BG Group BG. 3rd Quarter Results

  BG Group (BG.) - 3rd Quarter Results

RNS Number : 9379P
BG GROUP plc
31 October 2012


BG Group plc

2012 THIRD QUARTER & NINE MONTHS RESULTS

                                      

                                      

                           Third Quarter Key Points



· Earnings up 16% to $1 189 million

· E&P production up 5% to 59.4 mmboe; E&P total operating profit up 13%

· Full year 2012 E&P production growth forecast at some 3%; 2013 production
expected in line with 2012

· LNG total operating profit up 24%; full year forecast at upper end of
guidance range

· QCLNG progressed towards first LNG in 2014, with a record 135 wells
drilled in the quarter

· In Brazil, good progress with drilling and FPSO programmes;
reserves/resources independently certified

· Heads of agreement signed to sell QCLNG stake and an additional 5 mtpa of
LNG to CNOOC

· Portfolio rationalisation to release $7.6 billion of capital by mid-2013,
exceeding target

· Tanzania gross recoverable resources near 10 tcf after sixth consecutive
gas discovery

· Exploration progress in Australia, Brazil, India, Kenya and Uruguay





Third Quarter                                              Nine Months
                     Business Performance^(a)
  2012   2011                                              2012      2011
    $m     $m                                               $m        $m
                     Total  operating profit including
                     share of pre-tax

                     operating results from joint
 2 273  1 943 +17%   ventures and associates              6 622     6 060  +9%
 1 189  1 021 +16%  Earnings for the period              3 529 2 960^(b) +19%
 35.0c  30.1c +16%  Earnings per share                  103.9c     87.4c +19%
                                                                      
                     Total results for the period
                     (including disposals,
                 re-measurements and impairments)                      
                     Operating profit before share of
                     results from joint ventures and
 2 308  1 892 +22%  associates                           5 044     5 563  -9%
                     Total operating profit including
                     share of pre-tax

                     operating results from joint
 2 403  2 013 +19%  ventures and associates              5 388     5 930  -9%
                     Earnings for the period continuing
 1 289  1 060 +22%  operations                           2 539 2 900^(b) -12%
                     Earnings per share continuing
 37.9c  31.3c +21%  operations                           74.8c     85.6c -13%

a)'Business Performance' excludes disposals, certain re-measurements and
impairments as exclusion of these items provides a clear and consistent
presentation of the underlying operating performance of the Group's ongoing
business. For further information see Presentation of Non-GAAP measures (page
11) and notes 1 to 3
(pages 18 to 20). Unless otherwise stated, the results discussed in this
release relate to BG Group's Business Performance.

b) Includes a charge in respect of prior period taxation (Business
Performance $195 million, Total results $148 million) arising on the revision
of deferred tax balances at
1 January 2011 due to changes in UK taxation rates.



BG Group's Chief Executive, Sir Frank Chapman said:

"BG Group produced strong third quarter financial results across the business.
We achieved good cost and schedule performance on key projects in Australia
and Brazil and reached further asset sales agreements placing us well ahead of
our capital release plan.

"Earnings for the third quarter increased 16% to $1.2 billion, driven by a 13%
rise in E&P operating profit to $1.3 billion and a continued robust
performance of the LNG business, where operating profit was up 24% to $767
million.

"Production rose by some 5% as new projects ramped up, but was held back by
the previously announced shutdown of the non-operated Elgin/Franklin field and
our earlier decision to scale back drilling in the USA due to low natural gas
prices. As a result of these factors, along with the deferral of the Jasmine
start-up to 2013, production growth in 2012 of some 3% is now forecast.

"Alongside these factors, which will continue to affect production in 2013, we
have adjusted our 2013 plans to accommodate an extended sub-sea tie-in
schedule for Brazil's Sapinhoá and Lula NE wells. We have also reflected lower
production in Egypt where the Phase 7 compression project has been less
effective than expected in arresting reservoir decline. In aggregate, these
factors are expected to result in 2013 volumes being broadly in line with
2012.

"Looking ahead, our growth projects continue with the planned installation in
Brazil of the two new FPSOs in 2013.
This will be followed in 2014 by the installation of two further FPSOs in
Brazil and the start-up of QCLNG in Australia. We also progressed the six
further FPSOs planned to come onstream in Brazil in 2015 and 2016. The BM-S-9
partners intend to tender for a further FPSO for Carioca, which will bring to
15 the total number of FPSOs to be deployed on the 'big-five' Santos Basin
discoveries."

Sir Frank commented: "Critical to our investment proposition is the delivery
of our Australia and Brazil ventures. These projects will deliver unit
earnings substantially higher than the current Group average, which alongside
the growing contribution from the expanding LNG business, will result in Group
earnings growing considerably faster than upstream production.

"In Australia, we continued to make good progress with our Queensland Curtis
LNG project, keeping it on track for first LNG in 2014. We now have contracts
and other agreements in place for more than 90% of the project scope to 2014,
and we reconfirm the $20.4 billion capital budget. In the upstream, 135 wells
were drilled in the quarter, a 71% increase on the second quarter.
Construction of the pipeline infrastructure continues, with the gas collection
header system and more than 50% of the gas export pipeline now welded. On
Curtis Island, the construction of the LNG plant continues on track, with the
first pre-fabricated modules from Thailand being installed."

Sir Frank added: "In Brazil, drilling momentum continues with up to 11
drilling rigs operating simultaneously. Drilling costs, which account for some
50% of project capex, have continued to fall as average drilling durations
this year have fallen to 75 days, with the best well taking just 43 days. The
prospect of continued drilling cost reductions in the future is highlighted by
the best composite well duration of just 34 days.

"Additionally, contracts are in place for 90% of the next four leased and
eight locally purchased FPSOs and costs are tracking on or under budget.
Falling drilling durations and the confirmation of costs for FPSOs and other
capital scope reconfirms the developments' very low unit costs*. The
conversion of the two FPSOs scheduled for 2013 start-up continued on track.
These units will more than triple gross production capacity from around 130
000 boed to
430 000 boed. Production will ramp up as wells are connected, until plateau is
reached in 2014 and 2015.

"In the quarter, we received independent certification from Miller and Lents
of the reserves and resources within our 'big-five' Santos Basin discoveries.
This confirmed our view of both the mean reserves and resources of 6 billion
boe and the upside case of 8 billion boe respectively, net to BG Group*."

On the portfolio rationalisation programme, Sir Frank said: "Our agreement
today to sell an interest in part of the QCLNG project to CNOOC means that we
have now completed or reached asset sales agreements that should release a
total of $7.6 billion of capital by mid-2013, with a material benefit to the
Group's balance sheet."

On the Group's exploration programme, he noted: "The Papa-1 discovery in Block
3 produced our sixth consecutive exploration success offshore Tanzania. We
currently estimate gross recoverable resources discovered to date to be near
10 tcf with extensive further potential to be explored.

"Elsewhere, exploration of other high potential prospects continued in
Australia, Brazil and Egypt. In Kenya, seismic activity identified significant
prospectivity in multiple gas and oil prone plays and future opportunities
were added to our portfolio offshore Uruguay and India."

In conclusion, Sir Frank said: "During the quarter, BG Group produced good
financial results, advanced the execution of our key growth projects within
our capital cost estimates and reached agreements that will release
substantially more capital earlier than planned. We also delivered exploration
success while securing new exploration potential for the future."

*BG Group view, not the operator or relevant consortium

                           Business Review - Group

 Third Quarter                                      Nine Months        
 2012   2011                                      2012       2011
   $m    $m      Business Performance            $m        $m     
                       Revenue and other
5 588    5 397   +4% operating income            16 958       15 315  +11%
                                                                     
                                                                     
1 331    1 183  +13% Exploration and Production   4 041        3 861   +5%
  767      620  +24% Liquefied Natural Gas        2 173        1 743  +25%
                  +52% Transmission and                                    -4%
  198      130       Distribution                   425          442 
 (23)       10     - Other activities              (17)           14     -
                      Total operating profit                                
                       including share of pre-tax
                  +17% results from joint                                  +9%
2 273    1 943       ventures and associates      6 622        6 060 
                                                                     
 (57)     (50)  +14% Net finance costs            (136)        (188)  -28%
(986)    (851)  +16% Taxation for the period    (2 886)  (2 837)^(a)   +2%
1 189    1 021  +16% Earnings for the period      3 529        2 960  +19%
                                                                     
35.0c    30.1c  +16% Earnings per share (cents)  103.9c        87.4c  +19%
                                                                     
                       Cash generated by
2 701    2 738   -1% operations                   8 467        7 118  +19%
                                                                     
                       Capital investment on a
2 770    2 869   -3% cash basis^(b)               7 660        8 026   -5%

a) Includes a charge of $195 million in respect of prior period taxation
arising on the revision of deferred tax balances at 1 January 2011 due to
changes in UK taxation rates.

b) For a definition of capital investment on a cash basis see Glossary (page
31). For a reconciliation between capital investment on a cash basis and total
capital investment see Supplementary Information (page 28).

Third quarter

Revenue and other operating income increased by 4% to $5 588
million,reflecting the benefit in the E&P segment of higher realised gas
prices and a 5% increase in production volumes.

Total operating profit increased by 17% to $2 273 million as a result of the
increase in E&P revenue and other operating income and strong results in the
LNG segment as a result of continuing favourable market conditions.

Cash generated by operations of $2 701 million decreased by 1% as higher
operating profits were offset by adverse working capital movements, primarily
resulting from the timing of LNG cargoes.

