BG CEO: 2010 LNG Operating Profit At Top End Of $1.8B-$2B Target

28th Jul 2010 09:09

LONDON (Dow Jones)--BG Group PLC's (BG.LN) liquefied natural gas division is performing well and its 2010 operating profit will be at the top end of the company's $1.8 billion to $2.0 billion target range, Chief Executive Frank Chapman said Wednesday. BG is having productive discussions with the government of Kazakhstan over a dispute about excise duty paid by the Karachaganak gas and condensate project, and is making progress to resolve the spat amicably, said Chief Financial Officer Ashley Almanza. The Kazakh government hasn't made an offer to buy a stake in the project, he added. BG Group expects to sanction the development of an LNG project in Queensland, Australia later this year and has no intention to consolidate its plans with other company's operating in the area, said Chapman. BG has 2.9 billion barrels of oil equivalent of gas reserves to supply the project, more than enough to go it alone, he said. BG Group has no oil wells analogous to BP PLC's (BP) Macondo blowout that triggered the oil spill in the Gulf of Mexico and doesn't expect to see any major impact on its business from that disaster, Chapman said. Company website: www.bg-group.com -By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; [email protected] Order free Annual Report for BG Group PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0008762899 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 28, 2010 04:09 ET (08:09 GMT)