Oil and gas operator BG Group said yesterday it had delivered another excellent result in the third quarter of 2008, and its outlook remained strong.
Chief executive Frank Chapman said: “We have confirmed our 2009 production target as 680,000 barrels of oil equivalent (boe) per day.”
This compares with daily production of 587,000boe in the third quarter.
Mr Chapman said the growth in BG’s reserves and resources this year gave it greater confidence in its potential to sustain a 6-8% compound annual production growth rate from 2005-20.
BG said it now estimated its share of reserves and resources in Brazil, where it is a significant partner of state oil company Petrobras and has achieved a sequence of six successful discoveries in the Santos Basin, at more than 3billion barrels of oil equivalent (boe).
It added that it expected its proved and probable reserves to rise by more than 2billion boe this year thanks to exploration successes in Algeria, Australia, Brazil, Norway, Oman, Thailand, Trinidad and Tobago and the UK.
The UK exploration highlight during the quarter was a significant increase in the potential of the Total-operated West Franklin field, where BG has a 14.11% stake, with reserves of close to 200million boe now estimated.
BG reported yesterday that third-quarter revenue and other operating income was up 78% year-on-year to £3.29billion, reflecting higher commodity prices and output and currency gains from a stronger US dollar. It said total operating profits rose by 106% to £1.38billion, while net profits were up 140% on last year to £857million.
The group said its capital investment in the quarter of £730million included £211million in Europe and central Asia.
Meanwhile, Canadian oil and gas operator Talisman Energy, which has significant interests in the North Sea, reported net income for the third quarter of £758million, up 305% on a year earlier.
It said revenue was £1.81billion compared with £1.17billion the year before.