BG Group

BG Group plc was a British multinational oil and gas company headquartered in Reading, Berkshire. Its modern corporate history began in 1997, when the former British Gas business was separated into Centrica and BG plc. A further demerger in 2000 divided the remaining activities between Lattice Group, which inherited the United Kingdom gas transmission and related infrastructure businesses, and BG Group, which retained international exploration, production and other energy assets. BG Group was reorganised as BG Group plc in 1999 and subsequently developed into a global upstream and liquefied natural gas company. The company concentrated on finding, developing and producing natural gas and oil, processing gas into LNG, marketing energy to wholesale customers, and participating in selected pipelines, gas distribution and power-generation activities. Its international portfolio extended across roughly two dozen countries on several continents. Important positions included coal-seam gas and Queensland Curtis LNG in Australia; deep-water oil and gas interests in Brazil's Santos Basin; operated gas fields and LNG activities in Egypt; upstream and city-gas interests in India; the Karachaganak field in Kazakhstan; exploration positions in Norway; the Bongkot field in Thailand; gas fields and LNG-related operations in Trinidad and Tobago; fields in Tunisia; UK Continental Shelf assets; and LNG, shale-gas and terminal interests in the United States. BG Group's strategic identity increasingly centred on natural gas and LNG. It became a significant supplier to international wholesale markets and was described as the largest supplier of LNG to the United States before its acquisition. Its Australian Queensland Curtis LNG development was among the company's most important growth projects, linking coal-seam gas production in Queensland with an LNG export terminal on Curtis Island. BG also built a substantial Brazilian deep-water position and participated in major LNG export and supply arrangements involving the United States and other markets. The company was listed on the London Stock Exchange and was a constituent of the FTSE 100 before being acquired. It also had American Depositary Receipts, although those were removed from the New York Stock Exchange in 2007 and subsequently traded over the counter. In 2015, BG ranked among the world's larger public companies in the Forbes Global 2000 listing. Royal Dutch Shell announced an agreement to acquire BG Group on 8 April 2015. The transaction valued BG at approximately US$70 billion and was designed to give Shell greater access to LNG, Brazilian deep-water assets and other growth projects. BG shareholders were to receive shares and cash representing about 19 percent of the combined company. After regulatory and shareholder approvals, the acquisition was completed on 15 February 2016. BG Group's independent corporate existence and stock-market listing ended, and its assets and operations were integrated into Shell. Helge Lund left as chief executive upon completion, while Shell appointed transitional leadership for the integration.

BG Group emerged from the restructuring of the British Gas business. In 1997, British Gas plc was divided so that the regulated and consumer-facing gas businesses could operate separately from the international exploration and production assets. The resulting BG plc was reorganised as BG Group plc in 1999. In October 2000, another demerger separated the gas-transmission and infrastructure activities into Lattice Group, while BG Group retained gas fields, international upstream assets and related energy interests. Lattice later combined with the National Grid Company and ultimately became National Grid. During the 2000s, BG Group moved away from being primarily associated with the former British Gas estate and established itself as an international natural-gas and LNG company. It expanded in Australia through Queensland coal-seam gas and the Queensland Curtis LNG project, pursued upstream opportunities in Brazil's Santos Basin, and maintained positions in Egypt, India, Kazakhstan, Norway, Thailand, Trinidad and Tobago, Tunisia, the United Kingdom and the United States. The Australian business became a defining growth platform: gas from coal deposits in Queensland was collected, transported and converted into LNG at the Curtis Island facility for overseas markets. BG also pursued a series of strategic transactions and partnerships. It attempted to acquire Origin Energy in 2008 but did not prevail. Later that year it bought Queensland Curtis LNG, strengthening its Australian LNG position. In 2011 it signed a large LNG export agreement with Cheniere Energy, supporting the development of United States LNG exports. The company sold its majority holding in Gujarat Gas Company in 2012, while continuing to maintain wider Indian energy interests. In 2014 it announced initial drilling activity offshore Kenya, reflecting its continuing search for new upstream resources. The company's operating model combined exploration and production with LNG processing, shipping and wholesale marketing. It supplied gas and LNG to utilities, gas retailers, electricity generators and other large customers. Before the Shell transaction, BG operated or held interests in projects in approximately 25 to 27 countries and produced roughly 680,000 barrels of oil equivalent per day. Its portfolio included operated and non-operated oil and gas fields, LNG terminals, gas-distribution interests and selected pipeline or power-related activities. Management changed several times during the company's final period. Frank Chapman led BG from 2000 until the end of 2012, after which Chris Finlayson became chief executive. Finlayson resigned in 2014 after losing the board's confidence, and Andrew Gould briefly took over. Helge Lund, formerly chief executive of Statoil, was announced as the next chief executive in October 2014. On 8 April 2015, Royal Dutch Shell announced an agreement to acquire BG Group. The proposed combination was valued at approximately US$70 billion and offered BG shareholders a substantial equity interest in the enlarged Shell. The strategic rationale centred on BG's LNG business, Brazilian deep-water assets and other growth projects. Following regulatory clearance and shareholder approval, the transaction completed on 15 February 2016. BG Group then ceased to operate as an independent listed company, and its assets and personnel were absorbed into Shell.

