of India’stotal oil and gas production. Grossproduction from PMT has doubled in the past five years, since BG Group took over the management of technical operations. BG Group’s aim is to maximise recovery fromPMT through ongoing field development.

The Panna infill programme, which involveddrilling 26 wells, was successfully completedin early 2006 and is expected to increaserecovery by around 50 mmbbl and 200 bcfgas. As a part of the first phase of theapproved Expanded Plan of Development(EPOD) for Panna, two wellhead platformshave been installed and development wellsare being drilled. First production from EPODwas achieved in February 2007. The EPOD for

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India: BG Group 3 year productionTotal production mmboe (net)

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Panna also involves the drilling of 20 wells, ofwhich 17 had been drilled by second quarter2008, at a cost of more than US$280 million.

The fourth wellhead platform on the southTapti field came onstream in 2006 to helpmaintain a 250 mmscfd production rate. InAugust 2007, the next phase of developmentof the mid-Tapti gas field was completed andfirst gas produced. The new facilities enablethe supply of an additional 200 mmscfd ofgas to markets in the western region raisinggas production to 450 mmscfd.

From April 2005, for a period of three years,the PMT co-venturers sold the gas producedfrom the PMT fields directly into thedomestic market. In April 2008, following the re-nomination of GAIL (India) Limited as the Government of India nominee to take the entire gas production from the PMT fields, BG Group and co-venturersentered into an agreement with GAIL tosupply 17.3 mmscmd of gas from these fields as per the terms of the PSC.

BG Group has been expanding its position in the Indian market via licence rounds andfarm-ins. In the 2006 NELP VI licensing round, BG Group acquired a 45% interest in exploration block KG-OSN-2004/1 in theKrishna Godavari Basin. The shallow waterblock, which covers an area of approximately1 131 square kilometres, is located off the east coast of India. Oil and Natural GasCorporation Limited (ONGC) holds theremaining 55% interest and operatorship of the block. The PSC was signed with theGovernment of India in March 2007.

In February 2008, BG India signed two farm-in agreements with ONGC to acquire a participating interest in two deep waterblocks off the Indian east coast, subject toGovernment approval. Under the terms ofthe agreements, BG Group will acquire a 30% interest in KG-DWN-98/4 block and a 25% interest in MN-DWN-2002/02 block.The Ministry of Petroleum has recently approved BG Group’s 30% interest in the KG-DWN-98/4 block.

DOWNSTREAMGujarat Gas Company LimitedBG Group has a 65.12% controlling stake in GGCL, India’s largest private sector natural gas distribution company in terms of sales volume. GGCL currently has more than 230 000 residential, commercial andindustrial customers, and serves more than73 000 CNG users. GGCL has been part of the BG Group portfolio since 1997. Theremaining 34.88% is publicly owned.


In 2007, GGCL recorded a growth of 10% in gas sales volumes. Volumes increased in all segments, notably in the industrialretail segment by 20%, and the vehiclesegment by 49% due to higher conversions to CNG. More than 18 000 vehicles wereconverted to run on this cleaner fuel andGGCL added five CNG stations to its network in Surat. Since the start of 2008,another one has been upgraded taking the total to 26. Investment to enlarge and upgrade GGCL’s pipeline network and associated infrastructure continuedthroughout 2007 and 2008.

In April 2008, following the re-nomination ofGAIL as the Government of India nominee topurchase PMT gas production, an agreementwas also entered into with GAIL for it tosupply 2.13 mmscmd of gas to GGCL. GGCLmeets the rest of its gas requirements fromother sources.

Mahanagar Gas LtdMGL is based in India’s commercial capital,Mumbai. It is India’s largest city gasdistribution company in terms of size of customer base. At present, there are 130CNG outlets, with 637 dispensing points inMumbai, Thane and Mira-Bhayander whichserve 186 574 vehicles (as at 30 June 2008).MGL owns and controls almost 2 543 kilometres of pipeline and is extending its network beyond Mumbai into the neighbouring cities of Thane, Mira-Bhayander and Navi-Mumbai. BG Group and GAIL (India) each have a49.75% stake in MGL, with the balance held by the Government of Maharashtra.

The number of connected domesticcustomers has risen to 331 203 as at 30 June 2008. MGL also supplies natural gas to 982 small commercial and industrialestablishments in Mumbai. In 2007, MGLincreased gas sold to 511 mmcm. Furtherexpansion of the pipeline network toneighbouring towns has continued in 2008.

The Government of India has set up aPetroleum and Natural Gas Regulatory Board (PNGRB), which started functioning in October 2007. BG India, GGCL and MGLhave been actively involved with PNGRB inadvocacy and formulation of regulations forthe midstream and downstream gas sectors.

Partners Panna/Mukta and Tapti Fields (%)

BG Group* 30

ONGC* 40

Reliance Industries* 30

*joint operator.

Partners block KG-OSN-2004/1 (%)

BG Group 45

ONGC (operator) 55

Partners block KG-DWN-98/4 (%)

BG Group 30

ONGC (operator) 55

Oil India Limited 15

Partners Panna/Mukta and Tapti Fields (%)

BG Group* 30

ONGC* 40

Reliance Industries* 30

*joint operator.

Partners block KG-OSN-2004/1 (%)

BG Group 45

ONGC (operator) 55

Partners block KG-DWN-98/4 (%)

BG Group 30

ONGC (operator) 55

Oil India Limited 15

18

Tunisia


www.bg-group.com

company, of the Amilcar exploration permit,offshore Sfax in the Gulf of Gabès. In 2006,BG Group was granted a new extension to this permit, which now expires inDecember 2009.

Granted from this permit are the Miskarconcession (BG Group 100%) and theHasdrubal concession (BG Group 50% and initial operator, ETAP 50%).

MISKAR GAS FIELDBG Group net production in 2007 was 11.9 mmboe from its Miskar field. Productionfrom this concession commenced in 1996.Gas from the field is processed at the BG Group operated Hannibal plant, 21 kilometres south of Sfax, and sold into the Tunisian gas system. BG Group has aMiskar gas sales contract with the Tunisianstate electricity and gas company, SociétéTunisienne de l’Electricité et du Gaz (STEG),which gives BG Group the right to supply up to 230 mmscfd on a long-term basis.Offshore compression was commissioned in 2005 to maintain the production plateauof the field.

MISKAR INFILL WELLSBG Group is in the process of drilling six wellsas part of the Miskar infill drilling campaign,with completion scheduled for 2009. The firstwell entered production in December 2007and two more have entered production in2008. These wells will further extend the field

A L G E R I AR I A MEDITERRANEAN SEA

BIZERTE

SOUSSE

SFAX

GABES

LA SKHIRA

TUNIS

Hannibal

TUNISIA

GULF OF GABESHasdrubalPlatform

Miskar

HasdrubalLPG Facility

under construction

Hasdrubal Plantunder construction

Amilcar

Key dates1989 Acquired Tenneco assets

1996 Miskar field first production

2006 Hasdrubal development plan approved

2007 Hasdrubal constructioncommenced

production plateau. Related projects areunderway to upgrade the productionfacilities to process varying compositions of gas and to de-bottleneck the facilities.

CONDENSATE PIPELINEA 60 kilometre condensate pipeline wascommissioned in 2007 to transport Miskarcondensate from Hannibal to La Skhira port.

HASDRUBAL DEVELOPMENTThe Hasdrubal development plan wasapproved by the Tunisian government in 2006. All major contracts have now been awarded and construction continues.Gross production of around 30 000 boed isexpected from this joint project (BG Group50%, ETAP 50%) in 2009. Once productioncommences, BG Group anticipates that it will be the largest producer of gas, LPG and liquids in Tunisia.

ULYSSE PERMITThe Ulysse permit was relinquished in March 2008 and the two outstandingobligation wells transferred to the Amilcar permit.

BG Group is the largest producer of gas in Tunisia, the Miskar field supplyingapproximately 40% of the domestic gas demand. In addition, BG Group holds the Amilcar exploration permit in the Gulf of Gabès with a surface area of 1 016 square kilometres.

AMILCAR PERMITBG Group is operator and joint permit holderwith Entreprise Tunisienne d’ActivitésPétrolières (ETAP), the Tunisian state-owned

Gas

Oil

Gas pipeline

Oil pipeline

Proposedpipeline

BG Group-operatedblock

0 200km

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Tunisia: BG Group 3 year productionTotal production mmboe (net)

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Production currently derives from BongkotNorth where the DCQ has risen to 550 mmscfd (from an initial 150 mmscfd)through a phased development. The fielddevelopment consists of a central complexfor gas gathering, processing, export andaccommodation; and a condensate floating storage and offloading vessel; and it is currently supplied by 20 remotewellhead platforms.

Further development phases are designed to extend the life of the field into the nextdecade. To facilitate this development, BG Group, along with its partners in theBongkot field, signed two SupplementaryPetroleum Concession Agreements inOctober 2007 covering Blocks B15, B16 andB17. The agreements extend Bongkot’sproduction periods for a further ten yearsfrom the initial expiry dates in 2012 and 2013.

Since January 2007, the partnership hassuccessfully drilled three exploration wells onBongkot North and five exploration wells onBongkot South. In addition, a number of infillwells on Bongkot North have been completed.

Bongkot South is an important part of thedevelopment plan and will be developedindependently from existing Bongkot North facilities. It will comprise a centralprocessing facility, a quarters platform and approximately 13 wellhead platforms.First gas is scheduled for 2012.

EXPLORATIONBG Group is the operator (BG Group 50%) of Blocks 7, 8 and 9 in the Gulf of Thailand, in an area subject to overlapping claims byThailand and Cambodia.

In 2001, a MoU was signed by theGovernments of Thailand and Cambodiaaimed at concluding an agreement for the exploration and development ofhydrocarbons in the overlapping claims area. A Joint Technical Committee is working to agree a mutually acceptable basis for resolution.

Thailand

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12

9

6

3

0

9.9

9.8

9.3

Thailand: BG Group 3 year productionTotal production mmboe (net)

Gas

Oil & liquidsPartners Bongkot (%)

BG Group 22.22

PTTEP (operator) 44.45

Total 33.33

BG Group’s investment in Thailand is focused on upstream activities, including an interest in the large offshore Bongkot

field, which supplies approximately 18% of the country’s gas demand.

BONGKOT GAS FIELDBG Group has a 22.22% interest in theBongkot field in the Gulf of Thailand, which came onstream in 1993. The field is operated by PTT Exploration andProduction (PTTEP).

Partners Bongkot (%)

BG Group 22.22

PTTEP (operator) 44.45

Total 33.33

20

Nigeria


www.bg-group.com

in the May 2006 Nigerian Oil Block Mini-licensing round. OPL 286-DO is located in deep water (200 – 1 000 metres)close to the giant Bonga field, offshore the western Niger Delta. BG Group is theoperator with a 66% participating interest,along with partners Sahara (24%) andEquinox Exploration Limited (10%). OPL 286-DO contains an existing discovery,Boi. Exploration and appraisal drilling is expected to commence in 2008 and continue into 2009.

BG Group continues to evaluate furtherupstream opportunities in Nigeria.

LNGBG Group and its partners are developingOKLNG, a liquefaction plant at Olokola, on the south-western coast of Nigeria. InMarch 2007, the SHA was signed betweenNNPC, Shell, Chevron and BG Group, whichincludes the development of the launchproject and any future expansions, and setsout the governance within the projectcompany and the Shareholders’ rights tosupply gas and offtake LNG.

In April 2007, a groundbreaking ceremony led by the President of Nigeria took place at the site in Ogun State at which the FreeTrade Zone agreement was signed. TheOKLNG launch project is two trains, eachwith a capacity of 6.3 mtpa of LNG, andexpandable in the future to a multi-train

natural gas liquefaction facility and marine terminal. Additional technical work is being done to optimise the finaldesign. BG Group has a 14.25% share in the project. All shareholders will have the right to lift their equity share of LNG.

In 2006, BG Group announced a MoU with Brass LNG for the acquisition of LNG.Volumes are expected to be 1.67 mtpa LNG.The proposed agreement will be for 20 years.These purchases complement the earliersigning of a 20 year SPA for 2.3 mtpa LNGfrom Nigeria LNG Trains 4 and 5 located on Bonny Island. Deliveries under thisagreement commenced in January 2006.

In February 2007, BG Group signed a SPA with Nigeria LNG for the acquisition of 2.25 mtpa of LNG for a 20 year term that will be produced by Nigeria LNG’s proposedTrain 7 project in Finima, Bonny Island.

BG Group commenced business development activities in Nigeria in mid-2004. Nigeria offers the potential for anexcellent strategic fit with BG Group’s gaschain capability and Atlantic Basin positionin light of its hydrocarbon potential.

UPSTREAMIn January 2006, BG Group signed a PSC forBlock OPL 332 with the Nigerian NationalPetroleum Corporation (NNPC), whichresulted in BG Group acquiring a 45%participating interest in, and operatorship of, the deep water block. The PSC followed a farm-in agreement with Sahara EnergyExploration and Production Limited (Sahara),which now retains a 35% participatinginterest. Other partners with participatinginterests in OPL 332 are the NigeriaPetroleum Development Company with 10%,and Seven Energy Nigeria Limited with 10%.

OPL 332 is located in up to 1 000 metres of water. The first phase of the two-part work programme on OPL 332 began in 2006. Acquisition of 3D seismic on the Block was completed in January 2007 and dataprocessing was completed in January 2008with the drilling of an exploration welltargeted for 2009/10.

In March 2007, BG Group signed a PSC andassociated downstream MoU for Block OPL286-DO with NNPC. BG Group, together withSahara, was awarded licence OPL 286-DO

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The Block 60 project marks BG Group’s entry into the natural gas sector in Oman,with the intention of appraising andcommercialising potential reserves for supply into the domestic market.

OMAN

SAUDI ARABIA

YEMEN

IRAN

MUSCATUNITED

ARAB EMIRATES

ARABIANSEA

GULF OF OMAN

Block 60

New information• Abu Butabul appraisal drilling

programme commenced

Key dates2006 Signed an Exploration and

Production Sharing Agreement(EPSA) for Block 60

2007 Seismic data acquisitioncommenced

First Abu Butabul appraisal well spudded

BG Group holds a 100% interest in, andoperatorship of, Block 60 onshore Oman,following the signature of an EPSA with the Government of the Sultanate of Oman in April 2006.

The block, which covers almost 1 500 squarekilometres, contains the Abu Butabul gas andcondensate discovery which was made in1998. In addition to this discovery, there areother exploration prospects within the block.

Following ratification of the EPSA by His Majesty Sultan Qaboos in May 2006, BG Group established an office in Muscat to both deliver the Block 60 workprogramme and to act as a regional base to assess future opportunities in Oman and other Gulf Cooperation Council States.

In 2007, BG Group commenced acquisition of seismic data over Block 60, including both the appraisal area of the Abu Butabulstructure and the exploration area in thenorthern part of the block. Acquisition of 3D seismic covering 1 500 square kilometreswas completed in January 2008.

The first appraisal well was spudded inDecember 2007 and completed in March2008. Drilling is planned to continuethroughout 2008 and into 2009, with eight appraisal wells planned.

