bg au revoir to mauritania with 50mgbp loss

If you are not untested to see what develops from here, please look away now!

"22 January 2007
Lloyd's List

BRITISH energy company BG Group has sold its Mauritanian assets at a loss, signalling a downward revision of the asset value and gas export potential, writes Martyn Wingrove.

BG has sold its position in two exploration and production blocks off Mauritania to Kuwaiti company Kufpec for $128m two years after paying $132m to Hardman Resources for these interests.

Despite the assets, including the producing Chinguetti oilfield and five other discoveries in these blocks, BG has decided to focus its investments in other exploration areas such as Norway and Brazil.

This may reduce the chances of the oil companies working in the region developing the gas resources within a liquefied natural gas project.

Analysts think this deal lowers the value of the assets held by other London-listed independent oil companies including Premier Oil, Roc Oil, Dana Petroleum and Tullow off Mauritania.

“We suspect BG has been disappointed with the gas potential identified in the past three years,” said Phil Corbett, an analyst with Oriel Securities.

“BG has taken a £50m ($98m) loss to divert investment funds to regions it now perceives as more attractive.

“This downgrades the prospect that a regional LNG scheme will be developed in the medium term.”

That Pom did us all a favour and you know it!

You often spoke about the LNG importance over on TMF so you realise how important a move away by BG is especially at a massive loss.

£50m for any company is big.

Acamas has been badly dealt with by the some of Oz contributors here and you should be ashamed.#

Come to that so have I on occasion.

Now you can all round on me because I support his view 100%, as does BG and Lloyd's.

Simon Potter did you all a favour!