As of 30 September 2012, the Group's net debt was $10 974 million and
thegearing ratio was 25.3%. The average maturity of the Group's gross
borrowings remains at around 17 years.

Net finance costs of $57 million included foreign exchange losses of $18
million (2011 net finance costs of $50 million including foreign exchange
gains of $1 million).

Capital investment (excluding acquisitions and on a cash basis) of $2 770
million comprised investment in
E&P ($2 057 million), LNG ($622 million) and T&D ($91 million). This
investment was focused primarily on the Group's major projects in Australia,
Brazil and the UK. Further details on key project developments are provided in
the third quarter business highlights section.



Nine months

Revenue and other operating income increased by 11% to $16 958 million,
reflecting the benefit in the E&P segment of higher realised gas and liquids
prices, a 4% increase in production volumes and favourable changes in the
production mix. This was combined with continued strong demand for the Group's
LNG cargoes, particularly from Asia.

Total operating profit increased by 9% to $6 622 million, as the increase in
revenue and other operating income was partly offset by higher operating costs
and depreciation in the E&P segment. Cash generated by operations increased by
19% to $8 467 million, reflecting the combined result of the strong business
performance and the reversal of prior period margin calls on the Group's
hedged LNG contracts.

The Group's effective tax rate (including BG Group's share of joint venture
and associates' tax) for the full year is expected to be 44.5%, slightly lower
than the underlying rate of 45% for 2011, excluding the $195 million prior
period charge in 2011 which resulted primarily from the increase in UK North
Sea taxation.

Net finance costs of $136 million included interest received on tax refunds of
$23 million and foreign exchange losses of $9 million (2011 net finance costs
of $188 million including foreign exchange losses of $14 million).

Capital investment (excluding acquisitions and on a cash basis) of $7 660
million comprised investment in
E&P ($5 452 million), LNG ($1 955 million) and T&D ($253 million).

2013 production

For 2013, BG Group now expects production to be in line with 2012. This
revised outlook for 2013 reflects predominantly production deferrals related
to:

· the shutdown at Elgin/Franklin;

· delay of the Jasmine start-up;

· an extended sub-sea tie-in schedule for the Sapinhoá and Lula NE wells;
and

· scaling back drilling in the USA due to low natural gas prices.

In respect of the deferrals, the Elgin/Franklin and Jasmine effects are
restricted to 2013 as Elgin/Franklin will be progressively returned to
production in 2013 and Jasmine will enter service in the second half of the
year.

At Sapinhoá and Lula NE, a semi-rigid riser sub-sea architecture will be
deployed for the first time. An extended
tie-in period for each well-head has been allowed for following detailed
execution planning.

The decision to scale back the US rig count was driven by capital expenditure
rationing considerations in the light of falling US gas prices. BG Group has a
short lead time to re-establish rig count, and therefore can increase
production, should US gas price levels improve the economic ranking of the US
opportunities. Meanwhile, BG Group continues to develop its US LNG export
opportunities, which benefit from the effects of low US gas prices.

In addition, the Phase 7 compression project in Egypt has been less effective
than expected in arresting reservoir decline. Near-field exploration to mature
resources for plateau extension already forms part of our 2012 work programme.

Beyond 2013, the Group's production plans, including Brazil and Australia, are
unchanged.

Disposals, re-measurements and impairments

Total results included a post-tax gain of $101 million (2011 $38 million gain)
for the third quarter in respect of disposals, re-measurements and
impairments, and a post-tax charge of $985 million for the nine months (2011
$62 million charge). The nine months comprised a non-cash, post-tax charge of
$1 295 million as a result of the impairment of certain assets associated with
the shale gas business in the USA following the weaker outlook for US natural
gas prices, and a post-tax credit of $310 million in respect of other
disposals, re-measurements and impairments.
For further information see Presentation of Non-GAAP measures (page 11) and
notes 1 to 3 (pages 18 to 20).



Third quarter business highlights

  Australia

The Queensland Curtis LNG (QCLNG) project continues on track. A further $1.3
billion was invested during the quarter, bringing total capital expenditure
for the first nine months of 2012 to $3.7 billion. The Group now has contracts
and other agreements in place for more than 90% of the project scope to 2014,
reconfirming BG Group's $20.4 billion capital budget.

In the upstream, the pace of drilling ramped up with 135 wells in the quarter
and a record 51 wells in August. This brings the total number of wells drilled
to more than 1 000. In September, the Group added its eighth rig and expects
to be operating 11 drilling rigs by the year end. In addition, compressors at
the Argyle field compression station (FCS) are undergoing final commissioning.
Pre-construction and site preparation work has commenced on an additional six
FCSs and one central gas processing plant.

Construction of the pipeline infrastructure continues to progress. Welding of
the 200 kilometre gas collection header system has been completed, and
approximately 40% of the pipeline has been lowered in and backfilled in the
right of way. The 340 kilometre export pipeline to Curtis Island is more than
50% welded. During the third quarter, the Group reached a key milestone with
the receipt of the required environmental and government permits to enable
dredging to begin for the Narrows Crossing to Curtis Island.

Good progress on the LNG plant at Curtis Island continued with delivery of the
second shipment of pre-fabricated LNG plant modules from Thailand. The steel
roof on the first of the two LNG storage tanks is now complete and will soon
be lifted in place. Construction on the second LNG storage tank is
progressing.

Exploration activity is ongoing, with stimulation and production testing of
three of the Bowen Basin tight gas sands wells, each of which has intersected
gas-bearing sections. Testing of coal seam gas discoveries in the Bowen Basin
is also continuing. The results of both programmes to date have been
encouraging.

  Brazil

Significant development and exploration and appraisal activities continue in
the Santos Basin with up to 11 drilling rigs operating simultaneously. BG
Group lifted five cargoes from FPSO 1 on Lula for export this year totalling
in excess of
5 million barrels of oil.

The development of the FPSO fleet continues as planned. Construction of FPSO
2, the 150 000 boed Cidade de São Paulo which will be located on the Sapinhoá
field, is 95% complete, and the unit is scheduled to leave the shipyard in
Brazil to be ready to start production in early 2013.

The topside integration work on FPSO 3, the 150 000 boed Cidade de Paraty, is
more than 91% complete. This unit is destined for Lula NE and is due onstream
later in 2013. Five producer wells and five injector wells for these two FPSOs
have been pre-drilled. Hull conversions continue in China for FPSOs 4 and 5,
which are both around 35% complete.
In addition, the BM-S-9 partners intend to tender for an additional FPSO to
develop the Carioca area which will bring to
15 the total number of FPSOs to be deployed on the 'big-five' discoveries.

During the third quarter, BG Group received updated independent expert
certification of the resource estimates on the Lula, Cernambi, Sapinhoá, Iara
and Carioca discoveries from the oil and gas consulting firm Miller and Lents,
Ltd. (MLL). This certification confirmed BG Group's current estimate of the
reserves and resources range of 4 billion barrels of oil equivalent (boe) to 8
billion boe, with a mean of 6 billion boe*. MLL was given full access to BG
Group's data and development models for these fields in order to undertake its
probabilistic analysis**.

India

In September, BG Group signed a production sharing contract (PSC) with the
Government of India for the deep-water block MB-DWN-2010/1, offered under the
NELP IX bidding round. BG India (50% interest) is the operator for this block.
This block represents BG Group's first deep-water operated exploration licence
on the west coast of India.

Tanzania

In August, BG Group achieved its sixth consecutive Tanzanian gas discovery
with the Papa-1 exploration well located in Block 3, offshore southern
Tanzania. Papa-1 is BG Group's first discovery in Block 3 and is within the
deeper Cretaceous play section. This discovery is located approximately 100
kilometres offshore and 50 kilometres south-east of the earlier Pweza-1
discovery.

The Group currently estimates gross recoverable resources discovered to date
to be near 10 tcf with extensive further potential to be explored.



*BG Group view, not the operator or relevant consortium

**Miller and Lents, Ltd. were not asked to differentiate reserves from total
discovered resource volumes.

Third quarter business highlights (continued)

Tanzania (continued)

The drillship, Deepsea-Metro 1, has now commenced the third phase of the
drilling campaign which is anticipated will consist of at least four wells.
The initial focus will be on appraisal of the Jodari area in Block 1 with the
first well being the Jodari North appraisal. Additional targets may include
new prospects arising from the Group's recent 3D seismic programme in the
eastern outboard area of Block 1.

Trinidad and Tobago

In October, BG Group sanctioned the Starfish field development in the East
Coast Marine Area (ECMA), which also contains the existing producing fields
Dolphin and Dolphin Deep. This project represents the next planned development
phase for the ECMA joint venture and is expected onstream in 2014.

Uruguay

In October, final PSCs were signed in relation to Blocks 8, 9 and 13,
initially awarded in April 2012, outlining an extensive geophysical work
programme. The first phase will be 3D seismic evaluation of the three blocks
over a
three-year period.

Portfolio rationalisation and funding plan

BG Group has now completed or reached asset sales agreements that should
release approximately $7.6 billion of capital by mid-2013, surpassing the plan
announced in February.

These transactions include the Heads of Agreement (HOA) signed today to sell a
part of the QCLNG project to CNOOC for $1.93 billion. CNOOC will reimburse BG
Group for its proportionate share of capital for the period from
1 January 2012 to the completion of the transaction, which is expected in
mid-2013.

In addition, the HOA provides that BG Group will supply CNOOC with 5 mtpa of
LNG for 20 years, making BG Group the largest LNG provider to China, the
world's fastest growing energy market.

