Today on The Economy News

BG Group plc takes a beating - traded volumes easily outstrip those of the broader market

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Category: Commodities

Published on Wednesday, 05 September 2012 11:55

BG Group plc (LON:BG) are sharply lower on Wednesday - at 12:45 in London the share price was 2.48 pct in the red at 1.2398.

To blame is talk of a 41 million pound share placement at 1,225 pence a share.

Traded volume in the stock is certainly healthy coming in at 110 percent of the 90-day daily average, against 27 percent for the broader FTSE 100.

"Looks like Deutsche Bank did the BG placing, but it's all done now," one London-based trader said, quoted by Reuters.

A BG spokesman said the company did not comment on market speculation.

In related industry Fergus Ewing MSP, Scottish Minister for Energy, Enterprise & Tourism said £11.5bn was expected to be accrued to capital investment in the Scottish oil and gas industry.

The minister, on a visit to Dana Petroleum to find out more about Dana's future plans and commitment to the North Sea said:

"The Scottish Government's Oil and Gas Strategy, developed in conjunction with industry, lays out a plan to help the industry go from strength to strength, and rising capital investment - reaching £8.5bn in 2011 and expected to rise to £11.5bn in 2012 - demonstrates the confidence investors and the industry have in Scotland."

Ewing met Paul Griffin, UK Managing Director, to discuss the $1.5 billion Western Isles Project which is expected to add 40,000 barrels of oil per day to Dana's portfolio when first oil is produced in 2015.

Griffin said:

"Dana is aiming to become a leading international oil and gas company operating in Europe, Africa and the Middle East. The North Sea has a key role to play in our growth. 70% of our operations are in the North Sea and investment in projects such as Western Isles are testament to Dana's belief that the North Sea still has a bright future."

"Earlier this year, the Scottish Government announced its oil and gas strategy targeting higher long-term recovery rates, greater exports and £30 billion annual sales by 2020. "Oil and gas is the UK's largest industry sector supporting 440,000 jobs - nearly half of them in Scotland. As the second largest exploration acreage holder in the UK Continental Shelf, it is imperative we nurture and maintain close relationships with government to ensure a stable and secure industry for all."