ENERGY company BG Group has delayed a decision about whether to develop the giant Jackdaw gas field in the North Sea by two years after highlighting the cost of such projects in the UK.
In the oil and gas company's third quarter results BG said it is delaying a sanction decision on the high-pressure high-temperature Jackdaw project whilst the group studies more economic and lower-risk development solutions. A spokesperson said a decision will be made in 2017.
BG, which recently appointed Statoil boss Helge Lund to be its next chief executive, had expected to make a decision in 2015. In March the company welcomed new tax breaks on HPHT fields included in the Budget, saying they increased the chances of Jackdaw being developed.
Reading-based BG recorded "significant profit reductions" in the UK in the three months to September, citing the higher cost of new developments and shutdowns for maintenance work.
The company produced 100,000 barrels oil equivalent daily in the UK in the quarter, up from 8,000 boed in the same period last year. BG, which has significant overseas operations, produced a total 569,000 boed, compared with 580,000 boed. Earnings from continuing operations rose to $1.51bn (£0.94bn), from $1.23bn.
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