OIL and gas producer BG Group yesterday cut its production outlook for the third time after blaming delays in getting projects under way in Egypt and Norway.
While the news about BG’s Egypt project was widely expected following unrest in the region, it came on the back of an earlier disappointment in February when the firm abandoned plans to become a million-barrels-a-day producer by 2015.
In October, BG also told investors to expect no output growth in 2013 due to project delays and a scaling back in United States shale gas arm.
Shares in BG fell 5.1 per cent, or 65p, to 1,217p yesterday after it said output would be reduced by about 30,000 barrels of oil equivalent (boed) per day next year, equivalent to around 5 per cent of this year’s expected output. It said it remained on track to meet its 2013 targets.
The company, whose main growth assets are in Australia and Brazil, has an output target for 2015 but has not said what it expects to produce in 2014.
BG also said that 2014 production would be lower as it planned to reduce output from the US by 17,000 boed due to low natural gas prices.
“The group’s 775,000 to 825,000 boed 2015 production guidance remains unchanged, but this is subject to a recovery in natural gas prices in the US and future events in Egypt,” the company said in a statement.
• Oil giant BP yesterday announced a “significant gas discovery” in the East Nile Delta off Egypt after drilling the region’s deepest well.