ROYAL DUTCH SHELL PLC: Expanding LNG leadership, purchasing Repsol positions

ROYAL DUTCH SHELL PLC: Expanding LNG leadership, purchasing Repsol positions
Shell continues to expand its LNG leadership with the purchase of new positions
from Repsol S.A. 
The Hague, 26 February 2013. Royal Dutch Shell plc ("Shell") continues to
expand its industry leadership in Liquefied Natural Gas ("LNG"), today agreeing
to acquire part of Repsol S.A's ("Repsol") LNG portfolio outside of North
America, including supply positions in Peru and Trinidad & Tobago, for a cash
consideration of $4.4 billion. Shell will also assume and consolidate balance
sheet liabilities predominantly reflecting leases for LNG ship charters of
currently $1.8 billion. The balance sheet impacts are subject to final
assessment prior to completion of the transaction. 
"Shell's world-wide LNG supply position and customer base means we are uniquely
positioned to add value to Repsol's LNG portfolio, including through Shell's
trading capabilities," said Chief Executive Officer Peter Voser. "By optimising
the combined portfolios we will increase our ability to bring LNG to areas that
need it the most, adding value for Shell, our partners and our customers." 
The acquisition will add a new dynamic to Shell's portfolio, namely LNG
capacity in the West Atlantic from Atlantic LNG in Trinidad & Tobago, and in
the East Pacific from Peru LNG. These additions will complement Shell's
existing LNG capacity in Africa, Asia, Australia, the Middle East and Russia.
The acquisition should add some 7.2 million tonnes per annum (mtpa) of LNG
volumes through long-term off-take agreements, including some 4 mtpa of equity
LNG plant capacity. 
Shell expects to add value to this portfolio by optimizing the new LNG flows in
our world-wide customer base. Subject to successful completion, the new
portfolio is expected to immediately provide additional cash flow to Shell,
with limited on-going capital expenditure requirements. 
The transaction, which has an effective date of 1 October 2012, is expected to
close in the second half of 2013 or early 2014, subject to regulatory approvals
and other conditions precedent. 
Additional information: 
Shell has agreed to acquire from several Repsol subsidiaries which own key LNG
businesses of Repsol. Upon completion, after securing regulatory approvals and
meeting other conditions precedent, the transaction will add: 
 a. Net 4.2 mtpa equity LNG plant capacity comprising: 

      * ALNG trains 1-4 14.6 mtpa capacity, on a 100% basis (20-25% equity per
    train); operated by Atlantic LNG Company of Trinidad and Tobago
      * Peru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20% equity; 100%
    offtake); operated by Peru LNG Company
      * BBE power plant in Spain (25%, 800MW); operated by Bahía de Bizkaia
    Electricidad S.L.
      * A fleet of LNG carriers, comprising both long term and short term time
     b. A material LNG marketing and trading operation, with 7.2 mtpa of LNG
    volumes through long-term off-take agreements.
     c. As part of this agreement, Shell has committed to supply around 0.1 mtpa of
    LNG to Repsol's Canaport LNG terminal in Canada over a period of 10 years.

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Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this announcement "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. Likewise, the
words "we", "us" and "our" are also used to refer to subsidiaries in general or
to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
"Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this
announcement refer to companies in which Shell either directly or indirectly
has control, by having either a majority of the voting rights or the right to
exercise a controlling influence. The companies in which Shell has significant
influence but not control are referred to as "associated companies" or
"associates" and companies in which Shell has joint control are referred to as
"jointly controlled entities". In this announcement, associates and jointly
controlled entities are also referred to as "equity-accounted investments". The
term "Shell interest" is used for convenience to indicate the direct and/or
indirect (for example, through our 23 per cent shareholding in Woodside
Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or
company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial
condition, results of operations and businesses of Shell and the Shell Group.
All statements other than statements of historical fact are, or may be deemed
to be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Shell and
the Shell Group to market risks and statements expressing management's
expectations, beliefs, estimates, forecasts, projections and assumptions. These
forward looking statements are identified by their use of terms and phrases
such as "anticipate", "believe", "could", "estimate", "expect", "goals",
"intend", "may", "objectives", "outlook", "plan", "probably", "project",
"risks", "seek", "should", "target", "will" and similar terms and phrases.
There are a number of factors that could affect the future operations of Shell
and the Shell Group and could cause those results to differ materially from
those expressed in the forward looking statements included in this
announcement, including (without limitation): (a) price fluctuations in crude
oil and natural gas; (b) changes in demand for Shell's products; (c) currency
fluctuations; (d) drilling and production results; (e) reserves estimates; (f)
loss of market share and industry competition; (g) environmental and physical
risks; (h) risks associated with the identification of suitable potential
acquisition properties and targets, and successful negotiation and completion
of such transactions; (i) the risk of doing business in developing countries
and countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including regulatory measures addressing climate
change; (k) economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities, delays or
advancements in the approval of projects and delays in the reimbursement for
shared costs; and (m) changes in trading conditions. All forward looking
statements contained in this announcement are expressly qualified in their
entirety by the cautionary statements contained or referred to in this section.
Readers should not place undue reliance on forward looking statements.
Additional factors that may affect future results are contained in Shell's 20-F
for the year ended 31 December 2011 (available at and ). These factors also should be considered by the reader. Each
forward looking statement speaks only as of the date of this announcement, 26
February 2013. Neither Shell nor any of its subsidiaries nor the Shell Group
undertake any obligation to publicly update or revise any forward looking
statement as a result of new information, future events or other information.
In light of these risks, results could differ materially from those stated,
implied or inferred from the forward looking statements contained in this


-0- Feb/26/2013 18:29 GMT

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