In September, BG Group completed the sale of the initial tranche of 20% equity
in the Quintero LNG regasification facility in Chile for $176 million. The
second tranche of 20% equity is expected to complete by the end of 2012.
In addition, the Group has completed the transfer of the associated project
financing to third parties, realising additional cash inflow of $326 million.

In October, BG Group received final approval from ARSESP required to complete
the sale of the Group's entire
60.1% holding in Comgás, originally announced in May, for Brazilian Reais 3.4
billion in cash ($1.7 billion) to
Cosan S.A. Indústria e Comércio. The transaction is expected to complete in
November and will also eliminate
$1.0 billion of debt currently presented within liabilities associated with
assets held for sale on the Group's balance sheet.

In October, BG Group announced it had reached agreement to sell its 65.12%
interest in Gujarat Gas Company Limited (GGCL) in India for approximately
Indian Rupees 24.6 billion ($470 million) to GSPC Distribution Networks
Limited, a subsidiary of Gujarat State Petroleum Corporation. The agreement,
which is subject to regulatory approval,
is expected to complete during the first half of 2013.

In light of the agreements to sell Comgás and GGCL, BG Group plans to review
the structure and constituent parts of its operating business segments,
including the presentation of certain businesses in the Transmission &
Distribution segment as discontinued operations.







Exploration and Production (E&P)

Third Quarter                                          Nine Months     
 2012   2011                                           2012   2011
   $m   $m      Business Performance                 $m    $m     
 59.4    56.8   +5% Production volumes (mmboe)        181.6    173.9   +4%
                                                                     
                      Revenue and other operating
2 859   2 497  +14% income                            8 648    7 794  +11%
                                                                     
                      Total operating profit before
1 440   1 310  +10% exploration charge                4 465    4 292   +4%
(109)   (127)  -14% Exploration charge                (424)    (431)   -2%
1 331   1 183  +13% Total operating profit            4 041    3 861   +5%
                                                                     
                      Capital investment on a cash
2 057   2 014   +2% basis                             5 452    5 648   -3%

Additional operating and financial data is given on page 28.

Third quarter

Revenue and other operating income increased by 14% to $2 859 million,
reflecting a 5% increase in production volumes, higher realised gas prices and
improved production mix.

The Group's average realised gas price increased by 18% to 47.95 cents per
therm. International gas price realisations were 19% higher at 46.32 cents per
therm,reflecting higher market prices and changes in the production mix. The
average realised gas price in the UK increased by 7% to 41.86 pence per therm
as a result of higher market prices.

Total operating profit of $1 331 million was 13% higher as a result of the
increase in revenue and other operating income and a lower exploration charge,
partially offset by higher operating costs and depreciation.

The exploration charge of $109 million was $18 million lower than the third
quarter of 2011 mainly as a result of lower well write-offs. Gross exploration
expenditure of $298 million included spend in Australia ($73 million),
Egypt ($64 million), Brazil ($43 million), the UK ($38 million) and Tanzania
($31 million).

Unit operating expenditure increased to $10.75 per barrel of oil equivalent,
principally reflecting the impact of higher royalty costs arising from changes
in the production mix and higher commodity prices. As a result of changes in
the production mix, lower than expected volumes and higher commodity prices,
BG Group now expects unit operating costs for the full year to be between
$10.10 and $10.30 per barrel of oil equivalent. The unit depreciation charge
increased to $9.07 per barrel of oil equivalent due to higher depreciation
from new developments and as a result of changes in the production mix.

Capital investment on a cash basis of $2 057 million included investment in
Australia ($727 million),
Brazil ($414 million), the UK ($312 million) and Egypt ($159 million).

Nine months

Revenue and other operating income increased by 11% to $8 648 million,
reflecting higher realised gas and liquids prices, a 4% increase in production
volumes and improved production mix. Total operating profit was 5% higher as a
result of the increase in revenue and other operating income, partially offset
by higher operating costs and depreciation charges.

The Group's average realised gas price increased by 9% to 44.44 cents per
therm, reflecting generally higher market prices and changes in the production
mix.

Unit operating expenditure increased to $10.00 per barrel of oil equivalent,
principally reflecting the impact of higher royalty costs arising from changes
in the production mix and higher commodity prices. The unit depreciation
charge increased to $8.93 per barrel of oil equivalent as a combined result of
changes in the production mix and the impact of new fields coming onstream.

Capital investment on a cash basis of $5 452 million included investment in
Australia ($1 776 million),
Brazil ($1 019 million), the UK ($869 million), Egypt ($450 million) and the
USA ($332 million).

                         Liquefied Natural Gas (LNG)

 Third Quarter                                         Nine Months     
 2012   2011                                           2012   2011
   $m    $m      Business Performance                 $m   $m     
                       Revenue and other operating
2 048    2 235   -8% income                            6 254   5 776   +8%
                                                                     
                                                                     
  716      572  +25% Shipping and marketing            2 020   1 567  +29%
   87       81   +7% Liquefaction                        258     249   +4%
 (36)     (33)   +9% Business development and other    (105)    (73)  +44%
  767      620  +24% Total operating profit            2 173   1 743  +25%
                                                                     
                       Capital investment on a cash
  622      773  -20% basis                             1 955   2 138   -9%

Additional operating and financial data is given on page 28.

Third quarter

LNG total operating profit increased by 24% to $767 million due to a 25%
increase in Shipping and marketing operating profit, reflecting continuing
favourable market conditions. These results were in line with expected phasing
and the Group continues to expect total operating profit to be at the upper
end of its $2.6 billion to $2.8 billion guidance for 2012.

BG Group delivered 88% of cargoes (2011 89%) to global markets outside the USA
including 31 to Asia, 8 to
South America and 4 to Europe (2011 35 Asia, 12 South America and 2 Europe).
Deliveries to Japan increased
from 13 to 20 as LNG imports remained near record high levels.

BG Group's share of operating profit from liquefaction activities increased by
7% to $87 million.

Capital investment on a cash basis of $622 million was primarily associated
with the development of the QCLNG project.

Nine months

LNG total operating profit of $2 173 million was 25% higher than last year as
a result of favourable market conditions, with continuing strong demand for
cargo deliveries, particularly from Japan.

BG Group delivered 90% of cargoes (2011 86%) to global markets outside the USA
including 92 to Asia, 34 to South America and 7 to Europe (2011 76 Asia, 35
South America and 21 Europe). Deliveries to Japan increased from
24 to 52, reflecting record demand as all nuclear units were offline by the
end of the second quarter, only two of which are back online to date.

BG Group's share of operating profit from liquefaction activities increased by
4% to $258 million.

Capital investment on a cash basis of $1 955 million was primarily associated
with the development of the QCLNG project.

  



                     Transmission and Distribution (T&D)

Third Quarter                                         Nine Months     
2012   2011                                            2012   2011
  $m   $m      Business Performance                  $m   $m     
                                                                  
 700     685   +2% Comgás                             1 996   1 857   +7%
 219     250  -12% Other                                761     731   +4%
 919     935   -2% Revenue and other operating income 2 757   2 588   +7%
                                                                    
                                                                    
 155     153   +1% Comgás before gas cost recovery      407     404   +1%
   4    (72)     - Comgás gas cost recovery           (110)   (137)  -20%
 159      81  +96% Comgás                               297     267  +11%
  39      49  -20% Other                                128     175  -27%
 198     130  +52% Total operating profit               425     442   -4%
                                                                    
  91      82  +11% Capital investment on a cash basis   253     240   +5%

Additional operating and financial data is given on page 28.

Third quarter

Total operating profit of $198 million was 52% higher, primarily as a result
of the timing effect of gas cost recovery at Comgás in Brazil. In the quarter,
$4 million was recovered from customers compared with $72 million passed back
to customers in 2011. At the end of the quarter, the cost of gas to be
recovered from customers in future periods was $178 million.

Excluding the timing effect of gas cost recovery, total operating profit at
Comgás was 1% higher.

Other T&D activities' operating profit decreased by $10 million principally as
a result of lower volumes at
BG Italia Power and higher gas costs at Gujarat Gas in India.

Nine months

Revenue and other operating income increased by 7% to $2 757 million,
principally as a result of higher prices and volumes at Comgás and higher
prices at Gujarat Gas.

T&D total operating profit decreased by 4% to $425 million. Total operating
profit at Comgás of $297 million was
11% higher as a result of the timing effect of gas cost recovery. In the first
nine months of the year, $110 million was passed back to customers compared
with $137 million passed back to customers in 2011. Excluding this timing
effect, total operating profit at Comgás was 1% higher than in 2011.

The $47 million reduction in Other T&D activities' operating profit included
the impact of adverse foreign exchange movements and higher gas costs at
Gujarat Gas and BG Italia Power.

Capital investment on a cash basis of $253 million mainly represents the
development of the Comgás pipeline network.

                                 Legal Notice

Certain statements included in these results contain forward-looking
information concerning BG Group's strategy, operations, financial performance
or condition, outlook, growth opportunities or circumstances in the countries,
sectors or markets in which BG Group operates. By their nature,
forward-looking statements involve uncertainty because they depend on future
circumstances, and relate to events, not all of which are within BG Group's
control or can be predicted by BG Group. Although BG Group believes that the
expectations and opinions reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations and opinions will
prove to have been correct. Actual results and market conditions could differ
materially from those set out in the forward-looking statements. For a
detailed analysis of the factors that may affect our business, financial
performance or results of operations, we urge you to look at the 'Principal
risks and uncertainties' included in BG Group plc's Annual Report and Accounts
2011. No part of these results constitutes, or shall be taken to constitute,
an invitation or inducement to invest in BG Group plc or any other entity, and
must not be relied upon in any way in connection with any investment decision.
BG Group undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise, except to
the extent legally required.



