Shell to Increase Participation in the Beryl Area Fields in the North Sea

  Shell to Increase Participation in the Beryl Area Fields in the North Sea

PR Newswire

THE HAGUE, the Netherlands, October 25, 2012

THE HAGUE, the Netherlands, October 25, 2012 /PRNewswire/ --

Shell announced today the signing of an agreement with Hess Corporation to
acquire its interests in the Beryl area fields and the Scottish Area Gas
Evacuation System ("SAGE"), for US$ 525 million. 

The Beryl Area includes 12 fields located on the UK Continental Shelf. The
fields are operated by Apache and with the acquisition Shell's interest in the
different fields will increase by a range of between 9-65% depending on the
field.

The Beryl cluster has a far longer anticipated lifetime than originally
thought and may produce for a further two decades. The acquisition should help
to enhance the performance and economic potential from key Shell North Sea
operated and non-operated assets, lifting Shell's production in the Beryl area
fields from currently 9 thousand boe/d to 24 thousand boe/d. Shell intends to
invest in these assets to substantially extend the production life, for
potentially a further 20 years

Notes to Editors

1.Shell and Hess Corporation signed an agreement on May 29, 2012 to acquire
    Hess's 15.67% interest in the BP operated Schiehallion field. The sale
    which completed on 28 September 2012 brings Shell's equity in Schiehallion
    to 49%"
2.In 2010 we increased our interest in the Clair field from 18% to 28%.
    Clair lies west of Shetland and is operated by BP. 
3.Shell is a leading operator in the UK sector of the North Sea and intends
    to maintain this position. Offshore, Shell has interests in more than 50
    fields, operates more than 30 platform installations, 30 subsea
    installations and one production (FPSO) vessel. Onshore, we operate three
    gas plants; the St. Fergus Gas Terminal and Fife NGL Plant (with Braefoot
    Bay marine terminal) in Scotland, and Bacton in the east of England. Shell
    operates a significant number of its interests in the UK Continental Shelf
    (UKCS) on behalf of a 50:50 joint venture with ExxonMobil. The Shell share
    of UK oil and gas production is about 8% (140 kboe/d in 2011). Almost half
    of this is gas. This is almost 4% of total Shell Group production.
4.The increase in Shell share of fields is as follows: Beryl, Nevis Central,
    Nevis North, Nevis Far North, Nevis South Cormorant, Loirston, Ness and
    Ness South from 23% to 45%. Nevis South from 14.8% to 52.2%. On Nevis
    West Beryl from 0% to 65.5%. On Buckland from 14.4% to 28.5%, and from
    15.9% to 25% on Skene.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns
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the direct and/or indirect (for example, through our 23% shareholding in
Woodside Petroleum Ltd.) ownership interest held by Shell in a venture,
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SOURCE Royal Dutch Shell plc