2009-08-15-2009-01-01

To acquire 21% WI in Everest, 22% in Lomond, 18% in Armada fields in U.K. Central North Sea in exchange for 24.2% interest in Amethyst Field, 30.8% in Whittle and Wollaston fields in Southern North Sea.

BG Group Plc, Berkshire, U.K., (London: BG) and BP Plc, London, (London: BP) have entered an asset-exchange agreement concerning properties in the U.K. North Sea valued at approximately US$442.4 million. BG Group plans to acquire BP's entire equity in the Everest (21.1%), Lomond (22.2%) and Armada fields (18.2%) and part of BP's equity in the Erskine field (32%), operated by Chevron Corp., San Ramon, Calif. (NYSE: CVX). All the BP fields are in the U.K. Central North Sea. BP will retain an 18% equity interest in Erskine Field. In exchange, BP will acquire BG Group's assets in the Southern North Sea which consist of 24.2% interest in the BP-operated Amethyst Field, 30.8% in Whittle and Wollaston fields and all of BG Group's interests in the Easington Catchment area fields including 73.3% interest in Mercury, 79% in Neptune, 65% in Minerva, Apollo and Artemis fields. Production volume exchanged in this deal is approximately 17,000 barrels of oil equivalent per day. BP head of North Sea business Dave Blackwood says, "This is an excellent outcome for both companies involved and for sustaining future investment in the North Sea. The deal is production neutral, strengthens BP's position in a core area, allows us to operate more efficiently, and therefore to maximize the value of our operations and infrastructure in the Southern North Sea." BG Group executive vice president and managing director, Europe and Central Asia, Mark Carne says, "This agreement consolidates and strengthens BG Group's U.K. Continental Shelf interests. By focusing on material interests in key hubs, we can increase efficiency and economically develop satellite fields. We have also shown with recent high-pressure, high-temperature finds that there is still significant potential in the Central North Sea."