                                      



                      Presentation of Non-GAAP measures

  Business Performance

'Business Performance' excludes discontinued operations and disposals, certain
re-measurements and impairments (see below) as exclusion of these items
provides a clear and consistent presentation of the underlying operating
performance of the Group's ongoing business.

BG Group uses commodity instruments to manage price exposures associated with
its marketing and optimisation activity. This activity enables the Group to
take advantage of commodity price movements. It is considered more appropriate
to include both unrealised and realised gains and losses arising from the
mark-to-market of derivatives associated with this activity in 'Business
Performance'.

  Disposals, certain re-measurements and impairments

BG Group's commercial arrangements for marketing gas include the use of
long-term gas sales contracts. Whilst
the activity surrounding these contracts involves the physical delivery of
gas, certain gas sales contracts are classified as derivatives under the rules
of IAS 39 and are required to be measured at fair value at the balance sheet
date. Unrealised gains and losses on these contracts reflect the comparison
between current market gas prices andthe actual prices to be realised under
the gas sales contract and are disclosed separately as 'disposals,
re-measurements and impairments'.

BG Group also uses commodity instruments to manage certain price exposures in
respect of optimising the timing and location of its physical gas and LNG
sales commitments. These instruments are also required to be measured
at fair value at the balance sheet date under IAS 39 and where practical have
been designated as formal hedges. However, IAS 39 does not always allow the
matching of fair values to the economically hedged value of the related
commodity, resulting in unrealised movements in fair value being recorded in
the income statement. These movements in fair value, together with any
unrealised gains and losses associated with discontinued hedge accounting
relationships that continue to represent economic hedges, are disclosed
separately as 'disposals,
re-measurements and impairments'.

BG Group also uses financial instruments, including derivatives, to manage
foreign exchange and interest rate exposure. These instruments are required to
be recognised at fair value or amortised cost on the balance sheet in
accordance with IAS 39. Most of these instruments have been designated either
as hedges of foreign exchange movements associated with the Group's net
investments in foreign operations, or as hedges of interest rate risk. Where
these instruments represent economic hedges but cannot be designated as hedges
under IAS 39, unrealised movements in fair value, together with foreign
exchange movements associated with the underlying borrowings, are recorded in
the income statement and disclosed separately as 'disposals, re-measurements
and impairments'.

Realised gains and losses relating to the instruments referred to above are
included in Business Performance. This presentation best reflects the
underlying performance of the business since it distinguishes between the
temporary timing differences associated with re-measurements under IAS 39
rules and actual realised gains and losses.

BG Group has also separately identified profits and losses associated with the
disposal of non-current assets, impairments of non-current assets and certain
other exceptional items, as they require separate disclosure in order to
provide a clearer understanding of the results for the period.

For a reconciliation between the overall results and Business Performance and
details of disposals,
re-measurements and impairments, see the consolidated income statement (page
12), note 2 (page 19) and note 3 (page 20).

  Joint ventures and associates

Under IFRS, the results from jointly controlled entities (joint ventures) and
associates, accounted for under the equity method, are required to be
presented net of finance costs and tax on the face of the income statement.
Given the relevance of these businesses within BG Group, the results of joint
ventures and associates are presented before interest and tax, and after tax.
This approach provides additional information on the source of BG Group's
operating profits. For a reconciliation between operating profit and earnings
including and excluding the results of joint ventures and associates, see note
3 (page 20).

  Net borrowings

BG Group provides a reconciliation of net borrowings and an analysis of the
amounts included within net borrowings as this is an important liquidity
measure for the Group.





                        Consolidated Income Statement

Third Quarter

                                      2012                                 2011                 
                                        Disposals,                         Disposals,
                                       re-measure-                        re-measure-
                          Business   ments and           Business   ments and
                           Perform- impairments   Total    Perform- impairments   Total
                             ance^(a)    (Note 2)^(a)  Result      ance^(a)    (Note 2)^(a)  Result
                  Notes       $m           $m      $m         $m          $m      $m 
 Group revenue                5 581               -   5 581        5 394               -   5 394 
  Other operating
 income                2           7             (2)       5            3              71      74 
  Group revenue and
  other operating
 income                3       5 588             (2)   5 586        5 397              71   5 468 
 Operating costs            (3 410)               - (3 410)      (3 575)               - (3 575) 
  Profits and
  losses on
  disposal of
  non-current
  assets and
 impairments           2           -             132     132            -             (1)     (1) 
  Operating
 profit/(loss)^(b)     3       2 178             130  2 308        1 822              70  1 892 
 Finance income     2, 4          30              15      45           23            (51)    (28) 
 Finance costs      2, 4        (83)            (10)    (93)         (57)              40    (17) 
  Share of post-tax
  results from
  joint ventures
 and associates        3          63               -      63           73               -      73 
  Profit/(loss)
 before tax                   2 188             135   2 323        1 861              59   1 920 
 Taxation           2, 5       (958)            (34)   (992)        (819)            (21)   (840) 
  Profit/(loss) for
  the period from
  continuing
 operations            3       1 230             101   1 331        1 042              38   1 080 
  Profit/(loss) for
  the period from
  discontinued
 operations            6           -               -       -            -             (2)     (2) 
  Profit/(loss) for
 the period                   1 230             101   1 331        1 042              36   1 078 
 Attributable to:                                                                             
  BG Group
  shareholders                                              1                                     1
 (earnings)                   1 189             100 289^(c)        1 021              37 058^(c) 
  Non-controlling
 interest                        41               1      42           21             (1)      20 
                             1 230             101   1 331        1 042              36   1 078 
  Earnings per
  share continuing
  operations -
 basic                 7       35.0c            2.9c   37.9c        30.1c            1.2c   31.3c 
  Earnings per
  share
  discontinued
  operations -
 basic                            -               -       -            -          (0.1c)  (0.1c) 
  Earnings per
  share continuing
  operations -
 diluted               7       34.8c            2.9c   37.7c        29.9c            1.2c   31.1c 
  Earnings per
  share
  discontinued
  operations -
 diluted                          -               -       -            -          (0.1c)  (0.1c) 
  Total operating
  profit/(loss)
  including share
  of pre-tax
  operating results
  from joint
  ventures and
 associates^(d)        3       2 273             130   2 403        1 943              70   2 013 

a) See Presentation of Non-GAAP measures (page 11) for an explanation of
results excluding disposals, certain re-measurements and impairments and
presentation of the results of joint ventures and associates.

b) Operating profit/(loss) is before share of results from joint ventures and
associates.

c) Comprises earnings from continuing operations of $1 289 million (2011 $1
060 million) and from discontinued operations of $nil (2011 $(2) million).

d) This measurement is shown by BG Group as it is used as a means of measuring
the underlying performance of the business.

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

                        Consolidated Income Statement

Nine Months

                                      2012                                 2011                 
                                        Disposals,                         Disposals,
                                      re-measure-                        re-measure-
                          Business   ments and           Business   ments and
                           Perform- impairments   Total    Perform- impairments   Total
                             ance^(a)    (Note 2)^(a)  Result      ance^(a)    (Note 2)^(a)  Result
                  Notes      $m          $m      $m        $m          $m      $m 
 Group revenue               16 928               -  16 928       15 303               -  15 303 
  Other operating
 income                2          30             148     178           12           (148)   (136) 
  Group revenue and
  other operating
 income                3      16 958             148  17 106       15 315           (148)  15 167 
                                                          (10
 Operating costs           (10 680)               -    680)      (9 622)               - (9 622) 
  Profits and
  losses on
  disposal of
  non-current
  assets and
 impairments           2           -         (1 382) (1 382)            -              18      18 
  Operating
 profit/(loss)^(b)     3       6 278         (1 234)   5 044        5 693           (130)   5 563 
 Finance income     2, 4         108             164     272           62              19      81 
 Finance costs      2, 4       (216)           (156)   (372)        (204)            (55)   (259) 
  Share of post-tax
  results from
  joint ventures
 and associates        3         224               -     224          227               -     227 
  Profit/(loss)
 before tax                   6 394         (1 226)   5 168        5 778           (166)   5 612 
 Taxation           2, 5     (2 794)             241 (2 553)      (2 743)             104 (2 639) 
  Profit/(loss) for
  the period from
  continuing
 operations            3       3 600           (985)   2 615        3 035            (62)   2 973 
  Profit/(loss) for
  the period from
  discontinued
 operations            6           -             254     254            -             (2)     (2) 
  Profit/(loss) for
 the period                   3 600           (731)   2 869        3 035            (64)   2 971 
 Attributable to:                                                                             
  BG Group
  shareholders                                              2                                     2
 (earnings)                   3 529           (736) 793^(c)        2 960            (62) 898^(c) 
  Non-controlling
 interest                        71               5      76           75             (2)      73 
                             3 600           (731)   2 869        3 035            (64)   2 971 
  Earnings per
  share continuing
  operations -
 basic                 7      103.9c         (29.1c)   74.8c        87.4c          (1.8c)   85.6c 
  Earnings per
  share
  discontinued
  operations -
 basic                            -            7.5c    7.5c            -          (0.1c)  (0.1c) 
  Earnings per
  share continuing
  operations -
 diluted               7      103.3c         (28.9c)   74.4c        86.8c          (1.7c)   85.1c 
  Earnings per
  share
  discontinued
  operations -
 diluted                          -            7.4c    7.4c            -          (0.1c)  (0.1c) 
  Total operating
  profit/(loss)
  including share
  of pre-tax
  operating results
  from joint
  ventures and
 associates^(d)        3       6 622         (1 234)   5 388        6 060           (130)   5 930 

a) See Presentation of Non-GAAP measures (page 11) for an explanation of
results excluding disposals, certain re-measurements and impairments and
presentation of the results of joint ventures and associates.

b) Operating profit/(loss) is before share of results from joint ventures and
associates.

c) Comprises earnings from continuing operations of $2 539 million (2011 $2
900 million) and from discontinued operations of $254 million (2011 $(2)
million).

d) This measurement is shown by BG Group as it is used as a means of measuring
the underlying performance of the business.

