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5/9/15

Oil Production: North Sea production plunges at oil and gas giant BG

Group has reported a near 40 per cent fall North Sea production amid disruptions caused by repairs and maintenance work.

The oil and gas firm, which has recommended a £47bn bid from Shell, produced 77,000 barrels oil equivalent per day in the UK in the first quarter. This was down 38 per cent on the 125,000 boed produced in the same period last year.

The big fall in output came after four fields were shut down temporarily to allow work to be done on the CATS gas pipeline and the Lomond production platform.

The fall shows how infrastructure issues can have a big impact on production in areas such as the North Sea, with implications for revenues and costs.

It compounded the effect of the sharp drop in the price of crude between June and the first quarter.
Reading-based BG's profits fell by 40 per cent in the three months to March, to $1.6bn (£1bn) from $2.7bn

The price of Brent crude has increased by around 20 per cent since Shell made a cash and shares bid for BG on 8 April, which has been recommended by the BG board.

Read more: North Sea production plunges at oil and gas giant BG | Herald Scotland

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