Oman

Gas

Oil

Gas pipeline

Oil pipeline

Proposedpipeline


0 200km

Key to operations

22

Algeria


www.bg-group.com

0 500km

TUNIS

A L G E R I A

A L G E R I A

A L G E R I A

A L G E R I A

ALGERIA

MOROCCO

TUNISIA

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Hassi Ba Hamou

MEDITERRANEAN SEA

Gas

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Gas pipeline

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Proposedpipeline


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TUNISIA

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N I G E R

A L G E R I A

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TUNISIA

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TUNISIA TRIPOLI

LIBYA

EGYPT

Area 123Block 2

Area 123Block 1

Area 171Blocks 1,2,3,4

Gas

Oil

Gas and Oil/Condensate

Gas pipeline

Oil pipeline


BG Group non-operatedblock

0 600km

ALGERIABG Group entered Algeria through an agreement with Gulf Keystone in June 2006 to acquire an interest in the Hassi Ba Hamou PSC. Following completion of the transaction in December 2006, BG Group has a 36.75% interest in, and isoperator of, the Hassi Ba Hamou block. Gulf Keystone has a 38.25% interest and the state oil and gas company, Sonatrach, has a 25% interest. The first three year period of the licence ends in 2008. BG Group and partners have agreed to enter thesecond two year exploration period and relinquish 30% of theblock area.

The Hassi Ba Hamou Perimeter, in central Algeria, consists of fiveblocks (317b, 322b3, 347b, 348 and 349b) covering approximately 18 380 square kilometres and contains the Hassi Ba Hamou gasdiscovery. Acquisition of 2 047 kilometres of 2D seismic and 534 square kilometres of 3D seismic was completed in 2007. The drilling programme began in December 2007. One appraisalwell and two exploration wells have been completed so far. Afurther three exploration and appraisal wells are expected to be drilled in 2008. The RM-1 exploration well was a gas discovery.This will be appraised as part of the work programme due underthe second exploration period of the Hassi Ba Hamou Permit.

LIBYAIn 2005, BG Group was successful in Libya’s second licensinground, acquiring a mix of largely unexplored acreage in both an established basin and a frontier area.

BG Group was awarded a 100% interest in, and operatorship of,Area 123 Block 1 covering 2 750 square kilometres and Block 2covering 2 150 square kilometres in Libya’s prolific onshore SirtBasin. 3D seismic operations were completed for both areas inSeptember 2007 and BG Group expects to drill a well in each area in 2008.

BG Group was awarded a 50% non-operated interest in Area 171,containing Blocks 1, 2, 3 and 4, covering 11 300 square kilometresonshore in the frontier Kufra Basin. 2D seismic operations werecompleted in September 2007 and the first well is expected tospud in 2008.

In May 2007, a Joint Announcement of Co-operation was signedbetween the NOC and BG Group, to study optimum solutions for supplying natural gas to both domestic and export markets.

Libya

Key to operations

Key to operations

23

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Israel and areas ofPalestinian Authority

MEDITERRANEAN SEASEA

Offshore Gaza

Med Yavne

ISRAEL

EGYPT

GAZA

Or

Gaza Marine

ISRAEL AND AREAS OF PALESTINIAN AUTHORITYBG Group has been active in Israel and areas of PalestinianAuthority since 1996, with current activities focused upon thesuccessful commercialisation of its offshore Gaza Marine field.

AREAS OF PALESTINIAN AUTHORITYOffshore GazaBG Group is operator of an exploration licence covering the entire marine area offshore the Gaza Strip. Following acquisition of over 1 000 square kilometres of 3D seismic data, BG Groupdrilled two successful wells in 2000 (Gaza Marine-1 and GazaMarine-2). Reserves are estimated to be around 1 tcf. In 2001, a technical review recommended a sub-sea development andpipeline to an onshore processing terminal. In 2002, an outlineDevelopment Plan was approved by the Palestinian Authority.

BG Group holds 90% equity in the licence, which would be reduced to 60% if the Consolidated Contractors Company (itscurrent 10% partner in the licence) and the Palestine InvestmentFund exercise their options at development sanction.

In December 2007, BG Group withdrew from negotiations with the Government of Israel for the sale of gas from the Gaza Marinefield to Israel. In January 2008, BG Group closed its office in Israel.The Group is evaluating options for commercialising the gas.

ISRAELMed Yavne licenceBG Group is currently in the process of relinquishing the Med Yavne licence.

Gas

BG Group-operated block

0 50km

MADAGASCARIn 2006, BG Group acquired a 30% interest in the MajungaOffshore Profonde exploration block in Madagascar under a farm-in agreement with Vanco. BG Group’s partners areExxonMobil (50% and operator), SK Energy (10%) and PVEP Corp (10%).

The block covers around 15 840 square kilometres in deep water(200-3 000 metres) off north-west Madagascar. Believed to be oil prone, it forms part of a largely unexplored frontier basin.Technical evaluation is ongoing, utilising 2D and 3D seismic data.

ANTANANARIVO

Majunga Offshore Profonde

TANZANIA

MOZAMBIQUE

SOMALIA

KENYA

SEYCHELLES

MADAGASCAR

Madagascar

0 1000km

Gas pipeline

Oil pipeline

BG Group non-operated block

Key to operationsKey to operations

24

China and Hong Kong


www.bg-group.com

CHINABG Group entered China in 2006 following the signing of two PSCs with China National Offshore Oil Corp (CNOOC) for deepwater Blocks 64/11 and 53/16. In 2006, BG Group also signed aGeophysical Survey Agreement for Block 41/06, offshore China.

BG Group is the operator of the two PSC blocks and has a 100%interest during the exploration phase. In the event of a commercialdiscovery, CNOOC has the right to take an interest of up to 51% inthe newly discovered field.

The initial exploration work programme commitment for the two PSCs will be carried out in three phases and involves the acquisition of 2D and 3D seismic data and the drilling ofexploration wells. A 2D seismic acquisition programme across the two blocks was completed in August 2007. The next phaseinvolves a 3D seismic programme that commenced in May 2008,with drilling on the two PSCs expected in 2009/2010.

The two blocks, covering 16 217 square kilometres, are largelyunexplored and, should commercial discoveries be made, are well placed to supply the high-growth markets of southern China.

Following the acquisition of the required commitment for 2D seismic data over Block 41/06, BG Group relinquished the acreage in February 2008.

HONG KONGIn June 2008, BG Group signed a LNG Heads of Agreement with Castle Peak Power Company (CAPCO), Hong Kong.

Under the proposed arrangement, BG Group has agreed to supply 1 mtpa to CAPCO for a period of up to 20 years to supply the Hong Kong market. Initial deliveries are expected to begin in 2013. The LNG will be sourced from BG Group's global portfolio.

MACAO HONG KONG

GUANGZHOU

HAIKOUYANGPU

DANZHOUDONGFANGTERMINAL

CHINA

DONGFANG

SANYA 53/16

Qiongdongnan Basin

64/11

Gas

Oil

Gas pipeline

0 250km

BG Group-operated

Pipeline –proposed orunderconstruction

SINGAPOREBG Group’s Asia Pacific headquarters are located in Singapore. The office provides leadership and expertise in the fields of legal, finance, tax, exploration, LNG marketing and businessdevelopment in support of projects and investments in the region.

In April 2008, the Energy Market Authority of Singapore appointedBG Group as the aggregator of LNG demand for the Singaporeanmarket. Under the agreement, BG Group will be responsible forsourcing and supplying up to 3 mtpa of LNG for up to 20 years.Initial deliveries are expected to begin in 2012 upon completion ofthe LNG import terminal, which will be located on Jurong Island inSingapore. PowerGas Ltd., a wholly owned subsidiary of SingaporePower Ltd., and Gaz de France will jointly develop, own and operatethis facility.

MALAYSIA

SUMATRA

SINGAPORE

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Key to operations

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MALAYSIABG Group has an interest in Genting Sanyen Power, one of the country’s main power stations located south of the capital,Kuala Lumpur.

GENTING SANYEN POWERBG Group was co-developer of this 794 MW combined cycle gas-fired power station and retains a 20% interest. MastikaLengenda (a wholly owned subsidiary of Genting Group) owns 60% and Worldwide Holdings Bhd owns 20%. Genting Sanyen islocated in Kuala Langat, 70 kilometres south of Kuala Lumpur, andbegan operations in 1995 with a 21 year contract to sell power toTenaga Nasional Berhad, the Malaysian national power company.

Philippines

PHILIPPINESBG Group has interests in two gas-fired power generation plants, Santa Rita and San Lorenzo, located on the island of Luzon, 80 kilometres south of Manila. The two plants represent over 12%of the generation capacity for Luzon Island, including Manila.

SANTA RITA POWER STATIONSanta Rita power station is owned by First Gas Power Corporation(FGPC), a 100% subsidiary of First Gas Holdings Corporation(FGHC), in which BG Group has a 40% interest. The remaining 60% of FGHC is owned by First Gen Holdings Corporation (First Gen), a subsidiary of First Philippines Holdings Corporation.The Santa Rita 1 000 MW power plant entered full operation in2000. Siemens AG operates the plant on behalf of First Gas. Gasand condensate purchase agreements were signed in 1997 and, in January 2002, the plant switched to natural gas operationswhen gas became available from the Malampaya field. Electricity is sold to the Manila Electric Company (Meralco) under a PPA thatis effective until 2025.

SAN LORENZO POWER STATIONBG Group, in partnership with Unified Holdings Corporation (UHC), a 100% subsidiary of First Gen, developed, financed and constructed the San Lorenzo power plant. BG Group owns 40% interest in FGP Corp, and UHC owns the remaining 60% of the San Lorenzo project company. The San Lorenzo plant is co-located with the Santa Rita power plant and has a capacity ofapproximately 500 MW. Siemens AG operates the plant. Gas andcondensate purchase agreements were executed similar to thosefor Santa Rita. San Lorenzo entered full commercial operation in2002, selling power to Meralco under a PPA until 2027.

TRANSMISSION AND DISTRIBUTIONIn 2001, FGHC was granted a 25 year franchise to install, own,operate and maintain a transmission and distribution pipelinebusiness serving Luzon Island, including metropolitan Manila.

SOUTH CHINA SEA

SULU SEA

PHILIPPINE SEAMANILA

BATANGAS

MALAMPAYA FIELDS

Santa Rita/San Lorenzo

LUZON

MINDORO

PANAY

PALAWAN

MALAYSIA

SUMATRA

KUALALUMPUR

GentingSanyen Power

0 200km

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Gas

Oil

Proposed pipeline

Malaysia

Key to operations

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26

Trinidad and Tobago

www.bg-group.com

BG Group has been operating in Trinidad and Tobago since 1989, and reinforces itsposition as a key gas producer in the country.BG Group currently supplies gas to thedomestic market and to Atlantic LNG. In2007, two thirds of production was exportedas LNG with the remainder going to thedomestic market.

EAST COAST MARINE AREA (ECMA)The BG Group-operated Dolphin gas field,located 83 kilometres off the east coast of Trinidad in Block 6(b), commencedproduction in 1996. The asset is contracted to supply 275 mmscfd gas to the National Gas Company (NGC) under a 20 year supplycontract together with 100 mmscfd toAtlantic Train 3 and 120 mmscfd to AtlanticTrain 4. An additional domestic contract willstart in 2009.

The gas is produced under a CombinedDevelopment Plan for the fields in Blocks 5(a), 6 and E. Production is currentlydelivered from the Dolphin field througheight platform wells and the Dolphin Deepfield from two sub-sea wells. These wellswere the first sub-sea completions inTrinidad and Tobago and came onstream in July 2006. The Dolphin Deep sub-seafacilities are tied back to upgraded facilitieson the Dolphin platform.

ECMA gas is delivered to NGC via a pipeline to the Poui platform where it connects to

CARIBBEAN SEA

ATLANTIC OCEAN

GULF OFPARIA

FTRINIDAD

TOBAGO

VENEZUELA

POINTFORTIN

BEACHFIELD

PORT OF SPAIN

PHOENIX PARK

ECMA

NCMA Unit Area

Poinsettia

Chaconia

Ixora

Hibiscus

Atlantic LNG

Block 5(a)

Block 5(c)

Block E

Block 6(b)

Dolphin Deep

Dolphin

Loran/Manatee

Central Block

Petrotrin Refinery Pointe-à-Pierre

Block 6(d)

Starfish

New information• Signed farm-in to Block 5(c) and

began drilling programme

• Victory and Bounty wells on Block 5(c) successful

Key dates1996 First Dolphin production

1999 Atlantic LNG Train 1 operational

2001 Hibiscus platform installed

2002 Atlantic LNG Train 2 start-up

2003 Atlantic LNG Train 3 start-up

2004 Acquisition of Central Block

2005 Manatee-1 discovery

Atlantic LNG Train 4 start-up

2006 Dolphin Deep onstream

2007 Agreement signed for 220 mmscfd supply to NGC

NCMA full unitisation completed

the domestic network. Gas is delivered toAtlantic LNG through a second offshorepipeline bringing gas from the Dolphinplatform to shore at the Beachfield receiving terminal. It then connects to NGC’s 76 kilometre onshore Cross IslandPipeline (CIP) extending from Beachfield to Atlantic LNG at Point Fortin.

In May 2007, BG Group signed an agreementto supply 220 mmscfd of gas to NGC for up to 15 years, commencing in 2009. Drilling offive further development wells in the Dolphinfield to enable delivery of this new supplycommenced in April 2008.

In 2005, BG Group and partner Chevroncompleted the Manatee-1 well in Block 6(d)

in the ECMA, which indicated gross reservesof 1.6 tcf. This was a significant gas discovery

and demonstrated the extension of the Loran field from Venezuela into Block 6(d)

in Trinidad and Tobago. In March 2007, theGovernments of Venezuela and Trinidad

and Tobago signed a Framework UnitisationTreaty for cross-border developments.

BLOCK 5(c)In August 2007, BG Group signed a farm-in

agreement with Canadian Superior EnergyInc. for Block 5(c), 94 kilometres off the east

coast of Trinidad. Under the terms of theagreement, BG Group has taken a 30%working interest in the PSC.

Americas and Global LNG

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05 06 07

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20

15

10

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22.6

18.0

Trinidad and Tobago: BG Group 3 year productionTotal production mmboe (net)

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some 20 kilometres away. An appraisal wellon the Celosia field was completed in 2007,tested in 2008 and the data is currentlyunder review.

In 2002, BG Group and its partnersannounced first gas production from theNCMA Hibiscus field into Atlantic Train 2.NCMA is contracted to supply 240 mmscfdgas to Train 2 for up to 20 years, in addition to 125 mmscfd to Train 3 for the first twoyears, reducing thereafter to 45 mmscfd.Production into Train 3 started in 2003 andNCMA has consistently produced at ratesapproximately 12% above the original DCQ for both Atlantic LNG Trains 2 and 3. NCMAstarted to supply gas to Atlantic LNG Train 4in 2005. The Train 4 supply contract is forapproximately 80 mmscfd.

CENTRAL BLOCKBG Group holds a 65% interest andoperatorship of this 111 square kilometreblock. State-owned company Petrotrin holds the remaining 35% under anExploration and Production Licence, whichwas renegotiated and signed in 2006. Thediscoveries in the block include the currentlyproducing Carapal Ridge field, as well asBaraka, Baraka East and Corosan.

BG Group currently supplies 20 mmscfd gasand approximately 1 000 bopd condensate to Petrotrin, for use in its refinery at Pointe-à-Pierre. Gas is transported via a 12 kilometrepipeline that connects to the NGC network.

A new gas plant with a capacity ofapproximately 65 mmscfd wascommissioned in September 2007, near the existing production site at Carapal Ridge. This increased capacity suppliesapproximately 23 mmscfd to BG Group’scapacity in Atlantic LNG Train 4 in addition to the supply to Petrotrin’s refinery.