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

For information on dividends paid in the period, see note 9 (page 26).

                Consolidated Statement of Comprehensive Income

Third Quarter                                                    Nine Months
  2012   2011                                                       2012  2011
    $m    $m                                                       $m   $m
 1 331  1 078  Profit for the period                              2 869 2 971
                                                                    
   668    197  Hedge adjustments net of tax^(a)                     776  (51)
                Fair value movements on 'available-for-sale'
    23      6  assets net of tax^(b)                                 14     3
    37  (943)  Currency translation adjustments                   (548) (674)
   728  (740)  Other comprehensive income, net of tax               242 (722)
                                                                    
 2 059    338  Total comprehensive income for the period          3 111 2 249
                                                                    
              Attributable to:                                       
 2 017    352  BG Group shareholders                              3 054 2 201
    42   (14)  Non-controlling interest                              57    48
 2 059    338                                                    3 111 2 249

a) Income tax relating to hedge adjustments is a $208 million charge for the
quarter (2011 $72 million charge) and a $258 million charge for the nine
months
(2011 $5 million credit).

b) Income tax relating to fair value movements on 'available-for-sale' assets
is a $2 million credit for the quarter (2011 $3 million charge) and a $6
million credit for the nine months (2011 $1 million charge).

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

                          Consolidated Balance Sheet

                                                     As at    As at   As at
                                                   30 Sept   31 Dec 30 Sept
                                                      2012     2011     2011
                                                      $m       $m      $m
Assets                                                                     
Non-current assets                                                         
Goodwill                                               27      752        765
Other intangible assets                             4 766    6 159      7 267
Property, plant and equipment                      41 607   37 316     32 940
Investments                                         2 478    3 044      2 969
Deferred tax assets                                   929      589        481
Trade and other receivables                           944      695        722
Commodity contracts and other derivative              525                 487
financial instruments                                           366
                                                  51 276   48 921     45 631
Current assets                                          
Inventories                                           733      768        727
Trade and other receivables                         6 483    7 375      7 377
Current tax receivable                                140      141        284
Commodity contracts and other derivative              231                 377
financial instruments                                           331
Cash and cash equivalents                           4 598    3 601      1 627
                                                  12 185   12 216     10 392
Assets classified as held for sale^(a)              2 953      245        192
Total assets                                       66 414   61 382     56 215
                                                       
Liabilities                                             
Current liabilities                                     
Borrowings                                        (1 616)  (1 160)    (3 976)
Trade and other payables                          (5 324)  (5 342)    (5 388)
Current tax liabilities                           (1 475)  (1 238)    (1 716)
Commodity contracts and other derivative            (692)             (1 517)
financial instruments                                       (1 345)
                                                 (9 107)  (9 085)   (12 597)
Non-current liabilities                                 
Borrowings                                       (14 357) (13 977)    (8 838)
Trade and other payables                            (180)     (72)       (77)
Commodity contracts and other derivative            (497)               (722)
financial instruments                                         (696)
Deferred income tax liabilities                   (4 637)  (3 961)    (3 656)
Retirement benefit obligations                       (99)    (214)      (217)
Provisions for other liabilities and charges      (3 803)  (3 603)    (1 855)
                                                (23 573) (22 523)   (15 365)
Liabilities associated with assets classified     (1 729)               (102)
as held for sale^(a)                                           (99)
Total liabilities                                (34 409) (31 707)   (28 064)
Net assets                                         32 005   29 675     28 151
Equity                                                  
Total shareholders' equity                         31 671   29 384     27 844
Non-controlling interest in equity                    334      291        307
Total equity                                       32 005   29 675     28 151

a) As at 30 September 2012 assets classified as held for sale includeComgás
in Brazil and GNL Quintero S.A. in Chile (2011 includes First Gas in the
Philippines).

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

                 Consolidated Statement of Changes in Equity

                   Called   Share
                       up premium
                    share account Hedging Translation    Other Retained       Non-con-trolling
                  capital         reserve     reserve reserves earnings Total         interest Total
                     $m      $m      $m          $m       $m       $m    $m               $m    $m
  Equity as at 31                                                          29                     29
 December 2011       577     584   (642)       2 508    2 710   23 647   384              291   675
  Total
  comprehensive
  income for the
 period                -       -     397       (150)        -    2 807 3 054               57 3 111
 Issue of shares       1      28       -           -        -        -    29                -    29
  Purchase of own
 shares                -       -       -           -        -     (16)  (16)                -  (16)
  Adjustment in
  respect of
  employee share
 schemes               -       -       -           -        -       67    67                -    67
  Dividends on
 ordinary shares       -       -       -           -        -    (847) (847)                - (847)
  Dividends to
  non-controlling
 interest              -       -       -           -        -        -     -             (14)  (14)
  Equity as at 30                                                          31                     32
 September 2012      578     612   (245)       2 358    2 710   25 658   671              334   005
                                                                                         
                   Called   Share
                       up premium
                    share account Hedging Translation    Other Retained       Non-con-trolling
                  capital         reserve     reserve reserves earnings Total         interest Total
                     $m      $m      $m          $m       $m       $m    $m               $m    $m
  Equity as at 31                                                          26                     26
 December 2010       576     537   (457)       2 877    2 710   20 085   328              356   684
  Total
  comprehensive
  income for the
 period                -       -    (48)       (652)        -    2 901 2 201               48 2 249
 Issue of shares       1      33       -           -        -        -    34                -    34
  Purchase of own
 shares                -       -       -           -        -     (25)  (25)                -  (25)
  Adjustment in
  respect of
  employee share
 schemes               -       -       -           -        -       66    66                -    66
  Dividends on
 ordinary shares       -       -       -           -        -    (760) (760)                - (760)
  Dividends to
  non-controlling
 interest              -       -       -           -        -        -     -             (97)  (97)
  Equity as at 30                                                          27                     28
 September 2011      577     570   (505)       2 225    2 710   22 267   844              307   151

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

                       Consolidated Cash Flow Statement

 Third Quarter                                                 Nine Months
2012   2011                                                2012  2011
  $m     $m                                                $m    $m
               Cash flows from operating activities                      
  2 323   1 918  Profit before tax^(a)                          5 423   5 611
                  Share of post-tax results from joint
   (63)    (73)  ventures and associates                        (224)   (227)
                  Depreciation of property, plant and
                  equipment and amortisation
    630     573  of intangible assets                           1 944   1 706
                  Fair value movements in commodity based
      -    (53)  contracts                                      (176)     200
                  Profits and losses on disposal of
  (132)       1  non-current assets and impairments^(b)         1 127    (18)
                  Unsuccessful exploration expenditure written
      4      61  off                                              207     184
   (88)    (52)  Decrease in provisions                         (198)   (118)
   (45)      28  Finance income                                 (272)    (82)
     93      17  Finance costs                                    372     259
     20      18  Share-based payments                              60      58
   (41)     300  (Increase)/decrease in working capital           204   (455)
  2 701   2 738  Cash generated by operations                   8 467   7 118
  (789)   (843)  Income taxes paid                            (2 111) (2 210)
  1 912   1 895  Net cash inflow from operating activities      6 356   4 908
                Cash flows from investing activities               
                  Dividends received from joint ventures and
     63      13  associates                                       115     108
                  Proceeds from disposal of property, plant
                  and equipment, intangible assets and
    176       1  investments                                    1 265     196
                  Purchase of property, plant and equipment
(2 638) (2 770)  and intangible assets                        (7 372) (7 726)
    (3)    (41)  Loans to joint ventures and associates          (14)   (129)
                  Repayments from joint ventures and
    308      25  associates                                       662      75
                  Investments in subsidiaries, joint ventures
  (129)    (58)  and associates                                 (274)   (171)
     18       -  Other loan (advances)/repayments               (307)       -
(2 205) (2 830)  Net cash outflow from investing activities   (5 925) (7 647)
                Cash flows from financing activities               
   (58)    (50)  Net interest paid^(c)                          (287)   (178)
  (408)   (362)  Dividends paid                                 (856)   (768)
    (5)    (56)  Dividends paid to non-controlling interest      (18)    (93)
                  Net proceeds from issue and repayment of
     28     860  borrowings                                     1 815   2 912
     10       7  Issue of shares                                   29      34
      -       -  Purchase of own shares                          (16)    (25)
                  Net cash inflow/(outflow) from financing
  (433)     399  activities                                       667   1 882
                  Net increase/(decrease) in cash and cash
  (726)   (536)  equivalents^(d)                                1 098   (857)
                  Cash and cash equivalents at beginning of
  5 380   2 204  period^(e)                                     3 601   2 551
     13    (41)  Effect of foreign exchange rate changes         (32)    (67)
                  Cash and cash equivalents at end of
  4 667   1 627  period^(e)                                     4 667   1 627

a) Includes profit/(loss) before tax from discontinued operations for the
quarter of $nil (2011 $(2) million) and for the nine months of $255 million
(2011 $(1) million).

b) Includes profit on disposal of discontinued operations for the quarter of
$nil (2011 $nil) and for the nine months of $255 million (2011 $nil).

c) Includes capitalised interest for the quarter of $131 million (2011 $51
million) and for the nine months of $336 million (2011 $118 million).

d) Cash and cash equivalents comprise cash and short-term liquid investments
that are readily convertible to cash.

e) The balance at 30 September 2012 includes cash and cash equivalents of $4
598 million (31 December 2011 $3 601 million; 30 September 2011 $1 627
million) and cash included within assets held for sale of $69 million (31
December 2011 $nil; 30 September 2011 $nil).

