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 – operating responsibly and delivering value to our shareholders. We do this by connecting competitively priced resources to high value markets.

Cover image – Exploration and Production reserves and resources(a) base CAGR 19% 2005-2007 (mmboe)

10 046

2007 RESERVES/ PRODUCTION*

11 000

8 000

7 071

9 000

8 017

10 000

Long-term reserves The 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 to deliver 46 years of production at 2007 rates.

46 years

7 000 6 000 30 years

5 000 4 000 3 000

16 years

2 000 1 000

9.3 years

0 05

06

07

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

Risked exploration Un-booked resources Probable reserves Proved reserves *Based on 2007 production of 220.3 mmboe and cumulative reserves/resources.

1

Generating future growth E&P production volumes

504

7.0

6.7

3 0.8

1

0.4

2

100

3.2

0

0

98 99 00 01 02 03 04 05 06 07

98 99 00 01 02 03 04 05 06 07

98 99 00 01 02 03 04 05 06 07

2.8

4

200

0

4.1

5

1.1

457

428

373

7 6

298

280

240

238

888

300

604

8

601

700

400

330

229

1 000

823

688

1 500

500

3 248

3 103 1 287(c)

2 000

(mtpa)

500

1 520

2 500

(kboed )

600

2 389

3 000

CAGR 43% 1999-2007

CAGR 11% 1998-2007

CAGR 34% 1998-2007 (£m) 3 500

LNG liquefaction volumes

0.7

(a)(b)

Total operating profit

T&D, LNG, Power and Other E&P

BG Group – Oil and gas production 2007 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

Countries A-Z

100

Page

Algeria Argentina Australia Bolivia Brazil Canada and Alaska Chile China and Hong Kong Egypt India Israel and areas of Palestinian Authority Italy Kazakhstan Libya

22 34 38 36 31 37 35 24 13 16 23 12 8 22

Page Madagascar Malaysia Nigeria Norway Oman Philippines Singapore Thailand Trinidad and Tobago Tunisia UK Downstream UK Upstream United States of America Uruguay

23 25 20 11 21 25 24 19 26 18 10 4 29 35

Statistical supplement Introduction and legal notices Social and environment data Group financial data Exploration and Production (E&P) Liquefied Natural Gas (LNG) Transmission and Distribution (T&D) Power Generation Corporate information Definitions

Page 40 41 42 45 51 53 53 54 56

(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.

BG Group Data Book 2008

Group at a glance

Exploration and Production (E&P)

Liquefied Natural Gas (LNG)

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

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

Main markets and activities

Main markets and activities

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

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

Production volumes increased to 604 kboed in 2007.

Liquefaction: Egypt; and Trinidad and Tobago

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

Purchased LNG: Egypt; Equatorial Guinea; Nigeria; and Trinidad and Tobago Regasification: Elba Island (USA); and Lake Charles (USA).

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

Performance highlights

Total production

604 000 boed

100 04

05

06

8

04

05

4

07

Outlook

06

07

Outlook BG Group LNG supply (mtpa)

BG Group net production (kboed) CAGR 6-8% 2005-12

1 000 800

13.0

12

300

£521m

9.9

£2 387m

6.4

604

16

400

200

Total operating profit(a) Business Performance(b)

Managed volumes (mtpa)

6.4

500

504

601

700 600

Performance highlights Total operating profit(a) Business Performance(b)

Production (kboed)

457

2

Egypt & T&T

25

OKLNG & Brass

680-710 kboed 2009 Australia

20 Nigeria LNG Train 7

600 400

MEDIUM-TERM 2007-09

15

LONG-TERM 2010-12

200

10

0

2005 2006 MEDIUM-TERM Key projects: Buzzard Karachaganak Trinidad and Tobago Panna/Mukta/Tapti Hasdrubal

2009 LONG-TERM Key opportunities: Karachaganak Tupi Bongkot South Dolphin Bongkot North Bream

2012

0 Jasmine Abu Butabul Panna/Mukta expansion Rosetta Hassi Ba Hamou Risked exploration

(a) Including share of pre-tax operating results from joint ventures and associates.

www.bg-group.com

5

Existing Egyptian LNG Train 2 Atlantic LNG Train 4 Atlantic LNG Trains 2/3

Future Other term supply Nigeria LNG Trains 4/5 Equatorial Guinea

(b) Business Performance – see page 40 for a description.

BG Group manages its business segments on an integrated regional basis.

3

EUROPE AND CENTRAL ASIA

p4

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

Main markets and activities The Group’s T&D businesses are focused on high growth developing markets – principally in Brazil and India. Transmission and distribution: Argentina; Brazil; India; and UK.

Performance highlights Total operating profit(a) Business Performance(b)

Customers (‘000s) 1 200

£247m

1 000

UK Upstream Kazakhstan UK Downstream Norway Italy

AFRICA, MIDDLE EAST AND ASIA

p13

800 600 400 Mahanagar Gas Gujarat Gas Comgas

200 0

04

05

06

07

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

Main markets and activities

AMERICAS AND GLOBAL LNG

BG Group has a 4.3 GW portfolio of mostly gas-fired power generation. Power: Italy; Malaysia; Philippines; UK; and USA. Co-generation: India.

Performance highlights

4.1

5

4.3

Power capacity (GW)

2.8

2.8

3

04

05

2 1 06

Total operating profit(a) Business Performance(b)

£130m

4

07

Egypt India Tunisia Thailand Nigeria Oman Algeria Libya Israel and areas of Palestinian Authority Madagascar China and Hong Kong Singapore Philippines Malaysia

p26

Trinidad and Tobago United States of America and Global LNG Brazil Argentina Chile Uruguay Bolivia Canada Alaska Australia

STATISTICAL SUPPLEMENT

p40

Social and environment data Group financial data Exploration and Production (E&P) Liquefied Natural Gas (LNG) Transmission and Distribution (T&D) Power Generation Corporate information Definitions

BG Group Data Book 2008

Europe and Central Asia

UK Upstream

59.2

60

55.6

UK: BG Group 3 year production Total production mmboe (net) 54.8

4

45

30

15

0

05 Oil & liquids Gas

06

07

With interests in more than 20 UK Continental Shelf (UKCS) fields, BG Group has one of the most significant exploration and production businesses in the offshore waters of the UK. BG Group operates: the Armada fields (Fleming, Drake and Hawkins), the Maria field and the Seymour field in the central North Sea; the Blake and Atlantic fields in the Outer Moray Firth; and the Neptune, Mercury, Minerva and Apollo fields in the Easington Catchment Area (ECA) in the southern North Sea. During 2007, the Buzzard field in the Outer Moray Firth came onstream. Production also commenced at the West Franklin and Maria fields. BG Group believes there is significant remaining potential in the UKCS and is actively pursuing opportunities around existing infrastructure hubs. In addition to the core production hubs and exploration and appraisal interests on the UKCS, BG Group has a 51.18% interest in the Central Area Transmission System (CATS) offshore pipeline and onshore processing facilities, and a 7.86% stake in the Shearwater Elgin Area Line (SEAL). PRODUCING ASSETS Amethyst BG Group has a 24.15% interest in the BP-operated Amethyst field located in the southern North Sea. Amethyst East started production in 1990 and Amethyst

www.bg-group.com

West in 1991. The development’s four offshore platforms are unmanned, with production being controlled via the onshore terminal facilities. Production is exported from the A2D platform via a 40 kilometre dedicated 30 inch diameter line to the Easington terminal, where it is processed. The average daily rate in 2007 was 53 mmscfd. Amethyst gas is sold under a life of field contract. Armada/Seymour The BG Group-operated Armada gas condensate fields (Fleming, Drake and Hawkins) extend over 31 square kilometres and span five exploration blocks. Production began in 1997. Completed in 2002, the Armada Phase 2 drilling programme added a further three wells, extending the production plateau and lengthening the field life. An average rate of 82 mmscfd and 2 453 bopd was achieved in 2007. The SW Seymour area of the BG Groupoperated 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 on production in 2006.

5

The commingled stream of Armada and Seymour gas is exported via the CATS pipeline to Teesside. Liquids are transported through the Forties Pipeline System (Forties) to the Kinneil processing plant at Grangemouth.

EUROPE AND CENTRAL ASIA

In March 2007, BG Group completed the purchase of ConocoPhillips’ 11.45% interest in the Armada fields, along with an increased stake in the Everest field. This transaction increased BG Group’s shareholding in Armada to 58.22%. Atlantic/Cromarty BG Group has a 75% interest in the Atlantic field in the Outer Moray Firth. BG Group also holds 10% in the adjacent Cromarty field. The fields have been developed with three wells and a long sub-sea multi-phase flow pipeline, the Western Area Gas Evacuation System (WAGES), tied into the Scottish Area Gas Evacuation (SAGE) terminal at St Fergus. Production began in 2006, with a plateau rate of 220 mmscfd. Blake and Blake Flank BG Group has a 44% interest in, and is operator of, the Blake field. The field is located 100 kilometres from Aberdeen in the Outer Moray Firth. First production was achieved in 2001. The field was developed in two phases. The first phase was the Blake Channel, which is a sub-sea development of six producing wells and two water-injection wells, tied back to an existing floating production, storage and off-loading (FPSO) vessel located over the Ross field some 9.5 kilometres away. Development of the second phase, Blake Flank, was completed and production commenced from two wells in second half 2003. This sub-sea development is tied back through the existing Blake facilities to the Ross FPSO vessel. An average total field rate of 21 700 bopd was achieved in 2007. Buzzard BG Group has a 21.73% interest in the Nexenoperated Buzzard oil field, located in the Outer Moray Firth, 100 kilometres north-east of Aberdeen. The field was discovered in 2001 and came onstream in 2007. The facilities consist of a complex of three bridge-linked platforms with oil export via Forties and gas export via the Frigg system. Gross capital expenditure for the project was £1.5 billion. With total estimated proved and probable reserves exceeding 600 mmboe, the field is

BG Group Data Book 2008

6

Europe and Central Asia

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

Partners Partners Armada Armada (%) (%)

During 2008, BG Group and partners sanctioned the Buzzard Enhancement Project which involves the construction of an additional processing platform to remove hydrogen sulphide and extend plateau production beyond 2010.

BGBG Group Group (operator) (operator) BPBP Total Total Centrica Centrica

58.22 58.22 18.20 18.20 12.53 12.53 11.05 11.05

Partners Partners Seymour Seymour (%) (%)

BGBG Group Group (operator) (operator) Total Total Centrica Centrica

www.bg-group.com

Neptune and Mercury are BG Groupoperated and were developed as the first phase of the ECA project. First production commenced in 1999. The ECA Phase 1 facilities consist of a sub-sea production system at Mercury, a normally unmanned platform at Neptune, the ECA Riser Tower platform installed adjacent to the existing BP-operated Cleeton facilities and pipelines connecting the platforms and production systems.

5757 2525 1818

Partners Partners Blake Blake (%) (%)

BGBG Group Group (operator) (operator) Talisman Talisman Petro Petro Summit Summit

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

44.0 44.0 53.6 53.6 2.42.4

The Mercury sub-sea wells are tied back via a manifold and pipeline to the Neptune platform. The fluids produced from Mercury are commingled with fluids from the Neptune production wells before export to Cleeton for final separation, metering and onward transmission through the Southern North Sea Pipeline System to the Dimlington onshore processing terminal. BG Group holds 73.33% 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 ECA infrastructure, the ECA Phase 2 facilities consist of a normally unmanned platform at Minerva and a sub-sea production manifold at Apollo, tied back to the Minerva platform. The platform exports all production to the ECA Riser Tower. The Wollaston and Whittle Field wells are tied back via a manifold and pipeline directly to the ECA Riser Tower. All production from the Minerva and Whittle Hubs is then commingled with Neptune and Mercury production at Cleeton. First production from the Whittle Hub commenced in 2002, with first production from the Minerva Hub following shortly after, in 2003. A combined average production rate of 154 mmscfd was achieved by ECA in 2007.

Elgin/Franklin Area The Elgin/Franklin high pressure and high temperature (HPHT) gas condensate fields are located in the central North Sea. The fields began production in 2001. A total of 14 wells, six in Elgin and eight in Franklin, 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, started production in third quarter 2007. A further well was drilled and brought into production in third quarter 2008. The HPHT Glenelg field (BG Group 14.7%), in Block 29/4d, started production in March 2006. The field has been developed through a single high departure well drilled from the Elgin wellhead platform. Elgin/Franklin and Glenelg gas is exported through SEAL, a common export pipeline shared with the nearby Shell-operated Shearwater field, to the onshore gas reception facilities at Bacton in Norfolk. Liquids are exported through Forties to the Kinneil processing plant at Grangemouth. Gas and liquids from West Franklin follow the same export routes. Everest and Lomond Also 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 in December 2006 of ConocoPhillips’ 1.01% stake, and a 61.11% interest in Lomond. The fields were developed in parallel, with first production in 1993. In 2001, two additional wells were added to each of Everest and Lomond as part of the four well Phase 2 programme. These wells 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 exported via the CATS pipeline and is currently sold under contract to Teesside Power Limited. The contract expires in September 2008. Produced liquids go via Forties to Kinneil. J-Block and Jade The ConocoPhillips-operated Judy/Joanne (J-Block) (gas condensate/oil) and Jade (gas condensate) fields are located in the central North Sea. BG Group has a 30.5% interest in J-Block and a 35% interest in Jade. Production

7

began from J-Block in 1997 and from Jade in 2002. The 2007 combined average production rate from the fields was 335 mmscfd and 32 800 bopd. Jade was developed using a normally unmanned wellhead platform and currently produces from six wells.

The Judy/Joanne fields currently produce from 16 wells, three of which were brought into 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 2007 from 34.4% to 43.1%) and 30/2c (BG Group 36%). The first appraisal well on Jackdaw completed drilling in second quarter 2008 and will be followed by a second appraisal well that is planned to be completed towards the end of 2008. BG Group estimates gross reserves 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 a successful well in the Jasmine North Terrace in February 2008. Further appraisal by sidetracking is in progress. BG Group estimates gross reserves from Jasmine to be between 100 and 275 mmbbls. Maria In 2003, BG Group assumed operatorship, on behalf of a consortium with Total and Centrica, of the fallow Maria 16/29a-11Y discovery. An appraisal well drilled in 2004 identified and confirmed the viability of the discovery. Sidetrack drilling then confirmed an extension into the adjacent Maria Horst prospect.

Partners Buzzard (%) Partners Buzzard (%)

BG Group has applied for exploration licences in the central North Sea adjacent to existing acreage positions in the 25th licensing round. The licence award announcement is anticipated in fourth quarter 2008. OFFSHORE PIPELINES CATS BG Group has a 51.18% interest in the CATS pipeline and terminal, which is operated by BP. The 404 kilometre 36 inch diameter CATS offshore pipeline became operational in 1993 and now transports gas to Teesside from the Everest, Lomond, Andrew, Armada, Seymour, Judy/Joanne, Jade, Erskine, Banff and Eastern Trough Area Project (ETAP) fields (all in the central North Sea). The pipeline has a peak gas capacity of around 1 700 mmscfd.

