BG Group ended the year on top with its total earnings coming in at US$2.3 billion, a significant improvement from a $1.1 million loss in 2014. However, the UK giant did report a loss of $29 million in Q4 2015.
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BG's QCLNG pipeline. Image courtesy of BG. |
BG’s Q4 earnings loss was not nearly as devastating as its $5 billion loss the company reported in Q4 2014. The company reached $2.3 billion with the inclusion of a $1.7 billion gain from disposal of non-current assets that was mainly due to the QCLNG pipeline sale to the APA Group.
“We are pleased to have delivered an excellent operational performance in 2015 with results in line with, or ahead of, our guidance for the year,” Helge Lund, BG chief executive said. “The ramp up of both LNG trains at our QCLNG project in Australia and the ramp up in Brazil, including the start-up of our sixth FPSO, drove a strong E&P operational performance.”
Revenue for Q4 took only a 2% hit to $4.3 billion from $4.4 billion in Q4 2014.
Full year revenue and other operating income dropped 16% to $16.4 billion, from last year’s $19.5 billion.
“The addition of new low cash cost volumes in Brazil and Australia and delivery of our operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices,” Lund said.
Q4 E&P production was 757,000 boe/d, a 20% increase form Q4 2014, which BG contributed the growth to Australia, Brazil, the UK and Norway operations.
Australia saw volumes more than double to 117,000 boe/d. Meanwhile in Brazil, volumes jumped 56% to 161,000 boe/d. Production from the UK increased 33% to 109,000 boe/d, reflecting the timing of shutdowns in 2014, the company said. Offshore Norway, in the North Sea, Knarr continued its ramp up producing an average of 27,000 boe/d in Q4 2015.
In November, BG Group assumed operational control of Train 2 at QCLNG and commenced full commercial operations. The company reported that both LNG trains are now running at plateau, with 31 cargoes produced Q4, making a total of 83 cargoes since the start of 2015. In addition, 32 cargoes were delivered during Q4.
At the Santos basin off Brazil, the company achieved record production at 188,000 boe/d. Across the basin, BG had 25 wells in production, which are flowing at an average rate of around 26,000 b/d, gross to BG.
In Q4, FPSO 5 (Cidade de Mangaratiba) reached plateau production and gross production averaged 130,000 b/d from five producer and five injector wells. Gross production from FPSO 4 (Cidade de Ilhabela) averaged 87,000 b/d with three producer wells and one injector well, while FPSO 6 (Cidade de Itaguaí), where three producer and three injector wells are now connected, achieved average production rates of around 63,000 b/d.
December brought the FPSO 7 (Cidade de Maricá)on location to the Lula area, with mooring operations ongoing.
Final integration works for FPSO 8 have now commenced at the Brasa shipyard with integration works continuing on FPSO 9 in Singapore
“This strong operational performance is the result of the capability and commitment of our teams across the organization and we will deliver a high-performing business into the combination with Shell,” Lund said.
On 27 January, Shell shareholders voted to approve the $70 billion mega merger between Shell and BG, and on 28 January, BG shareholders approved the takeover.
Both companies expect the merger to be complete by 15 February.
Yesterday (4 February), Shell released its Q4 and full year report, posting a 57% drop in Q4 earnings and 80% decrease for full year 2015. The supermajor also confirmed that 10,000 jobs would be cut once the merger with BG was complete this month.
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