Atlantic, Europe and Mediterranean Basin (441 kb) - Investis

32 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN EGYPT
egypt
mediterranean sea
West Delta Deep Marine
Rosetta and
Scarab Saffron terminals
Simian Sienna and
Sapphire terminals under
construction
Scarab Saffron
Saurus
Sequoia
Rosetta
alexandria
ELNG plant
under construction
Nile Valley
Gas Company
egypt
idku
helwan
damietta
cairo
kuriamat
beni suef
Solar
Simian Sienna
Serpent
Sapphire
Rashid North
port said
KEY DATES
1989 BG acquired Tenneco assets
1995 Rosetta and WDDM Concessions awarded
1997 Rosetta GSA signed with EGPC
1998 Nile Valley Gas Company formed
1999 Scarab Saffron GSA signed with EGPC
2001 LNG Export Agreement signed and Rosetta
production starts
2002 ELNG Train 1 EPC and SPA signed
2003 Scarab Saffron produces first gas, ELNG
Train 2 EPC signed and sales agreed
2005 ELNG Train 1 to produce first LNG cargo
2006 ELNG Train 2 to produce first LNG cargo
suez
NEW INFORMATION
> Scarab Saffron produced first gas
> ELNG Train 1 EPC and SPA signed for entire output
with Gaz de France
> Egyptian LNG (ELNG) Train 2 EPC signed and principal
terms agreed for sale of entire output to BG
> EPC (Phase 1) and EPIC contracts for the development
of Simian, Sienna and Sapphire fields awarded
> BG’s partner Edison sold its equity stake in WDDM
and ELNG to PETRONAS
> Successful Rosetta-11 exploration well (Rashid
North) drilled
> Rosetta exploration phase complete – areas not
covered by Development Leases or applications
have been relinquished
BG is an important participant in the
development of the gas business in
Egypt, with both upstream and
downstream investments. BG has
upstream interests in two areas offshore
the Nile Delta – Rosetta and West Delta
Deep Marine (WDDM). Rosetta started
production in January 2001 and supplies
the domestic market. The first WDDM
fields, Scarab Saffron, started production
in March 2003 and also supply the
domestic market. The Simian Sienna
and Sapphire fields in WDDM are under
development to supply the Egyptian
LNG (ELNG) export project.
Since 1997, BG has drilled 23 successful
exploration and appraisal wells in its
Rosetta and WDDM Concessions. This
represents a 92% success rate overall and
100% in the WDDM Concession. BG has
signed agreements for sale of the
discovered gas into both the domestic
market and for export.
EXPLORATION AND APPRAISAL PROJECTS
Rosetta Concession
In April 2003, the successful Rosetta-11
exploration well (Rashid North) was
drilled to complete the exploration
programme in the Rosetta Concession.
The well was drilled in a water depth of
160 metres. BG and partners have applied
to the Egyptian General Petroleum
Company (EGPC) for a Development
Lease for this new discovery and approval
is expected towards the end of 2003.

50
20
40
50
40
40
Partners (%) Rosetta Concession
BG (operator)
40 Shell
20 Edison International
50
Partners (%) WDDM Concession
BG (operator)
50 PETRONAS
West Delta Deep Marine Concession
(WDDM)
Since the Concession was awarded in 1995,
BG has drilled 16 successful exploration
and appraisal wells in WDDM – a 100%
success rate. BG has also conducted an
extensive seismic acquisition programme
– a total of 4 910 sq km of 3D seismic,
together with 4 900 sq km of 2D seismic
has been shot. In August 2002, 1 225 sq km
of the 3D seismic was acquired and
evaluation of this data will form the
basis of future exploration activity
in the Concession.
This exploration programme has resulted
in the discovery of nine gas fields – Scarab,
Saffron, Simian, Sienna, Sapphire, Serpent,
Saurus, Sequoia and Solar. The Sapphire
field also contains significant quantities
of condensate. The Sapphire-1 well, drilled
in July 2000, flowed at 35 mmscfd of gas
and 1 100 bbls of condensate per day. In
December 2000, the Sapphire-2 appraisal
well confirmed the presence of
significant volumes of condensate in the
Sapphire accumulation. In 2001, a further
successful appraisal well, Sapphire-3
was drilled, confirming the largest gas
column recorded to date in Egypt.
A new discovery in 2002, the Solar field,
and two further successful appraisal
wells underlined the prolific nature of the
WDDM Concession. The Solar-1 well was
completed in January 2002 after being
drilled in 1 046 metres of water. The
Sapphire-4 well, drilled in a water depth
of 488 metres, confirmed the north-east
extension of the Sapphire field. In April
2002, the Sienna-2 well, drilled in a water
depth of 991 metres, confirmed the
extent of the Sienna field. This well
marked the completion of the latest
appraisal programme and confirmed
sufficient reserves to underpin the
marketing of ELNG Train 2. With the
exception of Solar, all WDDM discoveries
to date have been captured in
Development Leases.
