BG Alaska Enters Into Agreement with Anadarko Petroleum Corporation for Alaska Eastern North Slope Exploration.

HOUSTON -- BG Alaska E&P, Inc., a wholly owned subsidiary of BG Group plc (NYSE:BRG), today announced that it has signed an Exploration Agreement with Anadarko Petroleum Corporation (NYSE:APC) to acquire a 40% equity share in 208,000 acres of land along Alaska's Eastern North Slope (ENS). APC will serve as operator for the joint venture.

The ENS acreage is located on the coastal plain near to the Prudhoe Bay field which has already produced over 10 billion barrels of oil. The Exploration Agreement became effective from 17th April 2006. Assignments contemplated under the Agreement are subject to approval of the State of Alaska.

Martin Houston, Executive Vice President and Managing Director, North America, Caribbean and Global LNG, said:

"BG Group is focused on growing its presence in Alaska as part of our long-term plan to meet the increasing US energy demand through the production of new natural gas supplies from Alaska and Canada. This agreement with Anadarko is an ideal partnership between two companies with the knowledge, technology and experience to be successful and fits nicely into our strategy of being a long-term reliable supplier of clean burning natural gas to the world's largest gas market."

There are matters discussed in this media information that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward-looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2005.

Notes to Editors:

BG Group is a global natural gas business. Active in more than 20 countries, it operates four business segments - Exploration and Production, LNG, Transmission and Distribution and Power.

In February 2006, BG Group announced a Participation Agreement with Anadarko Petroleum Corporation and Petro-Canada (Alaska) Inc., a wholly owned subsidiary of Petro-Canada (NYSE:PCZ) for a 33.33% equity share in 2.1 million acres of land in the Foothills area of the Alaskan North Slope. Each partner owns approximately a one-third working interest in the acreage and Anadarko serves as operator.

BG North America

In the USA, BG LNG Services announced, in April 2006, an agreement with Trunkline LNG Company to further upgrade the Lake Charles liquefied natural gas (LNG) terminal and to extend its terminal services contract for an additional five years to 2028.

BG's current rights provide for 1.2 billion cubic feet per day (bcf/d) of baseload send-out capacity, which is being expanded to 1.8 bcf/d, with peaking capacity of 2.1 bcf/d; this expansion will be ready in mid 2006. This is in addition to BG's storage capacity of 9.0 bcf.

Additionally, BG currently holds supply and regasification rights of 446 million standard cubic feet per day (mmscf/d) for 22 years at the Elba Island LNG terminal near Savannah, Georgia. Expansion work is expected to increase our throughput capacity to 1.17 bcf/d from 2012.

BG Canada

BG Canada's first Canadian drilling program commenced in May 2004 and continued through the winter drilling season into March 2006. BG Canada has drilled 24 exploration wells to date, with a gas discovery rate in the range of 60-70%.

Following a successful bid for acreage in the Northwest Territories in May 2005, BG holds approximately 875,000 net acres, of which 811,000 is undeveloped oil and gas acreage. The new blocks, EL 429/432 (net 275,490 acres) are located in the central Mackenzie Valley area of the Northwest Territories.

Current gas production is sold into the grid for the Canadian and US markets.