BG GROUP has been the subject of speculation that Chinese state-controlled oil company Sinopec is interested in buying part of the firm’s Brazilian oil assets, which are valued at around £25.6billion.
The Sunday Telegraph said that while the rumours highlight the value of offshore operations in Brazil, it is the fundamentals of the BG business that make the shares attractive.
Liquefied natural gas prices are likely to be supported by rising demand, given that most of Japan’s nuclear capacity is expected to remain offline next year and growth in China and India should remain robust. BG shares were £10 two years ago and remain a buy at £13.48 due to the solid fundamentals.