In April 2003, BG’s partner in WDDM,
Edison International, announced the sale
of its 50% interest in the Concession to
the Malaysian oil and gas company
PETRONAS. The sale completed in June
2003 and was effective from 1 January
2003. BG remains the Concession operator.
UPSTREAM DEVELOPMENT PROJECTS
Rosetta
BG and its partners, Shell and Edison
International, signed a 25 year Gas Sales
Agreement (GSA) in October 1997 with
EGPC, to supply gas from the Rosetta
Concession into the domestic market.
EGPC received first gas from Rosetta on
31 January 2001, just 45 months from first
discovery in April 1997. The initial stage
of the Rosetta development consists of
six wells tied back to a ‘not normally
manned’ platform with a 66 km gas and
condensate pipeline to the onshore
terminal, for delivery into the national
grid system near Idku, east of Alexandria.
A joint venture company, Rashid Petroleum
Company, conducts operations on behalf
of the Rosetta partners and EGPC.
Since the Rosetta Concession award in
1995, BG has undertaken gross capital
20
25
10
50
50
20
25
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN EGYPT 33
20
Partners (%) Rashid Petroleum Company
BG
50 EGPC
20 Shell
10 Edison International
25
Partners (%) Burullus Gas Company
BG
50 EGPC
25 PETRONAS
expenditure of $314 million to realise the
first phase of development. During 2002,
Rosetta produced a total of 99.1 bcf of
gas (21.6 bcf net BG). Rosetta has shown
that it is capable of producing up to
335 mmscfd, well above its Daily Contract
Quantity (DCQ) of 275 mmscfd. It has
continued to prove a flexible and reliable
source of gas to the Egyptian domestic
market and has been able to realise
opportunities to produce above the DCQ
during periods of high demand. This
helped Rosetta achieve an average rate
above the 75% of the Annual Contract
Quantity (ACQ) minimum contractual
take level in 2002.
Phase 2 of the Rosetta development
will consist of an unmanned minimum
facilities wellhead platform tied back to
the existing Rosetta platform. The project
FEED work started in March 2003 and
first gas from the project is scheduled
for the fourth quarter of 2005.
Scarab Saffron
Delivery of first gas from the Scarab
Saffron development occurred on
29 March 2003. Scarab Saffron supplies
gas to the domestic market under a
GSA signed in August 1999 with EGPC.
Under an amendment to the GSA signed
in December 2002, the initial DCQ will
be 440 mmscfd upon completion of the
90 day run in period. On 1 January 2004,
the DCQ will rise to 586 mmscfd for one
year and then will rise again at the start
of 2005 to 626 mmscfd. On 1 January
2006, the DCQ will decrease to 533 mmscfd
unless three months have already

34 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN EGYPT
12
12
12
12
38
5
35.5
35.5
38
egypt continued
elapsed since the first shipment from
ELNG, as the DCQ will then rise an
additional 100 mmscfd to 633 mmscfd
for seven years.
The Scarab Saffron fields are larger and
in deeper water (in excess of 700 metres)
than any other gas fields so far developed
in Egypt and are the first to be developed
using sub-sea completion technology.
The Scarab Saffron development consists
of eight sub-sea wells tied into a pipeline
end manifold that is in turn tied back to
an onshore terminal by two gas pipelines
– 36-inch and 24-inch export pipelines.
This additional pipeline capacity has
been installed to allow subsequent field
developments to tie into the Scarab
Saffron facilities. Field operations are
controlled from the onshore terminal via
electrical and hydraulic umbilical lines.
Burullus Gas Company, a joint venture
company consisting of BG, EGPC and
PETRONAS, is undertaking exploration
and field development operations on
behalf of the WDDM Concession holders.
Export Development Projects
In April 2001, a fully termed agreement
was signed with EGPC, setting the
commercial foundation for the
development of a LNG export project.
The agreement includes amendments
to the existing WDDM Concession
Agreement and the GSA. The Egyptian
People’s Assembly ratified the amended
Concession Agreement in March 2002.
Shareholders (%) ELNG Holding,
Operating and Train 1 Companies
35.5 BG
35.5 PETRONAS
12 EGPC
12 Egyptian Natural Gas Holding Company (EGAS)
5 Gaz de France
38
Shareholders (%) in ELNG Train 2 Company
BG
38 PETRONAS
12 EGPC
12 EGAS
BG and its partner are therefore the first,
and currently only, upstream players in
Egypt with a definitive export agreement
allowing the export of gas from a
development within a concession area.