Pre-sanction studies are currently ongoingfor the development of the Baraka andBaraka East discoveries. 3D seismic acquiredover 85 square kilometres of Central Blockarea during 2007 is currently being assessed.

The first well of the current three wellprogramme completed drilling on the Victory prospect in February 2008 and is considered to be a gas condensatediscovery. A second well, Bounty, wasspudded in February 2008 and drilled a separate prospect, approximately 3.5 kilometres away from the Victory well. The Bounty well is a gas discovery.

NORTH COAST MARINE AREA (NCMA)The BG Group-operated NCMA development,located 40 kilometres off the north coast of Trinidad, includes six gas fields: Hibiscus,Poinsettia, Chaconia, Ixora, Heliconia and Bougainvillea. In 2000, a UnitisationAgreement was signed with Petrotrin fordevelopment of these fields and this wasamended in 2007 to allow development of all accumulations within the NCMA UnitArea. In December 2000, the Government of Trinidad and Tobago approved thedevelopment of the first three fields. Thesefields are being developed in up to fourphases to supply gas to Atlantic LNG Trains 2, 3 and 4.

The Hibiscus platform was installed in 2001,in a water depth of 150 metres, together with a 107 kilometre pipeline from NCMA toAtlantic LNG at Point Fortin. De-bottleneckingin 2003 increased the capacity of the pipelineto 30% above the original design.

The Ixora prospect was drilled andsuccessfully completed in 2003 as part of drilling operations on the Hibiscus and Chaconia fields.

The H-4 well was drilled and completed as the first sub-sea well on the north coast of Trinidad and was successfully brought into production in 2006. Three additionalinfill sub-sea wells were drilled andsuccessfully brought into production during December 2006 and January 2007 in Chaconia and Eastern Hibiscus as part of Phase 3b of the NCMA development.

The next phases of activity in the NCMAinclude the development of the Poinsettiafield as part of Phase 3c and accessingHeliconia and Bougainvillea fields as part of Phase 3d. These phases involve building a new platform, drilling up to six wells fromthe platform and one sub-sea well. Topsidesfor the new platform are the largest to havebeen fabricated locally to date. The sub-seawell was successfully completed and testedin 2008. First gas from Phase 3c is expectedto be onstream at the end of 2008. A new 20 inch pipeline will connect the newplatform to the existing Hibiscus Platform

Partners Dolphin, Dolphin Deep and Starfish – ECMA (%)


Chevron 50

Partners Hibiscus – NCMA (%)


Petrotrin 19.50

Eni 17.31

PetroCanada 17.31

Partners Central Block (%)


Petrotrin 35

Partners Dolphin, Dolphin Deep and Starfish – ECMA (%)


Chevron 50

Partners Hibiscus – NCMA (%)


Petrotrin 19.50

Eni 17.31

PetroCanada 17.31

Partners Central Block (%)


Petrotrin 35

28

Trinidad and Tobago continued


www.bg-group.com

ATLANTIC LNGThe Atlantic LNG Company of Trinidad andTobago, in which BG Group is a shareholder,constructed its first LNG plant at Point Fortin,south-west Trinidad which began operatingin 1999.

The first train produces 3.1 mtpa LNG which is sold to markets in the north-east UnitedStates, Puerto Rico and Spain. Train 2commenced production in 2002 and Train 3in 2003, with the additional two trainsproducing on average a total of 6.6 mtpa.

With the completion of the 5.2 mtpa Train 4 in December 2005, the total LNGproduction capacity of Atlantic LNG isapproximately 15 mtpa.

NCMA, ECMA, Central Block and Atlantic LNG: integrated upstream and downstream

UPSTREAM LIQUEFACTION OUTPUT DOWNSTREAM

Gas LNG

c560 mmscfd

Gas LNG

c560 mmscfd

Gas LNG

Gas LNG

TRA

IN 1

Star

t da

te 19

99

TRA

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Star

t da

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2TR

AIN

3St

art

date

20

03

TRA

IN 4

Star

t da

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00

6

GAS SUPPLY LIQUEFACTION OUTPUT LNG PURCHASE

c520 mmscfd (non-BG supply)

Suez 60%Gas Natural 40%

BG Group 50% BP 50%

BG Group 25%BP 75%

BG Group 28.89%Other Train 4 partners off-take equity entitlement 71.11%

BG Group and upstream partners 28.9%

c800 mmscfdTrain 4 – 5.2 mtpaTolling plant

BG Group 28.89%BP 37.78%Repsol 22.22%NGC 11.11%


BG Group 32.5%BP 42.5%Repsol 25.0%


BG Group 32.5%BP 42.5%Repsol 25.0%

Train 1 – 3.1 mtpaMerchant plant

BG Group 26%BP 34%Repsol 20%Suez 10%NGC 10%

BG Group and upstream partners 50%

BG Group and upstream partners 25%

Train 4 is one of the world’s largest liquefaction

facilities, with an inlet capacity of circa

800 mmscfd of which BG Group and its

upstream partners supply 28.89%.

The LNG produced from gas supplied to

Trains 2 and 3 by BG Group and its partners

is sold to BG Gas Marketing (BGGM), a wholly

owned BG Group subsidiary, under a long-

term contract for import into the Elba Island

LNG receiving terminal in Georgia, USA.

LNG produced from the BG Group

liquefaction capacity in Train 4 is sold

under a long-term contract to BGGM for

delivery into the US market via the Lake

Charles import terminal in Louisiana.

Atlantic LNG Trains 2, 3 and 4 represent fully integrated projects for BG Group,involving the production and liquefaction of gas in Trinidad and Tobago, the shipping of LNG to the USA and the subsequentregasification for onward sale into the US market. In 2007, Atlantic LNG supplied58% of US imports of LNG.

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The Agreement became effective in January2002 and was extended in 2004 to cover100% of the terminal capacity for the term of the Agreement. The terminal has access to 15 major intra-state and inter-state naturalgas pipelines through the Trunkline GasPipeline system.

The Lake Charles facility has undergone two expansions, the latest of which wascompleted in 2006 and increased sustainablebaseload capacity to 1.8 bcfd (with peakcapacity of 2.1 bcfd) and added a secondunloading berth. All of the capacity of theexpansions is committed to BGLS.

BGLS entered into a long-term agreementwith Trunkline Gas Company for pipelinecapacity sufficient to meet its increasingthroughput capability at Lake Charles from April 2004 onwards. The agreementprovides for the addition of new pipelinefacilities and upgrades of existing facilities.The installation of the upgrades in 2005allows BGLS increased access to the USpipeline grid, providing enhanced access to diverse and deep markets.

In 2006, BGLS signed an agreement with Trunkline LNG, the owner of the LakeCharles terminal, for upgrades to the facilityincluding an ambient air vapourisationsystem and a natural gas liquids (NGL)extraction plant to remove higher Btu

GULF OF MEXICO GULF OF MEXICO

HOUSTON

JACKSONVILLE

BOSTON

Lake Charles

Elba Island

Masspower

Lake Road

Dighton

USA

CANADA

MEXICO

WASHINGTON D.C.

New information• Supply agreements signed with

Hong Kong (CAPCO) and Singapore

• Alliance with Queensland GasCompany for Queensland Curtis LNG project. Bechtel appointed tocommence work on FEED study

Key dates2001 22 year lease signed for

Lake Charles capacity

2003 Secured access to Elba Island terminal

2006 Two expansions of Lake Charlesincreasing capacity to 13.4 mtpa

Dighton power plant acquired

2007 Lake Road and Masspowerpower plants acquired

20 year SPA signed for 2.25 mtpafrom Nigeria LNG Train 7

Cypress pipeline in service givingdirect access from Elba Island tothe Florida market

products such as ethane, propane andbutane from the LNG. The new system willreduce fuel gas consumption by up to 85%,thus enhancing margins, reducing emissions,and providing an additional revenue streamfrom NGL sales expected to start in secondquarter 2009. As part of the agreement,Trunkline has also extended BGLS’s rights as the sole capacity holder by six years until 2029.

ELBA ISLANDBeginning in 2004, BGLS established itself as the new marketer of regasified LNG at Elba Island in Georgia after taking overcontracted capacity and long-term LNGsupply from El Paso in late 2003. Additionally, BG Energy Merchants (BGEM)entered into a long-term transportationarrangement with Southern Natural Gas to construct the Cypress pipeline expansionof the Southern Natural Gas Pipeline systemrunning from Elba Island to Jacksonville,Florida. Cypress Phases I and II are now up and running with the ability to supplyapproximately 336 000 mmbtud of naturalgas to southern Georgia and Florida markets– the first time that Florida has had directaccess to natural gas supplies other thanfrom the Gulf of Mexico.

In 2005, Southern LNG, Inc., the terminalowner, announced it will expand the totalterminal capacity. In September 2007,

BG Group has been the leading LNG importer to the USA in recent years withsupply from both equity and third partyprojects. During 2007, BG Group wasresponsible for importing around 55% of LNG delivered into the USA.

BG Group, through its subsidiary companies,has established this leading position througha combination of its capacity at the LakeCharles and Elba Island LNG receivingterminals, a portfolio of LNG supply contracts,its gas marketing capability and its access to shipping. BG Group has the potential to build on both its supply and marketingoperations in the USA through expansion of existing facilities and the pursuit of new projects.

In 2006, BG Group initiated expansion intothe US merchant power business as part ofits integrated natural gas business, via theacquisition of the Dighton power plant inMassachusetts. With the acquisition of twoadditional facilities, Lake Road (Connecticut)and Masspower (Massachusetts) in early2007, the US generation portfolio now has a capacity of 1 234 MW.

LAKE CHARLESIn 2001, BG LNG Services (BGLS), a whollyowned BG Group subsidiary, signed a 22 year LNG Terminalling Service Agreement to utilise the capacity of the LNG importfacility at Lake Charles, Louisiana, USA.

United States of America and Global LNG

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30

United States of America and Global LNG continued


www.bg-group.com

leading gas and electric utilities, as well asindustrial and wholesale gas merchants.

SHIPPINGBG Group has a long history in LNG shipping,having been involved in the development ofboth the prototype and the first working LNGcarriers in the industry. BG Group’s activitiesin this area are primarily directed towardsmeeting the needs of BG Group projects.

In 2007, BG Group took delivery of four newships – the Methane Alison Victoria, theMethane Heather Sally, the Methane ShirleyElisabeth and the Methane Nile Eagle. Fournew owned ships have been ordered fordelivery over 2009 and 2010. These new shipswill be larger (170 000 cubic metres) thanthose currently owned, and will be poweredby dual-fuel diesel-electric engines which aremore efficient and produce fewer emissions.

BG Group contracts additional shipping as required on a short-, medium- and long-term basis in order to capture business opportunities and maintain abalanced shipping position (see page 52 for further details).

STORAGEIn addition to the significant inherent storage facilities at Lake Charles and Elba Island, BG Group will from time to time contract for natural gas storage capacity on a seasonal and/or medium- to long-term basis to facilitate its operational and commercial requirements.

POWERBG Group entered the north-east US power market in 2006, chosen because it is both mature and transparent, with no dominant incumbents. The first powerstation purchased was Dighton, followed by Lake Road and then Masspower.

The acquisitions, all 100% owned by BG Group, represent an important step in the implementation of the Group’sintegrated US gas marketing strategy. The assets selected have been chosen to generate additional synergies from BG Group’s existing integrated gas business. This will be via gas supply, plant operations and power marketing.

Dighton (165 MW) is located inMassachusetts and is designed to run on natural gas, which can be supplied by BG Group through the Algonquin pipeline system.

Both Lake Road (805 MW) in Connecticut and Masspower (264 MW) in Massachusettsare dual-fuel capable plants designed to run

on natural gas or distillate oil. Fuel to LakeRoad is supplied through the Algonquinpipeline system while Masspower is suppliedthrough the Tennessee Gas pipeline system.With both plants the primary fuel is naturalgas with distillate as the back-up fuel. Theability to switch fuels gives the plants acommercial advantage over gas-only plantsin the region.

All three plants’ output is sold into thecompetitive New England power market.

approval was received from the FederalEnergy Regulatory Commission for theexpansion of the terminal and constructionof the new Elba Express Pipeline in easternGeorgia. After the Elba Island expansion, BG Group expects to have storage capacity of 8.2 bcf and send-out capacity of 1.2 bcfd. The Elba Express Pipeline, approximately 190 miles of pipeline with a capacity of 1.2 bcfd, will transport natural gas from Elba Island to markets in the south-easternand eastern USA. The facilities will beconstructed in two phases with the initial in-service date expected to be early 2010.

LNG SUPPLYBG Group is pursuing a number of options to create a diversified supply portfolio for its LNG regasification capacity. These options include buying LNG from thirdparties as well as from BG Group equity LNG liquefaction projects. The portfolio has a variety of contract periods and comprises a mixture of free on board (FOB) – where the buyer arranges carriage – and carriage,insurance and freight (CIF) deals.

In 2007, BG Group started receiving LNGcargoes under a 17 year 3.4 mtpa supplycontract with Equatorial Guinea LNG.

In February 2008, BG Group announced analliance with Queensland Gas CompanyLimited to explore and develop the coal seamgas resources in the Surat Basin, south-westQueensland, Australia. The alliance includespursuing an initial 3 to 4 mtpa LNG facility inQueensland to supply Asia Pacific markets.

MARKETINGBG LNG Trading (BGLT) in conjunction with the Group’s LNG shipping organisationis engaged in marketing LNG to buyersthroughout the world. During 2007, BGLTremarketed 81 cargoes from their intendeddestinations in the USA to higher valuemarkets. The combination of flexible supply,shipping capacity and commercial capabilitycontributes towards a strategic advantage for BG Group.

In 2008, BG Group made its first deliveries of LNG to Argentina, Brazil and China. TheGroup has now delivered to 16 of the 19current LNG importing countries.

BGEM markets regasified LNG from Lake Charles and Elba Island, along withindigenous gas supplies, to multipleintermediary and end-use customers via delivery through the USA natural gaspipeline infrastructure. Sales are made under various short-, medium- and long-termarrangements. BGEM’s customers include

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Partners Tupi (BM-S-11)(%)

BG Group 25

Petrobras (operator) 65

Petrogal 10

Brazil is the central part of BG Group’s SouthAmerica strategy. 2007 was a pivotal year for BG Group in Brazil, with significantdrilling success in the Santos Basin where the Group has seven offshore explorationlicences. In 2008, BG Group encountered two new discoveries: Guara on BM-S-9 and Iara on BM-S-11, extending its drillingsuccess in the pre-salt play in this basin. The Group also has one licence onshore (in São Francisco Basin, Minas Gerais State).

BG Group has a controlling stake inCompanhia de Gás de Sâo Paulo (Comgas),Brazil’s largest gas distribution company.Comgas has over 570 000 customers in SãoPaulo. The concession area has a populationof over 29 million and Comgas anticipatescontinued growth opportunities in future.

BG Group has an equity position in theBolivia-Brazil Pipeline (BBP).

EXPLORATIONIn 2003, BG Group entered the SecondExploration Period for the non-operated BM-S-9, 10 and 11 blocks in the deep waterSantos Basin (greater than 2 000 metreswater depth). In 2006, the Parati well in BM-S-10 (BG Group 25%) and the Tupi well in BM-S-11 (BG Group 25%) were bothdeclared as discoveries. In 2007, the Cariocawell on BM-S-9 (BG Group 30%) was declared a discovery and the Tupi appraisalwell, Tupi Sul (BM-S-11), confirmed the 2006Tupi discovery.

