Shell Continues to Expand its LNG Leadership With the Purchase of New Positions From Repsol S.A.

    Shell Continues to Expand its LNG Leadership With the Purchase of New
                          Positions From Repsol S.A.

PR Newswire

THE HAGUE, The Netherlands, February 26, 2013

THE HAGUE, The Netherlands, February 26, 2013 /PRNewswire/ --

Royal Dutch Shell plc ("Shell") (NYSE:RDS.A) (NYSE:RDS.B) 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:

       oALNG 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
       oPeru LNG 4.45 mtpa capacity, on a 100% basis (acquisition: 20%
         equity; 100% offtake); operated by Peru LNG Company
       oBBE power plant in Spain (25%, 800MW); operated by Bahía de Bizkaia
         Electricidad S.L.
       oA fleet of LNG carriers, comprising both long term and short term
         time charters.

       *A material LNG marketing and trading operation, with 7.2 mtpa of LNG
         volumes through long-term off-take agreements.
       *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.

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 http://www.shell.com/investor and
http://www.sec.gov ). 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 announcement.

Enquiries:

Shell Media Relations:

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+44-207-934-5550

Americas
+1-713-241-4544

Shell Investor Relations:

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+31-70-377-4540

North America
+1-713-241-1042

SOURCE Royal Dutch Shell plc