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BG Group in Tunisia October 2009

BG Tunisia

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BG Group in Tunisia

October 2009

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Disclaimer

The following presentation contains forward-looking statements concerning BG Group plc’sstrategy, operations, financial performance or condition, outlook, growth opportunities orcircumstances in the countries, sectors or markets in which BG Group plc operates. By their

nature, forward-looking statements involve uncertainty because they depend on futurecircumstances, and relate to events, not all of which can be controlled or predicted. Althoughthe Company believes that the expectations reflected in such forward-looking statements arereasonable, no assurance can be given that such expectations will prove to have been correct.Actual results could differ materially from the guidance given in this presentation for a numberof reasons. 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 in theBG Group plc Annual Report & Accounts 2008. Nothing in this presentation should beconstrued as a profit forecast and no part of this presentation constitutes, or shall be taken toconstitute, an invitation or inducement to invest in BG Group plc or any other entity, and mustnot be relied upon in any way in connection with any investment decision. BG Group plcundertakes no obligation to update any forward-looking statements.

No representation or warranty, express or implied, is or will be made in relation to the accuracyor completeness of the information in this presentation and no responsibility or liability is or willbe accepted by BG Group plc or any of its respective subsidiaries, affiliates and associatedcompanies (or by any of their respective officers, employees or agents) in relation to it.

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BG Group - Integrated Gas Major

Securecompetitively priced

resources

Connect gas tohigh value markets

Skills to succeed across the gas chain

• Equity reserves

• Contracted resources

• Build & access markets

• Serve customers

Integrated Gas Major

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Countries of current operation

Active in 27 countries

Core countries

Trinidad &Tobago

Egypt

Kazakhstan

UK

Argentina

India

Uruguay

Bolivia Brazil

USA

Italy

Tunisia Thailand

Malaysia

Philippines

Singapore

Areas of PA

Canada

Norway

Libya

Nigeria

Oman China

Madagascar

Algeria

Chile

Australia

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Long term partnership with Tunisia

First gas

production

from Miskar

Official inauguration

of Hannibal Plant

by HE President Ben Ali

British Gas buy

Tenneco assets

(Amilcar Permit)

 8 8  8 9 

 9 0  9 1   9 2

   9 3   9 4

   9 5   9 6

   9 7   9 8

   9 9   0 0

   0 1   0

 2   0 3  0 4 

 0 5  0 6 

 0 7  0 8 

 0 9 

Miskar compression

commissioned

First gas fromHasdrubal

Commence

Hasdrubal

project

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• Amilcar explorationpermit

 –  Miskar & Hasdrubalconcessions

• Largest producer of

gas in Tunisia –  Approximately 40%

of domestic gasdemand

• BG Tunisia totalinvestment by mid2009 >$ 3 billion

BG Tunisia

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BG Tunisia production locations / infrastructure

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Miskar overview

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Miskar field - further development potential 

A17

A16CA15

TerraceTerrace

Sub-sea Drill CentreSub-sea Drill Centre

Miskar CoreMiskar Core

Miskar TerraceMiskar Terrace

Miskar PlatformMiskar Platform

Phase 3 WellsPhase 3 Wells

Phase 4 WellsPhase 4 Wells

New Infill wells

CoreCore

R1D

R1A

R1R1S Terrace Area

GIP 1135 bcf

R1R1S Core Area

GIP 1011 bcf

Abiod Core Area

GIP 411 bcf

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MiskarComplex

Flowlines

(2 no.10”)

Umbilical

Miskar Platform

Flowlines

Umbilical

R1A Well

UTDA

R1A Well

R1D Well

UTDA

Miskar sub sea well development

Subsea wells broughtonstream in 2008

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Miskar / Hannibal ongoing investment

New reboiler installed

Bridge – linked accommodation vessel Flowline Installation

Replacement Amine stripper installation

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Sulphuric acid – an environmental solution

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• 50/50 partnership with ETAP, the Tunisian state oil and gascompany

• BG Group is operator during development phase

• Total investment is $1.6 billion

• Will contribute around 20% of Tunisian gas demand

• On-stream in 2009

Hasdrubal project overview

New offshore field development providing a supply of gas,oil/condensate, and LPG

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Hasdrubal product routes

GAS

OIL/CONDENSATE

PROPANEBUTANE

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Project breakdown and major contractors

Petrofac (UK)

Pireco (Tunisia)

Heerema (Netherlands)

Saipem (Italy)

Bouchamoui (Tunisia)

J P Kenny (UK)

ODE (UK)

Ensco (USA)

0

50

100150

200

250

300

350

Drilling Onshore

terminal

Offshore

pipleline

LPG

pipeline / 

terminal

Owner

costs

Offshore

platform

£ million

Source: BGT data

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Hasdrubal onshore terminal construction

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Hasdrubal onshore terminal construction

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Offshore platform – installed & drilling

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Hasdrubal development drilling challenges

• Long horizontal sections : 1000m +

• Drilling loss pressure close to reservoir pressure

• Major impact from fracture system

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2010/29/2009 Slide 20

Managed Pressure Drilling (MPD)

• Technique used to drill with fullcirculation

• By varying back pressure attempt

made to stop losses occurring

Specialist drilling techniques required

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2110/29/2009 Slide 21

Mudcap drilling

• Technique used to drill with totalloss of circulation

• Does not prevent  lost circulation

• Does not cure  lost circulation

Specialised drilling

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MPD system schematic

1 – Rotating Control Device2 – Compact Drilling Choke Manifold

3 – Remote Control and Display

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Gabes LPG reception terminal construction

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Commitment to HSSE best practice

• HSSE / Asset integrity areBG Tunisia priorities

• Extensive employee training

• Highly skilled workforce

• HSSE contractor meetings

• ISO 14001: Environmentaccreditation

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International / Tunisia private sector involvement

International

PetrofacODE

Genesis

Fircroft

Worley Parsons

J.P Kenny Ltd

Vetco Gray

Tidewater marine

Orion

Moody International

Marint (Offshore UK)

Consafe

Trans global Projects Ltd

Tunisia

PirecoSomacer S.N.C

Sarost

Shell De Tunisie

Tunisavia

Bouchamaoui Industries

Abdel & CO oilfield service

Newrest Catering Tunisie

Sotrim

Atlantis Voyage

TIC

Ste Tun. Multi-Services

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• Stable political system

• Stable business environment

• Growing economy

• Transparent processes

• Sanctity of contracts

• Good relations with our stakeholders / accessibility

• Dedicated, experienced, loyal workforce

Why Tunisia?