Partners Tupi (BM-S-11)(%)

BG Group 25


Petrogal 10

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The Saleta B Deep well (post-salt gas; BM-S-47, BG Group 50%) reached Total Depth in April 2008. BG Group has a further two commitment wells to drill as part of the BM-S-47 licence and is currently assessing further prospects.

BG Group anticipates drilling to commenceon the Corcovado complex (BM-S-52; BG Group 40% and operator) in first quarter 2009.

BOLIVIA-BRAZIL PIPELINE (BTB)With total capacity of 30 mmcmd, the BTB is 3 150 kilometres long, of which 2 593 kilometres is in Brazil. The project was developed through two differentcompanies: Gas Transboliviano (GTB), whichowns and operates the assets in Bolivia, andTransportadora Brasileira Gasoduto BoliviaBrasil (TBG), which owns and operates theBrazilian portion of the pipeline. Operation of the two pipelines is co-ordinated throughan Interconnection Agreement.

BG Group participates in TBG through BBPP Holdings, together with El Paso andTotal. BG Group’s one-third equity in BBPPHoldings represents a 9.67% interest in TBG.BG Group holds a 2% interest in GTB. BG Group has an effective overall interest of 7.65%, although this does not represent a direct equity holding, as GTB and TBG are two separate entities. Construction of thepipeline was completed in 2000, opening the Brazilian energy market to Bolivian gas reserves.

COMGASSummary of Comgas 2007 results:

• 6.5% increase in the total volume of gas sales

• 5.7% increase in industrial segment sales• 8.8% increase in gas sales to natural gas

vehicle (NGV) market• 535 kilometres of network expansion

BG Group has a majority interest in Comgas,Brazil’s largest gas distribution company.Comgas is listed on the São Paulo stockexchange with a free float of 21.8%.

At end 2007, Comgas had 5 255 kilometres of pipelines covering 66 municipalities and supplied gas to 989 industrial, 8 563 commercial and 562 175 residentialcustomers in the state of São Paulo.Additionally, Comgas supplied 384 NGVfilling stations and 18 customers in thethermo generation and co-generationmarket. Comgas has increased its averagedaily volume from 3.0 mmcmd in 1999 to 13.9 mmcmd in 2007.

Effective shareholders BTB (%)

Figures rounded to 2 decimal places and is a result of adding GTB’s and TBG’s equity positions

BG Group 7.65

Petrobras 40.46

Transredes 22.27

El Paso 7.65

Ashmore Energy 7.42

Shell 7.42

Total 7.12

Effective shareholders Comgas (%)

BG Group 60.04

Public 21.80

Shell 18.16

Tupi is a large structure with significantreserves potential requiring further appraisaldrilling and evaluation. Initial estimates byBG Group are that Tupi could contain from 12 billion boe to more than 30 billion boegross hydrocarbons initially in place.Commercialisation of the Tupi discovery isreceiving highest priority by BG Group andoperator Petrobras. Implementation of anextended well test (EWT) as well as a PilotProject were sanctioned in 2008. The Tupiconsortium is currently undertaking furtherevaluation of the field under an EvaluationPlan approved by the National PetroleumAgency of Brazil (ANP). Initial productionfrom the EWT is expected in 2009 with gross production of 10-20 000 bopd. A pilotproduction project is expected to commencein late 2010, with initial production estimatedto be up to 100 000 bopd.

In April 2008, operator Petrobras contractedthree sixth generation rigs from Seadrill,which should guarantee availability of rigcapacity to drill and complete the anticipatedeight additional Tupi Pilot Project wells, aswell as several appraisal wells on the Carioca,Guará and Iara discoveries, by 2011.

In BM-S-9, the Guará well was announced as a discovery in June 2008, the second one within this concession area. InSeptember 2008, BG Group announced thecompletion of drilling on the Iara well in the BM-S-11 concession and estimated grossrecoverable volumes to be 3-4 billion boe.Evaluation Plans for the Carioca and Guarádiscoveries have been approved by theregulator ANP and the Evaluation Plan for Iara is expected to be filed during fourthquarter 2008.

In July 2004, BG Group acquired a 100%operated interest in the BM-S-13 explorationblock in the shallow water (100 – 200 metreswater depth) Santos Basin. In 2005, Repsolfarmed into BM-S-13 for a 40% interest. InMay 2006, BG Group completed its first twooperated wells in the block and in September,BG Group entered the third and final twoyear Exploration Period and acquired 3Dseismic to fulfil the commitments.

In October 2005, BG Group’s explorationportfolio was further extended followingsuccess in the 7th Annual Brazil licensinground. Three licences were awarded in theoffshore Santos Basin (BM-S-47, BM-S-50 and BM-S-52) and one onshore licence wasawarded in the São Francisco Basin in MinasGerais State (BT-SF-2).

Partners BM-S-9 (%)

BG Group 30


Repsol YPF Brasil S.A. 25

Partners BM-S-9 (%)

BG Group 30


Repsol YPF Brasil S.A. 25

Effective shareholders BTB (%)

Figures rounded to 2 decimal places and is a result of adding GTB’s and TBG’s equity positions

BG Group 7.65

Petrobras 40.46

Transredes 22.27

El Paso 7.65

Ashmore Energy 7.42

Shell 7.42

Total 7.12

Effective shareholders Comgas (%)

BG Group 60.04

Public 21.80

Shell 18.16

Financial and operating summary – Comgas

2007 2006 2005

Revenue (£ million) 810.4 738.6 532.0

EBIT (£ million) 206.9 186.2 147.0

Customers at year end (‘000) 572 517 485

Sales volume (mmcm) 5 032 4 773 4 346

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OTHER BUSINESSIqara Gas Natural, launched in 2001, providedcompression services to the rapidly growingBrazilian NGV market. Iqara Gas Natural wassold in July 2008 to Dickens Investments LLC,a US subsidiary of the Natixis private equitycompany. At the time of sale, there were 61 Iqara Gas Natural CNG service stations, primarily located in the states of Rio de Janeiro and São Paulo.

BG Group, through Iqara Energy Services, has provided energy solutions (co-generation, peak shaving electric powergeneration, chilling and heat generation)tailored to clients’ specific needs usingnatural gas as the primary fuel. By the end of June 2008, a total equivalent to 22.2 MWwere in operation and another 27.2 MW were under construction. In July 2008, BG Group sold Iqara Energy Services toEcogen, (a holding company set up by Geriba Investimentos, a Brazilian privateequity group, and Iqara management).

Comgas increased its total net income by3.7% to BRL 443 million in 2007 and investedBRL 397 million.

BG Group and Shell have been the majorityshareholders in Comgas since April 1999,when the state-owned power generationutility, Companhia Energética São Paulo, sold its controlling stake in Comgas. Integral Investments paid BRL 1 653 million(US$988 million) for 62.7% of the company,which in turn was controlled by BG São PauloInvestments B.V. (96%) and Shell Gas B.V.(4%). Shell incorporated part of its previouslyheld direct shareholding in Comgas into the controlling consortium. After executionof the Shareholders’ Agreement, IntegralInvestments holds 71.9% of the company, in which BG São Paulo Investments B.V. and Shell Gas B.V. hold 83.5% and 16.5%, respectively.

The Comgas concession is a 30 year franchise, with a potential for a further 20 years. The concession area contains 7.7 million households and is in the industrial heartland of Brazil, accounting for about 25% of Brazil’s GDP. The currentbusiness focus continues to be theconnection of higher margin commercial and residential customers.

The concession contract requires a tariffreview every five years. The first, concluded in 2004, defined the overall level andstructure of tariffs for the period June 2004 to May 2009, and allows Comgas to make sufficient return to support furtherinvestment and growth in the business. Since this review, Comgas has investedapproximately BRL 1.5 billion.

Comgas purchases gas at prices indexed to a basket of oil-related fuels. Brazilian gas supplies from Petrobras of 3.5 mmcmdare contracted until December 2012. Bolivian gas supplies from Petrobras began in July 1999 under a 20 year contract, withvolume increasing from 4.0 mmcmd in 1999 to 8.7 mmcmd in 2007 and arecontracted until July 2019. Comgas has two further gas supply contracts withPetrobras: a firm energy contract (1.0 mmcmd until December 2012) and an interruptible contract (up to 1.5 mmcmd until December 2010).

On 15 May 2008, a new supply agreement for 0.65 mmcmd was agreed between BG Group’s gas marketing arm, BG Comercio,and Comgas to replace an earlier agreementthat needed to be restructured as a result ofchanges to the Bolivian regulatory regime.

Thermal

Co-generation

NGV

Commercial

Residential

Industrial

Comgas volumes (bcma)

5

4

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ARGENTINAMetroGASMetroGAS is the largest natural gasdistribution company in South America. BG Group acts as technical operator.

MetroGAS supplies around two millioncustomers in the city of Buenos Aires, and in 2007 delivered 7.9 bcm gas through over 16 000 kilometres of pipeline. The companydistributes approximately 23% of the totalnatural gas supplied by the nine distributioncompanies in Argentina.

In January 2002, the Argentine governmentdeclared what it called a state of ‘publicemergency’, forcing the re-negotiation of public utility contracts. The ‘PublicEmergency Law’ has been extended up to 31 December 2008, thereby extending the renegotiation of the MetroGAS licenceconcession. The timing and outcome of

this process still remains uncertain. As aresult, in March 2002, MetroGAS and itsholding company – GASA – suspendedpayments on all of its financial debt. InNovember 2003, MetroGAS launched a debt-restructuring plan.

In May 2006, MetroGAS reached a successfuloutcome of the debt-restructuring process,with a 95% level of consent from its creditors,increased to 99.5% by December 2006,following several court rulings.

In December 2005, GASA reached agreementwith its creditors for a comprehensiverestructuring, subject to regulatory and local competition authority approvals. The agreement would have reduced BG Group’s interest in GASA and led to the deconsolidation of MetroGAS from BG Group’s accounts in 2005. However, the local competition authority approval

was not obtained and on 15 May 2008, GASA received a notification from itscreditors Marathon Master Fund Ltd. and Marathon Special Opportunity MasterFund Ltd. informing that they wished toterminate the 2005 restructuring agreement.The creditors based their termination notice on the argument that closing was notachieved within the timeframe provided for in the restructuring agreement, resulting in the non-fulfilment of certainconditions precedent.

As a result, BG Group and its partners inGASA are currently evaluating the course of action that they will follow with respect to GASA’s debt.

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URUGUAYBG Group is operator with a 40% share in the Southern Cross Pipeline (SCP) linkingPunta Lara in Argentina to Montevideo.

The pipeline became operational in 2002 at the start of a 30 year concession period.

Through its holding in Dinarel, BG Groupholds a 25.5% interest in Gas Link, a 40 kilometre gas pipeline connecting the SCP to the Argentine transportation network.

CHILEQuintero LNGIn March 2007, BG Group and partnersincorporated GNL Quintero S.A. and executed the shareholders’ agreement. GNL Quintero S.A. is building and will operate and own a 2.5 mtpa LNG importterminal to be located in Quintero Bay, 110 kilometres from Santiago.

The regasification plant will include two 160 000 cubic metre LNG storage tanks and will have an initial send-out capacity of 340 mmscfd on a sustainable basis and 510 mmscfd on a peaking basis, theequivalent of approximately 40% of thecountry’s demand for natural gas. Followingproject sanction, BG Group and the partnersawarded the EPC contracts to Chicago Bridge & Iron Company in June 2007.

BG Group’s partners in GNL Quintero S.A.have secured capacity rights in the terminaland have arranged to off-take the gas via 21 year agreements with 1.7 mtpa LNGsupplied by BG Group from its supply portfolio.

GNL Quintero S.A. is progressing with the construction of the terminal, which is scheduled to be completed during third quarter 2010, with early operations scheduled for end second quarter 2009.

In August 2008, GNL Quintero S.A. achieved financial closing of a US$1.11 billion non-recourse project financing facility thatwill finance 85% of the investment. BG Groupacts as a co-lender for 40% of this financing.

MetroGAS effective shareholding (%)

* GASA (BG Inversiones Argentinas 54.67%; YPF Inversora Energética 45.33%)

BG Group 6.8

Gas Argentino S.A. (GASA)* 70.0

Retail 13.2

Former Gas del Estado employees 10.0

Shareholders GNL Quintero S.A. (%)

BG Group 40

ENAP 20

Endesa 20

Metrogas S.A. of Santiago 20

MetroGAS effective shareholding (%)

* GASA (BG Inversiones Argentinas 54.67%; YPF Inversora Energética 45.33%)

BG Group 6.8

Gas Argentino S.A. (GASA)* 70.0

Retail 13.2

Former Gas del Estado employees 10.0

Shareholders GNL Quintero S.A. (%)

BG Group 40

ENAP 20

Endesa 20

Metrogas S.A. of Santiago 20

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Bolivia


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TARIJAVILLAMONTES

Charagua

Caipipendi

La Vertiente

XX Tarija East

XX Tarija East

Los Suris

XX Tarija West

BOLIVIA

ARGENTINA

PARAGUAY

Key dates1998 Margarita discovered

1999 Itau field discovered

Purchased Bolivian assets from Tesoro

2004 First production from MargaritaEarly Production Facility

2005 New hydrocarbons law passed in May

2006 Supreme Decree (No. 28701/6)on Nationalisation issued

New Operations Contracts signed

2007 New contracts approved by Congress in April and became effective in May

Successful drilling of Huacaya X-1well in Caipipendi Block

2008 Declaration of Commerciality on Huacaya discovery

05 06 07

10

7.5

5.0

2.5

0

5.5

5.3

6.2

Bolivia: BG Group 3 year productionTotal production mmboe (net)

Gas

Oil & liquids

Bolivian production represented around 2.5%of Group production in 2007. Gas and liquidsare delivered to the National Oil Company,YPFB, from fields in the La Vertiente, Los Surisand Caipipendi blocks to supply Brazilian,Argentine and domestic markets.

100% OPERATIONSFollowing the acquisition in 1999 of TesoroBolivia Petroleum Company’s assets, BG Groupcontinues to hold and operate (100%) threeexploitation and retention licences containingsix fields.

La Vertiente The 375 square kilometre La Vertienteexploitation block contains the La Vertiente,Escondido and Taiguati gas condensate fields.Production from these fields is processed atthe La Vertiente plant and the natural gas and stabilised condensate are delivered toYPFB for subsequent marketing. Productionfrom La Vertiente began in 1978 and fromEscondido in October 1989.

Los SurisThe 50 square kilometre Los Suris exploitationblock contains the Los Suris gas condensatefield which began production in 1999.Production from this field is processed at the La Vertiente plant.

XX Tarija East Two discovered gas condensate and oil fields,Ibibobo and Palo Marcado, in XX Tarija East areheld as Retention Areas awaiting development.

NON-OPERATED BLOCKSCaipipendiBG Group has a 37.5% share in this Block, which contains the large Margarita gascondensate field lying in the 874 squarekilometre Margarita exploitation area.Following discovery in November 1998, first production from Margarita began inDecember 2004 under an interconnectionagreement with Petrobras for the temporaryuse of its gas and liquids lines. The Caipipendiblock also contains several large gascondensate exploration leads and prospects.On the northern part of this block a newdiscovery was made at the end of 2007 after successful drilling of the Huacaya X-1 well by BG Bolivia and partners. In 2008, this partnership issued a Declaration ofCommerciality in respect of this discovery.

XX Tarija West BG Group has a 25% interest in the XX TarijaWest block, which contains the Itau gascondensate field currently in retention.