The notes on pages 18 to 27 form an integral part of these condensed financial
statements.

                                    Notes

1. Basis of preparation

These primary statements are the condensed financial statements ('the
financial statements') of BGGroup plc for the quarter ended and the nine
months ended 30 September 2012. The financial statements do not comprise
statutory accounts within the meaning of Section 434 of the Companies Act
2006, and should be read in conjunction with the Annual Report and Accounts
for the year ended 31 December 2011 which have been prepared in accordance
with IFRS as adopted by the EU, as they provide an update of previously
reported information. The latest statutory accounts delivered to the registrar
were for the year ended 31 December 2011 which were audited by BG Group's
statutory auditors PricewaterhouseCoopers LLP and on which the Auditors'
Report was unqualified and did not contain statements under Sections 498(2) or
498(3) of the Companies Act 2006. These financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by
the EU and the accounting policies, methods of computation and presentation as
set out in the 2011 Annual Report and Accounts.

The preparation of the financial statements requires management to make
estimates and assumptions that affect the reported amount of revenues,
expenses, assets and liabilities at the date of the financial statements. If
in the future such estimates and assumptions, which are based on management's
best judgement at the date of the financial statements, deviate from the
actual circumstances, the original estimates and assumptions will be modified
as appropriate in the year in which the circumstances change.

Presentation of results

The presentation of BG Group's results separately identifies the effect of:

· The re-measurement of certain financial instruments; and

· Profits and losses on the disposal and impairment of non-current assets and
businesses and certain other exceptional items.

These items, which are detailed in note 2 to the financial statements (page
19) are excluded from Business Performance in order to provide readers with a
clear and consistent presentation of the underlying operating performance of
the Group's ongoing businesses.

New accounting standards and interpretations

A number of amendments to accounting standards issued by the IASB are
applicable from 1 January 2012. They have not had a material impact on the
Group's financial statements for the quarter ended and nine months ended
30 September 2012.

2. Disposals, re-measurements and impairments

Third Quarter                                                   Nine Months
  2012   2011                                                       2012  2011
    $m     $m                                                       $m    $m
                Revenue and other operating income -
   (2)     71  re-measurements of commodity based contracts         148 (148)
                Profits and losses on disposal of non-current
   132    (1)  assets and impairments                           (1 382)    18
                Net finance (costs)/income - re-measurements of
     5   (11)  financial instruments                                  8  (36)
  (34)   (21)  Taxation                                             241   104
   101     38                                                    (985)  (62)
   (1)      1  Non-controlling interest                             (5)     2
   100     39  Impact on earnings - continuing operations         (990)  (60)

Third quarter and nine months: Revenue and other operating income

Re-measurements included within revenue and other operating income amount to a
charge of $2 million for the quarter (2011 $71 million credit), of which a
credit of $2 million (2011 $4 million credit) represents non-cash
mark-to-market movements on certain long-term gas contracts. For the nine
months, a credit of $148 million in respect of
re-measurements is included within revenue and other operating income (2011
$148 million charge), of which acredit
of $74 million represents non-cash mark-to-market movements on certain
long-term gas contracts (2011$1million credit). Whilst the activity
surrounding these contracts involves the physical delivery of gas, the
contracts fall within the scope of IAS 39 and meet the definition of a
derivative instrument. In addition, re-measurements include a $4 million
charge for the quarter (2011 $67 million credit) and a $74 million credit for
the nine months (2011 $149 million charge) representing unrealised
mark-to-market movements associated with economic hedges.

Third quarter and nine months: Disposals and impairments of non-current assets

In September, BG Group completed the sale of the initial tranche of 20% equity
in the Quintero LNG regasification facility in Chile. This resulted in a
pre-tax profit on disposal of $146 million (post-tax $110 million).

The second quarter included a pre-tax charge of $1 800 million (post-tax $1
295 million charge) in respect of the impairment of certain assets associated
with the shale gas business in the USA, as a result of the weaker outlook for
US natural gas prices.

In June 2012, the Group disposed of 10% of its interest in the Karachaganak
gas-condensate project for $651 million in cash, additional capacity in the
Caspian Pipeline Consortium pipeline, and the final settlement of cost
recovery and other claims. This resulted in the recognition of a pre-tax
profit on disposal in the quarter of $9 million (post-tax
$9 million) and in the nine months of $400 million (post-tax $164 million).

Other disposals, impairments and other items in 2012 resulted in a pre-tax
charge to the income statement of
$23 million in the third quarter (post-tax $23 million charge) and a pre-tax
charge of $128 million in the nine months (post-tax $68 million charge).

In April 2011, BG Group signed and completed a Sale and Purchase Agreement
(SPA) with its partners in Genting Sanyen Power in Malaysia for them to
acquire the Group's 20% interest in the power plant. This resulted in a pre
and post-tax profit of $28 million in the second quarter of 2011. Other
disposals and write-offs resulted in a pre and post-tax charge of $1 million
in the third quarter of 2011 and a pre-tax charge of $10 million in the nine
months (post-tax
$3 million credit).

Third quarter and nine months: Net finance costs

Re-measurements presented in net finance costs include foreign exchange
movements on certain borrowings, partly offset by certain derivatives used to
hedge foreign exchange and interest rate risk.

Third quarter and nine months: Taxation

In 2011, taxation for the nine months includes a $47 million credit which
primarily relates to the impact of the increase in UK North Sea taxation on
re-measurement balances.

3. Segmental analysis

Profit for the period                            Disposals,
                                  Business   re-measurements and
Analysed by operating segment    Performance     impairments     Total Result
                                  2012  2011        2012    2011    2012  2011
Third Quarter                       $m    $m          $m      $m      $m    $m
Group revenue                                                           
Exploration and Production       2 856 2 501           -       -   2 856 2 501
Liquefied Natural Gas            2 050 2 228           -       -   2 050 2 228
Transmission and Distribution      913   935           -       -     913   935
Less: intra-group sales          (238) (270)           -       -   (238) (270)
Group revenue                    5 581 5 394           -       -   5 581 5 394
Other operating income^(a)           7     3         (2)      71       5    74
Group revenue and other
operating income                 5 588 5 397         (2)      71   5 586 5 468
Operating profit/(loss) before share
of results from joint ventures and
associates                                                          
Exploration and Production       1 329 1 172        (54)      25   1 275 1 197
Liquefied Natural Gas              693   527         190      46     883   573
Transmission and Distribution      179   113         (5)     (1)     174   112
Other activities                  (23)    10         (1)       -    (24)    10
                                2 178 1 822         130      70   2 308 1 892
Share of pre-tax operating results
from joint ventures and associates                                  
Exploration and Production           2    11           -       -       2    11
Liquefied Natural Gas               74    93           -       -      74    93
Transmission and Distribution       19    17           -       -      19    17
                                   95   121           -       -      95   121
Total operating profit/(loss)                                       
Exploration and Production       1 331 1 183        (54)      25   1 277 1 208
Liquefied Natural Gas              767   620         190      46     957   666
Transmission and Distribution      198   130         (5)     (1)     193   129
Other activities                  (23)    10         (1)       -    (24)    10
                                2 273 1 943         130      70   2 403 2 013
Net finance (costs)/income                                           
Finance income                      30    23          15    (51)      45  (28)
Finance costs                     (83)  (57)        (10)      40    (93)  (17)
Share of joint ventures and
associates                         (4)  (16)           -       -     (4)  (16)
                                 (57)  (50)           5    (11)    (52)  (61)
Taxation                                                             
Taxation                         (958) (819)        (34)    (21)   (992) (840)
Share of joint ventures and
associates                        (28)  (32)           -       -    (28)  (32)
                                (986) (851)        (34)    (21) (1 020) (872)
Profit/(loss) for the period
from continuing operations       1 230 1 042         101      38   1 331 1 080
Attributable to:                                                     
BG Group shareholders (earnings) 1 189 1 021         100      39   1 289 1 060
Non-controlling interest            41    21           1     (1)      42    20
                                1 230 1 042         101      38   1 331 1 080

a) Business Performance Other operating income is attributable to segments as
follows: E&P $3 million (2011 $(4) million), LNG $(2) million (2011 $7
million) and
T&D $6 million (2011 $nil).