Group BGBG Group Nexen (operator) Nexen (operator) PetroCanada PetroCanada Edinburgh and Gas Limited Edinburgh OilOil and Gas Limited

21.73 21.73 43.21 43.21 29.89 29.89 5.16 5.16

Figures rounded 2 decimal places. Figures rounded toto 2 decimal places.

Partners PartnersJasmine Jasmine(%) (%)

Onshore, the CATS Teesside terminal includes two trains of gas processing equipment for the Armada, Seymour, Erskine, ETAP and Banff fields. Train 1 became operational in 1997, originally for Armada and Erskine, and Train 2 was brought onstream in 1998 for ETAP and Banff. The total processing capacity of the terminal is around 1 200 mmscfd. The CATS owners have contracted additional business from the Maria and Montrose Arbroath fields.

BG BG Group Group ConocoPhillips ConocoPhillips (operator) (operator) Eni Eni

30.5 30.5 36.5 36.5 33.0 33.0

SEAL and SILK BG Group has a 7.86% interest in SEAL, a 480 kilometre 34 inch diameter gas export pipeline to Bacton. The pipeline was completed in 2000 for the Elgin/Franklin and Shearwater fields. With capacity of around 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 SEAL Interconnector Link (SILK) pipeline that provides direct access from SEAL into the UK-Continent Interconnector pipeline.

In December 2007, production from Maria began. It is tied back to Armada, with gas exported via the CATS pipeline to Teesside and liquids through Forties to the Kinneil processing plant at Grangemouth. UKCS EXPLORATION A central North Sea exploration drilling campaign has led to the discovery of

BG Group Data Book 2008

EUROPE AND CENTRAL ASIA

Production from Jade is exported via a subsea pipeline to the manned Judy platform where it is commingled and processed with Judy and Joanne production. The combined gas stream is then exported via the CATS pipeline to Teesside and the combined liquids stream exported via Norpipe to the Norsea oil terminal at Teesside.

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.

Europe and Central Asia

Kazakhstan

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

39.6

45

36.3

60

35.0

8

30

15

0

05 Oil & liquids Gas

www.bg-group.com

06

07

BG Group has been active in Kazakhstan for over 15 years. It is joint operator of the giant 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 western Kazakhstan to the Black Sea, providing access to world markets.

Production from the Karachaganak field began in 1984 when Kazakhstan was still part of the Soviet Union. In 1995, a Production Sharing Principles Agreement (PSPA) was signed under which BG Group and Agip (now Eni) took over operatorship of the field in order to halt rapid production decline and to improve the safety and environmental performance of the facilities.

KARACHAGANAK The Karachaganak field, discovered in 1979, is one of the world’s largest gas and condensate fields. Located in north-west Kazakhstan, it holds estimated hydrocarbons initially in place (HIIP) of 9 billion bbls of condensate and 48 tcf of gas, with estimated gross reserves of over 2.4 billion bbls condensate and 16 tcf of gas.

Texaco (now Chevron) acquired a 20% share in Karachaganak from BG Group and Agip in August 1997, and two months later LUKoil took 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.

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

The FPSA envisaged a phased development programme, of which the first two phases have been completed. Phase II involved investment to enhance the existing facilities, construct new gas and liquids processing and gas injection facilities, work-over more than 100 wells, construct a 120 MW power station and lay a new 650 kilometre pipeline to connect the field to the CPC pipeline at Atyrau. Phase II facilities came fully onstream in 2004. Historically, virtually all production was sold into Russia, but now most liquids are exported (currently around 70%), with

9

The Phase IIM drilling programme, incorporating an additional 16 production wells, was sanctioned in 2005. A fourth stabilisation train project, sanctioned in 2006, has been expanded to include 13 additional wells and a rail export facility with an initial capacity of 3.8 mtpa. This is expected to increase Western export volumes to more than 10 mtpa and develop gross reserves of 250 mmboe. It is planned to be onstream in 2009. In 2006, pre-FEED work for the Phase III development of the Karachaganak field was completed. Further work is now underway, designed to increase liquids and gas production rates and to recover additional reserves. The multi-billion dollar Phase III development is expected to increase liquids sales to 16.5 mtpa and gas sales to 16 bcma. In May 2007, BG Group and partners agreed the terms of the Phase III Karachaganak Gas Sales Agreement with KazRosGaz, a joint venture between Gazprom and KazMunaiGaz. The agreement sets out the commercial terms governing the sale of gas over a 15 year period. CASPIAN PIPELINE CONSORTIUM The CPC was formed to build a pipeline system to transport oil from western Kazakhstan to the Black Sea near Novorossiysk in Russia. The pipeline system, which commenced operations along its full length in 2001, consists of a new-build line, new marine terminal facilities near Novorossiysk and an upgraded pipeline. The first phase of the system, known as the Initial Construction 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 than initially expected (now in excess of 30 mtpa) as a result of improved operating efficiency. Karachaganak, operating via the Karachaganak Petroleum Operating Company (KPO), began delivering liquids into CPC in 2004.

BG Group has a 2% equity share in the line but is entitled to 2.75 mtpa (55 000 bopd) of CPC initial capacity (around 10% of the total) which, along with other Karachaganak partners’ entitlements, is being used to transport liquids from the Karachaganak field. An expansion of the pipeline system to over 60 mtpa is the next step, and FEED and CPC shareholder discussions related to this are ongoing. The first phase of expansion will increase BG Group’s preferential capacity rights to 3 mtpa (60 000 bopd), and there is potential to increase the total gross capacity of the pipeline to some 67 mtpa (1.5 million bopd) over time. In 2007, liquids from Karachaganak yielded 7.6 million tonnes gross (BG Group 2.5 million) at Novorossiysk. First quarter 2008 marked the successful KPO loading of the 300th tanker, with the loading of some 200 million barrels (gross) since exports commenced in 2004.

Partners PartnersKarachaganak Karachaganak(%) (%)

BGBG Group ( joint operator) Group ( joint operator) Eni ( joint operator) Eni ( joint operator) Chevron Chevron LUKoil LUKoil

32.5 32.5 32.5 32.5 20.0 20.0 15.0 15.0

Shareholders CPC (%) BG Group Russian Government Kazakh Government Chevron LUKARCO ExxonMobil Rosneft-Shell Omani Government Eni Oryx KPV

2.00 24.00 19.00 15.00 12.50 7.50 7.50 7.00 2.00 1.75 1.75

Karachaganak: Additional export capacity secured Rail

Orenburg

0 mtpa

8 bcm

3.8 mtpa

16 bcm

Atyrau Samara

Orenburg

2 mtpa

4 mtpa

3.3 mtpa

4 mtpa

Karachaganak field

Gas re-injection

CPC

Small Refinery

7.6 mtpa*

0.4 mtpa

7 mtpa

0.6 mtpa

Stabilised Oil

Un-stabilised Oil

Capacity 2007

Gas

Stabilised Oil future route

Planned Capacity 2012

*6.5 mtpa firm capacity plus access to additional capacity.

BG Group Data Book 2008

EUROPE AND CENTRAL ASIA

some condensate and all raw sales gas continuing to be sold into Russia. Exports are mainly via the CPC pipeline and achieve international prices that are substantially higher than those secured in the Russian market. An additional oil export route, via the Atyrau Samara pipeline leading into the Russian Transneft system, subsequently became available, and oil exports through this route began in 2006, enabling additional sales at international prices.

10

Europe and Central Asia

UK Downstream

PREMIER POWER LIMITED The 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 and operated by Premier Power Limited, a wholly owned subsidiary of BG Group. The 600 MW CCGT plant was commissioned in 2003.

Shareholders ShareholdersDragon DragonLNG LNG(%) (%)

BGBG Group Group PETRONAS PETRONAS 4Gas 4Gas

5050 3030 2020

BG Group’s UK Downstream activities encompass power generation and energy marketing. The Group is also jointly developing a LNG import and regasification facility 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 basis principally at the UK National Balancing Point (NBP). BG Group also exports gas for sale to, and purchases gas for import from, mainland Europe via the Interconnector.

www.bg-group.com

SEABANK POWER LIMITED Built in two phases, Seabank is a 1 130 MW CCGT power station near Bristol. It is owned and operated by Seabank Power Limited, a 50:50 joint venture between BG Group and Scottish and Southern Energy. Phase 1 of Seabank (750 MW) entered full commercial operation in 2000 and Phase 2 (380 MW) in 2001. INTERCONNECTOR (UK) LIMITED In 2007, BG Group sold its 25% shareholding in Interconnector (UK) Limited. However, BG Group retains both import and export capacity in the pipeline, which runs from Bacton in England to Zeebrugge in Belgium. BG Group uses its capacity for long-, medium- and shorter-term sub-lets to third parties and also ships gas to take advantage of market price differentials. ENERGY MARKETING In 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-term contracts. BG Group is an active participant in the NTS entry capacity auctions held by National Grid and in the on-the-day commodity market and other electronic trading systems that help shippers balance their daily supply and demand. DRAGON LNG In 2004, BG Group and partners signed the shareholder and other related agreements to develop a LNG import terminal at Milford Haven in Wales. The agreements confirm the ownership of the terminal (BG Group 50%, PETRONAS 30% and 4Gas 20%) and the 20 year arrangements governing the use of capacity rights (BG Group 50%, PETRONAS 50%), allowing BG Group and PETRONAS to each send out up to 3 bcm (106 bcf) gas per year, from around 2.2 mtpa LNG. BG Group has contracted pipeline capacity with National Grid. Dragon LNG is expected to be operational in fourth quarter 2008.

11

Norway

EUROPE AND CENTRAL ASIA

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 predominantly through licensing rounds and located in four established core areas. In 2007, BG Group started its exploration drilling programme and drilled and completed three wells, with the Nucula well in the Barents Sea declared a technical discovery. In 2008, BG Group made discoveries at Pi North, Ververis and Jordbær.

NORTH TAMPEN (6 licences, 5 operated) A 3D seismic survey was acquired over the Plomme prospect (PL372S) in 2006, which will be used to determine any future drilling plans. A discovery was made on the BG Group-operated Jordbær exploration well (PL373S). One further licence was gained through the award of PL467S in the 2007 APA Licence Round, and a 3D seismic survey will be acquired in third quarter 2008.

SOUTHERN NORTH SEA (5 licences, 4 operated) This was the entry point into Norway, with BG Group applying its UK Central Graben expertise and experience to the Norwegian median line area. Many of the plays being explored 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/high temperature Mandarin prospect, scheduled for 2009.

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 large operated 3D surveys. The data will determine if an exploration well is to be drilled on any of these licences.

In January 2007, BG Group was awarded the PL407 licence as operator, which contains the Bream oil discovery. The drilling of an appraisal well on Bream is scheduled for first quarter 2009.

Barents Sea, on the Ververis prospect. The well was declared a discovery and post-well analysis is now ongoing. In 2008, a 3D survey was also completed in PL396, which is operated by BG Group.

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

BG Group Data Book 2008

12

Europe and Central Asia

Italy

BG Group has been active in Italy since 1992. Italy is a major net importer of gas, a commodity upon which it is becoming increasingly dependent as the government focuses on environmentally friendly energy sources. BG Group seeks to position itself within the Italian market to supply this rising demand. Current activity in Italy includes: E&P, where BG Group holds one exploration permit in the Po Valley; LNG, where BG Group is developing a LNG import terminal on the south-eastern coast; and Power, where BG Group owns and operates five co-generation plants. EXPLORATION BG Group has focused recent exploration activity in the Po Valley, where the Group holds one exploration permit. Five exploration permits and two exploration permit applications were sold in 2007. LNG BG Group is developing an 8 bcma (6 mtpa) LNG import terminal in the outer harbour of the port of Brindisi (BG Group 100%). The EPC contract was awarded in 2004. Offsite works began in early 2005, followed by onsite works in second half 2005. BG Group will have the rights to 80% of the capacity in the terminal on a priority basis, whilst the remainder will be subject to regulated third-party access. The terminal is strategically located to receive LNG from the

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Mediterranean and Atlantic Basins and the Gulf States. In February 2007, the Brindisi LNG site was seized in connection with a criminal investigation by Italian authorities into allegations of improper conduct related to the authorisation process. Construction work has been suspended since this date. In October 2007, the Italian Government notified BG Group of the suspension of the Authorisation, granted in January 2003, for the construction and operation of the terminal, pending a new requirement to complete an Environmental Impact Assessment (EIA). Brindisi LNG filed the EIA with the Minister for the Environment in January 2008. POWER In 2007, BG Italia acquired the remaining 66.32% of Serene S.p.A. shares from Edison for €98 million, which increased BG Group’s interest in Serene S.p.A. (now BG Italia Power S.p.A.) to 100%. BG Italia Power S.p.A. owns and operates approximately 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 adjacent steam offtakers.

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

13

Africa, Middle East and Asia

Egypt

AFRICA, MIDDLE EAST AND ASIA

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

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

35.2

60

56.6

62.4

80

40

20

0

05 Oil & liquids Gas

06

07

BG Group’s activities in Egypt span the gas chain from exploration, through development and production, to downstream projects in LNG. BG Group’s business 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 concessions offshore 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 Egyptian domestic market at a DCQ of 345 mmscfd; • production of gas from the Scarab Saffron fields in WDDM to the Egyptian domestic market with a current maximum delivery obligation of 900 mmscfd, of which approximately 225 mmscfd (reducing to approximately 150 mmscfd from 2009) is processed through Damietta LNG (Union Fenosa JV Co SEGAS). BG Group and WDDM partner PETRONAS lift the equivalent volume of LNG from the Damietta plant;

BG Group Data Book 2008

14

Africa, Middle East and Asia

Egypt continued • production of gas from the Simian, Sienna and Sapphire fields in WDDM supplying Egyptian LNG Train 1 at 565 mmscfd and Egyptian 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 Rashid Petroleum Company (Rashpetco) in which BG Group has a 40% shareholding, and in the case of WDDM, this is Burullus Gas Company (Burullus) in which BG Group has a 25% shareholding. These operating companies are 50% owned by the Egyptian state-owned oil company Egyptian General Petroleum Corporation (EGPC). BG Group and its partners in each concession hold the remaining 50%. EXPLORATION El Manzala Offshore and El Burg Offshore Concessions In July 2005, BG Group signed El Burg Offshore and El Manzala Offshore concession agreements for the exploration of gas and oil in the Mediterranean Sea with the Egyptian 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 Offshore commenced in second quarter 2008. North Sidi Kerir Deep Concession The North Sidi Kerir Deep concession, signed in July 2006, covers 1 949 square kilometres in water depths of approximately 1 000 – 2 000 metres, adjacent to WDDM. BG Group acquired 3D seismic in 2006.

