Reuters – British oil and gas firm BG Group on Monday warned that production this year and next would fall short of expectations, calling its guidance for 2014 “disappointing” due to ongoing problems in Egypt.
BG said that it expected to produce between 590,000 barrels of oil equivalent per day (boed) and 630,000 boed this year, lower than the 660,000 boed that is currently expected by analysts.
The company also cut its 2015 guidance to between 710,000 boed and 750,000 boed, from a target of 775,000 to 825,000 boed given in September.
BG, which counts on Egypt for about a fifth of its production, also said it was declaring force majeure notices in the country amid ongoing diversions of its gas volumes to the domestic market.
“Despite the good progress we have made in 2013 we face short-term issues which are reflected in our revised 2014 guidance. This is very disappointing,” BG’s Chief Executive Chris Finlayson said.