The amendments to the WDDM
Concession Agreement also introduced
a floor and ceiling price to domestic gas
sales. At Brent oil prices below $10/bbl,
the floor price payable for domestic gas
is $1.50/mmbtu and a ceiling price of
$2.65/mmbtu applies when Brent is
above $20/bbl. This pricing arrangement
was adopted simultaneously for the
Rosetta Development Leases and has
been adhered to since production on
Rosetta commenced.
As part of the Scarab Saffron
development, sufficiently large offshore
pipelines have been installed to support
a two-train LNG development, in addition
to supplies to the domestic market from
the Scarab Saffron fields.
Simian Sienna and Sapphire
The Simian Sienna fields are being
developed to supply gas to Train 1 of the
ELNG export project whilst the Sapphire
field will supply Train 2. Development of
the Simian Sienna and Sapphire fields
will be integrated with the Scarab
Saffron fields to maximise synergies
and reduce development costs through
standardisation of equipment and
optimising facilities capacity. Like the
Scarab Saffron project, they will use
sub-sea completion technology but due
to the increased step-out from the shore,
the project will utilise a shallow water
controls platform to reduce controls system
risks and maintain plant availability. EPIC
20
5
37.5
37.5
Shareholders (%) NVGC
37.5 BG
37.5 Edison International
20 Orascom
5 Middle East Gas Association
and EPC contracts have been awarded
to develop the offshore and onshore
facilities for the three fields.
DOWNSTREAM PROJECTS
Egyptian LNG (ELNG)
The ELNG Train 1 and Train 2 plants and
common facilities are under construction
in their own Tax Free Zone near Idku.
The zone is adjacent to the Rosetta and
Scarab Saffron facilities where gas from
BG’s fields enters the Egyptian national
gas transmission system. The $1.35 billion
first train is designed to produce 3.6 mtpa
of LNG and the second train is expected
to double the plant’s capacity. The
two-train development is expected to
cost approximately $1.9 billion. Both trains
will be built using the Phillips liquefaction
technology and they will share storage
and marine facilities. The site can
accommodate up to six LNG trains and
a multiple company structure has been
selected by the sponsors to give
maximum flexibility for future expansions.
It is designed to allow other gas producers
in Egypt to invest in future LNG export
gas trains, without having to replicate
supporting infrastructure. Additionally,
it is intended to make future expansions
of the ELNG project easier to finance.
The ELNG Holding Company will own
both the ELNG site and common facilities,
such as storage tanks and jetty. An
operating company will undertake
operations of all trains, although separate
companies will own the individual trains.
The ELNG Train 1 Company will borrow
the required funds and build and own

Train 1. The ELNG Train 2 Company is in
the process of being formed and will do
the same in relation to Train 2.
Following a Heads of Terms agreement
signed in January 2002, a LNG Sale and
Purchase Agreement was signed in
October 2002 for the sale of the entire
output of the 3.6 mtpa first train to Gaz
de France. Train 1 is scheduled to start
production in the second half of 2005.
In parallel to the commercial framework,
construction of Train 1 and the common
facilities started with an early works
programme in May 2002 and the full
EPC contract with Bechtel was signed in
September 2002. BG and its partners also
made progress securing project finance
of $1.15 billion for the construction of
Train 1 and common facilities with the
announcement in January 2003 of the
appointment of 12 international and
three Egyptian banks as International
and Egyptian Mandated Lead Arrangers
respectively.
At the same time as purchasing Edison’s
stake in the WDDM Concession, PETRONAS
also purchased its stake in the ELNG
project in June 2003.
Construction of Train 2 started in
May 2003. Early works commenced in
December 2002. In June 2003, BG and its
partners agreed principal terms for the
sale of the whole of Train 2 output to BG
Gas Marketing, a subsidiary of BG Group.
At the same time, the ELNG partners
signed the full EPC contract for Train 2 with
Bechtel. Train 2 is expected to start LNG
production in mid 2006. For approximately
the first year of production, the entire
output is intended to supply the Lake
Charles LNG import terminal in Louisiana,
USA. After that time, Train 2 volumes
can be switched to supply the proposed
LNG import terminal at Brindisi, Italy,
which is being developed by BG and
Enel (see page 39).
Nile Valley Gas Company (NVGC)
In 1998, BG and its partners signed a
25 year franchise agreement with EGPC
for the exclusive right to develop the
gas market in Upper Egypt. Formed in
September 1998 with BG as the lead
participant, the Nile Valley Gas Company
(NVGC) is undertaking development of
the gas market and infrastructure in
Upper Egypt, focusing around Beni Suef.