Sequoia The unitised development of the Sequoia field which lies across the boundary of the WDDM and Rosetta concessions was sanctioned in the second quarter 2008. This will be a six well sub-sea development; three wells on each of WDDM and Rosetta will be tied back to existing infrastructure. First gas is planned for late 2009 with production used to maintain deliveries to the domestic and export markets. WDDM Concession BG Group and partners have drilled 21 successful exploration and appraisal wells in WDDM since 1997, discovering 14 gas fields: Scarab; Saffron; Simian; Sienna; Sapphire; Serpent; Saurus; Sequoia; SimSat-P1 and SimSat-P2. Additional development leases were granted in 2007 for the Solar; Sienna Up; Mina; and, Silva discoveries. Scarab Saffron Scarab Saffron started production in 2003 and supplies gas to the domestic market and to Damietta LNG. Currently, the maximum delivery obligation under the domestic GSA is 900 mmscfd. Under an agreement signed with EGAS in 2004, gas has been de-dedicated for five years from the domestic GSA so that, since February 2005, approximately 225 mmscfd of this gas has been processed through the Damietta LNG plant for a tolling fee. This will reduce to approximately 150 mmscfd from 2009. BG Group and its WDDM partner PETRONAS lift the corresponding volume (1.4 mtpa) of LNG. BG Group lifted its first cargo from Damietta in March 2005.

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

Scarab Saffron is the first deep water sub-sea development in Egypt. These facilities consist of eight sub-sea wells connected to a sub-sea manifold, in turn connected by 24 inch diameter and 36 inch diameter pipelines to an onshore processing terminal. Electrical and hydraulic lines connect the wells to the onshore control room. The fields are located approximately 90 kilometres from the shore and in water depths of more than 700 metres.

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

Simian, Sienna and Sapphire The Simian and Sienna fields produced first gas in 2005, for supply to Egyptian LNG Train 1 at Idku. The Sapphire field produced first gas in 2005, for supply to Egyptian LNG Train 2. The Simian, Sienna and Sapphire fields are located in WDDM approximately

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Partners (%) Rosetta Concession* 80

20

Rashid Petroleum Company 50

40 10

WDDM Concession 50

50

Burullus Gas Company 25

50

25

El Burg Concession* 70

30

BG Group Edison EGPC PETRONAS *BG Group operator.

120 kilometres offshore Idku, near Alexandria, in the Mediterranean Sea. The facilities consist of 16 sub-sea wells tied into the existing WDDM gas gathering network and a shallow water control platform. The onshore processing facilities form part of the Idku Gas Hub where the Egyptian LNG facilities are located. WDDM Phase IV The WDDM fields have undergone a number of development phases to maximise hydrocarbon recovery. The latest, Phase IV, brought onstream seven additional wells during first quarter 2008. The project was delivered a month ahead of schedule, under budget and with an unblemished safety record of 2.5 million man hours achieved with no lost time injuries. The completion of Phase IV brings the total number of sub-sea wells in WDDM to 31. WDDM Phase V Sanctioned in fourth quarter 2007, work to install booster compression on the Scarab Saffron facilities is under way to maintain gas supply to the domestic market. First gas is scheduled to be delivered in 2009. BG Group is currently evaluating future phases of WDDM that will extend the current production plateau.

15

DOWNSTREAM PROJECTS Egyptian LNG BG Group and partners supply Trains 1 and 2 of Egyptian LNG with 565 mmscfd gas each from the Simian, Sienna and Sapphire fields in WDDM. The 3.6 mtpa output from Train 1 has been sold 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 its capacity at Lake Charles in the USA or divert to other markets, as part of its flexible portfolio approach. The first LNG cargo from Egyptian LNG Train 2 was lifted in September 2005.

Egyptian LNG Company owns both the Egyptian LNG site and common facilities. Its sister company, Egyptian Operating Company for Natural Gas Liquefaction Projects (Opco) (BG Group 35.5%), undertakes the operation of all trains. El Beheira Natural Gas 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 different ownership structure from Train 1 Co.

AFRICA, MIDDLE EAST AND ASIA

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 commercial structure of Egyptian LNG has been designed to allow future expansion without the need to involve all existing partners, and it is possible that third parties could supply gas to future Egyptian LNG trains.

Simian, Sienna and Sapphire: integrated upstream and downstream GAS SUPPLY

TRAIN 1 Start date 2005

565 mmscfd – Simian and Sienna

Gas

BG Group

50%

TRAIN 2 Start date 2005

565 mmscfd – Sapphire

UPSTREAM

Train 1 – 3.6 mtpa Tolling plant BG Group PETRONAS EGPC EGAS Gaz de France

35.5% 35.5% 12% 12% 5%

LNG

Gaz de France

100%

Train 2 – 3.6 mtpa Tolling plant

Gas

BG Group

LNG PURCHASE

LIQUEFACTION OUTPUT

50%

BG Group PETRONAS EGPC EGAS

LIQUEFACTION OUTPUT

38% 38% 12% 12%

LNG

BG Group

100%

DOWNSTREAM

BG Group Data Book 2008

Africa, Middle East and Asia

India

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

12

10.3

13.7

16

9.4

16

8

4

0

05 Oil & liquids Gas

www.bg-group.com

06

07

BG Group is a key player within the gas industry in India, with a significant presence in both the E&P and T&D segments. BG Group has increased its exposure in India’s growing natural gas sector by developing its upstream position through licensing rounds and acquisitions. BG Group is also actively contributing to the developing regulatory debate on the further expansion of downstream markets and is interested in exploring further opportunities in each element of the gas chain. UPSTREAM In February 2002, BG Group completed the acquisition of Enron Oil and Gas India Limited, gaining a 30% participating interest in the Tapti gas field and the Panna/Mukta oil and gas fields. In 2007, the combined

fields produced around 45.6 mmboe (gross) – representing approximately 10% of India’s total oil and gas production. Gross production 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 from PMT through ongoing field development. The Panna infill programme, which involved drilling 26 wells, was successfully completed in early 2006 and is expected to increase recovery by around 50 mmbbl and 200 bcf gas. As a part of the first phase of the approved Expanded Plan of Development (EPOD) for Panna, two wellhead platforms have been installed and development wells are being drilled. First production from EPOD was achieved in February 2007. The EPOD for

17

Panna also involves the drilling of 20 wells, of which 17 had been drilled by second quarter 2008, at a cost of more than US$280 million. The fourth wellhead platform on the south Tapti field came onstream in 2006 to help maintain a 250 mmscfd production rate. In August 2007, the next phase of development of the mid-Tapti gas field was completed and first gas produced. The new facilities enable the supply of an additional 200 mmscfd of gas to markets in the western region raising gas production to 450 mmscfd.

BG Group has been expanding its position in the Indian market via licence rounds and farm-ins. In the 2006 NELP VI licensing round, BG Group acquired a 45% interest in exploration block KG-OSN-2004/1 in the Krishna Godavari Basin. The shallow water block, which covers an area of approximately 1 131 square kilometres, is located off the east coast of India. Oil and Natural Gas Corporation Limited (ONGC) holds the remaining 55% interest and operatorship of the block. The PSC was signed with the Government 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 water blocks off the Indian east coast, subject to Government approval. Under the terms of the 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. DOWNSTREAM Gujarat Gas Company Limited BG 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 and industrial customers, and serves more than 73 000 CNG users. GGCL has been part of the BG Group portfolio since 1997. The remaining 34.88% is publicly owned.

In April 2008, following the re-nomination of GAIL as the Government of India nominee to purchase PMT gas production, an agreement was also entered into with GAIL for it to supply 2.13 mmscmd of gas to GGCL. GGCL meets the rest of its gas requirements from other sources. Mahanagar Gas Ltd MGL is based in India’s commercial capital, Mumbai. It is India’s largest city gas distribution company in terms of size of customer base. At present, there are 130 CNG outlets, with 637 dispensing points in Mumbai, Thane and Mira-Bhayander which serve 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 a 49.75% stake in MGL, with the balance held by the Government of Maharashtra. The number of connected domestic customers has risen to 331 203 as at 30 June 2008. MGL also supplies natural gas to 982 small commercial and industrial establishments in Mumbai. In 2007, MGL increased gas sold to 511 mmcm. Further expansion of the pipeline network to neighbouring towns has continued in 2008. The Government of India has set up a Petroleum and Natural Gas Regulatory Board (PNGRB), which started functioning in October 2007. BG India, GGCL and MGL have been actively involved with PNGRB in advocacy and formulation of regulations for the midstream and downstream gas sectors.

Partners Partners Panna/Mukta Panna/Mukta and and Tapti Tapti Fields Fields (%) (%)

BGBG Group* Group* ONGC* ONGC* Reliance Reliance Industries* Industries*

3030 4040 3030

*joint *joint operator. operator.

AFRICA, MIDDLE EAST AND ASIA

From April 2005, for a period of three years, the PMT co-venturers sold the gas produced from the PMT fields directly into the domestic 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-venturers entered into an agreement with GAIL to supply 17.3 mmscmd of gas from these fields as per the terms of the PSC.

In 2007, GGCL recorded a growth of 10% in gas sales volumes. Volumes increased in all segments, notably in the industrial retail segment by 20%, and the vehicle segment by 49% due to higher conversions to CNG. More than 18 000 vehicles were converted to run on this cleaner fuel and GGCL 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 continued throughout 2007 and 2008.

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

BGBG Group Group ONGC ONGC (operator) (operator)

4545 5555

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

BGBG Group Group ONGC ONGC (operator) (operator) OilOil India India Limited Limited

3030 5555 15 15

BG Group Data Book 2008

Africa, Middle East and Asia

Tunisia Key dates

Key to operations Gas

1989 Acquired Tenneco assets 1996 Miskar field first production 2006 Hasdrubal development plan approved 2007 Hasdrubal construction commenced

Proposed pipeline

Oil

BG Groupoperated block

Gas pipeline Oil pipeline 0

BIZERTE

TUNIS

200km

TUNISIA SOUSSE

ALGERIA

MEDITERRANEAN SEA

Hannibal

SFAX

Hasdrubal Plant under construction

Amilcar Miskar LA SKHIRA

GULF OF GABES

LPG Facility under construction

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

12

11.9

12.4

16 12.5

18

8

4

0

05

06

07

Oil & liquids Gas

BG Group is the largest producer of gas in Tunisia, the Miskar field supplying approximately 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 PERMIT BG Group is operator and joint permit holder with Entreprise Tunisienne d’Activités Pétrolières (ETAP), the Tunisian state-owned

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GABES

Hasdrubal Platform Hasdrubal

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 in December 2009. Granted from this permit are the Miskar concession (BG Group 100%) and the Hasdrubal concession (BG Group 50% and initial operator, ETAP 50%). MISKAR GAS FIELD BG Group net production in 2007 was 11.9 mmboe from its Miskar field. Production from 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 a Miskar gas sales contract with the Tunisian state electricity and gas company, Société Tunisienne 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 plateau of the field. MISKAR INFILL WELLS BG Group is in the process of drilling six wells as part of the Miskar infill drilling campaign, with completion scheduled for 2009. The first well entered production in December 2007 and two more have entered production in 2008. These wells will further extend the field

production plateau. Related projects are underway to upgrade the production facilities to process varying compositions of gas and to de-bottleneck the facilities. CONDENSATE PIPELINE A 60 kilometre condensate pipeline was commissioned in 2007 to transport Miskar condensate from Hannibal to La Skhira port. HASDRUBAL DEVELOPMENT The Hasdrubal development plan was approved by the Tunisian government in 2006. All major contracts have now been awarded and construction continues. Gross production of around 30 000 boed is expected from this joint project (BG Group 50%, ETAP 50%) in 2009. Once production commences, BG Group anticipates that it will be the largest producer of gas, LPG and liquids in Tunisia. ULYSSE PERMIT The Ulysse permit was relinquished in March 2008 and the two outstanding obligation wells transferred to the Amilcar permit.

19

Thailand

9.9

9.8

9.3

12

9

Production currently derives from Bongkot North where the DCQ has risen to 550 mmscfd (from an initial 150 mmscfd) through a phased development. The field development consists of a central complex for gas gathering, processing, export and accommodation; and a condensate floating storage and offloading vessel; and it is currently supplied by 20 remote wellhead platforms.

6

3

0

05

06

07

Oil & liquids Gas

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 FIELD BG Group has a 22.22% interest in the Bongkot field in the Gulf of Thailand, which came onstream in 1993. The field is operated by PTT Exploration and Production (PTTEP).

Further development phases are designed to extend the life of the field into the next decade. To facilitate this development, BG Group, along with its partners in the Bongkot field, signed two Supplementary Petroleum Concession Agreements in October 2007 covering Blocks B15, B16 and B17. The agreements extend Bongkot’s production periods for a further ten years from the initial expiry dates in 2012 and 2013.

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

Partners Bongkot (%) Partners Bongkot (%)

Since January 2007, the partnership has successfully drilled three exploration wells on Bongkot North and five exploration wells on Bongkot South. In addition, a number of infill wells on Bongkot North have been completed. Bongkot South is an important part of the development plan and will be developed independently from existing Bongkot North facilities. It will comprise a central processing facility, a quarters platform and approximately 13 wellhead platforms. First gas is scheduled for 2012.

BGBG Group Group PTTEP PTTEP (operator) (operator) Total Total

22.22 22.22 44.45 44.45 33.33 33.33

BG Group Data Book 2008

AFRICA, MIDDLE EAST AND ASIA

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

20

Africa, Middle East and Asia

Nigeria

BG Group commenced business development activities in Nigeria in mid2004. Nigeria offers the potential for an excellent strategic fit with BG Group’s gas chain capability and Atlantic Basin position in light of its hydrocarbon potential. UPSTREAM In January 2006, BG Group signed a PSC for Block OPL 332 with the Nigerian National Petroleum Corporation (NNPC), which resulted 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 Energy Exploration and Production Limited (Sahara), which now retains a 35% participating interest. Other partners with participating interests in OPL 332 are the Nigeria Petroleum 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 data processing was completed in January 2008 with the drilling of an exploration well targeted for 2009/10. In March 2007, BG Group signed a PSC and associated downstream MoU for Block OPL 286-DO with NNPC. BG Group, together with Sahara, was awarded licence OPL 286-DO

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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 the operator with a 66% participating interest, along with partners Sahara (24%) and Equinox 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 further upstream opportunities in Nigeria. LNG BG Group and its partners are developing OKLNG, a liquefaction plant at Olokola, on the south-western coast of Nigeria. In March 2007, the SHA was signed between NNPC, Shell, Chevron and BG Group, which includes the development of the launch project and any future expansions, and sets out the governance within the project company and the Shareholders’ rights to supply 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 Free Trade Zone agreement was signed. The OKLNG launch project is two trains, each with a capacity of 6.3 mtpa of LNG, and expandable in the future to a multi-train

natural gas liquefaction facility and marine terminal. Additional technical work is being done to optimise the final design. 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 earlier signing of a 20 year SPA for 2.3 mtpa LNG from Nigeria LNG Trains 4 and 5 located on Bonny Island. Deliveries under this agreement 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 proposed Train 7 project in Finima, Bonny Island.

