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BG Group plc was a British multinational
oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
and
gas Gas is one of the four fundamental states of matter (the others being solid, liquid, and plasma). A pure gas may be made up of individual atoms (e.g. a noble gas like neon), elemental molecules made from one type of atom (e.g. oxygen), or ...
company headquartered in
Reading Reading is the process of taking in the sense or meaning of Letter (alphabet), letters, symbols, etc., especially by Visual perception, sight or Somatosensory system, touch. For educators and researchers, reading is a multifaceted process invo ...
, United Kingdom. On 8 April 2015,
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...
announced that it had reached an agreement to acquire BG Group for $70 billion, subject to regulatory and shareholder agreement. The sale was completed on 15 February 2016. Prior to the takeover, BG Group was listed on the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...

BG.L
and was a constituent of the
FTSE 100 Index The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market ...
. In the 2015
Forbes Global 2000 The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by ''Forbes'' magazine. "The Global 2000" annual ranking is assembled by ''Forbes'' using a weighted assessment of four metrics: sales, profi ...
, BG Group was ranked as the 583rd largest public company in the world. Prior to its acquisition by Shell, BG Group had operations in 25 countries across six continents and produced around 680,000 barrels of oil equivalent per day. It had a major
liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
(LNG) business and was the largest supplier of LNG to the United States. As at 31 December 2009, it had total proven commercial reserves of of oil equivalent.


History


Origins

The company was created in 1997 when
British Gas plc British Gas plc was an energy and home services provider in the United Kingdom. It was formed when the British Gas Corporation was privatised as a result of the Gas Act 1986, instigated by the government of Margaret Thatcher and superseding the ...
divested
Centrica Centrica plc is a British multinational energy and services company with its headquarters in Windsor, Berkshire. Its principal activity is the supply of electricity and gas to consumers in the United Kingdom and Ireland. It is the largest su ...
and became BG plc, which was reorganised in 1999 as BG Group plc.


2000 to 2016

On 23 October 2000, a further demerger separated the company into
Lattice Group Lattice Group plc was a leading British gas transmission business. It was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index. History The Company was established in 2000 when BG Group demerged its UK gas transmiss ...
and BG Group. Lattice took ownership of ''Transco'' (the gas transporter for the UK), Advantica (gas engineering and consultancy specialist) along with the property and transport companies and BG Group took ownership of gas fields and other assets. In 2002, Lattice merged with National Grid Company to become National Grid Transco which was renamed National Grid in 2005. In September 2007, BG Group delisted its
ADR ADR or adr may refer to: Computing * Asynchronous DRAM refresh, an approach for persistent memory found in some Intel Xeon processors * The adr microformat, part of the hCard microformat * Architectural decision record * Action–domain–respond ...
s from the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
. Instead its shares began trading on the US
over-the-counter Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescr ...
market. In June 2008, BG Group made a US$13.1 billion bid to acquire
Origin Energy Origin Energy an ASX listed public company with headquarters in Sydney. It is a major integrated electricity generator, and electricity and natural gas retailer. It operates Australia’s largest coal-fired power station at Lake Macquarie, Ne ...
, Australia's largest coal-seam gas producer, but were outmanoeuvred by
ConocoPhillips ConocoPhillips Company is an American multinational corporation engaged in hydrocarbon exploration and production. It is based in the Energy Corridor district of Houston, Texas. The company has operations in 15 countries and has production in ...
, who offered to invest US$9.1 billion in a joint venture with Origin. However, in October 2008, BG Group bought Queensland Curtis LNG for US$3.4bn in order to operate in Asia's liquefied natural gas market, and on 1 November 2010, BG Group announced plans to invest £9.3bn on the world's first project to liquefy and ship gas produced from coal deposits – the first in a series of " coal seam methane" projects in the region of eastern Australia; by late 2014, this was sending gas produced from coal deposits by pipeline to a terminal in Gladstone on the east coast. In October 2011, BG Group signed a US$8 billion deal with Cheniere Energy to export liquefied natural gas from the United States. In October 2012, BG sold its 65% majority stake in
Gujarat Gas Company Gujarat Gas Limited is an Indian natural gas distribution company, owned by Gujarat State Petroleum Corporation. Established in 1980, and headquartered in Ahmedabad, the company operates primarily in Gujarat. It is India's largest city gas distr ...
for $470 million to the state-run
Gujarat State Petroleum Corporation Gujarat State Petroleum Corporation Ltd (GSPCL) is a state government owned group of oil and gas exploration, production and distribution companies based in Gujarat, India. It is India's only state government-owned oil and gas company under the ...
. In January 2014, BG Group announced the initial drilling of an oil exploration well offshore in
Kenya ) , national_anthem = "Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...
. In April 2015,
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...
announced that it had reached an agreement to acquire BG Group for $70 billion, subject to regulatory and shareholder agreement. The deal gave BG shareholders 19% of the combined group, and gave Shell extensive access to BG's LNG assets, accelerating its global LNG and deep water strategy. Finalisation of the BG acquisition by Royal Dutch Shell was completed on 15 February 2016.