Phase 1, costing $38 million, has extended
the gas transmission network from south
of Kuriamat to Beni Suef, with first gas
deliveries achieved in March 1999. During
Phase 1, NVGC contracted with over
17 000 domestic customers and a number
of major industrial users.
Further information on the Nile Valley
Gas Company can be found on its
website, www.nilevalleygasco.com
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN EGYPT 35
800
600
400
200
0
Scarab Saffron DCQ
(mmscfd)
Until
end 03
1 Jan
04
1 Jan
05
1 Jan*
06
* DCQ of 533 mmscfd unless 3 months have elapsed since first
ELNG shipment – will then be 633 mmscfd for 7 years
NOTES

36 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN ISRAEL AND AREAS OF PALESTINIAN AUTHORITY
israel and
areas of palestinian
authority
Matan (309 – Block Gal B)
Michal (308 – Block Gal A)
mediterranean sea
Offshore Gaza
Gaza Marine
egypt
Or
Med Yavne
lebanon
israel
gaza
KEY DATES
1999 BG acquired the Gal preliminary permits,
Med licences and offshore Gaza licence
Or gas discovery
2000 3D seismic shot over the offshore Gaza and
Med licences
Gaza Marine gas discovery
2001 3D seismic shot over the Gal licences
2002 Additional 2D seismic shot over the offshore
Gaza licence
NEW INFORMATION
> Following the withdrawal of various partners
from the Gal Licences, BG and the other
continuing parties are actively seeking a
new partner
> Offshore Gaza exploration well deferred
until 2004 pending the successful
commercialisation of the Gaza Marine field
BG has been active in the region since
1999 and current activities are focused
upon the successful commercialisation
of its offshore gas discoveries, led by the
largest reservoir Gaza Marine. Gas sales
negotiations with major power and
industrial users in Israel are being
pursued, whilst on the downstream side
BG is lending its expertise to assist in
the establishment of gas infrastructure
across Israel and the Areas of
Palestinian Authority.
ISRAEL
Med Yavne Lease
BG rationalised its interests in the Med
licences in 2002, following the earlier
acquisition, processing and interpretation
of seismic data. BG retains operatorship
of the Med Yavne lease, which was
reduced to an area of 52.3 sq km around
the Or gas discovery made in 1999.
Gal Licences
BG is operator of two offshore
exploration blocks, Matan and Michal.
Early in 2003, IPE and Granit-Sonol
withdrew from the licences and other
partners reduced their interest.
Consequently, the continuing parties
are actively seeking a new partner to
participate in the licences, including the
planned deep water 1 600m exploration
well on the Matan licence.

13.2
39.8
1.8
8.0
5
42.0
6
35.0
25
19.2
AREAS OF THE PALESTINIAN AUTHORITY
Offshore Gaza
5
35.0
Partners (%) Med Yavne
BG (operator)
42.0 Isramco Group
13.2 Middle East Energy
8.0 Delek Drilling Limited
1.8 Dor Gas
25.0
Partners (%) Matan and Michal
BG (operator)
5.0 Isramco Group
19.2 Middle East Energy
6.0 STX (2000)
5.0 Dor Gas
39.8 Unallocated
Following acquisition of over 1 000 sq km
of 3D seismic data, BG drilled two
successful wells in the second half of
2000 (Gaza Marine-1 and Gaza Marine-2).
The first of these tested 37 mmscfd of
gas on a 48/64" choke with the flow rate
constrained by testing equipment. The
second well was not tested but confirmed
a major gas discovery in the Gaza Marine
field. In 2001, a major technical review
recommended development via sub-sea
wells and a pipeline to an onshore
processing terminal, incorporating similar
technologies to BG’s Scarab Saffron
development offshore Egypt.
During November and December 2002,
BG acquired an additional 925 km of 2D
seismic data in order to better evaluate
the area between the existing discoveries
and the shore. The offshore Gaza
exploration well that was planned for
2003 has now been deferred until 2004,
pending the successful commercialisation
of the Gaza Marine field. BG currently
holds 90% equity in the licence, which
will be reduced to 60% after
Consolidated Contractors Company
and the Palestine Investment Fund
exercise their options.