21

Oman New information

IRAN

• Abu Butabul appraisal drilling programme commenced

Key dates 2006 Signed an Exploration and Production Sharing Agreement (EPSA) for Block 60 2007 Seismic data acquisition commenced First Abu Butabul appraisal well spudded

GULF OF OMAN UNITED ARAB EMIRATES

MUSCAT

ARABIAN SEA SAUDI ARABIA

Block 60

Key to operations Proposed pipeline

Oil Gas pipeline

YEMEN

OMAN

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

Oil pipeline 0

AFRICA, MIDDLE EAST AND ASIA

Gas

BG Groupoperated block 200km

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

The block, which covers almost 1 500 square kilometres, contains the Abu Butabul gas and condensate discovery which was made in 1998. In addition to this discovery, there are other 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 work programme 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 Butabul structure and the exploration area in the northern part of the block. Acquisition of 3D seismic covering 1 500 square kilometres was completed in January 2008. The first appraisal well was spudded in December 2007 and completed in March 2008. Drilling is planned to continue throughout 2008 and into 2009, with eight appraisal wells planned.

BG Group Data Book 2008

22

Africa, Middle East and Asia

Algeria

Libya Key to operations

MEDITERRANEAN SEA ALGIERS

0

ALGERIA ALGERIA

Oil pipeline 0

TUNISIA TUNISIA

TRIPOLI

EGYPT

ALGERIA

LIBYA Proposed pipeline

500km

The Hassi Ba Hamou Perimeter, in central Algeria, consists of five blocks (317b, 322b3, 347b, 348 and 349b) covering approximately 18 380 square kilometres and contains the Hassi Ba Hamou gas discovery. 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 appraisal well and two exploration wells have been completed so far. A further 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 under the second exploration period of the Hassi Ba Hamou Permit.

Area 123 Block 2 Area 123 Block 1

BG Groupoperated block

ALGERIA BG 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 is operator 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 the second two year exploration period and relinquish 30% of the block area.

www.bg-group.com

600km

ERIA

Key to operations

Gas pipeline

BG Group non-operated block

TUNIS

MOROCCO

Oil

BG Groupoperated block

Gas pipeline

TUNISIA

Gas

Oil pipeline

Oil Gas and Oil/ Condensate

ALGERIA

Hassi Ba Hamou

Gas

EGY

Area 171 Blocks 1,2,3,4

NIGER

CHAD

LIBYA In 2005, BG Group was successful in Libya’s second licensing round, 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 2 covering 2 150 square kilometres in Libya’s prolific onshore Sirt Basin. 3D seismic operations were completed for both areas in September 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 kilometres onshore in the frontier Kufra Basin. 2D seismic operations were completed in September 2007 and the first well is expected to spud in 2008. In May 2007, a Joint Announcement of Co-operation was signed between the NOC and BG Group, to study optimum solutions for supplying natural gas to both domestic and export markets.

Israel and areas of Palestinian Authority

23

Madagascar

Key to operations

SOMALIA

Key to operations Gas pipeline

Gas

Oil pipeline

BG Group-operated block

KENYA 0

BG Group non-operated block

50km

TANZANIA

MEDITERRANEAN SEA

0

1000km

SEYCHELLES

Majunga Offshore Profonde Offshore Gaza Or

ISRAEL Med Yavne

Gaza Marine

MOZAMBIQUE

ANTANANARIVO

EGYPT

ISRAEL AND AREAS OF PALESTINIAN AUTHORITY BG Group has been active in Israel and areas of Palestinian Authority since 1996, with current activities focused upon the successful commercialisation of its offshore Gaza Marine field. AREAS OF PALESTINIAN AUTHORITY Offshore Gaza BG 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 Group drilled two successful wells in 2000 (Gaza Marine-1 and Gaza Marine-2). Reserves are estimated to be around 1 tcf. In 2001, a technical review recommended a sub-sea development and pipeline to an onshore processing terminal. In 2002, an outline Development Plan was approved by the Palestinian Authority.

MADAGASCAR In 2006, BG Group acquired a 30% interest in the Majunga Offshore Profonde exploration block in Madagascar under a farm-in agreement with Vanco. BG Group’s partners are ExxonMobil (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.

BG Group holds 90% equity in the licence, which would be reduced to 60% if the Consolidated Contractors Company (its current 10% partner in the licence) and the Palestine Investment Fund 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 Marine field to Israel. In January 2008, BG Group closed its office in Israel. The Group is evaluating options for commercialising the gas. ISRAEL Med Yavne licence BG Group is currently in the process of relinquishing the Med Yavne licence.

BG Group Data Book 2008

AFRICA, MIDDLE EAST AND ASIA

GAZA

MADAGASCAR

24

Africa, Middle East and Asia

China and Hong Kong Singapore Key to operations BG Groupoperated

Gas Oil

Pipeline – proposed or under construction

Gas pipeline

0

CHINA MALAYSIA

250km GUANGZHOU MACAO

HONG KONG

SINGAPORE HAIKOU

YANGPU

DANZHOU DONGFANG TERMINAL

SUMATRA

DONGFANG

SANYA

53/16

64/11

Qiongdongnan Basin

0

250km

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

SINGAPORE BG 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 business development in support of projects and investments in the region.

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

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

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 of exploration wells. A 2D seismic acquisition programme across the two blocks was completed in August 2007. The next phase involves 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 largely unexplored 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 KONG In 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. www.bg-group.com

25

Philippines

Malaysia

Key to operations Gas pipeline

LUZON

Gas Oil

MANILA PHILIPPINE SEA

Proposed pipeline 0

200km

Santa Rita/ San Lorenzo

BATANGAS

MALAYSIA

SOUTH CHINA SEA

KUALA LUMPUR

MINDORO

Genting Sanyen Power

MALAMPAYA FIELDS

SULU SEA

PALAWAN PHILIPPINES BG 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 STATION Santa 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 in 2000. Siemens AG operates the plant on behalf of First Gas. Gas and condensate purchase agreements were signed in 1997 and, in January 2002, the plant switched to natural gas operations when gas became available from the Malampaya field. Electricity is sold to the Manila Electric Company (Meralco) under a PPA that is effective until 2025.

SUMATRA 0

300km

MALAYSIA BG 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 POWER BG Group was co-developer of this 794 MW combined cycle gas-fired power station and retains a 20% interest. Mastika Lengenda (a wholly owned subsidiary of Genting Group) owns 60% and Worldwide Holdings Bhd owns 20%. Genting Sanyen is located in Kuala Langat, 70 kilometres south of Kuala Lumpur, and began operations in 1995 with a 21 year contract to sell power to Tenaga Nasional Berhad, the Malaysian national power company.

SAN LORENZO POWER STATION BG 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 of approximately 500 MW. Siemens AG operates the plant. Gas and condensate purchase agreements were executed similar to those for Santa Rita. San Lorenzo entered full commercial operation in 2002, selling power to Meralco under a PPA until 2027. TRANSMISSION AND DISTRIBUTION In 2001, FGHC was granted a 25 year franchise to install, own, operate and maintain a transmission and distribution pipeline business serving Luzon Island, including metropolitan Manila. BG Group Data Book 2008

AFRICA, MIDDLE EAST AND ASIA

PANAY

Americas and Global LNG

Trinidad and Tobago New information

Key to operations

• Signed farm-in to Block 5(c) and began drilling programme • Victory and Bounty wells on Block 5(c) successful

Gas

ATLANTIC OCEAN

Oil Gas pipeline

TOBAGO

BG Group-operated block

Poinsettia Chaconia

BG Group non-operated block 0

Key dates

NCMA Unit Area

Hibiscus

100km

Ixora

CARIBBEAN SEA

Petrotrin Refinery Pointe-à-Pierre

PORT OF SPAIN

TRINIDAD GULF OFF PARIA

PHOENIX PARK

Central Block

Atlantic LNG POINT FORTIN

ECMA Starfish Block E

Block 5(a) Block 5(c) Dolphin Deep Dolphin

BEACHFIELD

Block 6(b)

Loran/ Manatee Block 6(d)

VENEZUELA

25

23.0

22.6

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

18.0

26

20

15

10

5

0

05 Oil & liquids Gas

06

07

First Dolphin production Atlantic LNG Train 1 operational Hibiscus platform installed Atlantic LNG Train 2 start-up Atlantic LNG Train 3 start-up Acquisition of Central Block 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

BG Group has been operating in Trinidad and Tobago since 1989, and reinforces its position as a key gas producer in the country. BG Group currently supplies gas to the domestic market and to Atlantic LNG. In 2007, two thirds of production was exported as LNG with the remainder going to the domestic market.

the domestic network. Gas is delivered to Atlantic LNG through a second offshore pipeline bringing gas from the Dolphin platform to shore at the Beachfield receiving terminal. It then connects to NGC’s 76 kilometre onshore Cross Island Pipeline (CIP) extending from Beachfield to Atlantic LNG at Point Fortin.

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), commenced production in 1996. The asset is contracted to supply 275 mmscfd gas to the National Gas Company (NGC) under a 20 year supply contract together with 100 mmscfd to Atlantic Train 3 and 120 mmscfd to Atlantic Train 4. An additional domestic contract will start in 2009.

In May 2007, BG Group signed an agreement to supply 220 mmscfd of gas to NGC for up to 15 years, commencing in 2009. Drilling of five further development wells in the Dolphin field to enable delivery of this new supply commenced in April 2008.

The gas is produced under a Combined Development Plan for the fields in Blocks 5(a), 6 and E. Production is currently delivered from the Dolphin field through eight platform wells and the Dolphin Deep field from two sub-sea wells. These wells were the first sub-sea completions in Trinidad and Tobago and came onstream in July 2006. The Dolphin Deep sub-sea facilities are tied back to upgraded facilities on the Dolphin platform. ECMA gas is delivered to NGC via a pipeline to the Poui platform where it connects to

www.bg-group.com

1996 1999 2001 2002 2003 2004 2005

In 2005, BG Group and partner Chevron completed the Manatee-1 well in Block 6(d) in the ECMA, which indicated gross reserves of 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, the Governments of Venezuela and Trinidad and Tobago signed a Framework Unitisation Treaty for cross-border developments. BLOCK 5(c) In August 2007, BG Group signed a farm-in agreement with Canadian Superior Energy Inc. for Block 5(c), 94 kilometres off the east coast of Trinidad. Under the terms of the agreement, BG Group has taken a 30% working interest in the PSC.

27

The first well of the current three well programme completed drilling on the Victory prospect in February 2008 and is considered to be a gas condensate discovery. A second well, Bounty, was spudded 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 Unitisation Agreement was signed with Petrotrin for development of these fields and this was amended in 2007 to allow development of all accumulations within the NCMA Unit Area. In December 2000, the Government of Trinidad and Tobago approved the development of the first three fields. These fields are being developed in up to four phases 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 to Atlantic LNG at Point Fortin. De-bottlenecking in 2003 increased the capacity of the pipeline to 30% above the original design. The Ixora prospect was drilled and successfully completed in 2003 as part of drilling operations on the Hibiscus and Chaconia fields.

The next phases of activity in the NCMA include the development of the Poinsettia field as part of Phase 3c and accessing Heliconia and Bougainvillea fields as part of Phase 3d. These phases involve building a new platform, drilling up to six wells from the platform and one sub-sea well. Topsides for the new platform are the largest to have been fabricated locally to date. The sub-sea well was successfully completed and tested in 2008. First gas from Phase 3c is expected to be onstream at the end of 2008. A new 20 inch pipeline will connect the new platform to the existing Hibiscus Platform

In 2002, BG Group and its partners announced first gas production from the NCMA Hibiscus field into Atlantic Train 2. NCMA is contracted to supply 240 mmscfd gas to Train 2 for up to 20 years, in addition to 125 mmscfd to Train 3 for the first two years, reducing thereafter to 45 mmscfd. Production into Train 3 started in 2003 and NCMA has consistently produced at rates approximately 12% above the original DCQ for both Atlantic LNG Trains 2 and 3. NCMA started to supply gas to Atlantic LNG Train 4 in 2005. The Train 4 supply contract is for approximately 80 mmscfd. CENTRAL BLOCK BG Group holds a 65% interest and operatorship of this 111 square kilometre block. State-owned company Petrotrin holds the remaining 35% under an Exploration and Production Licence, which was renegotiated and signed in 2006. The discoveries in the block include the currently producing Carapal Ridge field, as well as Baraka, Baraka East and Corosan. BG Group currently supplies 20 mmscfd gas and approximately 1 000 bopd condensate to Petrotrin, for use in its refinery at Pointeà-Pierre. Gas is transported via a 12 kilometre pipeline that connects to the NGC network. A new gas plant with a capacity of approximately 65 mmscfd was commissioned in September 2007, near the existing production site at Carapal Ridge. This increased capacity supplies approximately 23 mmscfd to BG Group’s capacity in Atlantic LNG Train 4 in addition to the supply to Petrotrin’s refinery.

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

BGBG Group Group (operator) (operator) Chevron Chevron

5050 5050

Partners Partners Hibiscus Hibiscus – NCMA – NCMA (%) (%)

BGBG Group Group (operator) (operator) Petrotrin Petrotrin EniEni PetroCanada PetroCanada

45.88 45.88 19.50 19.50 17.31 17.31 17.31 17.31

AMERICAS AND GLOBAL LNG

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 additional infill sub-sea wells were drilled and successfully brought into production during December 2006 and January 2007 in Chaconia and Eastern Hibiscus as part of Phase 3b of the NCMA development.

some 20 kilometres away. An appraisal well on the Celosia field was completed in 2007, tested in 2008 and the data is currently under review.

Partners Partners Central Central Block Block (%) (%)

Pre-sanction studies are currently ongoing for the development of the Baraka and Baraka East discoveries. 3D seismic acquired over 85 square kilometres of Central Block area during 2007 is currently being assessed. BGBG Group Group (operator) (operator) Petrotrin Petrotrin

6565 3535

BG Group Data Book 2008

Americas and Global LNG

Trinidad and Tobago continued ATLANTIC LNG The Atlantic LNG Company of Trinidad and Tobago, in which BG Group is a shareholder, constructed its first LNG plant at Point Fortin, south-west Trinidad which began operating in 1999. The first train produces 3.1 mtpa LNG which is sold to markets in the north-east United States, Puerto Rico and Spain. Train 2 commenced production in 2002 and Train 3 in 2003, with the additional two trains producing on average a total of 6.6 mtpa. With the completion of the 5.2 mtpa Train 4 in December 2005, the total LNG production capacity of Atlantic LNG is approximately 15 mtpa.

