Shell and the Technip Samsung Consortium Sign Agreement to Strengthen Floating LNG Collaboration

  Shell and the Technip Samsung Consortium Sign Agreement to Strengthen
  Floating LNG Collaboration

Business Wire

PARIS -- December 13, 2012

Regulatory News:

Technip (Paris:TEC) (ISIN:FR0000131708):

Shell Gas & Power Developments B.V. (Shell) and the Technip Samsung Consortium
(TSC) have signed a heads of agreement to enhance collaboration on the design,
engineering, procurement, construction and installation of future innovative
FLNG facilities. The agreement builds on the existing relationship, formed in
2009, to ensure the parties can capitalize on insights gleaned from the design
and construction of Shell’s Prelude FLNG facility and expand the technology
offering to the energy market. It will drive a culture of joint delivery,
continuous improvement and ensure greater value from the collaboration for all
parties.

Mr Thierry Pilenko, Chairman and CEO of Technip, commented: “Shell’s FLNG
vision and ambition is gaining momentum and Technip, with its partner Samsung
Heavy Industries, is proud to support the additional projects that could be
realized under this agreement. Technip has always been a pioneering company,
and today we reach another milestone in this fantastic journey, truly
supported by the commitment and the passion of all our people.”

Mr Dae Young Park, President and CEO of Samsung Heavy Industries, said: “This
heads of agreement will enable Samsung, together with partners, Shell and
Technip, to further strengthen its reputation as a definite leader in the
floating LNG business with the successful completion of FLNG projects to come.
As CEO of Samsung Heavy Industries, I am very confident that Samsung is ready
to construct multiple FLNGs at its Geoje shipyard and is fully committed to
achieving the highest quality and on-time delivery of Shell’s FLNG facilities
in accordance with the spirit of the partnership.”

Dr. Matthias Bichsel, Director of Shell Projects and Technology, added: “Shell
is leading the industry in the development of FLNG. Together, Shell and TSC
are forging a strong alliance to help ensure we are well positioned to deliver
innovative FLNG solutions across a wide range of opportunities in the future.
Central to this portfolio expansion are technology designs that cater for a
wider range of gas fields. In locations where liquid production is low, for
example, Shell’s FLNG Lean technology would be able to process additional gas
and produce more LNG, opening up new business opportunities for countries
looking to develop their gas resources.”

Global primary energy demand could double in the first half of the 21st
century, and meeting this growth in demand will require large scale and
sustained investment in all forms of energy. Natural gas, which is the
cleanest burning fossil fuel, has an important role to play. Shell expects
global natural gas demand to increase by 60% from 2010 to 2030, reaching 25%
of the global primary energy mix and within that, strong growth in LNG.

Floating LNG enables the development of gas resources ranging from clusters of
smaller more remote fields to potentially larger fields via multiple
facilities where, for a range of reasons, an onshore development is not
viable. This can mean faster, cheaper, more flexible development and
deployment strategies for resources that were previously uneconomic, or
constrained by technical or other risks, helping to bring more natural gas to
the market.

Shell and TSC are already working together on the world’s first FLNG project,
Prelude FLNG, which will be moored 200 kilometers off the North West coast of
Australia in the Browse Basin. As their experience grows, Shell and TSC
perceive that there are many opportunities ahead.

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NOTES TO EDITORS:

ABOUT TSC

The Technip Samsung Consortium draws together two leading companies with
complementary skills and specialist areas.

Technip, leader of the consortium, is a world leader in project management,
engineering and construction for the energy industry. From the deepest subsea
oil and gas developments to the largest and most complex offshore and onshore
infrastructures, its 32,000 people are constantly offering the best solutions
and most innovative technologies to meet the world’s energy challenges.
Present in 48 countries, Technip has state-of-the-art industrial assets on all
continents and operates a fleet of specialized vessels for pipeline
installation and subsea construction.

Samsung Heavy Industries is one of the largest shipyards in the world,
boasting three dry docks and five floating docks, all supported by an
integrated and automated production system that ensures defect-free
production. Most notably, it has achieved unbeatable leadership in the
high-tech high-value shipbuilding sector by maintaining the world’s No. 1
share in the drillship, ultra-large container ship, LNG carrier and FPSO
markets. Since its foundation in 1974, Samsung has attracted orders for 1,023
units of vessels and offshore facilities so far worldwide. SHI’s present
fabrication capacity is around 1.6 million tonnes, equivalent to about 70
units of conventional vessels and offshore facilities per year and there are
135 units of vessels and offshore facilities currently under construction.

ABOUT SHELL

Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam, and New York
stock exchanges. Shell companies have operations in more than 80 countries and
territories with businesses including oil and gas exploration and production;
production and marketing of liquefied natural gas and gas to liquids;
manufacturing, marketing and shipping of oil products and chemicals and
renewable energy projects. For further information, visit www.shell.com.

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this press release “Shell”, “Shell
group” and “Royal Dutch Shell” are sometimes used for convenience where
references are made to Royal Dutch Shell plc and its subsidiaries in general.

ABOUT PRELUDE

To meet the world’s growing energy demands, bringing new energy supply sources
to market is critical. Increasing the supply of natural gas, the
cleanest-burning fossil fuel, can help to meet energy demand with less impact
on the environment. FLNG is a revolutionary innovation that will allow the
production, liquefaction, storage and transfer of LNG at sea, with the aim to
bring more natural gas to more markets. Prelude FLNG is the latest in a line
of Shell achievements in developing new technologies for the oil and gas
industry, reinforcing its leadership in technology and innovation. It is the
first of what Shell expects to be multiple Shell FLNG projects.

The Technip Samsung Consortium is the engineering, procurement, construction
and installation contractor for the Prelude FLNG facility. Construction is
underway on the innovative facility’s substructure at the Samsung Heavy
Industries (SHI) shipyard in Geoje, Korea, where the first steel-cutting was
celebrated on October 18th, 2012. Additional equipment for the facility is
being assembled at locations around the world.

Prelude FLNG will be the largest floating offshore facility in the world, with
488 meters from bow to stern - longer than four soccer fields laid end to end.
When fully loaded, this revolutionary facility will weigh more than 600,000
tons – roughly six times as much as the largest aircraft carrier. More than
260,000 tons of that weight will consist of steel – around five times the
amount of steel used to build the Sydney Harbour Bridge.

For more information about the Prelude project and artist impressions of the
FLNG facility, see
http://www.shell.com/home/content/aboutshell/our_strategy/major_projects_2/prelude_flng/

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Contact:

Technip
Public Relations
Christophe Bélorgeot, +33 (0) 1 47 78 39 92
or
Floriane Lassalle-Massip, +33 (0) 1 47 78 32 79
press@technip.com
or
Investor and Analyst Relations
Kimberly Stewart, +33 (0) 1 47 7866 74
kstewart@technip.com
or
Apollinaire Vandier, +33 (0) 1 47 7860 74
avandier@technip.com
or
Website
http://www.technip.com