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN ISRAEL AND AREAS OF PALESTINIAN AUTHORITY 37
10
90
90
Partners (%) Offshore Gaza
BG (operator)
10 Consolidated Contractors Company
NOTES

38 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN ITALY
italy
turin
rivalta
mediterranean sea
tunisia
milan
italy
rome
tyrrhenian sea
Panda
sulmona
cassino
naples
slovenia
adriatic sea
termoli
croatia
hungary
bosnia &
herzegovina
Proposed LNG terminal
melfi
brindisi
ionian sea
KEY DATES
1992 BG commenced activities in Italy
1998 SERENE power stations began operation
2003 All major construction and operational
authorisations granted for Brindisi LNG Terminal
2004 First BG-operated well planned for the Po Valley
Brindisi LNG plant construction to begin
2007 First LNG imports to Brindisi to begin
NEW INFORMATION
> BG granted authorisation to build a LNG
terminal at Brindisi
> BG signed for exclusive use of the Brindisi Port
area where the terminal will be built
> In May 2003, BG sold a 50% stake in the Brindisi
LNG development project to Enel
> Part of Brindisi supply intended to come from
Egyptian LNG Train 2
Active in Italy since 1992, BG is further
developing its gas chain capability. Italy
is a net importer of gas, a commodity
upon which it is becoming increasingly
dependent as the government focuses
on environmentally friendly energy
sources. BG is positioning itself within
the Italian market to help satisfy the
rise in demand.
Current BG activity in Italy includes: E&P,
where BG holds 12 exploration permits;
Power, through a partnership that
operates five power plants; and LNG,
where BG is developing a LNG import
terminal on the south-eastern coast.
Exploration and Production
BG has refocused its Italian exploration
and production on high potential oil and
gas exploration acreage in the Sicily
Channel and the Po Valley. The portfolio
consists of 12 exploration permits, six of
which are operated by BG.
In April 2002, BG announced a gas
discovery in the Sicily Channel drilled on
the Panda exploration prospect where
BG has a 37.5% interest. An appraisal
programme comprising the Panda West-1
well, drilled in early 2003, and a 3D
seismic survey, to be acquired in early
2004, is intended to prove the
commerciality of the discovery.
A three year onshore exploration
programme is underway in the Po Valley
with a 2003 seismic acquisition
programme. The first well is scheduled
to be drilled on the high pressure/high
temperature Cascina Favorita-1 prospect,

32
1.6
3.2
5
63
3.2
Shareholders (%) SERENE S.p.A
63 Edison
32 BG
5 NHS (subsidiary of Banca San Paolo – IMI)
located around 40 km to the south-west
of Milan. The first operated well is
planned for 2004, subject to the granting
of environmental approvals.
Power Generation
BG is a partner in SERENE S.p.A, a joint
venture company that owns and
operates approximately 400 MW of
co-generation at five locations adjacent
to Fiat Auto factories. The 100 MW power
stations are located at Melfi, Termoli and
Cassino with the 50 MW stations at both
Sulmona and Rivalta. The plants have
been in operation for six years and are
located to allow steam supply to Fiat
Auto plants.
SERENE supplies nearly 3 000 GWh per
year of electricity to the grid operator,
GRTN, and 320 000 tons of steam to Fiat.
BG is co-developer of the project and has
a 32% interest in the company. Fuel gas is
supplied to the plants by Eni and Edison.
The total investment in SERENE
is £260 million, of which financing
arrangements for approximately
£210 million were concluded in July 1998.
2007 – Expected Capacity Rights in Brindisi
LNG Terminal – bcma
3.2 BG
3.2 Enel
1.6 Regulated third party access
LNG
BG is developing an 8 bcmpa (6 mtpa)
LNG terminal at the outer harbour of the
port of Brindisi, on the south-east coast
of Italy.
In January 2003, BG was granted an
authorisation decree by the Ministry of
Productive Activities, in agreement with
the Ministry of Environment and the
Puglia region, to build the Brindisi
terminal. In February 2003, BG signed
an Agreement in Lieu of Concession with
the Brindisi Port Authority, which gives
BG the exclusive right to use the port
area in which the terminal will be built.
In May 2003, BG signed a Share Sale and
Purchase Agreement with Enel for them
to buy 50% of the Brindisi LNG project, and
a Project Development and Shareholders
Agreement for the joint development.
The FEED contract was awarded in June
2003, and construction is expected to
commence in early 2004, with first imports
into the Italian market expected to start
in 2007. Financial advisors for project
financing were appointed in July 2003.
BG and Enel equally share the 80%
reserved capacity in the terminal, whilst
the remaining 20% will be subject to
regulated third-party access. The
terminal is strategically located to receive
LNG from the Mediterranean Basin and
the Gulf States.