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 longterm contract for import into the Elba Island LNG receiving terminal in Georgia, USA.

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 subsequent regasification for onward sale into the US market. In 2007, Atlantic LNG supplied 58% of US imports of LNG.

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.

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

LIQUEFACTION OUTPUT

TRAIN 3 Start date 2003

TRAIN 2 Start date 2002

TRAIN 1 Start date 1999

c520 mmscfd (non-BG supply)

LNG

BG Group BP Repsol Suez NGC

c560 mmscfd

50%

c560 mmscfd

25%

BG Group and upstream partners

UPSTREAM

www.bg-group.com

32.5% 42.5% 25.0%

28.9%

BG Group BP Repsol NGC

60% 40%

BG Group BP

50% 50%

LNG

BG Group BP Repsol

32.5% 42.5% 25.0%

Train 4 – 5.2 mtpa Tolling plant

Gas

Suez Gas Natural

LNG

BG Group BP Repsol

Train 3 – 3.3 mtpa Tolling plant

Gas BG Group and upstream partners

26% 34% 20% 10% 10%

Train 2 – 3.3 mtpa Tolling plant

Gas BG Group and upstream partners

LNG PURCHASE

Train 1 – 3.1 mtpa Merchant plant

Gas

c800 mmscfd TRAIN 4 Start date 2006

28

BG Group BP

25% 75%

LNG 28.89% 37.78% 22.22% 11.11%

LIQUEFACTION OUTPUT

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

DOWNSTREAM

29

United States of America and Global LNG New information CANADA

• Supply agreements signed with Hong Kong (CAPCO) and Singapore • Alliance with Queensland Gas Company for Queensland Curtis LNG project. Bechtel appointed to commence work on FEED study

Lake Road

Masspower

BOSTON

Dighton

Key dates WASHINGTON D.C.

USA Elba Island

Lake Charles JACKSONVILLE

HOUSTON

GULF OF MEXICO MEXICO

BG Group has been the leading LNG importer to the USA in recent years with supply from both equity and third party projects. During 2007, BG Group was responsible for importing around 55% of LNG delivered into the USA.

500km

The Agreement became effective in January 2002 and was extended in 2004 to cover 100% of the terminal capacity for the term of the Agreement. The terminal has access to 15 major intra-state and inter-state natural gas pipelines through the Trunkline Gas Pipeline system. The Lake Charles facility has undergone two expansions, the latest of which was completed in 2006 and increased sustainable baseload capacity to 1.8 bcfd (with peak capacity of 2.1 bcfd) and added a second unloading berth. All of the capacity of the expansions is committed to BGLS.

In 2006, BG Group initiated expansion into the US merchant power business as part of its integrated natural gas business, via the acquisition of the Dighton power plant in Massachusetts. With the acquisition of two additional facilities, Lake Road (Connecticut) and Masspower (Massachusetts) in early 2007, the US generation portfolio now has a capacity of 1 234 MW.

BGLS entered into a long-term agreement with Trunkline Gas Company for pipeline capacity sufficient to meet its increasing throughput capability at Lake Charles from April 2004 onwards. The agreement provides for the addition of new pipeline facilities and upgrades of existing facilities. The installation of the upgrades in 2005 allows BGLS increased access to the US pipeline grid, providing enhanced access to diverse and deep markets.

LAKE CHARLES In 2001, BG LNG Services (BGLS), a wholly owned BG Group subsidiary, signed a 22 year LNG Terminalling Service Agreement to utilise the capacity of the LNG import facility at Lake Charles, Louisiana, USA.

In 2006, BGLS signed an agreement with Trunkline LNG, the owner of the Lake Charles terminal, for upgrades to the facility including an ambient air vapourisation system and a natural gas liquids (NGL) extraction plant to remove higher Btu

products such as ethane, propane and butane from the LNG. The new system will reduce fuel gas consumption by up to 85%, thus enhancing margins, reducing emissions, and providing an additional revenue stream from NGL sales expected to start in second quarter 2009. As part of the agreement, Trunkline has also extended BGLS’s rights as the sole capacity holder by six years until 2029. ELBA ISLAND Beginning in 2004, BGLS established itself as the new marketer of regasified LNG at Elba Island in Georgia after taking over contracted capacity and long-term LNG supply from El Paso in late 2003. Additionally, BG Energy Merchants (BGEM) entered into a long-term transportation arrangement with Southern Natural Gas to construct the Cypress pipeline expansion of the Southern Natural Gas Pipeline system running from Elba Island to Jacksonville, Florida. Cypress Phases I and II are now up and running with the ability to supply approximately 336 000 mmbtud of natural gas to southern Georgia and Florida markets – the first time that Florida has had direct access to natural gas supplies other than from the Gulf of Mexico. In 2005, Southern LNG, Inc., the terminal owner, announced it will expand the total terminal capacity. In September 2007,

BG Group Data Book 2008

AMERICAS AND GLOBAL LNG

BG Group, through its subsidiary companies, has established this leading position through a combination of its capacity at the Lake Charles and Elba Island LNG receiving terminals, 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 marketing operations in the USA through expansion of existing facilities and the pursuit of new projects.

0

2001 22 year lease signed for Lake Charles capacity 2003 Secured access to Elba Island terminal 2006 Two expansions of Lake Charles increasing capacity to 13.4 mtpa Dighton power plant acquired 2007 Lake Road and Masspower power plants acquired 20 year SPA signed for 2.25 mtpa from Nigeria LNG Train 7 Cypress pipeline in service giving direct access from Elba Island to the Florida market

30

Americas and Global LNG

United States of America and Global LNG continued approval was received from the Federal Energy Regulatory Commission for the expansion of the terminal and construction of the new Elba Express Pipeline in eastern Georgia. 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-eastern and eastern USA. The facilities will be constructed in two phases with the initial in-service date expected to be early 2010. LNG SUPPLY BG Group is pursuing a number of options to create a diversified supply portfolio for its LNG regasification capacity. These options include buying LNG from third parties 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 LNG cargoes under a 17 year 3.4 mtpa supply contract with Equatorial Guinea LNG. In February 2008, BG Group announced an alliance with Queensland Gas Company Limited to explore and develop the coal seam gas resources in the Surat Basin, south-west Queensland, Australia. The alliance includes pursuing an initial 3 to 4 mtpa LNG facility in Queensland to supply Asia Pacific markets. MARKETING BG LNG Trading (BGLT) in conjunction with the Group’s LNG shipping organisation is engaged in marketing LNG to buyers throughout the world. During 2007, BGLT remarketed 81 cargoes from their intended destinations in the USA to higher value markets. The combination of flexible supply, shipping capacity and commercial capability contributes towards a strategic advantage for BG Group. In 2008, BG Group made its first deliveries of LNG to Argentina, Brazil and China. The Group has now delivered to 16 of the 19 current LNG importing countries. BGEM markets regasified LNG from Lake Charles and Elba Island, along with indigenous gas supplies, to multiple intermediary and end-use customers via delivery through the USA natural gas pipeline infrastructure. Sales are made under various short-, medium- and long-term arrangements. BGEM’s customers include

www.bg-group.com

leading gas and electric utilities, as well as industrial and wholesale gas merchants. SHIPPING BG Group has a long history in LNG shipping, having been involved in the development of both the prototype and the first working LNG carriers in the industry. BG Group’s activities in this area are primarily directed towards meeting the needs of BG Group projects. In 2007, BG Group took delivery of four new ships – the Methane Alison Victoria, the Methane Heather Sally, the Methane Shirley Elisabeth and the Methane Nile Eagle. Four new owned ships have been ordered for delivery over 2009 and 2010. These new ships will be larger (170 000 cubic metres) than those currently owned, and will be powered by dual-fuel diesel-electric engines which are more 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 a balanced shipping position (see page 52 for further details). STORAGE In 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 mediumto long-term basis to facilitate its operational and commercial requirements. POWER BG Group entered the north-east US power market in 2006, chosen because it is both mature and transparent, with no dominant incumbents. The first power station 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’s integrated 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 in Massachusetts 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 Massachusetts are dual-fuel capable plants designed to run

on natural gas or distillate oil. Fuel to Lake Road is supplied through the Algonquin pipeline system while Masspower is supplied through the Tennessee Gas pipeline system. With both plants the primary fuel is natural gas with distillate as the back-up fuel. The ability to switch fuels gives the plants a commercial advantage over gas-only plants in the region. All three plants’ output is sold into the competitive New England power market.

31

Brazil

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

BGBG Group Group Petrobras Petrobras (operator) (operator) Petrogal Petrogal

2525 6565 1010

BG Group has a controlling stake in Companhia de Gás de Sâo Paulo (Comgas), Brazil’s largest gas distribution company. Comgas has over 570 000 customers in São Paulo. The concession area has a population of over 29 million and Comgas anticipates continued growth opportunities in future.

BG Group has an equity position in the Bolivia-Brazil Pipeline (BBP). EXPLORATION In 2003, BG Group entered the Second Exploration Period for the non-operated BM-S-9, 10 and 11 blocks in the deep water Santos Basin (greater than 2 000 metres water 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 both declared as discoveries. In 2007, the Carioca well on BM-S-9 (BG Group 30%) was declared a discovery and the Tupi appraisal well, Tupi Sul (BM-S-11), confirmed the 2006 Tupi discovery.

BG Group Data Book 2008

AMERICAS AND GLOBAL LNG

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

32

Americas and Global LNG

Brazil continued Partners Partners BM-S-9 BM-S-9 (%) (%)

BGBG Group Group Petrobras Petrobras (operator) (operator) Repsol Repsol YPF YPF Brasil Brasil S.A. S.A.

3030 4545 2525

Effective Effective shareholders shareholders BTB BTB (%) (%)

Tupi is a large structure with significant reserves potential requiring further appraisal drilling and evaluation. Initial estimates by BG Group are that Tupi could contain from 12 billion boe to more than 30 billion boe gross hydrocarbons initially in place. Commercialisation of the Tupi discovery is receiving highest priority by BG Group and operator Petrobras. Implementation of an extended well test (EWT) as well as a Pilot Project were sanctioned in 2008. The Tupi consortium is currently undertaking further evaluation of the field under an Evaluation Plan approved by the National Petroleum Agency of Brazil (ANP). Initial production from the EWT is expected in 2009 with gross production of 10-20 000 bopd. A pilot production project is expected to commence in late 2010, with initial production estimated to be up to 100 000 bopd. In April 2008, operator Petrobras contracted three sixth generation rigs from Seadrill, which should guarantee availability of rig capacity to drill and complete the anticipated eight additional Tupi Pilot Project wells, as well as several appraisal wells on the Carioca, Guará and Iara discoveries, by 2011.

BGBG Group Group Petrobras Petrobras Transredes Transredes El El Paso Paso Ashmore Ashmore Energy Energy Shell Shell Total Total

7.65 7.65 40.46 40.46 22.27 22.27 7.65 7.65 7.42 7.42 7.42 7.42 7.12 7.12

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

Effective Effective shareholders shareholders Comgas Comgas (%) (%)

BGBG Group Group Public Public Shell Shell

www.bg-group.com

60.04 60.04 21.80 21.80 18.16 18.16

In BM-S-9, the Guará well was announced as a discovery in June 2008, the second one within this concession area. In September 2008, BG Group announced the completion of drilling on the Iara well in the BM-S-11 concession and estimated gross recoverable volumes to be 3-4 billion boe. Evaluation Plans for the Carioca and Guará discoveries have been approved by the regulator ANP and the Evaluation Plan for Iara is expected to be filed during fourth quarter 2008. In July 2004, BG Group acquired a 100% operated interest in the BM-S-13 exploration block in the shallow water (100 – 200 metres water depth) Santos Basin. In 2005, Repsol farmed into BM-S-13 for a 40% interest. In May 2006, BG Group completed its first two operated wells in the block and in September, BG Group entered the third and final two year Exploration Period and acquired 3D seismic to fulfil the commitments. In October 2005, BG Group’s exploration portfolio was further extended following success in the 7th Annual Brazil licensing round. Three licences were awarded in the offshore Santos Basin (BM-S-47, BM-S-50 and BM-S-52) and one onshore licence was awarded in the São Francisco Basin in Minas Gerais State (BT-SF-2).

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 commence on 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 different companies: Gas Transboliviano (GTB), which owns and operates the assets in Bolivia, and Transportadora Brasileira Gasoduto Bolivia Brasil (TBG), which owns and operates the Brazilian portion of the pipeline. Operation of the two pipelines is co-ordinated through an Interconnection Agreement. BG Group participates in TBG through BBPP Holdings, together with El Paso and Total. BG Group’s one-third equity in BBPP Holdings 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 the pipeline was completed in 2000, opening the Brazilian energy market to Bolivian gas reserves. COMGAS Summary 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 stock exchange 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 residential customers in the state of São Paulo. Additionally, Comgas supplied 384 NGV filling stations and 18 customers in the thermo generation and co-generation market. Comgas has increased its average daily volume from 3.0 mmcmd in 1999 to 13.9 mmcmd in 2007.

33

Comgas increased its total net income by 3.7% to BRL 443 million in 2007 and invested BRL 397 million. BG Group and Shell have been the majority shareholders in Comgas since April 1999, when the state-owned power generation utility, 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 Paulo Investments B.V. (96%) and Shell Gas B.V. (4%). Shell incorporated part of its previously held direct shareholding in Comgas into the controlling consortium. After execution of the Shareholders’ Agreement, Integral Investments 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 current business focus continues to be the connection of higher margin commercial and residential customers.

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

Comgas volumes (bcma) 5 4 3 2 1 0 05

06

07

Thermal Co-generation NGV Commercial Residential Industrial

Financial and operating summary – Comgas Revenue (£ million) EBIT (£ million) Customers at year end (‘000) Sales volume (mmcm)

2007

2006

2005

810.4

738.6

532.0

206.9

186.2

147.0

572

517

485

5 032

4 773

4 346

AMERICAS AND GLOBAL LNG

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

OTHER BUSINESS Iqara Gas Natural, launched in 2001, provided compression services to the rapidly growing Brazilian NGV market. Iqara Gas Natural was sold in July 2008 to Dickens Investments LLC, a US subsidiary of the Natixis private equity company. 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.

Comgas purchases gas at prices indexed to a basket of oil-related fuels. Brazilian gas supplies from Petrobras of 3.5 mmcmd are contracted until December 2012. Bolivian gas supplies from Petrobras began in July 1999 under a 20 year contract, with volume increasing from 4.0 mmcmd in 1999 to 8.7 mmcmd in 2007 and are contracted until July 2019. Comgas has two further gas supply contracts with Petrobras: 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 agreement that needed to be restructured as a result of changes to the Bolivian regulatory regime.