Charagua BG Group has a 20% interest in the 992 squarekilometre Charagua Block, which contains theItatiqui Retention Area.

BG Group, through its subsidiary BG Bolivia, has interests in six exploration andexploitation licences. BG Bolivia operatesthree gas areas which include six fields andholds a participating interest in anotherthree areas, which include two of the largestdiscovered natural gas condensate fields inthe country, Margarita and Itau.

Following congressional approval in May2007, new Operations Contracts becameeffective replacing the Shared Risk Contracts.

0 100km

Gas

Oil

Gas pipeline

BG Group-operated block


Key to operations

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CANADABG Group’s Canadian exploration activitiesare focused in Alberta and British Columbia.BG Canada currently holds 77 860 nethectares in the Foothills and Deep West area of the Western Canadian SedimentaryBasin. Exploration activities are focused inthe northern and central foothills and theWild River Basin. BG Canada also holdsinterests in 245 679 net hectares in theNorthwest Territories.

In 2005, BG Group acquired two licences (EL 429 and EL 432) in the Colville Lake area ofthe Mackenzie Valley, Northwest Territories,about 700 miles north-west of Yellowknife. BG Group has a 75% interest and is operator.

In 2005, BG Group acquired a 100% interest in a 1 280 hectare licence and a 50% interestin a 768 hectare licence in the Waterton areaof south-east Alberta. In 2006, BG Groupacquired a 100% interest in an 18 000 hectarelicence in the Robb Lake area of north-eastBritish Columbia.

In May 2007, BG Group acquired two furtherlicences, EL 444 (BG Group 100%) and EL 445(BG Group 75% and operator) in the ColvilleLake area of the Northwest Territories.Further acreage was also acquired in Albertaand British Columbia.

In April 2007, BG Group sold its productionassets in the Bubbles, Ojay and Copton/Lynxareas of the Western Canadian SedimentaryBasin for £228 million. The Group’s 50%interest in Waterton was retained.

ALASKAIn Alaska, BG Alaska has interests in over 2.3 million gross acres in the eastern NorthSlope (ENS) and the foothills of the NorthSlope areas.

In 2006, BG Group signed a ParticipationAgreement for a 33.33% interest in 2.1 million acres in the Foothills area of the Alaskan North Slope. Equal partnersare Anardarko (operator) and Petro-Canada.

Alaska’s North Slope has estimateddiscovered reserves in excess of 17 billionbarrels of oil and 35 tcf of gas. In 2006, BG Group signed a further ExplorationAgreement to acquire a 40% interest in 208 000 acres of land along Alaska’s ENS.Partners are Anardarko with 50% (operator)and Arctic Slope Regional Corporation with10%. The acreage is located on the coastalplain near the Prudhoe Bay field, which hasproduced over 10 billion barrels of oil.

Drilling and seismic activities are beingcarried out in both of these areas.

Canada and Alaska

05 06 07

4

3

2

1

0

0.9

3.5

3.3

Canada: BG Group 3 year productionTotal production mmboe (net)

Gas

Oil & liquids

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Australia


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The LNG project involves the construction of a 380 kilometre pipeline to the port ofGladstone, additional pipeline capacity to link nearby CSG resources and developmentof the LNG terminal.

In July 2008, the LNG project was awarded‘Significant Project Status’ by the QueenslandGovernment, a move that triggersenvironmental impact assessment underQueensland and Australian Governmentlegislation. Bechtel has been appointed to commence work on the FEED study.

In June 2008, QGC announced that its proved and probable (2P) reserves of coalseam gas in the QGC/BG Group assetsincreased from 1 317 PJ to 2 415 PJ. Proved,probable and possible (3P) reserves have risen from 3 116 PJ to 7 163 PJ.

In September 2008, QGC announced afurther increase in 2P reserves to 2 703 PJ. 3Preserves stand at 7 103 PJ. The focus of drillingsince the last upgrade has been on thedevelopment of 1P and 2P reserves.

In February 2008, BG Group announced analliance with Queensland Gas CompanyLimited (QGC), a leading coal seam gascompany supplying the Queensland market.BG Group acquired a 20% interest in QGC’scoal seam gas assets in the Surat Basin,south-west Queensland, and a 9.9% stake inQGC for a total consideration of £316 million.BG Group will also acquire a further 10%interest in such coal seam gas and otherassets with the earlier of either thecertification of proved and probable reservesof 7 000 petajoules (PJ) (c7 tcf) or the finalinvestment decision approving the budgetfor the construction of a LNG export facility.

The companies are co-operating in theexploration and development of onshore coal seam gas acreage that will supply thedomestic market and a new LNG productionand export facility. BG Group’s alliance withQGC is pursuing a LNG facility on the centralQueensland coast to supply Asia Pacificmarkets. The Queensland Curtis LNG projectis being designed to initially supply 3-4 mtpaof LNG, with potential expansion up to 12 mtpa subject to additional gas reserves.

BG Group/QGC Partnership (%)

CSG assets(a)

8020

Pipeline

50 50

LNG plant*

70 30

LNG offtake

100

70 30

BG Group

QGC

*BG Group operator

(a) BG Group interest will rise to 30% subject to certain conditions.


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Statistical supplement 39

CONTENTS

40 Introduction and legal notices

Social and environmental data 41 Environment

41 Our people

41 Conduct

41 Society

Group financial data 42 Summarised BG Group

annual results

43 Summarised BG Group quarterly results

44 Segmental analysis

Exploration and Production 45 Estimated net proved

reserves of natural gas

46 Estimated net proved reserves of oil

46 Estimated net proved and probable reserves

47 Operating statistics

47 Drilling activity

48 Field interests

49 Licence and block interests

LNG 51 Facilities capacity

51 Long-term firm supply

52 Cargoes

52 Ships

Transmission and Distribution 53 Operating statistics

Power Generation 53 Capacity

Corporate information 54 Principal acquisitions,

commitments and divestments

54 Credit ratings

55 Issued share capital and dividend history

55 Investor calendar

Definitions 56 Definitions

57 Index of assets

www.bg-group.com

Introduction and legal notices

40

INTRODUCTION Financial and operating statistics This financial and operating information includes extracts from the BG Group Annual Report and Accounts 2007 and quarterly results statements. Reference to these reports will assist in the understanding of the figures in this document. The financial information in this document is unaudited and is not intended to be the statutory accounts of BG Group plc.

Business Performance ‘Business Performance’ excludes disposals, certain re-measurements and impairments, and exclusion of these items provides readers with a clear and consistent presentation of the underlying operating performance of the Group’s ongoing business.

For further explanation of Business Performance and the presentation of results from joint ventures and associates, please refer to the presentation of non-GAAP measures on page 140 of the BG Group Annual Report and Accounts 2007.

Translation into US Dollars Some of BG Group’s financial figures in Sterling have been translated into US Dollars. The average rate for each period has been used when translating the income statement and cash flow statement. These translations should not be construed as representations that the Sterling amounts actually represent such US Dollar amounts or could be converted into US Dollars at the rate indicated or any other rate.

LEGAL NOTICES

Steps have been taken to verify the information contained in this Data Book and, unless otherwise indicated, is believed to be accurate as at 31 July 2008. However, neither BG Group plc nor any of its subsidiary undertakings, joint ventures or associated undertakings or their respective directors, partners, employees or agents make any representation or warranty, express or implied, or accepts any responsibility, with respect to the accuracy or completeness of the information in this document.

Certain statements included in this Data Book contain forward-looking information concerning BG Group’s strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which BG Group operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within BG Group’s control or can be predicted by the BG Group. Although BG Group believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the “Risk Factors” included on pages 42 to 45 of the BG Group Annual Report and Accounts 2007 (“BG Group ARA”). Nothing in this Data Book should be construed as a profit forecast, and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. BG Group undertakes no obligation to update any forward-looking statements.

EXPLANATORY NOTE FOR US INVESTORS RELATING TO GAS AND OIL RESERVES AND RESOURCES BG Group continues voluntarily to use the SEC definition of proved reserves to report proved gas and oil reserves. For further details of BG Group’s proved reserves as at 31 December 2007, and related supplemental gas and oil information, see Supplementary information �– gas and oil, included on page 121 of the BG Group ARA. This Data Book may also contain additional information about other BG Group gas and oil reserves and resources that would not be permitted in SEC filings. For an explanation of terms used in connection with such additional reserves and resources information, refer to page 56.

Details of disposals, certain re-measurements and impairments can be found on the BG Group website, www.bg-group.com

The information contained in the Data Book can also be found on the BG Group website, www.bg-group.com


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Social and environmental data 41

ENVIRONMENT The environment data represents 100% of the direct emissions, discharges and wastes from:

E&P operations where BG Group is designated as the ‘operator’; and LNG, T&D and Power operations in which BG Group holds a total interest of over 50%. This includes MetroGAS S.A., which is controlled by BG Group (although BG Group’s direct shareholding is less than 50%).

In addition, the figures include 50% of the direct emissions, discharges and wastes from KPO, our joint-operated venture in Kazakhstan.

Emissions (tonnes) Venting Fugitive Flaring Fuel use

Electricity generation

Distribution losses

Total 2007

Total 2006(1)

Total 2005(1)

t/mmboe 2007

t/mmboe 2006(1)

t/mmboe 2005(1)

Carbon dioxide 546 864 2 544 977 2 497 504 4 784 150 1 235 8 374 732 5 216 377 5 486 385 19 735 15 579 16 096

Carbon monoxide 0 0 1 483 4 639 2 794 0 8 916 8 665 39 331 21 26 115

Nitrogen oxides 0 0 732 12 163 5 515 0 18 410 13 590 11 685 43 41 34

Sulphur dioxide 0 0 2 675 8 240 593 0 11 508 9 216 17 197 27 28 50

Methane 6 656 882 1 509 431 624 35 658 45 760 44 825 48 427 108 134 142

Volatile organic compounds 6 458 157 630 296 82 2 889 10 512 10 617 10 467 25 32 31

Greenhouse gases (carbon dioxide equivalent) 686 636 18 514 582 741 2 526 741 4 836 705 750 059 9 401 936 6 199 205 6 550 543 22 155 18 514 19 217

Discharges to aqueous environments (tonnes) Oil in process

water Oil on

cuttings Oil

spills Process

water Drill

cuttings Total 2007

Total 2006(2)

Total 2005

209 0 13 4 540 970 22 328 4 563 520 4 381 109 3 867 907

Waste for disposal (tonnes) Metal General Hazardous Recycled

Drill cuttings

Total 2007(3)

Total 2006(4)

Total 2005

1 650 12 629 20 524 3 894 6 708 41 511 54 425 23 534

Energy use (MWh) Gas Electricity Oil

Total 2007

Total 2006(5)

Total 2005

8 732 176 37 574 2 441 600 11 211 350 9 989 797 8 682 281

(1) Amended from 2005 and 2006 CR Reports to include revised CO2 emissions for diesel vessels (2) Amended from 2006 CR Report to include BG Trinidad and Tobago drill cuttings data not available at the time of the 2006 Report (3) 2007 operational waste data for Rashpetco was not available at the time of printing this Report. 2006 waste amounted to 304 tonnes in total (4) Amended from 2006 CR Report to include additional data from BG Bolivia not available at the time of the 2006 Report (5) Amended from 2006 CR Report to include additional data from BG Trinidad and Tobago not available at the time of the 2006 Report

OUR PEOPLE People data refers to direct employees of BG Group (average numbers) 2007 2006 2005

Employees worldwide 4 949 4 665 5 363(6)

Employees based outside UK 3 286 3 030 4 000(6)

Employees working away from home country 582 529 440

Women in management 8% 9% 11%

(6) Included in this figure are an average of 1 009 employees of MetroGAS S.A. This company was deconsolidated at the end of 2005

Health and safety The health and safety data represents 100% of the data from:

E&P operations where BG Group is designated as the ‘operator’; and LNG, T&D and Power operations in which BG Group holds a total interest of over 50%. This includes MetroGAS S.A., which is controlled by BG Group (although BG Group’s direct shareholding is less than 50%).

In addition, this includes Dragon LNG, UK, and 100% of the data from KPO, our joint-operated venture in Kazakhstan.

2007 2006 2005

Lost time injury frequency (LTIF) 0.26 0.36 0.51

Total recordable case frequency (TRCF) 1.56 1.66 2.39

Sickness absence 0.83(7) 0.4 0.4

Reported occupational related illness frequency (ORIF) 0.12 0.1 0.1

(7) Increase mainly due to improved data collection methods and reporting in 2007

CONDUCT 2007 2006 2005

Investigations of fraud allegations 6 7 6

Whistleblowing cases 34 24 7

SOCIETY – SOCIAL INVESTMENT The following data represents 100% of contributions made by wholly owned BG Group businesses and proportional contributions (according to BG Group’s stake) made by operations and joint ventures where BG Group is a shareholder.

2007 2006 2005

Charitable donations 506 022 426 663 1 064 441

Community investment 1 290 010 1 364 205 1 508 691

Commercial initiatives 1 622 607 1 978 555 808 014

Management costs 459 691 470 966 260 357

Sub-total voluntary contributions 3 878 330 4 240 389 3 641 503

Contractual 1 660 590 1 352 053 3 503 761

Total voluntary and contractual contributions 5 538 920 5 592 442 7 145 264

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Summarised BG Group annual results 42

BUSINESS PERFORMANCE 2007 2006 2005(1)

Dated Brent average ($/bbl) 72.39 65.14 54.52

FX rate ($/£) 2.00 1.83 1.83

Henry Hub ($/mmbtu) 6.95 6.74 8.86

BG Group E&P production (mmboe) 220.3 219.2 183.8

Group revenue and other operating income (£ million) 8 330 7 270 5 664

Total operating profit

Exploration and Production 2 387 2 457 1 942

LNG 521 352 181

Transmission and Distribution 247 231 211

Power Generation 130 106 113

Other activities(2) (37) (43) (58)

Total operating profit on ordinary activities 3 248 3 103 2 389

Net finance costs(3) (27) (43) (65)

Profit on ordinary activities before taxation 3 221 3 060 2 324

Tax on profit on ordinary activities(4) (1 385) (1 375) (939)

Profit on ordinary activities after taxation 1 836 1 685 1 385

Minority shareholders’ interest (53) (45) (31)

Earnings 1 783 1 640 1 354

Earnings per ordinary share 52.7p 47.4p 38.2p

Net cash flow from operating activities 2 741 2 381 1 626

Net funds /(borrowings) 25 (103) (30)

Capital investment 2 497 1 847 1 595

Capital investment excluding acquisitions 1 923 1 800 1 566

ROACE after tax (%) 25.8 26.2 22.6

Gearing (%) (0.3) 1.6 0.4

(1) Restated for IFRIC 4. For further detail, please see the www.bg-group.com website (2) Other activities include new business development expenditure and certain corporate costs (3) Includes share of joint ventures and associates net finance costs (4) Includes share of joint ventures and associates tax


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Summarised BG Group quarterly results(1) (2)

43

BUSINESS PERFORMANCE

Q2

2008 Q1

2008 Q4

2007 Q3

2007 Q2

2007 Q1

2007 Q4

2006 Q3

2006 Q2

2006 Q1

2006 Q4

2005 Q3

2005 Q2

2005 Q1

2005

Dated Brent assumption $/bbl 121.36 96.89 88.45 74.75 68.76 57.76 59.60 69.60 69.59 61.79 56.87 61.63 51.63 47.62

FX rate $/£ 2.00 1.98 2.05 2.02 1.98 1.96 1.90 1.86 1.80 1.75 1.76 1.79 1.87 1.90