• 2016

  Acquisition completed

  [1]BG Groupen.wikipedia.org

  Shell completed the acquisition on 15 February, ending BG Group's independent existence.

• 2015

  Shell agrees to acquire BG Group

  [1]BG Groupen.wikipedia.org

  Royal Dutch Shell announced an approximately US$70 billion acquisition agreement with BG Group.

• 2012

  Sale of majority stake in Gujarat Gas Company

  [1]BG Groupen.wikipedia.org

  BG sold its 65 percent majority stake in Gujarat Gas Company to Gujarat State Petroleum Corporation for approximately US$470 million.

• 2010

  Large-scale Queensland LNG investment announced

  [1]BG Groupen.wikipedia.org

  BG announced plans to invest approximately £9.3 billion in a coal-seam methane-to-LNG project in eastern Australia.

• 2008

  Acquisition of Queensland Curtis LNG

  [1]BG Groupen.wikipedia.org

  BG Group acquired Queensland Curtis LNG for approximately US$3.4 billion, strengthening its Australian LNG platform.

• 2007

  American Depositary Receipts leave the New York Stock Exchange

  [1]BG Groupen.wikipedia.org

  BG Group delisted its ADRs from the NYSE and moved them to over-the-counter trading.

• 2000

  Demerger separates Lattice Group and BG Group

  [1]BG Groupen.wikipedia.org

  Gas transmission and infrastructure activities moved to Lattice Group, while BG Group retained gas fields and other international energy assets.

• 1999

  Reorganisation as BG Group plc

  [1]BG Groupen.wikipedia.org

  BG plc was reorganised under the BG Group plc structure.

• 1997

  Creation of BG plc from British Gas restructuring

  [1]BG Groupen.wikipedia.org

  The former British Gas business was divided, creating BG plc alongside Centrica and establishing the corporate basis for the later BG Group.

An internationally focused upstream and LNG company whose strategy emphasized natural gas, large-scale gas projects and access to growing energy markets.

• Upstream energy

  Liquefied natural gas

  Natural gas exploration, development and production formed the core of BG Group's business. The company held operated and non-operated interests in fields across regions including Australia, Egypt, Kazakhstan, Thailand, Tunisia, Brazil and the United Kingdom, selling production to wholesale energy customers and using some gas as feedstock for LNG. BG Group developed, processed, marketed and exported LNG. Its Queensland Curtis LNG project was a major Australian platform, while its wider portfolio included LNG-related activities in Egypt, Trinidad and Tobago, the United States and other markets. LNG was central to the company's international growth strategy and to the rationale for Shell's acquisition.

• Upstream energy

  Crude oil

  Oil exploration and production complemented BG Group's gas portfolio. The company held interests in Brazilian deep-water fields and selected UK and international oil assets, including interests associated with the Santos Basin and the UK Continental Shelf.

• LNG project · 2008

  Queensland Curtis LNG

  Queensland Curtis LNG connected coal-seam gas production in Queensland's Surat and Bowen basins with an LNG plant on Curtis Island near Gladstone. It became one of BG Group's signature assets and demonstrated its strategy of integrating upstream gas resources, processing and international LNG sales.

• 2010

  Environmental and social controversy surrounding international projects

  RepRisk placed BG Group among companies associated with significant environmental and social controversy. Issues cited in the referenced material included deep-sea drilling plans in the Sicilian Strait, reported environmental violations involving the Karachaganak consortium in Kazakhstan, controversy connected with Queensland Curtis LNG, and concerns about gas-resource exploitation in Bolivia.

  Source

Read more

• 2010Queensland Curtis LNG investment program

  Australia · Asia-Pacific

  BG Group promoted and financed the development of an integrated coal-seam methane and LNG export chain in Queensland, positioning the project as a major source of future Australian gas exports.

  Outcome. The project became a major operating asset and was later integrated into Shell.

  Source

• 2015

  Agree to Shell acquisitionM&A

  Background

  BG Group's LNG, Brazilian deep-water and international upstream assets made it strategically attractive to Royal Dutch Shell.

  Action taken

  BG Group agreed to be acquired by Royal Dutch Shell in a transaction valued at approximately US$70 billion, subject to approvals.

  Aftermath

  The acquisition completed on 15 February 2016. BG shareholders received an interest in the combined Shell group, and BG ceased to exist as an independent listed company.

  Transaction value. Approximately US$70 billion (Agreement announced 8 April 2015; completed 15 February 2016)

  Source

• 2008

  Acquire Queensland Curtis LNGM&A

  Background

  BG Group sought to expand its position in Australian coal-seam gas and the Asia-Pacific LNG market after an unsuccessful attempt to acquire Origin Energy.

  Action taken

  The company acquired Queensland Curtis LNG for approximately US$3.4 billion.

  Aftermath

  The acquisition became the foundation of BG's Queensland gas-to-LNG growth platform.

  Acquisition value. US$3.4 billion (2008)

  Source

1. 1BG Groupen.wikipedia.org