BG Group Data Book 2008

34

Americas and Global LNG

Argentina, Chile and Uruguay

ARGENTINA MetroGAS MetroGAS is the largest natural gas distribution company in South America. BG Group acts as technical operator. MetroGAS supplies around two million customers in the city of Buenos Aires, and in 2007 delivered 7.9 bcm gas through over 16 000 kilometres of pipeline. The company distributes approximately 23% of the total natural gas supplied by the nine distribution companies in Argentina. In January 2002, the Argentine government declared what it called a state of ‘public emergency’, forcing the re-negotiation of public utility contracts. The ‘Public Emergency Law’ has been extended up to 31 December 2008, thereby extending the renegotiation of the MetroGAS licence concession. The timing and outcome of www.bg-group.com

this process still remains uncertain. As a result, in March 2002, MetroGAS and its holding company – GASA – suspended payments on all of its financial debt. In November 2003, MetroGAS launched a debt-restructuring plan. In May 2006, MetroGAS reached a successful outcome 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 agreement with its creditors for a comprehensive restructuring, 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 its creditors Marathon Master Fund Ltd. and Marathon Special Opportunity Master Fund Ltd. informing that they wished to terminate the 2005 restructuring agreement. The creditors based their termination notice on the argument that closing was not achieved within the timeframe provided for in the restructuring agreement, resulting in the non-fulfilment of certain conditions precedent. As a result, BG Group and its partners in GASA are currently evaluating the course of action that they will follow with respect to GASA’s debt.

35

CHILE Quintero LNG In March 2007, BG Group and partners incorporated 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 import terminal 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, the equivalent of approximately 40% of the country’s demand for natural gas. Following project sanction, BG Group and the partners awarded 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 terminal and have arranged to off-take the gas via 21 year agreements with 1.7 mtpa LNG supplied by BG Group from its supply portfolio.

URUGUAY BG Group is operator with a 40% share in the Southern Cross Pipeline (SCP) linking Punta Lara in Argentina to Montevideo.

MetroGAS MetroGASeffective effectiveshareholding shareholding(%) (%)

The pipeline became operational in 2002 at the start of a 30 year concession period. Through its holding in Dinarel, BG Group holds a 25.5% interest in Gas Link, a 40 kilometre gas pipeline connecting the SCP to the Argentine transportation network.

BGBG Group Group Gas Gas Argentino Argentino S.A. S.A. (GASA)* (GASA)*

6.86.8 70.0 70.0

Retail Retail Former Former Gas Gas deldel Estado Estado employees employees

13.2 13.2 10.0 10.0

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

Shareholders ShareholdersGNL GNLQuintero QuinteroS.A. S.A. (%) (%)

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 that will finance 85% of the investment. BG Group acts as a co-lender for 40% of this financing.

4040 2020 2020 2020

BG Group Data Book 2008

AMERICAS AND GLOBAL LNG

BGBG Group Group ENAP ENAP Endesa Endesa Metrogas Metrogas S.A. S.A. ofof Santiago Santiago

Americas and Global LNG

Bolivia Key to operations Gas Oil Gas pipeline BG Groupoperated block

Charagua

BG Group non-operated block 0

100km

Caipipendi

BOLIVIA La Vertiente VILLAMONTES

TARIJA

XX Tarija East

XX Tarija West

XX Tarija East Los Suris

PARAGUAY ARGENTINA

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

Bolivia: BG Group 3 year production Total production mmboe (net) 10

7.5 5.5

5.3

6.2

36

5.0

2.5

0

05

06

07

Oil & liquids Gas

BG Group, through its subsidiary BG Bolivia, has interests in six exploration and exploitation licences. BG Bolivia operates three gas areas which include six fields and holds a participating interest in another three areas, which include two of the largest discovered natural gas condensate fields in the country, Margarita and Itau. Following congressional approval in May 2007, new Operations Contracts became effective replacing the Shared Risk Contracts. www.bg-group.com

100% OPERATIONS Following the acquisition in 1999 of Tesoro Bolivia Petroleum Company’s assets, BG Group continues to hold and operate (100%) three exploitation and retention licences containing six fields. La Vertiente The 375 square kilometre La Vertiente exploitation block contains the La Vertiente, Escondido and Taiguati gas condensate fields. Production from these fields is processed at the La Vertiente plant and the natural gas and stabilised condensate are delivered to YPFB for subsequent marketing. Production from La Vertiente began in 1978 and from Escondido in October 1989. Los Suris The 50 square kilometre Los Suris exploitation block contains the Los Suris gas condensate field 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 are held as Retention Areas awaiting development.

Key dates 1998 Margarita discovered 1999 Itau field discovered Purchased Bolivian assets from Tesoro 2004 First production from Margarita Early 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-1 well in Caipipendi Block 2008 Declaration of Commerciality on Huacaya discovery

NON-OPERATED BLOCKS Caipipendi BG Group has a 37.5% share in this Block, which contains the large Margarita gas condensate field lying in the 874 square kilometre Margarita exploitation area. Following discovery in November 1998, first production from Margarita began in December 2004 under an interconnection agreement with Petrobras for the temporary use of its gas and liquids lines. The Caipipendi block also contains several large gas condensate exploration leads and prospects. On the northern part of this block a new discovery 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 of Commerciality in respect of this discovery. XX Tarija West BG Group has a 25% interest in the XX Tarija West block, which contains the Itau gas condensate field currently in retention. Charagua BG Group has a 20% interest in the 992 square kilometre Charagua Block, which contains the Itatiqui Retention Area.

37

Canada and Alaska

3.3

4

3.5

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

3

1

0

05 Oil & liquids Gas

06

07

In April 2007, BG Group sold its production assets in the Bubbles, Ojay and Copton/Lynx areas of the Western Canadian Sedimentary Basin for £228 million. The Group’s 50% interest in Waterton was retained.

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

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

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

Alaska’s North Slope has estimated discovered reserves in excess of 17 billion barrels of oil and 35 tcf of gas. In 2006, BG Group signed a further Exploration Agreement 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 with 10%. The acreage is located on the coastal plain near the Prudhoe Bay field, which has produced over 10 billion barrels of oil.

In May 2007, BG Group acquired two further licences, EL 444 (BG Group 100%) and EL 445 (BG Group 75% and operator) in the Colville Lake area of the Northwest Territories. Further acreage was also acquired in Alberta and British Columbia.

ALASKA In Alaska, BG Alaska has interests in over 2.3 million gross acres in the eastern North Slope (ENS) and the foothills of the North Slope areas.

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

BG Group Data Book 2008

AMERICAS AND GLOBAL LNG

0.9

2

CANADA BG Group’s Canadian exploration activities are focused in Alberta and British Columbia. BG Canada currently holds 77 860 net hectares in the Foothills and Deep West area of the Western Canadian Sedimentary Basin. Exploration activities are focused in the northern and central foothills and the Wild River Basin. BG Canada also holds interests in 245 679 net hectares in the Northwest Territories.

38

Americas and Global LNG

Australia

In February 2008, BG Group announced an alliance with Queensland Gas Company Limited (QGC), a leading coal seam gas company supplying the Queensland market. BG Group acquired a 20% interest in QGC’s coal seam gas assets in the Surat Basin, south-west Queensland, and a 9.9% stake in QGC for a total consideration of £316 million. BG Group will also acquire a further 10% interest in such coal seam gas and other assets with the earlier of either the certification of proved and probable reserves of 7 000 petajoules (PJ) (c7 tcf) or the final investment decision approving the budget for the construction of a LNG export facility. The companies are co-operating in the exploration and development of onshore coal seam gas acreage that will supply the domestic market and a new LNG production and export facility. BG Group’s alliance with QGC is pursuing a LNG facility on the central Queensland coast to supply Asia Pacific markets. The Queensland Curtis LNG project is being designed to initially supply 3-4 mtpa of LNG, with potential expansion up to 12 mtpa subject to additional gas reserves.

www.bg-group.com

The LNG project involves the construction of a 380 kilometre pipeline to the port of Gladstone, additional pipeline capacity to link nearby CSG resources and development of the LNG terminal. In July 2008, the LNG project was awarded ‘Significant Project Status’ by the Queensland Government, a move that triggers environmental impact assessment under Queensland and Australian Government legislation. Bechtel has been appointed to commence work on the FEED study. In June 2008, QGC announced that its proved and probable (2P) reserves of coal seam gas in the QGC/BG Group assets increased 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 a further increase in 2P reserves to 2 703 PJ. 3P reserves stand at 7 103 PJ. The focus of drilling since the last upgrade has been on the development of 1P and 2P reserves.

BG Group/QGC Partnership (%) CSG assets(a) 20

80

Pipeline 50

50

LNG plant* 70

30

LNG offtake 100 BG Group QGC *BG Group operator

70

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

30

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

STATISTICAL SUPPLEMENT

55 Issued share capital and dividend history 55 Investor calendar Definitions 56 Definitions 57 Index of assets

BG Group Data Book 2008

40

Introduction and legal notices 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

www.bg-group.com

Social and environmental data

41

ENVIRONMENT The environment data represents 100% of the direct emissions, discharges and wastes from: x E&P operations where BG Group is designated as the ‘operator’; and x 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

Carbon dioxide

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)

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

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

Oil in process water

Oil on cuttings

Oil spills

Process water

Drill cuttings

Total 2007

209

0

13

4 540 970

22 328

4 563 520

Metal

General

Hazardous

Recycled

Drill cuttings

1 650

12 629

20 524

3 894

6 708

41 511

Gas

Electricity

Oil

Total 2007

8 732 176

37 574

2 441 600

11 211 350

Greenhouse gases (carbon dioxide equivalent)

Discharges to aqueous environments (tonnes)

Waste for disposal (tonnes)

Energy use (MWh)

(1) (2) (3) (4) (5)

Total 2007(3)

Total 2006(2)

4 381 109 Total 2006(4)

54 425 Total 2006(5)

9 989 797

Total 2005

3 867 907 Total 2005

23 534 Total 2005

8 682 281

Amended from 2005 and 2006 CR Reports to include revised CO2 emissions for diesel vessels Amended from 2006 CR Report to include BG Trinidad and Tobago drill cuttings data not available at the time of the 2006 Report 2007 operational waste data for Rashpetco was not available at the time of printing this Report. 2006 waste amounted to 304 tonnes in total Amended from 2006 CR Report to include additional data from BG Bolivia not available at the time of the 2006 Report 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) Employees worldwide Employees based outside UK Employees working away from home country Women in management (6)

2007

2006

2005

4 949

4 665

5 363(6)

3 286

3 030

4 000(6)

582

529

440

8%

9%

11%

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: x E&P operations where BG Group is designated as the ‘operator’; and x 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

Lost time injury frequency (LTIF) Total recordable case frequency (TRCF)

0.26

0.36

0.51

1.56

1.66

2.39

Sickness absence Reported occupational related illness frequency (ORIF)

0.83(7)

0.4

0.4

0.12

0.1

0.1

2007

2006

2005

6

7

6

34

24

7

(7)

2005

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

CONDUCT Investigations of fraud allegations Whistleblowing cases

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. Charitable donations Community investment

2007

2006

2005

506 022

426 663

1 064 441

1 290 010

1 364 205

1 508 691

Commercial initiatives Management costs

1 622 607

1 978 555

808 014

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

BG Group Data Book 2008

STATISTICAL SUPPLEMENT

SOCIETY – SOCIAL INVESTMENT

42

Summarised BG Group annual results BUSINESS PERFORMANCE 2007

Dated Brent average ($/bbl)

2006

2005(1)

72.39

65.14

FX rate ($/£)

2.00

1.83

54.52 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

(37)

(43)

(58)

3 248

3 103

2 389

(27)

(43)

(65)

3 221

3 060

2 324

(1 385)

(1 375)

(939)

1 836

1 685

1 385

(53)

(45)

(31)

(2)

Other activities

Total operating profit on ordinary activities (3)

Net finance costs

Profit on ordinary activities before taxation Tax on profit on ordinary activities

(4)

Profit on ordinary activities after taxation Minority shareholders’ interest 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

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

Net funds /(borrowings)

(1) (2) (3) (4)

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

www.bg-group.com

Summarised BG Group quarterly results(1) (2)

43

BUSINESS PERFORMANCE

Dated Brent assumption $/bbl

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

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

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

– gas volume (mmboe)(3)

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

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

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

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

(7)

(4)

(12)

(6)

(7)

(12)

(11)

(13)

(9)

(10)

(30)

(7)

(8)

(13)

Total operating profit Net finance costs(5)

1 431

1 402

1 006

672

747

823

760

633

752

958

860

551

493

485

4

(11)

(4)

(8)

(6)

(9)

(17)

(13)

(14)

1

(17)

(14)

(13)

(21)

Profit before tax Tax on profit on ordinary activities(6)

1 435

1 391

1 002

664

741

814

743

620

738

959

843

537

480

464

BG Group avg oil price $/bbl BG Group avg liquids price $/bbl Total operating profit including share of pre-tax operating results from joint ventures and associates £ million

Other activities(4)

(617)

(598)

(431)

(281)

(317)

(356)

(324)

(266)

(401)

(384)

(346)

(215)

(191)

(187)

Profit for the period Minority interest

818

793

571

383

424

458

419

354

337

575

497

322

289

277

(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

23.6p

16.6p

10.9p

12.0p

13.1p

12.0p

10.0p

9.3p

16.0p

14.2p

714

486

639

902

577

461

641

702

369

469

Earnings per ordinary share Net cash flow from operating activities Net funds/(borrowings) Capital investment Capital investment excluding acquisitions

24.1p

8.6p

7.8p 378

7.6p

1 353

1 165

410

629

506

25

(60)

213

(27)

(103)

(358)

14

183

(30)

(380)

950

647

628

504

496

869

549

511

401

386

408

457

415

315

634

647

626

504

422

438

502

511

401

386

408

457

386

315

(245) (1 095)

ADDITIONAL INFORMATION: EXPLORATION AND PRODUCTION Lifting costs ($/boe) – 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

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) – 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

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) Gross exploration expenditure (£ million)

406

407

340

310

301

291

201

229

160

131

188

166

174

155

234

187

181

148

102

105

180

103

103

169

131

65

38

102

180

146

116

83

46

59

129

65

66

136

89

34

15

87

54

41

65

65

56

46

51

38

37

33

42

31

23

15

– capitalised – other expenditure (1) (2) (3) (4) (5) (6) (7)

2.18

All information is prepared under IFRS 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 Volumes from 2006 onwards include fuel gas. Volumes for 2005 do not include fuel gas Other activities include new business development expenditure and certain corporate costs Includes share of joint ventures and associates net finance costs Includes share of joint ventures and associates tax Q2 2006 includes prior period taxation of £76 million due to increase in North Sea taxation

STATISTICAL SUPPLEMENT BG Group Data Book 2008

44

Segmental analysis(1) 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

976

942

2 387

763

433

565

626

2 457

575

509

647

726

1 942

729

419

407

387

331

370

394

125

116

57

96

248

90

40

10

108

70

45

24

(7)