Henry Hub $/mmbtu 11.32 8.58 6.92 6.16 7.55 7.16 6.60 6.08 6.54 7.75 12.22 9.82 7.03 6.37

BG Group E&P production (mmboe) 54.7 60.7 59.7 48.7 53.7 58.2 57.2 50.6 55.6 55.8 54.3 41.2 44.6 43.7

– oil volume (mmboe) 7.2 7.9 7.7 6.6 7.4 6.5 5.9 4.3 5.3 5.6 5.5 4.6 4.5 4.7

– liquids volume (mmboe) 9.2 9.3 9.0 8.2 9.7 8.8 8.7 6.9 7.6 7.4 7.8 5.8 8.4 7.7

– gas volume (mmboe)(3) 38.3 43.5 43.0 33.9 36.6 42.9 42.6 39.4 42.7 42.8 41.0 30.8 31.7 31.3

BG Group avg UK gas price pence per produced therm 32.79 38.73 38.36 29.46 23.88 37.03 34.41 25.50 26.20 38.84 38.89 20.10 22.98 24.12

BG Group avg Int’l gas price pence per produced therm 20.43 19.54 16.00 14.54 15.11 16.31 16.69 16.83 17.05 18.4 21.43 17.92 14.16 13.85

Overall BG Group avg gas price pence per produced therm 22.94 23.87 21.40 16.62 17.00 21.50 21.28 18.52 19.09 23.69 26.11 18.42 16.81 17.48

BG Group avg oil price $/bbl 120.93 98.49 88.59 76.47 69.07 58.13 60.13 71.43 69.76 62.53 58.55 63.02 52.36 48.24

BG Group avg liquids price $/bbl 97.69 81.35 73.48 61.26 56.72 45.57 46.40 57.56 56.79 50.17 47.17 48.23 39.54 33.01

Total operating profit including share of pre-tax operating results from joint ventures and associates £ million

Exploration and Production 976 942 763 433 565 626 575 509 647 726 729 419 407 387

LNG 367 395 163 149 88 121 115 65 34 138 81 54 17 29

Transmission and Distribution 55 31 60 67 70 50 53 56 57 65 45 64 56 46

Power Generation 40 38 32 29 31 38 28 16 23 39 35 21 21 36

Other activities(4) (7) (4) (12) (6) (7) (12) (11) (13) (9) (10) (30) (7) (8) (13)

Total operating profit 1 431 1 402 1 006 672 747 823 760 633 752 958 860 551 493 485

Net finance costs(5) 4 (11) (4) (8) (6) (9) (17) (13) (14) 1 (17) (14) (13) (21)

Profit before tax 1 435 1 391 1 002 664 741 814 743 620 738 959 843 537 480 464

Tax on profit on ordinary activities(6) (617) (598) (431) (281) (317) (356) (324) (266) (401) (384) (346) (215) (191) (187)

Profit for the period 818 793 571 383 424 458 419 354 337 575 497 322 289 277

Minority interest (11) (4) (13) (15) (15) (10) (9) (12) (12) (12) 6 (15) (14) (8)

Earnings (BG Group shareholders) (7) 807 789 558 368 409 448 410 342 325 563 503 307 275 269

Earnings per ordinary share 24.1p 23.6p 16.6p 10.9p 12.0p 13.1p 12.0p 10.0p 9.3p 16.0p 14.2p 8.6p 7.8p 7.6p

Net cash flow from operating activities 1 353 1 165 714 486 639 902 577 461 641 702 369 469 378 410

Net funds/(borrowings) 629 506 25 (60) 213 (27) (103) (358) 14 183 (30) (380) (245) (1 095)

Capital investment 950 647 628 504 496 869 549 511 401 386 408 457 415 315

Capital investment excluding acquisitions 634 647 626 504 422 438 502 511 401 386 408 457 386 315

ADDITIONAL INFORMATION: EXPLORATION AND PRODUCTION

Lifting costs ($/boe) 3.72 3.11 3.22 3.60 3.44 2.97 2.88 2.69 2.18 2.08 1.92 2.54 2.10 2.18

– lifting costs (£/boe) 1.87 1.57 1.58 1.78 1.74 1.51 1.51 1.45 1.21 1.19 1.09 1.42 1.13 1.15

Opex ($/boe) 6.47 5.55 5.10 5.50 5.41 4.92 4.82 4.39 3.72 3.82 3.85 4.57 3.82 3.96

– opex (£/boe) 3.24 2.80 2.50 2.73 2.74 2.51 2.53 2.36 2.07 2.18 2.19 2.56 2.04 2.08

Development expenditure (£ million) 406 407 340 310 301 291 201 229 160 131 188 166 174 155

Gross exploration expenditure (£ million) 234 187 181 148 102 105 180 103 103 169 131 65 38 102

– capitalised 180 146 116 83 46 59 129 65 66 136 89 34 15 87

– other expenditure 54 41 65 65 56 46 51 38 37 33 42 31 23 15

(1) All information is prepared under IFRS (2) BG Group has applied IFRIC 4 from 1 January 2006. Comparative information for 2005 has been restated for IFRIC 4. For further detail, please see the

www.bg-group.com website (3) Volumes from 2006 onwards include fuel gas. Volumes for 2005 do not include fuel gas (4) Other activities include new business development expenditure and certain corporate costs (5) Includes share of joint ventures and associates net finance costs (6) Includes share of joint ventures and associates tax (7) Q2 2006 includes prior period taxation of £76 million due to increase in North Sea taxation

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Segmental analysis(1)

44

BUSINESS PERFORMANCE

£ million Q2

2008 Q1

2008 Year 2007

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Year 2006

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Year 2005

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Revenue and other operating income

Exploration and Production 1 476 1 455 4 039 1 241 829 942 1 027 3 928 1 001 870 984 1 073 3 074 1 093 688 658 635

LNG 1 395 1 336 3 099 788 704 910 697 2 442 675 566 548 653 1 631 771 404 236 220

Transmission and Distribution 327 289 978 266 258 234 220 877 226 224 224 203 808 219 224 196 169

Power Generation 160 139 523 145 140 142 96 248 64 42 50 92 227 59 47 46 75

Other activities(2) 1 2 7 2 2 1 2 8 1 2 2 3 15 5 4 4 2

Intra-group sales (143) (115) (316) (104) (83) (67) (62) (233) (70) (57) (54) (52) (91) (49) (28) (7) (7)

3 216 3 106 8 330 2 338 1 850 2 162 1 980 7 270 1 897 1 647 1 754 1 972 5 664 2 098 1 339 1 133 1 094

OPERATING PROFIT

Group operating profit before share of pre-tax results of joint ventures and associates

Exploration and Production 976 942 2 387 763 433 565 626 2 457 575 509 647 726 1 942 729 419 407 387

LNG 331 370 394 125 116 57 96 248 90 40 10 108 70 45 24 (7) 8


Power Generation 17 16 44 11 5 10 18 18 7 (1) 2 10 24 8 1 (1) 16

Other activities (7) (4) (37) (12) (6) (7) (12) (43) (11) (13) (9) (10) (58) (30) (7) (8) (13)

Sub-total Group operating profit 1 365 1 349 3 001 940 609 684 768 2 870 705 581 696 888 2 147 786 491 437 433

Share of operating profit of joint ventures and associates

Exploration and Production – – – – – – – – – – – – – – – – –

LNG 36 25 127 38 33 31 25 104 25 25 24 30 111 36 30 24 21


Power Generation 23 22 86 21 24 21 20 88 21 17 21 29 89 27 20 22 20

Other activities – – – – – – – – – – – – – – – – –

Sub-total share of operating profit in joint ventures and associates 66 53 247 66 63 63 55 233 55 52 56 70 242 74 60 56 52

Total operating profit 1 431 1 402 3 248 1 006 672 747 823 3 103 760 633 752 958 2 389 860 551 493 485

(1) BG Group has applied IFRIC 4 from 1 January 2006. Comparative information for 2005 has been restated for IFRIC 4. For further detail, please see the www.bg-group.com website

(2) Other activities include new business development expenditure and certain corporate costs


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Exploration and Production: Estimated net proved reserves of natural gas 45

The allocation of the countries within these areas is: Atlantic Basin – Canada, Egypt, Nigeria, Trinidad and Tobago and the USA Asia and the Middle East – China, India, Israel and areas of Palestinian Authority, Kazakhstan, Oman and Thailand, Rest of the world – Algeria, Australia, Bolivia, Brazil, Italy, Libya, Madagascar, Mauritania, Norway, Spain and Tunisia

UK bcf

Atlantic Basin

bcf

Asia and Middle East

bcf

Rest of world

bcf Total

bcf

As at 31 December 2004 1 039 4 472 2 386 1 179 9 076

Movement during the year:

Revisions of previous estimates(1) 297 392 402 209 1 300

Extensions, discoveries and reclassifications 7 16 – 74 97

Production (219) (332) (158) (96) (805)

Purchase of reserves-in-place – – – – –

Sale of reserves-in-place – (1) – – (1)

85 75 244 187 591

As at 31 December 2005 1 124 4 547 2 630 1 366 9 667(2)


Revisions of previous estimates(1) 80 583 145 20 828

Extensions, discoveries and reclassifications 87 – – – 87

Production (223) (515) (170) (92) (1 000)


Sale of reserves-in-place – – – – –

(56) 68 (25) (72) (85)

As at 31 December 2006 1 068 4 615 2 605 1 294 9 582(2)


Revisions of previous estimates(1) 122 469 (192) 25 424

Extensions, discoveries and reclassifications 5 – 159 – 164

Production (192) (465) (191) (90) (938)

Purchase of reserves-in-place 21 – – – 21

Sale of reserves-in-place – (57) – – (57)

(44) (53) (224) (65) (386)

As at 31 December 2007 1 024 4 562 2 381 1 229 9 196(2)

Proved developed reserves of natural gas:

As at 31 December 2004 867 1 393 2 038 665 4 963

As at 31 December 2005 937 2 267 2 139 929 6 272

As at 31 December 2006 846 2 232 2 006 844 5 928

As at 31 December 2007 807 1 897 2 046 822 5 572

(1) Includes effect of oil and gas price changes on PSCs (2) Estimates of proved natural gas reserves at 31 December 2007 include fuel gas of 632 bcf (31 December 2006 640 bcf; 31 December 2005 534 bcf)

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Exploration and Production: Estimated net proved reserves of oil 46

‘Oil’ includes crude oil, condensate and natural gas liquids.

UK

mmbbls

Atlantic Basin

mmbbls

Asia and Middle East

mmbbls

Rest of world

mmbbls Total

mmbbls

As at 31 December 2004 164.5 10.9 414.2 45.2 634.8


Revisions of previous estimates(1) 12.3 7.7 (46.9) 4.5 (22.4)

Extensions, discoveries and reclassifications 1.5 – – 7.4 8.9

Production (18.3) (0.5) (27.4) (2.8) (49.0)



(4.5) 7.2 (74.3) 9.1 (62.5)

As at 31 December 2005 160.0 18.1 339.9 54.3 572.3


Revisions of previous estimates(1) 10.0 (1.5) 18.4 (5.4) 21.5

Extensions, discoveries and reclassifications 10.2 – – – 10.2

Production (18.4) (1.8) (28.1) (3.4) (51.7)



1.8 (3.3) (9.7) (8.8) (20.0)

As at 31 December 2006 161.8 14.8 330.2 45.5 552.3


Revisions of previous estimates(1) 31.3 1.9 (47.1) (1.7) (15.6)

Extensions, discoveries and reclassifications 0.3 – 35.7 – 36.0

Production (27.2) (2.8) (31.4) (2.4) (63.8)

Purchase of reserves-in-place 1.0 – – – 1.0

Sale of reserves-in-place – – – (3.5) (3.5)

5.4 (0.9) (42.8) (7.6) (45.9)

As at 31 December 2007 167.2 13.9 287.4 37.9 506.4

Proved developed reserves of oil:

As at 31 December 2004 87.1 1.6 382.3 20.4 491.4

As at 31 December 2005 80.9 9.4 313.8 26.3 430.4

As at 31 December 2006 116.2 7.6 282.2 26.1 432.1

As at 31 December 2007 138.9 9.0 223.5 21.5 392.9

(1) Includes effect of oil and gas price changes on PSCs

Exploration and Production: Estimated net proved and probable reserves(2) DEVELOPMENT STATUS

Gas bcf

Oil(3) mmbbls

Total(4)mmboe

As at 31 December 2007

Fields in production 13 415 925 3 161

Fields under development 334 21 76

Fields awaiting development 871 186 331

Total 14 620 1 132 3 568

(2) Gas and oil reserves cannot be measured exactly since estimation of reserves involves subjective judgement. Therefore all estimates are subject to revision (3) Oil includes crude oil, condensate and natural gas liquids (4) Conversion rate of 6 bcf gas per mmboe


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Exploration and Production: Operating statistics

47

Production volumes (mmboe)

Q2

2008 Q1

2008 Year 2007

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Year 2006

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Year 2005

Q4 2005

Q3 2005

Q2 2005

Q1 2005

– oil volume mmboe 7.2 7.9 28.2 7.7 6.6 7.4 6.5 21.1 5.9 4.3 5.3 5.6 19.3 5.5 4.6 4.5 4.7

– liquids volume mmboe 9.2 9.3 35.7 9.0 8.2 9.7 8.8 30.6 8.7 6.9 7.6 7.4 29.7 7.8 5.8 8.4 7.7

– gas volume mmboe(1) 38.3 43.5 156.4 43.0 33.9 36.6 42.9 167.5 42.6 39.4 42.7 42.8 134.8 41.0 30.8 31.7 31.3

Prices

BG Group avg UK gas price pence per produced therm 32.79 38.73 33.32 38.36 29.46 23.88 37.03 31.89 34.41 25.50 26.20 38.84 27.30 38.89 20.10 22.98 24.12

BG Group avg Int’l gas price pence per produced therm 20.43 19.54 15.53 16.00 14.54 15.11 16.31 17.23 16.69 16.83 17.05 18.40 17.27 21.43 17.92 14.16 13.85

Overall BG Group avg gas price pence per produced therm 22.94 23.87 19.36 21.40 16.62 17.00 21.50 20.68 21.28 18.52 19.09 23.69 20.15 26.11 18.42 16.81 17.48

BG Group avg oil price $ per barrel 120.93 98.49 73.39 88.59 76.47 69.07 58.13 65.54 60.13 71.43 69.76 62.53 55.96 58.55 63.02 52.36 48.24

BG Group avg liquids price $ per barrel 97.69 81.35 59.07 73.48 61.26 56.72 45.57 52.68 46.40 57.56 56.79 50.17 41.77 47.17 48.23 39.54 33.01

Henry Hub $/mmbtu 11.32 8.58 6.95 6.92 6.16 7.55 7.16 6.74 6.60 6.08 6.54 7.75 8.86 12.22 9.82 7.03 6.37

Unit costs

Lifting costs ($/boe) 3.72 3.11 3.29 3.22 3.60 3.44 2.97 2.45 2.88 2.69 2.18 2.08 2.17 1.92 2.54 2.10 2.18

Lifting costs (£/boe) 1.87 1.57 1.64 1.58 1.78 1.74 1.51 1.34 1.51 1.45 1.21 1.19 1.19 1.09 1.42 1.13 1.15

Opex ($/boe) 6.47 5.55 5.22 5.10 5.50 5.41 4.92 4.18 4.82 4.39 3.72 3.82 4.04 3.85 4.57 3.82 3.96