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN ITALY 39
NOTES

40 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN SPAIN
spain
madrid
spain
Aguila
Cormorán
valencia
france
barcelona
Ibis
Halcón
Flamenco Garceta
Gorrión
mediterranean sea
balearic
islands
algeria
KEY DATES
2002 Seven exploration licences granted to BG
Acquired 2 500 sq km of 3D seismic data
2004 Drilling programme to begin
algiers
NEW INFORMATION
> Technical evaluation of the 2 500 sq km of
3D seismic data acquired in July 2002 is near
completion
> Preparation has begun for BG’s first exploration
well in Spain which is expected to be spudded
mid-2004
BG is developing its interests in Spain,
with an emphasis on building gas chain
opportunities. Presently, BG is focused
on evaluating its offshore exploration
licences. Spain is a net importer of gas,
is an EU member, and has a growing
developed economy. These factors make
investment in the country attractive
to BG.
Upstream Licences
BG operates seven exploration licences
offshore Spain, covering an area of
6 500 sq km. The acreage is located in
the Gulf of Valencia, 90 km north-east
of Valencia and 100 km south-west
of Barcelona.
BG acquired 2 500 sq km of 3D seismic
data in July 2002. The technical
evaluation of this data is near completion.
The drilling programme is expected to
start in the middle of 2004. Any gas or
oil discoveries will be developed for the
Spanish domestic market. BG Group holds
100% equity in all seven new licences.

trinidad and tobago
Poinsettia
Chaconia
Hibiscus
gulf of
paria
Atlantic LNG
venezuela
port of
spain
point
lisas
point
fortin
NCMA
caribbean sea
trinidad
picton
arima
phoenix park
galeota
point
KEY DATES
1989 BG began operations in Trinidad and Tobago
1996 BG and partner commenced production of the
Dolphin gas field
1999 US$1 billion ALNG Train 1 plant constructed
at Point Fortin
2001 Hibiscus platform installed
2002 ALNG Train 2 started operation
2003 ALNG Train 3 started operation
Government approval for construction
of ALNG Train 4
2006 ALNG Train 4 to begin operation
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN TRINIDAD AND TOBAGO 41
tobago
Block E
atlantic ocean
Block 3(a)
Angostura
ECMA
Starfish
Block 5(a)
Dolphin
Block 6(b) Dolphin Deep
Block 6(d)
NEW INFORMATION
> ALNG Train 3 started LNG production in April 2003
> Government approved construction of ALNG Train 4
> Ixora prospect drilled and successfully completed
as part of the NCMA Development in July 2003
> BG and partners signed the Joint Operating
Agreement (JOA) for Block 3(a)
> BG and partners expect to spud the first
exploration well in Block 3(a) in 2003
> BGTT retained ISO 14001 environmental certification
BG Trinidad and Tobago, operating since
1989, continues to reinforce its position as
a major gas player in Trinidad and Tobago.
BG currently supplies gas into the
domestic market from the Dolphin field
in the East Coast Marine Area (ECMA),
and into Atlantic LNG for subsequent
export to North America and Europe,
from the North Coast Marine Area
(NCMA) fields. BG has consistently
proven the integrity of its upstream
production facilities, regularly producing
in excess of 800 mmscfd.
BG continues to invest further in LNG
expansion and seeks to create and
develop upstream opportunities to
supply its capacity in Atlantic LNG.
EAST COAST MARINE AREA
Dolphin Platform
The BG-operated Dolphin gas field, in a
50/50 partnership with ChevronTexaco,
commenced production in March 1996.
The eight leg gas production platform
is located 52 miles off the east coast of
Trinidad in Block 6(b).
The Dolphin field is contracted to supply
up to 275 mmscfd of gas to the National
Gas Company of Trinidad and Tobago
under a 20 year supply contract.
Development Activity in the ECMA
In 2002, BG and partner ChevronTexaco
received approval from the Government
of Trinidad and Tobago for development
of the Dolphin Deep field in Block 5(a)
and the Starfish field which straddles
Block 5(a) and Block E. Reserves from

42 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN TRINIDAD AND TOBAGO
30
50
10
30
50
30
50
Shareholders (%) Dolphin – ECMA
BG (operator)
50 ChevronTexaco
30
Partners (%) Block 3(a)
BG
30 BHP (operator)
30 Talisman
10 Total
trinidad and tobago continued
these discoveries are to be produced
through the upgraded Dolphin facilities
via sub-sea completions and pipelines
to supply gas to Atlantic LNG at Point
Fortin. These completions will be the first
sub-sea development in Trinidad and
Tobago waters to date. The Dolphin Deep
Development project is scheduled to
be completed in July 2005 to supply
80 mmscfd to Atlantic LNG Train 3.
Exploration/Appraisal Activity
In April 2002, BG and partners signed
a PSC with the Government of Trinidad
and Tobago for Block 3(a). The 614 sq km
block is located 40 km off the east coast
of Trinidad in water depths of 30-90
metres. The block is adjacent to Block 2(c)
where BHP and partners have recently
made significant gas and oil discoveries.