8

48

25

213

53

61

59

40

190

44

46

46

54

169

34

54

46

35

17

16

44

11

5

10

18

18

7

(1)

2

10

24

8

1

(1)

16

(7)

(4)

(37)

(12)

(6)

(7)

(12)

(43)

(11)

(13)

(9)

(10)

(58)

(30)

(7)

(8)

(13)

OPERATING PROFIT Group operating profit before share of pre-tax results of joint ventures and associates Exploration and Production LNG Transmission and Distribution Power Generation Other activities 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 Transmission and Distribution

36

25

127

38

33

31

25

104

25

25

24

30

111

36

30

24

21

7

6

34

7

6

11

10

41

9

10

11

11

42

11

10

10

11

Power Generation Other activities

23

22

86

21

24

21

20

88

21

17

21

29

89

27

20

22

20

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Sub-total share of operating profit in joint ventures and associates Total operating profit (1) (2)

66

53

247

66

63

63

55

233

55

52

56

70

242

74

60

56

52

1 431

1 402

3 248

1 006

672

747

823

3 103

760

633

752

958

2 389

860

551

493

485

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 Other activities include new business development expenditure and certain corporate costs

www.bg-group.com

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

As at 31 December 2004

UK bcf

Atlantic Basin bcf

Asia and Middle East bcf

Rest of world bcf

Total bcf

1 039

4 472

2 386

1 179

9 076

297

392

402

209

1 300

7

16

–

74

97

(219)

(332)

(158)

(96)

(805)

–

–

–

–

–

Movement during the year: (1)

Revisions of previous estimates

Extensions, discoveries and reclassifications Production Purchase of reserves-in-place Sale of reserves-in-place

–

(1)

–

–

(1)

85

75

244

187

591

1 124

4 547

2 630

1 366

9 667

Revisions of previous estimates

80

583

145

20

828

Extensions, discoveries and reclassifications

87

–

–

–

87

(223)

(515)

(170)

(92)

(1 000)

As at 31 December 2005

(2)

Movement during the year: (1)

Production Purchase of reserves-in-place

–

–

–

–

–

Sale of reserves-in-place

–

–

–

–

–

As at 31 December 2006

(56)

68

(25)

(72)

1 068

4 615

2 605

1 294

9 582

(85)

122

469

(192)

25

424

5

–

159

–

164

(192)

(465)

(191)

(90)

(938)

(2)

Movement during the year: (1)

Revisions of previous estimates

Extensions, discoveries and reclassifications Production Purchase of reserves-in-place

21

–

–

–

21

Sale of reserves-in-place

–

(57)

–

–

(57)

(44)

(53)

(224)

(65)

(386)

1 024

4 562

2 381

1 229

9 196

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

As at 31 December 2007

(2)

Proved developed reserves of natural gas: As at 31 December 2004

(1) (2)

Includes effect of oil and gas price changes on PSCs 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)

STATISTICAL SUPPLEMENT BG Group Data Book 2008

46

Exploration and Production: Estimated net proved reserves of oil ‘Oil’ includes crude oil, condensate and natural gas liquids.

As at 31 December 2004

UK mmbbls

Atlantic Basin mmbbls

Asia and Middle East mmbbls

Rest of world mmbbls

Total mmbbls

164.5

10.9

414.2

45.2

634.8

12.3

7.7

(46.9)

4.5

(22.4)

1.5

–

–

7.4

8.9 (49.0)

Movement during the year: (1)

Revisions of previous estimates

Extensions, discoveries and reclassifications Production

(18.3)

(0.5)

(27.4)

(2.8)

Purchase of reserves-in-place

–

–

–

–

–

Sale of reserves-in-place

–

–

–

–

–

(4.5)

7.2

(74.3)

9.1

(62.5)

160.0

18.1

339.9

54.3

572.3

Revisions of previous estimates

10.0

(1.5)

18.4

(5.4)

21.5

Extensions, discoveries and reclassifications

10.2

–

–

–

10.2

(18.4)

(1.8)

(28.1)

(3.4)

(51.7)

–

–

–

–

–

As at 31 December 2005 Movement during the year: (1)

Production Purchase of reserves-in-place Sale of reserves-in-place

–

–

–

–

1.8

(3.3)

(9.7)

(8.8)

(20.0)

161.8

14.8

330.2

45.5

552.3

Revisions of previous estimates

31.3

1.9

(47.1)

(1.7)

(15.6)

Extensions, discoveries and reclassifications

0.3

–

35.7

–

36.0

(27.2)

(2.8)

(31.4)

(2.4)

(63.8)

1.0

–

–

–

1.0

–

–

–

(3.5)

(3.5)

5.4

(0.9)

(42.8)

(7.6)

(45.9)

167.2

13.9

287.4

37.9

506.4

As at 31 December 2006

–

Movement during the year: (1)

Production Purchase of reserves-in-place Sale of reserves-in-place As at 31 December 2007 Proved developed reserves of oil:

(1)

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

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

Fields under development

334

21

76

Fields awaiting development

871

186

331

14 620

1 132

3 568

Total (2) (3) (4)

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

www.bg-group.com

3 161

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

4.7

– 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

– 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

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

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

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

– gas volume mmboe(1) Prices

BG Group avg oil price $ per barrel 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 Unit costs

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

Lifting costs ($/boe) 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

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) 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

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)

84(3)

108(3)

152(3)

Reserve replacement 3 year organic average reserve replacement ratio (%) Investment Development expenditure (£ million)

406

Gross exploration expenditure (£ million)

234

187

180

146

54

41

232

– capitalised – other expenditure (1) (2) (3)

407

1 242

340

310

301

291

721

201

229

160

131

683

188

166

174

155

536

181

148

102

304

116

83

46

105

555

180

103

103

169

336

131

65

38

102

59

396

129

65

66

136

225

89

34

15

65

65

56

87

46

159

51

38

37

33

111

42

31

23

15

From first quarter 2006 includes fuel gas The denominator uses the total net proved reserves changes over the three years excluding acquisitions, divestments and production 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

Total

20

42

29

28

17

Percentage successful (gross well basis)

67

56

48

64

71

Net(5)

Gross(4)

WELLS DRILLED IN 2007: ANALYSIS BY COUNTRY

Exploration Gross(4)

Bolivia Brazil Canada Norway

1

Appraisal

0.300

3

2.315

3

1.020

Thailand Trinidad and Tobago

1

0.650

Tunisia UK

3

0.643

Total

11

4.928

(4) (5)

2003

Net(5)

1

0.375

1

0.250

6

1.330

1

1.000

9

2.955

BG Group Data Book 2008

STATISTICAL SUPPLEMENT

The gross figure is a total number of wells in which BG Group participated 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

48

Exploration and Production: Field interests PRODUCING FIELDS

UKCS

(1)

Oil and liquids production (net) ‘000s barrels

Total production (net) mmboe

(2)

BG Group working interest (%)

2007

2006

2005

2007

2006

2005

2007

2006

2005

58.22 and 57.00

21.8

42.3

38.1

1 111

2 037

1 880

4.7

9.1

8.2

75.00 and 10.00

24.0

13.4

–

684

354

–

4.7

2.6

–

44.00

0.7

0.8

0.8

3 468

3 841

4 088

3.6

4.0

4.2

Armada and SW Seymour(3), (4) Atlantic Cromarty Blake(3) Buzzard Easington Catchment Area(5) Elgin/Franklin Everest(4) J-Block and Jade(6) Lomond Other

21.73

1.4

–

–

10 638

–

–

10.9

–

–

30.77 and 79.00

36.2

38.6

51.3

118

123

204

6.1

6.6

8.8 10.4

14.11

22.9

24.4

26.5

4 948

5 290

5 996

8.8

9.4

59.32

18.2

18.8

25.1

579

494

720

3.6

3.6

4.9

30.50 and 35.00

36.6

48.5

43.5

4 610

5 413

4 800

10.7

13.5

12.1

61.11

22.4

29.4

28.9

499

539

569

4.2

5.4

5.4

8.0

6.6

4.7

545

346

54

1.9

1.4

0.8

UKCS sub-total International

Gas production (net) bcf

192.2

222.8

218.9

27 200

18 437

18 311

59.2

55.6

54.8

Bolivia(7) Canada

37.50 and 100.00

27.1

26.5

30.7

994

918

1 063

5.5

5.3

6.2

Various

4.8

19.8

19.0

56

162

176

0.9

3.5

3.3

Egypt(3) India(3),(8)

50.00 and 80.00

324.4

365.4

209.9

2 503

1 530

259

56.6

62.4

35.3

4 050

3 504

13.7

10.3

9.4

22 585 22 399

39.6

36.3

35.0

30.00

53.1

37.5

35.5

4 825

Kazakhstan(9) Mauritania(10)

32.50

86.8

82.3

75.7

25 138

–

0.2

–

28

949

–

–

1.0

–

Thailand(11) Trinidad and Tobago(3)

22.22

50.7

50.3

47.0

1 448

1 440

1 440

9.9

9.8

9.3

45.88, 50.00 and 65.00

136.5

134.7

107.4

298

121

111

23.0

22.6

18.0

100.00

62.8

65.4

64.9

1 405

1 527

1 717

11.9

12.4

12.5

746.2

782.1

590.1

36 695

33 282 30 669

161.1

163.6

129.0

938.4 1 004.9

809.0

63 895

51 719 48 980

220.3

219.2

183.8

Tunisia(3) International sub-total Total

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

Palo Marcado Tupi

Egypt

Rashid-3, Rashid North, South Sequoia(3) Serpent, near field satellites, Mina, Silva, North Sequoia, Saurus(3)

Thailand Trinidad

Bongkot South Starfish(3)

Tunisia UKCS

Hasdrubal(3) Glenelg

50.00

Jasmine Maria(3)

30.50

NW Seymour(3) West Franklin (1) (2) (3) (4) (5)

BG Group working interest at 31 December 2007 or when disposed of producing field Conversion rate of 6 bcf gas per mmboe Operated by BG Group at 31 December 2007. Maria entered production in December 2007 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 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

www.bg-group.com

100.00 25.00 80.00 50.00 22.22 50.00 14.70 36.00 57.00 14.11

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 Groupoperated

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 North Tampen Mid-Norway Barents Sea

14 11 23 8

1 775 2 145 5 368 2 054

Various & unknown unknown Gas & unknown Oil & unknown

13 9 11 2

Various Various Various Various

United Kingdom(8)

Southern North Sea Central North Sea Onshore PEDL 133 Onshore PEDL 161 Onshore PEDL 163 Onshore PEDL 173 Onshore PEDL 174 Onshore PEDL 176 Onshore PEDL 178 Onshore PEDL 179 Onshore PEDL 185 Onshore PEDL 188 Onshore PEDL 189 Onshore PEDL 200 Onshore PEDL 207 Onshore PEDL 210 Onshore PEDL 211

21 70 5 2 3 2 1 2 1 1 2 1 1 2 1 6 1

646 4 371 500 101 296 86 100 200 64 91 200 100 100 114 28 116 100

Gas & unknown Various & unknown Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas Gas

17 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Various Various 51 50 50 50 50 50 50 50 50 50 50 50 50 50 50

BG Groupoperated

BG Group interest (%)

36.75

AFRICA, MIDDLE EAST AND ASIA Country

Interest details

Number of blocks

Gross area (1)

Type of fields (2)

Algeria

Hassi Ba Hamou Perimeter

5

18 381

Gas

1

Areas of Palestinian Authority

Gaza Marine

1

2 000

Gas

1

90

China

Block 53/16 Block 64/11

1 1

8 671 7 546

Unknown Unknown

1 1

100 100

Egypt

Rosetta Concession(4) West Delta Deep Marine(5) El Manzala Offshore El Burg Offshore North Sidi Kerir Deep

4 8 1 1 1

296 1 355 914 1 463 1 950

Gas Gas Unknown Unknown Unknown

4 8 1 1 1

80 50 100 70 50

India(6)

Mid and South Tapti Panna/Mukta KG-OSN-2004/1

1 2 1

1 471 1 207 1 131

Gas Various Unknown

1 2 0

30 30 45 30

KG-DWN-98/4

1

5 591

Unknown

1

Israel

Med Yavne(7)

1

52

Gas

1

35

Madagascar

Majunga Offshore Profonde

1

15 161

Unknown

1

30

Nigeria

OPL 332 OPL 286-DO

1 1

1 258 804

Oil Oil

1 1

45 66

Oman

Block 60

1

1 485

Gas

1

100

Thailand

2/2539/49(8) 3/2515/7 3/2549/71 4/2515/8(9) 5/2515/9

2 2 1 3 1

34 1 921 622 10 420 1 279

Various Various Various Unknown Various

0 0 0 3 0

22.22 22.22 22.22 50 22.22

Tunisia

Amilcar Miskar Hasdrubal

1 1 1

1 016 320 260

Unknown Gas & condensate Gas, condensate & oil

1 1 1

50 100 50

STATISTICAL SUPPLEMENT BG Group Data Book 2008

50

Exploration and Production: Licence and block interests continued AMERICAS AND GLOBAL LNG Number of blocks

BG Groupoperated

BG Group interest (%)

Gas

0

Various

Gas Gas Gas Gas & oil Unknown Gas

1 0 0 1 0 1

100 37.5 25 100 20 100

1 881 1 192 2 295 350 315 698 700 17 677

Oil Gas Oil Oil Gas Oil Oil Unknown

0 0 0 1 2 0 1 0

30 25 25 60 50 20 40 50

14 41 48 4

9 707 26 926 56 747 394 668

Gas Unknown Unknown Unknown

0 27 27 4

50 85 75 81

1 1 1 1 1 1

90 525 50 111 342 323

Various Various Gas Various Gas Various

1 1 1 1 1 0

50 50 50 65 57 30

446

2 505 276

Unknown

0

37

Gross area (1)

Country

Interest details

Australia

Walloons Fairway

58

4 382

Bolivia(3)

La Vertiente Caipipendi Block XX Tarija West Block XX Tarija East Charagua Block Los Suris

1 1 1 1 1 1

38 195 25 15 99 5

Brazil

BM-S-9 BM-S-10 BM-S-11 BM-S-13 BM-S-47 BM-S-50 BM-S-52 BT-SF-2

1 1 1 1 2 1 1 6

Canada(3)

i) Alberta ii) British Columbia iii) Northwest Territories

Trinidad and Tobago

United States(11)

Waterton Foothills & Deep West Foothills Central Mackenzie Valley Block 5(a) Block 6(10) Block E Central Block NCMA-1 Block 5c

Alaska

(1) (2) (3) (4) (5) (6) (7)

Foothills & Eastern North Slope

Type of fields (2)