Opex (£/boe) 3.24 2.80 2.61 2.50 2.73 2.74 2.51 2.29 2.53 2.36 2.07 2.18 2.21 2.19 2.56 2.04 2.08

Finding and development costs 3 year rolling average ($/boe)(2) 14.60(3) 11.50(3) 7.07(3)

Reserve replacement

3 year organic average reserve replacement ratio (%) 84(3) 108(3) 152(3)

Investment

Development expenditure (£ million) 406 407 1 242 340 310 301 291 721 201 229 160 131 683 188 166 174 155

Gross exploration expenditure (£ million) 234 187 536 181 148 102 105 555 180 103 103 169 336 131 65 38 102

– capitalised 180 146 304 116 83 46 59 396 129 65 66 136 225 89 34 15 87

– other expenditure 54 41 232 65 65 56 46 159 51 38 37 33 111 42 31 23 15

(1) From first quarter 2006 includes fuel gas (2) The denominator uses the total net proved reserves changes over the three years excluding acquisitions, divestments and production (3) These figures are calculated on a SEC basis, which includes all reserves revisions and fuel gas and is calculated at year end prices

Exploration and Production: Drilling activity WELL OPERATIONS

Number of exploration and appraisal wells 2007 2006 2005 2004 2003

Total 20 42 29 28 17

Percentage successful (gross well basis) 67 56 48 64 71

WELLS DRILLED IN 2007: ANALYSIS BY COUNTRY Exploration Appraisal

Gross(4) Net(5) Gross(4) Net(5)

Bolivia 1 0.375

Brazil

Canada 3 2.315

Norway 3 1.020

Thailand 6 1.330

Trinidad and Tobago 1 0.650

Tunisia 1.000

UK 3 0.643

Total 11 4.928 9 2.955

(4) The gross figure is a total number of wells in which BG Group participated (5) The net figure is calculated by applying the licence working interest to each well and taking the sum of the fractional interests In the case of farm-ins and farm-outs, the working interest will be that which applies after completion of the well and consequent re-arrangement of interest

1 0.300 1 0.250

1

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Exploration and Production: Field interests 48

PRODUCING FIELDS(1) Gas production

(net) bcf Oil and liquids production

(net) ‘000s barrels Total production(2)

(net) mmboe

BG Group working

interest (%) 2007 2006 2005 2007 2006 2005 2007 2006 2005

UKCS Armada and SW Seymour(3), (4) 58.22 and 57.00 21.8 42.3 38.1 1 111 2 037 1 880 4.7 9.1 8.2

Atlantic Cromarty 75.00 and 10.00 24.0 13.4 – 684 354 – 4.7 2.6 –

Blake(3) 44.00 0.7 0.8 0.8 3 468 3 841 4 088 3.6 4.0 4.2

Buzzard 21.73 1.4 – – 10 638 – – 10.9 – –

Easington Catchment Area(5) 30.77 and 79.00 36.2 38.6 51.3 118 123 204 6.1 6.6 8.8

Elgin/Franklin 14.11 22.9 24.4 26.5 4 948 5 290 5 996 8.8 9.4 10.4

Everest(4) 59.32 18.2 18.8 25.1 579 494 720 3.6 3.6 4.9

J-Block and Jade(6) 30.50 and 35.00 36.6 48.5 43.5 4 610 5 413 4 800 10.7 13.5 12.1

Lomond 61.11 22.4 29.4 28.9 499 539 569 4.2 5.4 5.4

Other 8.0 6.6 4.7 545 346 54 1.9 1.4 0.8

UKCS sub-total 192.2 222.8 218.9 27 200 18 437 18 311 59.2 55.6 54.8

International Bolivia(7) 37.50 and 100.00 27.1 26.5 30.7 994 918 1 063 5.5 5.3 6.2

Canada Various 4.8 19.8 19.0 56 162 176 0.9 3.5 3.3

Egypt(3) 50.00 and 80.00 324.4 365.4 209.9 2 503 1 530 259 56.6 62.4 35.3

India(3),(8) 30.00 53.1 37.5 35.5 4 825 4 050 3 504 13.7 10.3 9.4

Kazakhstan(9) 32.50 86.8 82.3 75.7 25 138 22 585 22 399 39.6 36.3 35.0

Mauritania(10) – 0.2 – 28 949 – – 1.0 –

Thailand(11) 22.22 50.7 50.3 47.0 1 448 1 440 1 440 9.9 9.8 9.3

Trinidad and Tobago(3) 45.88, 50.00 and 65.00 136.5 134.7 107.4 298 121 111 23.0 22.6 18.0

Tunisia(3) 100.00 62.8 65.4 64.9 1 405 1 527 1 717 11.9 12.4 12.5

International sub-total 746.2 782.1 590.1 36 695 33 282 30 669 161.1 163.6 129.0

Total 938.4 1 004.9 809.0 63 895 51 719 48 980 220.3 219.2 183.8

OTHER FIELDS AND DISCOVERIES WITH PROVED OR PROBABLE RESERVES: BG GROUP WORKING INTEREST (%) AS AT 31 DECEMBER 2007 Bolivia Palo Marcado 100.00

Brazil Tupi 25.00

Egypt Rashid-3, Rashid North, South Sequoia(3) 80.00

Serpent, near field satellites, Mina, Silva, North Sequoia, Saurus(3) 50.00

Thailand Bongkot South 22.22

Trinidad Starfish(3) 50.00

Tunisia Hasdrubal(3) 50.00

UKCS Glenelg 14.70

Jasmine 30.50

Maria(3) 36.00

NW Seymour(3) 57.00

West Franklin 14.11

(1) BG Group working interest at 31 December 2007 or when disposed of producing field (2) Conversion rate of 6 bcf gas per mmboe (3) Operated by BG Group at 31 December 2007. Maria entered production in December 2007 (4) BG Group acquired a further 11.45% of Armada and 1.0134% of Everest fields on 30 March 2007, taking the current stakes to 58.22% and 59.32% respectively (5) Easington Catchment Area project comprises the Apollo, Mercury, Minerva, Neptune and Wollaston and Whittle fields

BG Group-operated except for Wollaston and Whittle (6) J-Block includes Judy and Joanne (7) Includes Margarita Early Production Facility and the BG Group-operated and 100% owned La Vertiente fields (8) Jointly operated with ONGC and Reliance Industries (9) Joint operated in partnership with Eni (10) All interests in Mauritania sold in January 2007 (11) Includes Ton Sak


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Exploration and Production: Licence and block interests

49

HELD AT 31 JULY 2008 EUROPE AND CENTRAL ASIA

Country Interest details Number of blocks Gross area (1) Type of fields (2)

BG Group- operated

BG Group interest (%)

Italy Po Valley Permits (Italy Onshore) 1 392 Gas & condensate 0 40

Kazakhstan Karachaganak 1 280 Various 1 32.5

Norway Southern North Sea 14 1 775 Various & unknown 13 Various

North Tampen 11 2 145 unknown 9 Various

Mid-Norway 23 5 368 Gas & unknown 11 Various

Barents Sea 8 2 054 Oil & unknown 2 Various

United Kingdom(8) Southern North Sea 21 646 Gas & unknown 17 Various

Central North Sea 70 4 371 Various & unknown 33 Various

Onshore PEDL 133 5 500 Gas 0 51















AFRICA, MIDDLE EAST AND ASIA


BG Group- operated


Algeria Hassi Ba Hamou Perimeter 5 18 381 Gas 1 36.75

Areas of Palestinian Authority Gaza Marine 1 2 000 Gas 1 90

China Block 53/16 1 8 671 Unknown 1 100

Block 64/11 1 7 546 Unknown 1 100

Egypt Rosetta Concession(4) 4 296 Gas 4 80

West Delta Deep Marine(5) 8 1 355 Gas 8 50

El Manzala Offshore 1 914 Unknown 1 100

El Burg Offshore 1 1 463 Unknown 1 70

North Sidi Kerir Deep 1 1 950 Unknown 1 50

India(6) Mid and South Tapti 1 1 471 Gas 1 30

Panna/Mukta 2 1 207 Various 2 30

KG-OSN-2004/1 1 1 131 Unknown 0 45

KG-DWN-98/4 1 5 591 Unknown 1 30

Israel Med Yavne(7) 1 52 Gas 1 35

Madagascar Majunga Offshore Profonde 1 15 161 Unknown 1 30

Nigeria OPL 332 1 1 258 Oil 1 45

OPL 286-DO 1 804 Oil 1 66

Oman Block 60 1 1 485 Gas 1 100

Thailand 2/2539/49(8) 2 34 Various 0 22.22

3/2515/7 2 1 921 Various 0 22.22

3/2549/71 1 622 Various 0 22.22

4/2515/8(9) 3 10 420 Unknown 3 50

5/2515/9 1 1 279 Various 0 22.22

Tunisia Amilcar 1 1 016 Unknown 1 50

Miskar 1 320 Gas & condensate 1 100

Hasdrubal 1 260 Gas, condensate & oil 1 50

www.bg-group.com

Exploration and Production: Licence and block interests continued 50

AMERICAS AND GLOBAL LNG


BG Group- operated


Australia Walloons Fairway 58 4 382 Gas 0 Various

Bolivia(3) La Vertiente 1 38 Gas 1 100

Caipipendi 1 195 Gas 0 37.5

Block XX Tarija West 1 25 Gas 0 25

Block XX Tarija East 1 15 Gas & oil 1 100

Charagua 1 99 Unknown 0 20

Block Los Suris 1 5 Gas 1 100

Brazil BM-S-9 1 1 881 Oil 0 30

BM-S-10 1 1 192 Gas 0 25

BM-S-11 1 2 295 Oil 0 25

BM-S-13 1 350 Oil 1 60

BM-S-47 2 315 Gas 2 50

BM-S-50 1 698 Oil 0 20

BM-S-52 1 700 Oil 1 40

BT-SF-2 6 17 677 Unknown 0 50

Canada(3) i) Alberta Waterton 14 9 707 Gas 0 50

Foothills & Deep West 41 26 926 Unknown 27 85

ii) British Columbia Foothills 48 56 747 Unknown 27 75

iii) Northwest Territories Central Mackenzie Valley 4 394 668 Unknown 4 81

Trinidad and Tobago Block 5(a) 1 90 Various 1 50

Block 6(10) 1 525 Various 1 50

Block E 1 50 Gas 1 50

Central Block 1 111 Various 1 65

NCMA-1 1 342 Gas 1 57

Block 5c 1 323 Various 0 30

United States(11) Alaska Foothills & Eastern North Slope 446 2 505 276 Unknown 0 37

(1) The gross area figures given are approximations only. Gross area figures are in square kilometres unless otherwise indicated (2) The type of field is given as Various where it relates to oil and/or gas and/or condensate or Unknown where the interest is an exploration interest with no discovery (3) Figures given for Gross area are in hectares (4) Rosetta Concession comprises 4 Development Leases (Rosetta Exploration Licence expired May 2003) (5) West Delta Deep Marine Concession comprises 8 Development Leases (WDDM Exploration Licence expired Nov 2006) (6) Mid and South Tapti and Panna/Mukta are jointly operated with ONGC and Reliance Industries. KG-OSN-2004/1 and KG-DWN-98/4 are operated by ONGC (7) BG Group has announced its intent to surrender its interest in the Med Yavne Lease. The resulting assignment of BG Group’s interest to its partners is subject

to the approval of the Israeli Ministry of Natural Infrastructure. This approval is currently pending (8) Includes part blocks (9) Area is subject to international boundary dispute – obligations under suspension pending resolution (10) Block 6, Manatee operated by Chevron Trinidad and Tobago Resources SRL (11) Figures given for Gross area are in acres


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LNG: Facilities capacity (mtpa) AS AT 31 AUGUST 2008

51

EXPORT TERMINALS

Train BG Group equity/

utilisation (%)

Total capacity (mtpa)

Gross


Net Status

Atlantic LNG 1 26.00 3.1 0.806 Since April 1999



Atlantic LNG 4 28.89 5.2 1.502 Since December 2005

Egyptian LNG 1 35.50 3.6 1.278 Since May 2005

Egyptian LNG 2 38.00 3.6 1.368 Since September 2005

Total operating 7.164

IMPORT TERMINALS


Gross


Net Bcfd Net Status

Lake Charles, USA 13.4 13.4 1.80 100% since 1 January 2004

Phase 2 expansion completed July 2006

Elba Island, USA 4.2(1) 4.2(1) 0.57

100% since 1 January 2004

Cypress pipeline de-bottlenecking since May 2007

Total operating 17.6 17.6 2.37

Lake Charles IEP 3.9 3.9 0.55 Anticipated 2009

Total planned expansions 3.9 3.9 0.55

In development:

Dragon LNG, Milford Haven, Wales 4.4 2.2 0.30 Anticipated end 2008

GNL Quintero, Chile 2.5(2) 0.0 0.00 Anticipated 2009/2010

Brindisi, Italy 6.0 4.8(3) 0.65 TBA

Elba Island, USA 4.3(4) 4.3 0.60 Anticipated in service 2014

Total in development 17.2 11.3 1.55

(1) Of which 1.2 mtpa may be utilised by Marathon (2) BG Group currently holds no terminal capacity in the terminal currently under construction but has the option to acquire capacity if needed to support BG Group’s

downstream market development (3) BG Group has 80% access. The remaining 20% is for third-party access (4) Reflects BG Group held capacity only

LNG: Long-term firm supply(5)

Firm Supply

(mtpa) Commercial

start-up

Years

Shipping

Atlantic LNG T2/3 2.1 2003 20 FOB

Nigeria LNG T4/5 2.3 Q1 2006 20 CIF

Egyptian LNG T2(6) 3.5 Q2 2006 20 FOB

Atlantic LNG T4(7) 1.5 Q2 2007 20 FOB

Equatorial Guinea(8) 3.3 Q3 2007 17 FOB

Nigeria LNG T7(9) 2.3 2013 20 CIF

Total firm supply 15.0

(5) Assumes delivery into US East Coast (6) First cargo lifted in September 2005 (7) First cargo lifted in January 2006 (8) First cargo lifted in May 2007 (9) First cargo expected 2013

www.bg-group.com

LNG: Cargoes 52

Q2

2008 Q1

2008 Year 2007

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Year 2006

Q4 2006

Q3 2006

Q2 2006

Q1 2006

Year 2005

Q4 2005

Q3 2005

Q2 2005

Q1 2005

Actual cargoes

Lake Charles – – 86 1 21 46 18 50 12 14 22 2 36 11 8 9 8

Elba Island 16 6 64 10 22 17 15 54 15 16 14 9 50 14 15 11 10

Re-marketed 47 52 81 37 17 8 19 78 23 13 13 29 31 13 7 1 10

Total 63 58 231 48 60 71 52 182 50 43 49 40 117 38 30 21 28

Managed volumes (trillion British thermal units)

Sales volumes 42 19 427 31 120 184 92 289 74 88 97 30 238 70 63 56 49

Re-marketed 144 159 244 114 52 25 53 223 66 39 32 86 92 39 20 3 30

Total managed volumes 186 178 671 145 172 209 145 512 140 127 129 116 330 109 83 59 79

LNG: Ships AS AT 31 AUGUST 2008

Name Year built Capacity (cm)(1) Propulsion Containment Contract

Core fleet Methane Alison Victoria 2007 145 127 ST(2) Mk.III BB(3)