Under the Block 3(a) PSC terms, BG and
partners have agreed to acquire 300 sq
km of 3D seismic data and embark on a
six well exploratory drilling programme.
One year later, in April 2003, BG and
partners signed the Joint Operating
Agreement (JOA) for Block 3(a). The
completion of the negotiation of the
JOA marked an important milestone
for the partnership.
NORTH COAST MARINE AREA
Hibiscus Platform
The BG-operated NCMA, located 40 km
off the north coast of Trinidad, includes
three gas fields – Hibiscus, Poinsettia
and Chaconia.
17.31
In April 2000, a Unitisation Agreement
was signed, and in December 2000 the
Government of Trinidad and Tobago
approved the development of the three
fields. These fields are being developed
in up to four phases to supply gas to the
Atlantic LNG Trains 2 and 3 expansion.
The Hibiscus platform was successfully
installed in September 2001, in a water
depth of 150 metres. The 107 km, 24 inch
pipeline from the NCMA development to
the Atlantic LNG plant has a capacity of
500 mmscfd and is the longest pipeline
in Trinidad and Tobago to date.
Drilling operations began in late 2001,
with Phases 1 and 2 to be completed on
the Hibiscus and Chaconia fields by the
third quarter of 2003. Phase 3 involves
the drilling programme for the Poinsettia
field, with production scheduled to begin
around 2007. A possible Phase 4 would
involve the installation of compressors.
In August 2002, BG and its partners
announced first gas production from the
NCMA Hibiscus field into the newly
commissioned Train 2 at Atlantic LNG.
NCMA is contracted to supply 240 mmscfd
of 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 April 2003.
10
20
17.31
19.50
10
34
45.88
26
45.88
Partners (%) Hibiscus – NCMA
BG (operator)
19.50 Petrotrin
17.31 ENI
17.31 PetroCanada
26
Shareholders (%) ALNG Train 1
BG
34 BP
20 Repsol
10 Tractebel
10 NGC
ATLANTIC LNG
The Atlantic LNG Company of Trinidad
and Tobago, in which BG is a shareholder,
constructed a US$1 billion LNG plant in
Point Fortin, south-west Trinidad, which
came into operation in April 1999.
Atlantic Train 1 produces 3.1 million
tonnes of LNG per year, which is sold to
markets in the north-east United States,
Puerto Rico and Spain.
Government approval for the two-train
expansion project was received in February
2000 and construction began later the
same year. Train 2 commenced
operations in August 2002 and Train 3
in April 2003. The gross cost of the
two-train expansion is US$1.1 billion.
The majority of LNG produced from
NCMA gas supplied to Trains 2 and 3, by
BG and its partners, is contracted to be
sold to El Paso Merchant Energy under
a long-term contract for import into the
Elba Island LNG receiving terminal in
Georgia, USA. During 2002, and up to
30 September 2003, the majority of the
LNG produced from NCMA gas supplied
to Trains 2 and 3 will be sold into the US
market via the Lake Charles importation
terminal in Louisiana, USA. BG controls
approximately 81% of the capacity rights
of Lake Charles (see page 46 for further
details).

25
42.5
32.5
Future LNG Expansion
32.5
Shareholders (%) ALNG Trains 2 & 3
BG
42.5 BP
25 Repsol
In June 2003, the Trinidad and Tobago
Government announced the approval
of a fourth Atlantic LNG Train at Point
Fortin. Train 4, at an estimated cost of
US$1.2 billion, is expected to be the
largest LNG train ever constructed. BG’s
shareholding in Train 4 will be no less
than 26%. The train will require about
800 mmscfd and produce 5.2 mtpa of
LNG. Together with its sister trains,
overall LNG production from Atlantic LNG
should increase to over 15 mtpa. A FEED
study for the construction of a fourth
train was completed in February 2002.
It is anticipated that Train 4 is intended
to commence operations in the first
quarter of 2006. LNG produced from
the BG liquefaction capacity in Train 4
is intended to be sold under a long-term
contract to BG LNG Services, LLC and
delivered to Lake Charles.