Operations

Launch ceremony for oil_platform_P-52,_which_operates_in_the_Campos_Basin..html" ;"title="Campos_Basin.html" ;"title="oil platform P-52, which operates in the Campos Basin">oil platform P-52, which operates in the Campos Basin.">Campos_Basin.html" ;"title="oil platform P-52, which operates in the Campos Basin">oil platform P-52, which operates in the Campos Basin. BG Group's main business was the exploration and extraction of natural gas and oil and the production of
liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
. It sold these products to wholesale customers such as retail gas suppliers and electricity generating companies. It also owned some gas pipelines and was involved in some power generation projects. It was active around the world, with only a minority of its business being in the UK. BG Group was a multinational company with operations in 27 countries. Key areas for the company included: * Australia ** QGC, coal seam gas upstream plays in Queensland's Surat and Bowen basin, and Curtis Island based LNG plant * Brazil ** Interests in the Tupi oil field, Tupi, Iara Oil Field, Iara, Guará oil field, Guara, and Iracema Oil Field, Iracema fields in the
Santos Basin The Santos Basin ( pt, Bacia de Santos) is an approximately large mostly offshore sedimentary basin. It is located in the south Atlantic Ocean, some southeast of Santos, Brazil. The basin is one of the Brazilian basins to have resulted from th ...
off the coast of southeastern Brazil * Egypt ** Operates the Rosetta and West Delta Deep Marine gas fields, LNG export * India ** Interest in the Panna-Mukta and Tapti fields, and Mahanagar Gas Limited (a city gas distribution company operating in
Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
). * Kazakhstan ** Interest in the
Karachaganak gas field Karachaganak Field ( kk, Қарашығанақ мұнай-газ конденсат кен орны, ''Qarashyǵanaq munaı-gaz kondensat ken orny'') is a Natural gas condensate, gas condensate field about east of Aksay, West Kazakhstan Region, A ...
* Norway ** Exploration licences with several discoveries * Thailand ** Interest in the Bongkot gas field * Trinidad & Tobago ** NCMA gas fields, Dolphin gas field, LNG export * Tunisia **Operates the Miskar and Hasdrubal gas fields * UK **Interests in several oil and gas fields in the UK
continental shelf A continental shelf is a portion of a continent that is submerged under an area of relatively shallow water, known as a shelf sea. Much of these shelves were exposed by drops in sea level during glacial periods. The shelf surrounding an island ...
, including operating the Armada,
Everest Mount Everest (; Tibetan: ''Chomolungma'' ; ) is Earth's highest mountain above sea level, located in the Mahalangur Himal sub-range of the Himalayas. The China–Nepal border runs across its summit point. Its elevation (snow heigh ...
, and Lomond gas fields and the Blake oil field, Interest in the Dragon LNG import terminal * USA **Interest in LNG Terminals, shale gas joint venture operation in the Haynesville and Marcellus plays, and
Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
.


Senior management

Sir Frank Chapman was appointed Chief Executive of the BG Group in October 2000. His remuneration for this role in 2008 consisted of £1,081,588 base salary and a £1,944,000 bonus. Chapman stood down at the end of 2012 after 12 years as
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
, and was replaced by
Chris Finlayson Christopher Francis Finlayson (born 1956) is a New Zealand lawyer and former Member of Parliament, representing the National Party. He was elected to Parliament in 2005. In the Fifth National Government, from 2008 to 2017, he was Attorney-Ge ...
, previously managing director for 'BG Advance', a business function within the Group. Chapman continued as an advisor to BG Group until he retired in June 2013. Finlayson lost the confidence of the Board in 2014 and resigned, replaced by Andrew Gould. On 15 October 2014, the company announced that
Helge Lund Helge Lund (born 16 October 1962) is a Norwegian businessman who has been chairman of BP since January 2019, and chairman of the Danish healthcare company Novo Nordisk since 2018. He is the former chief executive officer (CEO) of BG Group, Sta ...
, former CEO of
Statoil Equinor ASA (formerly Statoil and StatoilHydro) is a Norwegian state owned enterprise, state-owned multinational energy company headquartered in Stavanger. It is primarily a petroleum company, petroleum company, operating in 36 countries with ad ...
, would become
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
. Lund left the company on 15 February 2016, following successful completion of the Shell acquisition and was replaced by a Shell appointed transition CEO.


Controversies

RepRisk RepRisk AG is an environmental, social, and corporate governance (ESG) data science company based in Zurich, Switzerland, specializing in ESG and business-conduct risk research, and quantitative solutions. The company runs an online due-dili ...
listed the BG Group as seventh in its top ten of ''"Most Environmentally and Socially Controversial Companies of 2010"''. Reasons for the company's inclusion are as follows. *The BG Group were associated with deep-sea drilling plans in the Sicilian Strait. Karachaganak Petroleum Operating (KPO) consortium that includes BG was reportedly fined US$21 million for environmental violations at the onshore Karachaganak Oil and Gas Field. *BG subsidiary Queensland Gas Company's Queensland Curtis LNG Project had caused controversy in Australia. *The exploitation of the
Tarija Tarija or San Bernardo de la Frontera de Tarixa is a city in southern Bolivia. Founded in 1574, Tarija is the largest city and capital and municipality within the Tarija Department, with an airport ( Capitán Oriel Lea Plaza Airport, (TJA)) off ...
natural gas reserves in Bolivia where another BG subsidiary operated. *The report also criticized the remuneration given to its chief executive who had received GBP 28 million in cash, shares and pension contributions in 2009.


References


External links


Official Profile
on
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
{{DEFAULTSORT:Bg Group Non-renewable resource companies established in 1997 Energy companies established in 1997 Oil and gas companies of the United Kingdom Companies formerly listed on the London Stock Exchange Companies formerly listed on the New York Stock Exchange Companies based in Reading, Berkshire British companies established in 1997 2016 mergers and acquisitions Former Shell plc subsidiaries