Shell Moves Forward on New Gulf of Mexico Development at Stones

       Shell Moves Forward on New Gulf of Mexico Development at Stones

PR Newswire

THE HAGUE, The Netherlands, May 8, 2013

THE HAGUE, The Netherlands, May 8, 2013 /PRNewswire/ --

Royal Dutch Shell plc (Shell) (NYSE:RDS.A) (NYSE:RDS.B) today announces a
final investment decision in the Stones ultra-deepwater project, a Gulf of
Mexico oil and gas development expected to host the deepest production
facility in the world. This decision sets in motion the construction and
fabrication of a floating production, storage, and offloading (FPSO) vessel
and subsea infrastructure. The development will start with two subsea
production wells tied back to the FPSO vessel, followed later by six
additional production wells. This first phase of development is expected to
have annual peak production of 50,000 boe/d from more than 250 million boe of
recoverable resources. The Stones field has significant upside potential and
is estimated to contain over 2 billion boe of oil in place.

"This important investment demonstrates our ongoing commitment to usher in the
next generation of deepwater developments, which will deliver more production
growth in the Americas," said John Hollowell, Executive Vice President for
Deepwater, Shell Upstream Americas. "We will continue our leadership in safe,
innovative deepwater operations to help meet the growing demand for energy in
the US." 

The Stones field is located in 9,500 feet (2,896 meters) of water,
approximately 200 miles (320 kilometers) southwest of New Orleans, Louisiana,
and was discovered in 2005. The project encompasses eight US Federal Outer
Continental Shelf lease blocks in the Gulf of Mexico's Lower Tertiary geologic
trend. Shell has been one of the pioneers in the Lower Tertiary, establishing
first production in the play from its Perdido Development.

An FPSO design was selected to safely develop and produce this ultra-deepwater
discovery, while addressing the relative lack of infrastructure, seabed
complexity, and unique reservoir properties. With an FPSO, tankers will
transport oil from the Stones FPSO to US refineries, and gas will be
transported by pipeline.

The launch of the Stones development is a key milestone as Shell continues to
grow deepwater exploration and development in the Gulf of Mexico, having made
significant progress recently on the Mars-B development project with the
arrival of the Olympus tension leg platform. Shell is also in the concept
selection phase for the Appomattox and Vito discoveries in the Gulf of Mexico.

Shell holds 100% interest and will operate the Stones development.

EDITOR'S NOTES:

  oA turret with a disconnectable buoy will allow the FPSO vessel to
    weathervane in normal conditions and to disconnect from the well system
    and sail to safe areas in the event of adverse weather conditions.
  oA lazy wave riser configuration will be used, consisting of a steel
    catenary riser with buoyancy added with an arch bend to decouple the FPSO
    dynamic motions and subsequently increase riser performance.
  oA combination of polyester rope and chain comprises the ultra-deepwater
    mooring system holding the FPSO on station.
  oMultiphase seafloor pumping is planned for use in a later phase to pump
    oil and gas from the seabed to the FPSO, increasing recoverable volumes
    and production rates.

Royal Dutch Shell plc

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 70 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
http://www.shell.com.

Cautionary note

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.
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 press release refer to companies in which Royal
Dutch 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 press release, 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% shareholding in Woodside Petroleum
Ltd.) ownership interest held by Shell in a venture, partnership or company,
after exclusion of all third-party interest.

This press release contains forward-looking statements concerning the
financial condition, results of operations and businesses of Royal Dutch
Shell. 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 Royal Dutch Shell 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'’, '‘intend'’, '‘may'’, '‘plan'’,
'‘objectives'’, '‘outlook'’, '‘probably'’, '‘project'’, '‘will'’, '‘seek'’,
'‘target'’, '‘risks'’, '‘goals'’, '‘should'’ and similar terms and phrases.
There are a number of factors that could affect the future operations of Royal
Dutch Shell and could cause those results to differ materially from those
expressed in the forward-looking statements included in this press release,
including (without limitation): (a) price fluctuations in crude oil and
natural gas; (b) changes in demand for the Shell's products; (c) currency
fluctuations; (d) drilling and production results; (e) reserve 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 press release 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
Royal Dutch Shell's 20-F for the year ended December 31, 2012 (available at
http://www.shell.com/investorand 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 press release, May 8, 2013. Neither Royal Dutch
Shell nor any of its subsidiaries 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 press release.

The United States Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. We may have used certain terms in this press release
that SEC's guidelines strictly prohibit us from including in filings with the
SEC. U.S. Investors are urged to consider closely the disclosure in our Form
20-F, File No 1-32575, available on the SEC website http://www.sec.gov. You
can also obtain these forms from the SEC by calling 1-800-SEC-0330.

Enquiries:
Media:
Shell US Media Relations +1-713-241-4544
Shell International Media Relations +44-(0)20-7934-5550

Investor Relations:
International +31-(0)-70-377-4540
North America+1-713-241-1042

SOURCE Royal Dutch Shell plc