3. Segmental analysis continued

                                               Disposals,
                              Business     re-measurements and
                            Performance       impairments      Total Result
                              2012    2011        2012    2011    2012    2011
Nine Months                     $m      $m          $m      $m      $m      $m
Group revenue^(a)                                                       
Exploration and Production   8 637   7 804           -       -   8 637   7 804
Liquefied Natural Gas        6 251   5 754           -       -   6 251   5 754
Transmission and
Distribution                 2 741   2 588           -       -   2 741   2 588
Less: intra-group sales      (701)   (843)           -       -   (701)   (843)
Group revenue               16 928  15 303           -       -  16 928  15 303
Other operating income^(b)      30      12         148   (148)     178   (136)
Group revenue and other
operating income            16 958  15 315         148   (148)  17 106  15 167
Operating profit/(loss) before
share of results from joint
ventures and associates                                           
Exploration and Production   4 024   3 836     (1 483)      23   2 541   3 859
Liquefied Natural Gas        1 894   1 453         259   (180)   2 153   1 273
Transmission and
Distribution                   377     390         (9)      27     368     417
Other activities              (17)      14         (1)       -    (18)      14
                            6 278   5 693     (1 234)   (130)   5 044   5 563
Share of pre-tax operating
results from joint ventures and
associates                                                        
Exploration and Production      17      25           -       -      17      25
Liquefied Natural Gas          279     290           -       -     279     290
Transmission and
Distribution                    48      52           -       -      48      52
                              344     367           -       -     344     367
Total operating
profit/(loss)                                                     
Exploration and Production   4 041   3 861     (1 483)      23   2 558   3 884
Liquefied Natural Gas        2 173   1 743         259   (180)   2 432   1 563
Transmission and
Distribution                   425     442         (9)      27     416     469
Other activities              (17)      14         (1)       -    (18)      14
                            6 622   6 060     (1 234)   (130)   5 388   5 930
Net finance (costs)/income                                         
Finance income                 108      62         164      19     272      81
Finance costs                (216)   (204)       (156)    (55)   (372)   (259)
Share of joint ventures
and associates                (28)    (46)           -       -    (28)    (46)
                            (136)   (188)           8    (36)   (128)   (224)
Taxation                                                           
Taxation                   (2 794) (2 743)         241     104 (2 553) (2 639)
Share of joint ventures
and associates                (92)    (94)           -       -    (92)    (94)
                          (2 886) (2 837)         241     104 (2 645) (2 733)
Profit/(loss) for the
period from continuing
operations                   3 600   3 035       (985)    (62)   2 615   2 973
Attributable to:                                                   
BG Group shareholders
(earnings)                   3 529   2 960       (990)    (60)   2 539   2 900
Non-controlling interest        71      75           5     (2)      76      73
                            3 600   3 035       (985)    (62)   2 615   2 973

a) External sales are attributable to segments as follows: E&P $8 162 million
(2011 $6 961 million), LNG$6 025million (2011 $5 754 million) and T&D $2 741
million
(2011$2 588million). Intra-group sales are attributable to segments as
follows: E&P$475 million (2011$843million) and LNG$226 million (2011
$nil).

b) Business Performance Other operating income is attributable to segments as
follows: E&P $11 million (2011 $(10) million), LNG $3 million (2011 $22
million) and
T&D $16 million (2011 $nil).

3. Segmental analysis continued

                                                  Disposals,
                                   Business   re-measurements and
                                 Performance     impairments     Total Result
                                   2012  2011      2012      2011   2012  2011
Third Quarter                        $m    $m        $m        $m     $m    $m
Total operating profit/(loss)                                           
Exploration and Production        1 331 1 183      (54)        25  1 277 1 208
Liquefied Natural Gas               767   620       190        46    957   666
Transmission and Distribution       198   130       (5)       (1)    193   129
                                 2 296 1 933       131        70  2 427 2 003
Other activities                   (23)    10       (1)         -   (24)    10
                                 2 273 1 943       130        70  2 403 2 013
Less: Pre-tax share of operating
results
of joint ventures and associates                                (95) (121)
Add: Share of post-tax results
from
joint ventures and associates                                     63    73
Net finance costs                                               (48)  (45)
Profit before tax                                              2 323 1 920
Taxation                                                       (992) (840)
Profit for the period from
continuing operations                                          1 331 1 080



                                               Disposals,
                                Business   re-measurements and
                              Performance     impairments      Total Result
                                2012  2011       2012     2011    2012    2011
Nine Months                       $m    $m         $m       $m      $m      $m
Total operating profit/(loss)                                           
Exploration and Production     4 041 3 861    (1 483)       23   2 558   3 884
Liquefied Natural Gas          2 173 1 743        259    (180)   2 432   1 563
Transmission and Distribution    425   442        (9)       27     416     469
                              6 639 6 046    (1 233)    (130)   5 406   5 916
Other activities                (17)    14        (1)        -    (18)      14
                              6 622 6 060    (1 234)    (130)   5 388   5 930
Less: Pre-tax share of
operating results
of joint ventures and
associates                                                   (344)   (367)
Add: Share of post-tax results
from
joint ventures and associates                                  224     227
Net finance costs                                            (100)   (178)
Profit before tax                                            5 168   5 612
Taxation                                                   (2 553) (2 639)
Profit for the period from
continuing operations                                        2 615   2 973



4. Net finance (costs)/income

Third Quarter                                                 Nine Months
   2012  2011                                                    2012  2011
     $m    $m                                                    $m    $m
  (163)  (71)  Interest payable^(a)                            (399) (199)
   (26)  (27)  Interest on obligations under finance leases     (78)  (80)
    131    51  Interest capitalised                              336   118
   (25)  (10)  Unwinding of discount on provisions^(b)          (75)  (43)
   (10)    40  Disposals, re-measurements and impairments^(c) (156)  (55)
   (93)  (17)  Finance costs                                   (372) (259)
     30    23  Interest receivable                               108    62
     15  (51)  Disposals, re-measurements and impairments^(c)    164    19
     45  (28)  Finance income                                    272    81
   (48)  (45)  Net finance costs^(d)                           (100) (178)

a) In 2012, interest payable includes foreign exchange losses of $18 million
for the quarter and foreign exchange losses for the nine months of $9 million.
In 2011, interest payable includes foreign exchange gains of $1 million for
the quarter and foreign exchange losses for the nine months of $14 million.

b) Relates to the unwinding of the discount on provisions and amounts in
respect of pension obligations which represent the unwinding of discount on
the plans' liabilities offset by the expected return on the plans' assets.

c) Net finance (costs)/income on disposals, re-measurements and impairments
for the quarter of $5 million (2011 $(11) million) and for the nine months of
$8 million
(2011 $(36) million) is included in note 2 (page 19) and principally reflects
foreign exchange movements on certain borrowings, partly offset by
mark-to-market movements on certain derivatives used to hedge foreign exchange
and interest rate risk.

d) Excludes Group share of net finance costs from joint ventures and
associates for the quarter of $4 million (2011 $16 million) and for the nine
months of $28 million
(2011 $46 million).

5. Taxation

The tax charge for the third                      Disposals,
quarter was as follows:            Business   re-measurements and
                                 Performance     impairments     Total Result
                                   2012  2011      2012      2011   2012  2011
Third Quarter                        $m    $m        $m        $m     $m    $m
Tax charge/(credit) for the         958   819        34        21    992   840
period excluding share of
taxation from joint ventures and
associates
Share of taxation from joint
ventures and associates              28    32         -         -     28    32
Total including share of taxation
from joint ventures and
associates                          986   851        34        21  1 020   872



The tax charge for the nine                       Disposals,
months was as follows:             Business   re-measurements and
                                 Performance     impairments     Total Result
                                   2012  2011      2012      2011   2012  2011
Nine Months                          $m    $m        $m        $m     $m    $m
Tax charge/(credit) for the
period                            2 794 2 548     (241)      (57)  2 553 2 491
Prior period taxation^(a)             -   195         -      (47)      -   148
Total excluding share of taxation
from joint ventures and
associates                        2 794 2 743     (241)     (104)  2 553 2 639
Share of taxation from joint
ventures and associates              92    94         -         -     92    94
Total including share of taxation
from joint ventures and
associates                        2 886 2 837     (241)     (104)  2 645 2 733

a) Prior period taxation relates to the revision of deferred tax balances at
1 January 2011, primarily as a result of the increase in UK North Sea taxation
announced in
March 2011.

Business Performance taxation for the nine months, excluding prior period
taxation but including share of taxation from joint ventures and associates,
was $2 886 million (2011 $2 642 million). The effective tax rate of 44.5% for
the nine months is based on the best estimate of the weighted average annual
income tax rate expected for the full year.

6. Discontinued operations

The post-tax profit/loss of the businesses comprising discontinued operations
for the third quarter, including profits and losses on disposals and
impairments, was $nil (2011 $2 million loss) and for the nine months was a
$254 million gain (2011 $2 million loss).

In May 2012, the Group disposed of its 40% equity interest in two gas-fired
power generation plants in the Philippines to its partner, First Gen
Corporation, for net cash proceeds of $360 million. The sale and purchase
agreement, completed on signing, covers the 1 000 megawatt Santa Rita power
plant and the 500 megawatt San Lorenzo power plant, both on the island of
Luzon. This resulted in a pre and post-tax profit of $252 million in the
second quarter of 2012.

7. Earnings per ordinary share - continuing operations

     Third Quarter                                        Nine Months
   2012        2011                                     2012        2011
      cents       cents                                      cents       cents
        per         per                                        per         per
   $m share    $m share                                $m  share    $m share
                          Earnings - continuing
                          operations excluding
                          disposals, re-measurements
1 189  35.0 1 021  30.1  and impairments             3 529  103.9 2 960  87.4
                          Disposals, re-measurements
                          and impairments (after tax
                          and non-controlling
  100   2.9    39   1.2  interest)                   (990) (29.1)  (60) (1.8)
                          Earnings - continuing
1 289  37.9 1 060  31.3  operations                  2 539   74.8 2 900  85.6

Basic earnings per share calculations in 2012 are based on the weighted
average number of shares in issue of
3 397 million for the quarter and 3 396 million for the nine months.