(5+ years) Methane Heather Sally 2007 145 127 ST Mk.III BB

Methane Shirley Elisabeth 2007 145 127 ST Mk.III BB

Methane Jane Elizabeth 2006 145 127 ST Mk.III BB

Methane Lydon Volney 2006 145 127 ST Mk.III BB

Methane Rita Andrea 2006 145 127 ST Mk.III BB

Methane Kari Elin 2004 138 200 ST Mk.III BB

Methane Princess 2003 137 990 ST No.96 TC(4)

Methane Nile Eagle 2007 145 127 ST Mk. III TC

Total 9 1 292 079 TC

Flexible fleet Various 1976-2008 < 165 500 – – TC

New builds SHI HN 1745 2009 170 000 DFDE(5) Mk. III Owned

SHI HN 1746 2010 170 000 DFDE Mk. III Owned

SHI 1858 2010 170 000 DFDE Mk. III Owned

SHI 1859 2010 170 000 DFDE Mk. III Owned

Total 4 680 000

(1) Capacity – gross 100% (2) ST – steam turbine (3) BB – bareboat charter (4) TC – time charter (5) DFDE – dual-fuel diesel-electric


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Transmission and Distribution 53

As at 31 December

2007 2006 2005

Throughput (million cubic metres per year)

Net to BG Group 9 303 11 925 13 199

Customers

Comgas 572 000 518 000 485 000

MetroGAS 2 000 000 2 000 000 2 000 000

Gujarat Gas 286 000 248 000 200 000

Power Generation AS AT 31 AUGUST 2008 CAPACITY

Location Name BG Group equity (%) Operating total (MW) Operating Net to BG Group (MW)

Italy BG Italia Power S.p.A. 100 400 400

Malaysia Genting Sanyen Power (Kuala Langat) 20 794 159

Philippines First Gas Power (San Lorenzo) 40 500 200

Philippines First Gas Power (Santa Rita) 40 1 000 400

UK Premier Power (Ballylumford) 100 1 316 1 316

UK Seabank Power 50 1 130 565

USA Dighton 100 165 165

USA Lake Road(1) 100 805 805

USA Masspower(1) 100 264 264

Cogen – secured capacity India – 11 7

Total operational 6 385 4 281

(1) ISO-NE weighted average annual installed capacity ratings

www.bg-group.com

Principal acquisitions, commitments and divestments 54

ACQUISITIONS (TO 31 JULY 2008)

Announced Details Completion £m

2008

February Acquired 20% interest in Queensland Gas Company Limited’s (QGC) coal seam gas interests in the Surat Basin, Australia and a 9.9% stake in QGC April 2008 316

2007

April Acquired Masspower 262 MW power plant, USA May 2007 74

Acquired further 11.45% in Armada and 1.0134% in Everest fields, UKCS March 2007 67

2006

December Acquired Lake Road 805 MW power plant, USA March 2007 351

Acquired further 66.32% stake in Serene S.p.A. power plants, Italy February 2007 80

September Acquired Dighton 175 MW power plant, USA October 2006 47

2005

June Acquired remaining 50% in Brindisi LNG import terminal, Italy June 2005 29

2004

September Acquisition of further 40% stake in Rosetta, Egypt November 2004 120

May Acquisition of exploration block offshore Brazil July 2004 13

March Acquisition of DirectNet April 2004 5

March Acquisition of Aventura Energy Inc May 2004 92

February Acquisition of El Paso Oil and Gas Canada Inc March 2004 189

February Acquisition of Mauritania Holdings B.V. March 2004 74(1)

(1) Includes US$5.1 million contingencies

COMMITMENTS (TO 31 JULY 2008)


2008

May Ordered two new LNG ships 2010 delivery 194

2007

Exercised options to purchase two new LNG ships 2009/2010 delivery

2004

April Exercised options to purchase four new LNG ships 2007 delivery 349

DIVESTMENTS (TO 31 JULY 2008)


2008

July Sale of Iqara Energy Services July 2008 14

July Sale of BG GNV do Brasil July 2008 5

2007

May Sale of entire 25% stake in Interconnector (UK) Limited June 2007 165

March Sale of producing assets in Canada – Bubbles, Ojay and Copton/Lynx April 2007 228

January Sale of Mauritania interests January 2007 68

2006

Sale of 37.5% interest in NVGC November 2006 4

June Sale of India Telecoms June 2006 1

2005(2)

Sale of Brazil Telecoms November/December 2005 11

March Sale of entire 50% interest in Premier Transmission Ltd March 2005 26

2004

1.21% in Gas Authority of India Ltd January 2004 32

(2) In December 2005, on signing a Master Restructuring Agreement with the other shareholders and creditors of Gas Argentino S.A., parent company of MetroGAS S.A., BG Group ceased to control these companies and deconsolidated them from that date

Credit ratings (BG Energy Holdings Ltd) BG Energy Holdings Ltd (BGEH) is rated by three major credit rating agencies:

Rating agency Long-term rating Date assigned Outlook

Fitch A+ September 2007 Stable

Moody’s A2 August 2005 Stable

Standard & Poor’s A April 2008 Stable

BGEH’s objective is to achieve long-term credit ratings equivalent to mid-single A from all the above agencies.


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Corporate information 55

TOTAL ISSUED ORDINARY SHARE CAPITAL 2007 2006 2005

Shares in issue at year end (millions) 3 575 3 558 3 549

DIVIDEND DATA

Payment Value Announcement date Ex-dividend date Record date Payment date UK Payment date USA

Final 1.50p 21 February 2002 24 April 2002 26 April 2002 7 June 2002 17 June 2002

Interim 1.55p 25 July 2002 23 October 2002 25 October 2002 13 December 2002 23 December 2002

Final 1.55p 18 February 2003 19 March 2003 21 March 2003 2 May 2003 12 May 2003

Interim 1.60p 28 July 2003 6 August 2003 8 August 2003 12 September 2003 19 September 2003

Final 1.86p 17 February 2004 14 April 2004 16 April 2004 28 May 2004 7 June 2004


Final 2.08p 15 February 2005 30 March 2005 1 April 2005 13 May 2005 20 May 2005


Final 4.09p 8 February 2006 29 March 2006 31 March 2006 12 May 2006 19 May 2006






INVESTOR CALENDAR

Event Type Date

2008

Fourth quarter and Full Year 2007 Results and Strategy Presentation Presentation 7 February 2008

2007 Final dividend Ex-dividend 9 April 2008

2008 Annual General Meeting Meeting 14 May 2008

First quarter 2008 Results Announcement 30 April 2008

2007 Final dividend Dividend paid (UK) 23 May 2008

Dividend paid (USA ADR) 2 June 2008

Second quarter 2008 Results Announcement 24 July 2008

2008 Interim dividend Ex-dividend 6 August 2008

2008 Interim dividend Dividend paid (UK) 12 September 2008

Dividend paid (USA ADR) 19 September 2008

Third quarter 2008 Results Announcement 4 November 2008

2009

Fourth quarter and Full Year 2008 Results and Strategy Presentation Presentation 5 February 2009

2008 Final dividend Ex-dividend April 2009(1)

2009 Annual General Meeting Meeting May 2009(1)

First quarter 2009 Results Announcement May 2009(1)

2008 Final dividend Dividend paid (UK) May 2009(1)

Dividend paid (USA ADR) May 2009(1)

Second quarter 2009 Results Announcement July 2009(1)

2009 Interim dividend Ex-dividend August 2009(1)

2009 Interim dividend Dividend paid (UK) September 2009(1)

Dividend paid (USA ADR) September 2009(1)

Third quarter 2009 Results Announcement November 2009(1)

(1) Provisional dates

Registrar and Transfer Office Equiniti Aspect House, Spencer Road Lancing, West Sussex BN99 6DA Tel: 0871 384 2064 www.shareview.co.uk Email: [email protected]

Stock Exchange Information London Stock Exchange Ticker symbol: BG.L SEDOL number: 876289

One ADR: 5 ordinary shares Pink OTC Markets symbol: BRGYY

American Depositary Receipts JPMorgan Chase Bank, N.A. P.O. Box 64504 St. Paul, MN 55164-0504 USA Tel:+1 800 990 1135 (for US residents) Tel:+1 651 453 2128 (outside USA) www.adrs.com Email: [email protected]

Definitions 56

For the purpose of this document the following definitions apply:

€ Euro

$ US Dollars

£ UK Pounds Sterling

bbls Barrels

bcf Billion cubic feet

bcfd Billion cubic feet per day

bcm Billion cubic metres

bcma Billion cubic metres per annum

bcpd Barrels of condensate per day

BG Group BG Group plc and its subsidiary undertakings, joint ventures or associated undertakings

billion or bn One thousand million

boe Barrels of oil equivalent

boed Barrels of oil equivalent per day

bopd Barrels of oil per day

bpd Barrels per day

Btu British thermal units

CAGR Compound Average Growth Rate

CCGT Combined Cycle Gas Turbine

CIF Carriage, insurance and freight

CNG Compressed Natural Gas

cm Cubic metre

DCQ Daily Contracted Quantity

DTI Department of Trade and Industry

EPC Engineering Procurement Construction

FEED Front End Engineering Design

FOB Free on board

GSA Gas Sales Agreement

GW Gigawatts

GWh Gigawatt hours

HIIP Hydrocarbons Initially In Place

HPHT High Pressure High Temperature

IFRIC International Financial Reporting Interpretations Committee

kboed Thousand barrels of oil equivalent per day

km Kilometres

mmbbls Million barrels

mmboe Million barrels of oil equivalent

mmbopd Million barrels of oil per day

mmbtu Million British thermal units

mmbtud Million British thermal units per day

mmcmd Million cubic metres per day

mmcm Million cubic metres

mmscm Million standard cubic metres

mmscmd Million standard cubic metres per day

mmscf Million standard cubic feet

mmscfd Million standard cubic feet per day

MoA Memorandum of Agreement

MoU Memorandum of Understanding

mtpa Million tonnes per annum

MW Megawatt

MWh Megawatt hours

NGL Natural Gas Liquids

NGV Natural Gas Vehicle

partner An entity with whom BG Group has formed an incorporated or unincorporated association or joint venture for the purposes of pursuing its business activities and the term “partner” in this context is not intended to, nor shall be deemed to, create or constitute a partnership between BG Group and any such entity for the purposes of the Partnership Act 1890 or any similar law in any jurisdiction in which such activities may be conducted

PJ Petajoules

PPA Power Purchasing Agreement

PSC/PSA Production Sharing Contract/Production Sharing Agreement

SPA Sale and Purchase Agreement

sq km Square kilometres

tcf Trillion cubic feet

ual Report and Accounts for 2007 on page 121.

RESERVES AND RESOURCES

Proved reserves

BG Group utilises the SEC definition of proved reserves. Further information on proved reserves can be found in BG Group’s Ann

t to be recoverable.

Probable reserves

Probable reserves are those unproven reserves which analysis of geological and engineering data suggest are more likely than no Taken together with

business planning. proved reserves, proved plus probable reserves comprise the best estimate of reserves for an asset and will normally be used in

maturity are such that

Un-booked resources

Un-booked resources are defined by BG Group as the best estimate of recoverable hydrocarbons where commercial and/or technical project sanction

t multiplied by the ‘Chance of Success’.

is not expected within the next three years.

Risked exploration

Risked exploration resources are defined by BG Group as the best estimate (mean value) of recoverable hydrocarbons in a prospec

The term ‘gross reserves’ means gross Proved reserves plus gross Probable reserves. For details of BG Group’s Reserves and Resources as at 31 December 2007, see table on inside cover.

US investors should refer to the explanatory note on page 40.

Page

FIELDS, BLOCKS, TERMINALS, CONCESSIONSAND LICENCESAlaskaFoothills and Eastern North Slope 37

AlgeriaHassi Ba Hamou Perimeter 22

AustraliaWalloons coal seam gas 38

BoliviaXX Tarija East and West 36Caipipendi 36Charagua 36Escondido 36Huacaya X-1 36Itau 36La Vertiente 36Los Suris 36Margarita 36Palo Marcado 36Ibibobo 36Taiguati 36

BrazilBM-S-9, 10, 11 and 13 31BM-S-47, 50, 52 31BT-SF-2 31Tupi 31

CanadaDeep West area of the Western Canadian Sedimentary Basin 37Foothills 37Northwest Territories 37Waterton 37

ChinaBlocks 64/11, 53/16 and 41/06 24

EgyptEl Burg Offshore and El Manzala Offshore 14Mina and Silva 14North Sidi Kerir Deep 13Rashid North 14Rashid -1,-2,-3 14Rosetta 14Scarab Saffron 14Simian, Sienna and Sapphire 14SimSatP2 14SimSatP1 14Solar, Serpent, Saurus, Sequoia and Sienna-Up 14West Delta Deep Marine (WDDM) 14

IndiaPanna/Mukta and Tapti 16

Israel and areas of Palestinian AuthorityMed Yavne 23Gaza Marine 23

ItalyPo Valley 12

KazakhstanKarachaganak 8

LibyaArea 123 and Area 171 22

MadagascarMajunga Offshore Profonde 23

EXPLORATION AND PRODUCTION

PageNorwayBream 11Pi North 11Jordbaer 11Orange 11Ververis 11

NigeriaOPL 332 and OPL 286-DO 20

OmanBlock 60 21

ThailandBongkot 19Gulf of Thailand Blocks 7, 8, 9 and 9A 19

Trinidad and TobagoBlock 5(a) and 5(c) 26Block 6(b) and 6(d) 26Block E 26Bougainvillea 27Central Block 27Chaconia 27Dolphin and Dolphin Deep 26East Coast Marine Area (ECMA) 26Heliconia 27Hibiscus 27Ixora 27Loran/Manatee 26North Coast Marine Area (NCMA) 27Poinsettia 27

TunisiaAmilcar 18Hasdrubal 18Miskar 18Ulysse A & B 18Hannibal 18

UKAmethyst 4Armada 4Apollo 6Atlantic/Cromarty 5Blake and Blake Flank 5Buzzard 5Drake 4Easington Catchment Area (ECA) 6Elgin/Franklin and Glenelg 6Everest and Lomond 6Fleming 4Hawkins 4J-Block, Jade, Judy/Joanne 6Jackdaw 7Jasmine 7Maria 7Mercury, Minerva and Neptune 6SW Seymour and NW Seymour 4Whittle and Wollaston 6

LIQUEFACTION TERMINALSAustraliaQueensland Curtis LNG 38

EgyptEgyptian LNG Trains 1 and 2 13

NigeriaOKLNG 20

Trinidad and TobagoAtlantic LNG Trains 1, 2, 3 and 4 28

LIQUEFIED NATURAL GAS

Index of assets

PageREGASIFICATION TERMINALSItalyBrindisi LNG 12

ChileGNL Quintero 35

UKDragon LNG 10

USAElba Island 29Lake Charles 29

South AmericaBolivia – Brazil Pipeline 32Southern Cross and Gas Link Pipelines 35

KazakhstanCaspian Pipeline Consortium (CPC) 9

UKCATS 7Interconnector UK 7SEAL and SILK 7

ArgentinaMetroGAS 34

BrazilComgas 32Iqara Gas Natural 33

IndiaGujarat Gas Company (GGCL) 17Mahanagar Gas (MGL) 17

ItalyBG Italia Power S.p.A. 12

MalaysiaGenting Sanyen 25

PhilippinesSan Lorenzo 25Santa Rita 25

UKPremier Power (Ballylumford) 10Seabank Power 10

USADighton 30Lake Road 30Masspower 30

POWER

DISTRIBUTION

TRANSMISSION

bg data book 08

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