The gross area figures given are approximations only. Gross area figures are in square kilometres unless otherwise indicated 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 Figures given for Gross area are in hectares Rosetta Concession comprises 4 Development Leases (Rosetta Exploration Licence expired May 2003) West Delta Deep Marine Concession comprises 8 Development Leases (WDDM Exploration Licence expired Nov 2006) 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 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

www.bg-group.com

LNG: Facilities capacity (mtpa)

51

AS AT 31 AUGUST 2008 EXPORT TERMINALS Total capacity (mtpa) Gross

Total capacity (mtpa) Net

Status

3.1

0.806

Since April 1999 Since April 2002

Train

BG Group equity/ utilisation (%)

Atlantic LNG

1

26.00

Atlantic LNG

2

32.50

3.4

1.105

Atlantic LNG

3

32.50

3.4

1.105

Since April 2003

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 Total capacity (mtpa) Gross

Lake Charles, USA Elba Island, USA

13.4 4.2(1)

Total capacity (mtpa) Net

13.4 4.2(1)

Bcfd Net

Status

1.80

100% since 1 January 2004 Phase 2 expansion completed July 2006

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

Total planned expansions

3.9

3.9

0.55

In development: Dragon LNG, Milford Haven, Wales GNL Quintero, Chile

4.4

2.2

0.30

Anticipated end 2008

2.5(2)

0.0

0.00

Anticipated 2009/2010

Brindisi, Italy Elba Island, USA

6.0

4.8(3)

0.65

TBA

4.3(4)

4.3

0.60

Anticipated in service 2014

Total in development

17.2

11.3

1.55

(1) (2) (3) (4)

Anticipated 2009

Of which 1.2 mtpa may be utilised by Marathon 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 BG Group has 80% access. The remaining 20% is for third-party access Reflects BG Group held capacity only

LNG: Long-term firm supply(5) Firm Supply (mtpa)

Commercial start-up

Years

Shipping

2.1

2003

20

FOB

2.3

Q1 2006

20

CIF

Egyptian LNG T2(6) Atlantic LNG T4(7)

3.5

Q2 2006

20

FOB

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

Atlantic LNG T2/3 Nigeria LNG T4/5

(5) (6) (7) (8) (9)

Assumes delivery into US East Coast First cargo lifted in September 2005 First cargo lifted in January 2006 First cargo lifted in May 2007 First cargo expected 2013

STATISTICAL SUPPLEMENT BG Group Data Book 2008

52

LNG: Cargoes Q2 2008

Q1 2008

Year 2007

–

–

86

16

6

64

Q4 2007

Q3 2007

Q2 2007

Q1 2007

Year 2006

Q4 2006

Q3 2006

Q2 2006

1

21

46

18

50

10

22

17

15

54

Q1 2006

Year 2005

12

14

15

16

Q4 2005

Q3 2005

Q2 2005

Q1 2005

22

2

36

11

8

9

8

14

9

50

14

15

11

10

Actual cargoes Lake Charles Elba Island 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 Methane Princess

2004

138 200

ST

Mk.III

BB

2003

137 990

ST

No.96

TC(4)

Methane Nile Eagle

2007

145 127

ST

Mk. III

TC

9

1 292 079

1976-2008

< 165 500

–

–

TC Owned

Total

TC

Flexible fleet

Various

New builds

SHI HN 1745

2009

170 000

DFDE(5)

Mk. III

SHI HN 1746 SHI 1858

2010

170 000

DFDE

Mk. III

Owned

2010

170 000

DFDE

Mk. III

Owned

SHI 1859

2010

170 000

DFDE

Mk. III

Owned

4

680 000

Total (1) (2) (3) (4) (5)

Capacity – gross 100% ST – steam turbine BB – bareboat charter TC – time charter DFDE – dual-fuel diesel-electric

www.bg-group.com

Transmission and Distribution

53 As at 31 December 2007

2006

2005

9 303

11 925

13 199

Throughput (million cubic metres per year) Net to BG Group Customers Comgas MetroGAS Gujarat Gas

572 000

518 000

485 000

2 000 000

2 000 000

2 000 000

286 000

248 000

200 000

Power Generation AS AT 31 AUGUST 2008 CAPACITY Location

Name

Italy Malaysia Philippines

BG Italia Power S.p.A. Genting Sanyen Power (Kuala Langat) First Gas Power (San Lorenzo)

Philippines UK

First Gas Power (Santa Rita) Premier Power (Ballylumford)

UK USA

Seabank Power Dighton

USA USA

Lake Road(1) Masspower(1)

Cogen – secured capacity

India

Total operational (1)

BG Group equity (%)

Operating total (MW)

Operating Net to BG Group (MW)

100

400

400

20

794

159

40

500

200

40

1 000

400

100

1 316

1 316

50

1 130

565

100

165

165

100

805

805

100

264

264

–

11

7

6 385

4 281

ISO-NE weighted average annual installed capacity ratings

STATISTICAL SUPPLEMENT BG Group Data Book 2008

54

Principal acquisitions, commitments and divestments ACQUISITIONS (TO 31 JULY 2008) Announced

Details

Completion

£m

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

2008 February 2007 April

Acquired Masspower 262 MW power plant, USA Acquired further 11.45% in Armada and 1.0134% in Everest fields, UKCS

May 2007

74

March 2007

67

2006 December September

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

Acquired Dighton 175 MW power plant, USA

October 2006

47

June 2005

29

November 2004

120

July 2004

13

2005 June

Acquired remaining 50% in Brindisi LNG import terminal, Italy

2004 September May March

Acquisition of further 40% stake in Rosetta, Egypt Acquisition of exploration block offshore Brazil Acquisition of DirectNet

March February

Acquisition of Aventura Energy Inc Acquisition of El Paso Oil and Gas Canada Inc

February

Acquisition of Mauritania Holdings B.V.

March 2004

(1)

April 2004

5

May 2004

92

March 2004

189 74(1)

Includes US$5.1 million contingencies

COMMITMENTS (TO 31 JULY 2008) Announced

Details

Completion

£m

2010 delivery

194

2008 May

Ordered two new LNG ships

2007 Exercised options to purchase two new LNG ships

2009/2010 delivery

Exercised options to purchase four new LNG ships

2007 delivery

349

Completion

£m

2004 April

DIVESTMENTS (TO 31 JULY 2008) Announced

Details

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 June

November 2006

4

Sale of India Telecoms

June 2006

1

Sale of Brazil Telecoms

November/December 2005

11

March 2005

26

January 2004

32

2005(2) March

Sale of entire 50% interest in Premier Transmission Ltd

2004 1.21% in Gas Authority of India Ltd (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

A+

September 2007

Stable

A2

August 2005

Stable

A

April 2008

Stable

Fitch Moody’s Standard & Poor’s

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

www.bg-group.com

Outlook

Corporate information

55

TOTAL ISSUED ORDINARY SHARE CAPITAL Shares in issue at year end (millions)

2007

2006

2005

3 575

3 558

3 549

DIVIDEND DATA Payment

Value

Announcement date

Ex-dividend date

Record date

Payment date UK

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

Interim

1.73p

28 July 2004

4 August 2004

6 August 2004

10 September 2004

17 September 2004

Final

Payment date USA

2.08p

15 February 2005

30 March 2005

1 April 2005

13 May 2005

20 May 2005

Interim

1.91p

27 July 2005

10 August 2005

12 August 2005

16 September 2005

23 September 2005

Final Interim

4.09p

8 February 2006

29 March 2006

31 March 2006

12 May 2006

19 May 2006

3.00p

24 July 2006

9 August 2006

11 August 2006

15 September 2006

22 September 2006

Final Interim

4.20p

8 February 2007

11 April 2007

13 April 2007

25 May 2007

4 June 2007

3.60p

27 July 2007

8 August 2007

10 August 2007

14 September 2007

21 September 2007

Final Interim

5.76p

7 February 2008

9 April 2008

11 April 2008

23 May 2008

2 June 2008

4.68p

24 July 2008

6 August 2008

8 August 2008

12 September 2008

19 September 2008

INVESTOR CALENDAR Event

Type

Date

Presentation

7 February 2008

2008 Fourth quarter and Full Year 2007 Results and Strategy Presentation 2007 Final dividend 2008 Annual General Meeting First quarter 2008 Results 2007 Final dividend Second quarter 2008 Results 2008 Interim dividend 2008 Interim dividend Third quarter 2008 Results

Ex-dividend

9 April 2008

Meeting

14 May 2008

Announcement

30 April 2008

Dividend paid (UK)

23 May 2008

Dividend paid (USA ADR)

2 June 2008

Announcement

24 July 2008

Ex-dividend

6 August 2008

Dividend paid (UK)

12 September 2008

Dividend paid (USA ADR)

19 September 2008

Announcement

4 November 2008

Presentation

5 February 2009

2009 Fourth quarter and Full Year 2008 Results and Strategy Presentation 2008 Final dividend 2009 Annual General Meeting First quarter 2009 Results 2008 Final dividend

May 2009(1)

Meeting

(1)

Announcement

Second quarter 2009 Results 2009 Interim dividend 2009 Interim dividend Third quarter 2009 Results (1)

April 2009(1)

Ex-dividend

May 2009

Dividend paid (UK)

May 2009(1)

Dividend paid (USA ADR)

May 2009(1)

Announcement

July 2009(1)

Ex-dividend

August 2009(1)

Dividend paid (UK)

September 2009(1)

Dividend paid (USA ADR)

September 2009(1)

Announcement

November 2009(1)

Provisional dates

Stock Exchange Information

American Depositary Receipts

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

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

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]

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

BG Group Data Book 2008

STATISTICAL SUPPLEMENT

Registrar and Transfer Office

56

Definitions For the purpose of this document the following definitions apply: €

Euro

kboed

Thousand barrels of oil equivalent per day

$

US Dollars

km

Kilometres

£

UK Pounds Sterling

mmbbls

Million barrels

bbls

Barrels

mmboe

Million barrels of oil equivalent

bcf

Billion cubic feet

mmbopd

Million barrels of oil per day

bcfd

Billion cubic feet per day

mmbtu

Million British thermal units

bcm

Billion cubic metres

mmbtud

Million British thermal units per day

bcma

Billion cubic metres per annum

mmcmd

Million cubic metres per day

bcpd

Barrels of condensate per day

mmcm

Million cubic metres

BG Group

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

mmscm

Million standard cubic metres

mmscmd

Million standard cubic metres per day

billion or bn

One thousand million

mmscf

Million standard cubic feet

boe

Barrels of oil equivalent

mmscfd

Million standard cubic feet per day

boed

Barrels of oil equivalent per day

MoA

Memorandum of Agreement

bopd

Barrels of oil per day

MoU

Memorandum of Understanding

bpd

Barrels per day

mtpa

Million tonnes per annum

Btu

British thermal units

MW

Megawatt

CAGR

Compound Average Growth Rate

MWh

Megawatt hours

CCGT

Combined Cycle Gas Turbine

NGL

Natural Gas Liquids

CIF

Carriage, insurance and freight

NGV

Natural Gas Vehicle

CNG

Compressed Natural Gas

partner

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

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

GSA

Gas Sales Agreement

PJ

Petajoules

GW

Gigawatts

PPA

Power Purchasing Agreement

GWh

Gigawatt hours

PSC/PSA

Production Sharing Contract/Production Sharing Agreement

HIIP

Hydrocarbons Initially In Place

SPA

Sale and Purchase Agreement

HPHT

High Pressure High Temperature

sq km

Square kilometres

IFRIC

International Financial Reporting Interpretations Committee

tcf

Trillion cubic feet

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 Annual Report and Accounts for 2007 on page 121. Probable reserves Probable reserves are those unproven reserves which analysis of geological and engineering data suggest are more likely than not to be recoverable. Taken together with proved reserves, proved plus probable reserves comprise the best estimate of reserves for an asset and will normally be used in business planning. Un-booked resources Un-booked resources are defined by BG Group as the best estimate of recoverable hydrocarbons where commercial and/or technical maturity are such that project sanction 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 prospect multiplied by the ‘Chance of Success’. 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.

Index of assets Page

Page

FIELDS, BLOCKS, TERMINALS, CONCESSIONS AND LICENCES Alaska Foothills and Eastern North Slope 37

Norway Bream Pi North Jordbaer Orange Ververis

Algeria Hassi Ba Hamou Perimeter

22

Nigeria OPL 332 and OPL 286-DO

20

Australia Walloons coal seam gas

38

Oman Block 60

21

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

36 36 36 36 36 36 36 36 36 36 36 36

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

31 31 31 31

EXPLORATION AND PRODUCTION

Canada Deep West area of the Western Canadian Sedimentary Basin Foothills Northwest Territories Waterton China Blocks 64/11, 53/16 and 41/06 Egypt El Burg Offshore and El Manzala Offshore Mina and Silva North Sidi Kerir Deep Rashid North Rashid -1,-2,-3 Rosetta Scarab Saffron Simian, Sienna and Sapphire SimSatP2 SimSatP1 Solar, Serpent, Saurus, Sequoia and Sienna-Up West Delta Deep Marine (WDDM)

37 37 37 37 24

14 14 13 14 14 14 14 14 14 14 14 14

India Panna/Mukta and Tapti

16

Israel and areas of Palestinian Authority Med Yavne Gaza Marine

23 23

Italy Po Valley Kazakhstan Karachaganak

Thailand Bongkot Gulf of Thailand Blocks 7, 8, 9 and 9A

11 11 11 11 11

19 19

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

26 26 26 27 27 27 26 26 27 27 27 26 27 27

Tunisia Amilcar Hasdrubal Miskar Ulysse A & B Hannibal

18 18 18 18 18

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

4 4 6 5 5 5 4 6 6 6 4 4 6 7 7 7 6 4 6

LIQUEFIED NATURAL GAS

12

LIQUEFACTION TERMINALS Australia Queensland Curtis LNG

38

8

Egypt Egyptian LNG Trains 1 and 2

13 20 28

Libya Area 123 and Area 171

22

Nigeria OKLNG

Madagascar Majunga Offshore Profonde

23

Trinidad and Tobago Atlantic LNG Trains 1, 2, 3 and 4

Page REGASIFICATION TERMINALS Italy Brindisi LNG

12

Chile GNL Quintero

35

UK Dragon LNG

10

USA Elba Island Lake Charles

29 29

TRANSMISSION South America Bolivia – Brazil Pipeline Southern Cross and Gas Link Pipelines

32 35

Kazakhstan Caspian Pipeline Consortium (CPC)

9

UK CATS Interconnector UK SEAL and SILK

7 7 7

DISTRIBUTION Argentina MetroGAS

34

Brazil Comgas Iqara Gas Natural

32 33

India Gujarat Gas Company (GGCL) Mahanagar Gas (MGL)

17 17

POWER Italy BG Italia Power S.p.A.

12

Malaysia Genting Sanyen

25

Philippines San Lorenzo Santa Rita

25 25

UK Premier Power (Ballylumford) Seabank Power

10 10

USA Dighton Lake Road Masspower

30 30 30