Further information on Atlantic LNG
can be found on its website,
www.atlanticlng.com
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN TRINIDAD AND TOBAGO 43
NOTES

44 ATLANTIC, EUROPE AND MEDITERRANEAN BASIN TUNISIA
tunisia
bizerte
tunis
tunisia
Proposed power station
Hannibal
barca
la skhira
gabes
sousse
sfax
Amilcar
Ulysse A
mediterranean sea
Miskar
Ulysse C
Hasdrubal
Ulysse B
KEY DATES
1989 BG acquired Tenneco assets
1996 Miskar field began production
2003 MoA signed for Barca Power station
2006 Full commercial operation of Barca Power station
LPG plant to be commissioned at Hannibal site
NEW INFORMATION
> In May 2003 BG signed a MoA in relation
to the development of the $250m proposed
Barca Power plant
> Miskar field reserves have significantly increased
following re-appraisal
> Decision on Ulysse permit expected in
September 2003
BG is the largest producer of gas in
Tunisia, satisfying around 60% of
domestic gas demand in 2002 from
the Miskar field. In addition, BG holds
two exploration permits in the Gulf
of Gabes with a combined surface area
of 3 188 sq km.
BG intends to undertake further
exploration activity in Tunisia and to
seek further investment opportunities
utilising its gas chain expertise, such as
developing a gas-to-power project.
Miskar Gas Field
Production from the offshore Gulf of
Gabes Miskar production concession, which
is 100% BG owned and BG-operated,
commenced in June 1996. Gas from the
field is processed at the BG Hannibal
plant, located 21 km south of Sfax, and
sold into the Tunisian system.
BG has a Miskar gas sales contract with
the Tunisian State electricity and gas
company, Société Tunisienne de
l’Electricité et du Gaz.
The agreement gives BG the right to supply
over 230 mmscfd on a long-term basis.
On 11 April 2003, the Miskar/Hannibal
system delivered a new daily record of
40 015 boe and the current daily average
is 38 200 boe.

BG drilled three infill wells on the Miskar
field in the second half of 2002 and has
signed manufacturing and installation
contracts for gas compression equipment
on the Miskar platform. The equipment is
scheduled to be operational in 2004. BG
intends to use these projects to increase
gas supply from the field to 250 mmscfd
by the end of 2006. These projects
support development plans agreed with
the Government of Tunisia, which
include BG investing around $450 million
between 2000 and 2009.
Net average daily production in 2002
(after deduction of royalties)
Gas (mmscfd) 167
Condensate (bpd) 4 453
Miskar – estimated original gross field reserves
Gas (tcf) 1.5
Condensate (mmbbls) 25.9
Amilcar Permit (including Hasdrubal
discovery)
BG is operator and joint permit holder
with Enterprise Tunisienne D’Activités
Pétroliéres (ETAP), the Tunisian state-owned
petroleum company, of the Amilcar
exploration permit, offshore Sfax in the
Gulf of Gabes. BG funds 100% of the
exploration costs, which can be recovered
to the extent that ETAP exercises its
right to participate in any subsequent
production concession. ETAP’s
participation right is limited to a 50%
interest in the production concession
concerned.
BG drilled its first appraisal well,
Hasdrubal-3, in June 1997, which flowed
at 21 mmscfd. A further appraisal well,
Hasdrubal-4, drilled in June 1998, flowed
4.6 mmscfd and 1 800 bopd from a single
drill stem test.
During 2002, BG drilled a further
appraisal well, Hasdrubal-SW1, which
tested light oil and confirmed the
extension of the Hasdrubal field to the
south-west.
BG is currently working on the
development options for this gas and
condensate discovery.
Hasdrubal discovery
– estimated original gross field reserves
Gas (bcf) 250
Condensate (mmbbls) 20
Ulysse Permit
The Ulysse exploration permit was
awarded to BG, the operator, and ETAP in
March 1997 and subsequently extended
to March 2003. 3D seismic surveys were
acquired in 1997 and 2001. At Amilcar,
BG funds 100% of the exploration costs,
which can be recovered to the extent
that ETAP exercises its right to participate
(up to 50%) in any subsequent
production concession. The permit has
been extended until a decision has been
reached regarding its renewal, which
would include an extension of 900 sq km
together with a programme of seismic
and drilling. A decision is anticipated in
September 2003.
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN TUNISIA 45
DOWNSTREAM
Barca Power
In May 2003, BG signed a MoA with the
Government of Tunisia in relation to
the development of the $250 million
proposed Barca Power project in Tunisia.
The 500 MW CCGT plant will be built
adjacent to BG’s Hannibal processing
site. The plant will use up to 120 mmscfd
of unprocessed gas reserves from BG’s
offshore interests, allowing BG to increase
its annual gas sales. Construction of the
power plant is scheduled to begin in the
third quarter of 2004, with full commercial
operation expected in late 2006.
The MoA for Barca Power also includes
BG’s intention to install a Liquefied
Petroleum Gas (LPG) plant at the
Hannibal site to supply the Tunisian
market. LPG would be bottled and
distributed by a local Tunisian company.
BG is also progressing the construction
of a 67 km pipeline from Hannibal
to La Skhira, to transport condensate
produced in Miskar and eventually
from Hasdrubal.