BG Group said Monday it declared force majeure in Egypt, meaning it's unable to meet certain contractual obligations because of circumstances beyond its control.
"We have elected to issue force majeure notices in Egypt reflecting the ongoing diversions of gas volumes to the domestic market," BG Group Chief Executive Officer Chris Finlayson said in a statement.
The company said its financial performance was impacted by the "difficult operating environment in Egypt," as well as lower gas prices in the United States.
It added the interim Egyptian government hasn't honored agreements on the company's share of natural gas from Egyptian fields, saying diversions into the domestic market during the fourth quarter of 2013 were higher than expected.
The company said its 2014 production rate would be lower than anticipated, something Finlayson said was "very disappointing."
Western governments last week issued travel advisories for Egypt as the country prepared to mark the third anniversary of the revolution that unseated President Hosni Mubarak.