BG Group Eyes Lower Output, CEO Resigns

BG Group PLC today reported that Chris Finlayson will resign as chief executive with immediate effect for personal reasons and said 2014 production will be at the lower end of guidance.

Non-Executive Chairman Andrew Gould will take over as executive chairman on an interim basis until a successor is found for Mr. Finlayson, who was appointed in December 2012, the UK oil and gas company said.

“The company must accelerate the creation and delivery of the longer-term value for our shareholders, while delivering the group’s business plans,” Mr. Gould said.

The company also reported that 2014 production will be at the lower end of guidance of 590,000 to 630,000 barrels of oil equivalent per day because of continuing difficulties in Egypt, where production volumes in the first quarter fell 35% from the fourth quarter of 2013.

“The deterioration in Egypt will similarly impact 2015 production,” BG said.

BG said it is reviewing its business plans and won’t provide 2015 guidance until February 2015, when it posts its full-year results, but said key projects remain on schedule.

Source: Market Watch