The earnings figure used to calculate diluted earnings per ordinary share is
the same as that used to calculate earnings per ordinary share given above,
divided by 3 417 million for the quarter and 3 415 million for the nine
months, being the weighted average number of ordinary shares in issue during
the period as adjusted for dilutive equity instruments.



8. Reconciliation of net borrowings^(a) - Nine Months

                                                $m
Net borrowings as at 31 December 2011      (11 336)
Net increase in cash and cash equivalents     1 098
Cash inflow from changes in borrowings      (1 815)
Inception of finance lease assets                 2
Foreign exchange and other re-measurements      104
Net borrowings classified as held for sale      973
Net borrowings as at 30 September 2012     (10 974)

Net borrowings attributable to Comgás as at 30 September 2012 were $nil (31
December 2011 $963 million), with
$973 million included in assets and liabilities classified as held for sale.

As at 30 September 2012, BG Group's share of the net borrowings in joint
ventures and associates amounted to approximately $1.4 billion, including BG
Group shareholder loans of approximately $0.8 billion. These net borrowings
are included in BG Group's share of the net assets in joint ventures and
associates which are consolidated in
BG Group's accounts.

a) Net borrowings are defined on page 31.



Net borrowings comprise:



                                                     As at    As at
                                                   30 Sept   31 Dec
                                                      2012     2011
                                                       $m       $m
Amounts receivable/(due) within one year                         
Cash and cash equivalents                            4 598    3 601
Overdrafts, loans and finance leases               (1 616)  (1 160)
Derivative financial instruments^(a)                  (41)     (45)
                                                    2 941    2 396
Amounts receivable/(due) after more than one year                
Loans and finance leases^(b)                      (14 162) (13 784)
Derivative financial instruments^(a)                   247       52
                                                 (13 915) (13 732)
Net borrowings                                    (10 974) (11 336)

a) These items are included within commodity contracts and other derivative
financial instrument balances on the balance sheet.

b) Includes finance lease receivable of $195 million (2011 $193 million)
included within non-current assets on the balance sheet.



8. Reconciliation of net borrowings - Nine Months continued

Liquidity and Capital Resources

  All the information below is as at 30 September 2012

The Group's principal borrowing entities are: BG Energy Holdings Limited
(BGEH), including wholly owned subsidiary undertakings, the majority of whose
borrowings are guaranteed by BG Energy Holdings Limited (collectively BGEH),
and Comgás and Gujarat Gas which conduct their borrowing activities on a
stand-alone basis.

BGEH had a $4.0 billion US Commercial Paper Programme, of which $3.82 billion
was unutilised, and a $2.0 billion Eurocommercial Paper Programme, which was
unutilised. BGEH also had a $15.0 billion Euro Medium Term Note Programme, of
which $7.98 billion was unutilised.

BGEH had aggregate committed revolving borrowing facilities of $5.0 billion,
of which $2.32 billion expires in 2013, $2.18 billion in 2016 and $0.5 billion
in 2017. There are no restrictions on the application of funds under these
facilities, which were undrawn.

In addition, BGEH had uncommitted borrowing facilities including multicurrency
lines, overdraft facilities of £45 million and credit facilities of $20
million, all of which were unutilised.

Comgás had committed borrowing facilities of Brazilian Reais 1 625 million,
all of which were utilised.

9. Dividends



                                                      Nine Months
                                                  2012          2011
                                                      cents         cents
                                               $m per share  $m per share
Prior year final dividend, paid in the period 443     12.96 401     11.78
Interim dividend, paid in the period          404     11.88 359     10.80
Total dividend paid in the period             847     24.84 760     22.58

The final dividend of 12.96 cents per ordinary share ($443 million) in respect
of the year ended 31 December 2011 was paid on25 May 2012 to shareholders on
the register at the close of business on 13 April 2012. The interim dividend
of 11.88 cents per ordinary share ($404 million) in respect of the year ending
31December2012 was paid on
7 September 2012 to shareholders on the register as at 3 August 2012.



10. Quarterly information: earnings and earnings per share

                                           2012  2011  2012  2011
                                            $m    $m cents cents
First quarter                                                
 Total Result - continuing operations   1 219   595  35.9  17.5
 Total Result - discontinued operations     2     2   0.1   0.1
 Business Performance                   1 267   819  37.3  24.2
Second quarter                                           
 Total Result - continuing operations      31 1 245   0.9  36.8
 Total Result - discontinued operations   252   (2)   7.4 (0.1)
 Business Performance                   1 073 1 120  31.6  33.1
Third quarter                                            
 Total Result - continuing operations   1 289 1 060  37.9  31.3
 Total Result - discontinued operations     -   (2)     - (0.1)
 Business Performance                   1 189 1 021  35.0  30.1
Fourth quarter                                           
 Total Result - continuing operations        1 336       39.4
 Total Result - discontinued operations          -          -
 Business Performance                        1 477       43.5
Full year                                                
 Total Result - continuing operations        4 236      125.0
 Total Result - discontinued operations        (2)      (0.1)
 Business Performance                        4 437      130.9

11. Commitments and contingencies

Details of the Group's commitments and contingent liabilities as at 31
December 2011 can be found in note 24,
page 127 of the 2011 Annual Report and Accounts.

There have been no material changes to the Group's commitments in respect of
capital expenditure, other commitments or contingent liabilities in the nine
month period to 30 September 2012.

12. Related party transactions

The Group provides goods and services to, and receives goods and services
from, its joint ventures and associates. In addition, the Group provides
financing to some of these parties by way of loans. Details of related party
transactions for the year ended 31 December 2011 can be found in note 25, page
129 of the 2011 Annual Report and Accounts. There have been no material
changes in these relationships in the period ending 30 September 2012. No
related party transactions have taken place in the first nine months of the
current financial year that have materially affected the financial position or
the performance of the Group during that period.





           Supplementary information: Operating and financial data

  Third Quarter   Second Quarter                              Nine Months
    2012     2011           2012                               2012     2011
                                   Production volumes
                               (mmboe)                                  
     7.0      5.4            8.0  Oil                           23.1     18.2
     8.2      8.2            8.8  Liquids                       25.4     25.7
    44.2     43.2           44.5  Gas                          133.1    130.0
    59.4     56.8           61.3  Total                        181.6    173.9
                                                                 
                                   Production volumes (boed
                                 in thousands)                    
      76       58             87  Oil                             84       67
      89       89             97  Liquids                         93       94
     481      470            489  Gas                            486      476
     646      617            673  Total                          663      637
                                                                 
                                   Average realised oil
 $107.80  $113.71        $109.18  price per barrel           $111.22  $113.27
                                                                 
                                   Average realised liquids
  $95.57   $96.01         $89.95  price per barrel            $95.02   $92.51
                                                                 
  65.45c   63.09c         70.92c  Average realised UK gas     70.17c   68.40c
(41.86p) (38.96p)       (44.61p)  price per produced therm  (44.45p) (42.42p)
                                                                 
                                   Average realised
                                   International gas price
  46.32c   39.06c         41.08c  per produced therm          41.73c   38.05c
                                                                 
                                   Average realised gas
  47.95c   40.62c         44.25c  price per produced therm    44.44c   40.95c
                                                                 
   $6.01    $5.66          $5.68  Lifting costs per boe        $5.97    $5.58
                                                                 
                                   Operating expenditure per
  $10.75    $8.96          $9.71  boe                         $10.00    $8.63
                                                                 
   $9.07    $7.84          $9.18  Depreciation per boe         $8.93    $7.67
                                                                 
                                   Development expenditure
                                   (including acquisitions)
   1 785    1 785          1 623  ($m)                         4 845    4 521
                                                                 
                                   Gross exploration
                                 expenditure ($m)                 
                                   Capitalised expenditure
     193      193            164  (including acquisitions)       597      945
     105       66             60  Other expenditure              237      247
     298      259            224  Total                          834    1 192
                                                                 
                                   Gross exploration
                                   expenditure by country
                               ($m)                                     
      73       20             33  Australia                      146       73
      43       47             17  Brazil                         134      191
      64        3             42  Egypt                          118       10
      31       47             73  Tanzania                       201      170
      38       24             40  UK                             113       72
      49      118             19  Other                          122      676
     298      259            224  Total                          834    1 192





      Supplementary information: Operating and financial data continued

                                  Second
      Third Quarter             Quarter                     Nine Months
        2012         2011           2012                     2012       2011
                                       Exploration expenditure
                                   charge ($m)                          
                                       Capitalised expenditure
      4                   61    143   written off                  187    184
    105                   66     60   Other expenditure            237    247
    109                  127    203   Total                        424    431
                                                                       
                                       Group capital investment
                                   ($m)                                 
  1 345                1 308  1 274   Australia                  3 713  3 380
    495                  264    359   Brazil                     1 246    866
    160                  159    118   Egypt                        451    412
    312                  267    259   UK                           869    628
     90                  424     27   USA                          343  1 402
    368                  447    348   Other                      1 038  1 338
                                       Capital investment on a
  2 770                2 869  2 385   cash basis ($m)^(a)        7 660  8 026
                                   Other items:                         
                                       Movements in
   (10)                 (20)    336   accruals/(prepayments)       477  (411)
                                       Capitalised financing
    131                   51    106   costs                        336    118
                                       Total capital investment
  2 891                2 900  2 827   ($m)                       8 473  7 733
a) Capital investment on a cash basis includes acquisitions for the third
quarter 2012 of $nil (third quarter 2011 $nil; second quarter 2012 $nil) and
for the nine months of
$nil (2011 $432 million).
                                                                       
                                       E&P capital investment
                                   ($m)                                 
    727                  569    558   Australia                  1 776  1 348
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