ROYAL DUTCH SHELL PLC: Successful Bid for Giant Field in Deep Water Brazil

ROYAL DUTCH SHELL PLC: Successful Bid for Giant Field in Deep Water Brazil
October 21, 2013 - HOUSTON - A consortium of companies, including Royal Dutch
Shell plc ("Shell"), Petrobras, Total, CNPC and CNOOC, won today a 35-year
production sharing contract to develop the giant Libra pre-salt oil discovery
located in the Santos Basin, offshore Brazil. The Brazilian regulator, Agência
Nacional do Petróleo (ANP), estimates Libra's recoverable resources of between
8 to 12 billion barrels of oil. 
"The Libra oil discovery in Brazil is one of the largest deep water oil
accumulations in the world. We look forward to applying Shell's global deep
water experience and technology, to support the profitable development of this
exciting opportunity," said Peter Voser, Chief Executive Officer, Royal Dutch
Shell holds 20% in the consortium, with Petrobras 40% as operator, Total 20%,
CNPC 10% and CNOOC 10%. The consortium will work together in an integrated
fashion to support Petrobras, the most experienced operator in the Brazilian
pre-salt, and will incorporate each company's deep water skills, people and
technology for the success of the venture. 
The production sharing contract is expected to be signed in November 2013. As
part of the winning bid, Shell will pay its 20-percent share of the total
signing bonus of USD $1.4 billion [3.0 billion reais], and fulfill the minimum
work program no later than end 2017. 
The ultra-deep water Libra accumulation is located in Santos Basin,
approximately 170 kilometers (105 miles) off the coast of Rio de Janeiro. The
block covers approximately 1,550 square kilometers in water depths of around
2,000 meters (6,500 feet). The reservoir depth is around 3,500 meters below the
sea floor (11,500 feet). The ANP estimates that total gross peak oil production
could reach 1.4 million barrels per day. Further appraisal is required to firm
up this estimate, the development concept and a first oil date. 
Shell is one of the industry's pioneers in deep water oil and gas with some
330,000 boe/d of production, world-wide, from deep water in 2012. Our
commitment to technology and innovation continues to be at the core of our
strategy. As energy projects become more complex and more technically
demanding, we believe our engineering expertise will be a deciding factor in
the growth of our businesses. 
Shell was the first International Oil Company to produce on a commercial scale
in Brazil and has more than 100 years of history within the country, with circa
65,000 boe/d of operated production in 2012. Shell is currently operating two
Floating, Production, Storage and Offloading (FPSO) vessels in Brazil's
offshore - the Espírito Santo at Parque das Conchas and the Fluminense at the
Bijupirá/Salema fields - and has recently announced projects to expand
production at both fields. Shell also operates and owns an 80% interest in the
BM-S-54 block, where the Gato do Mato discovery is being appraised. Shell has
also other interests in Brazil, particularly our Lubricants business and our
joint venture Raízen, the leading sugar cane ethanol producer and fuels
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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 over which Royal Dutch Shell plc  either
directly or indirectly has control. Companies over which Shell has joint
control are generally referred to "joint ventures" and companies over which
Shell has significant influence but neither control nor joint control are
referred to as "associates". In this announcement, joint ventures and
associates may also be 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 announcement 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
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among other things, statements concerning the potential exposure of Royal Dutch
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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 risk factors that may
affect future results are contained in Royal Dutch Shell's 20-F for the year
ended December 31, 2012 (available at ).
These risk factors also expressly qualify all forward looking statements
contained in this announcement and should be considered by the reader.  Each
forward-looking statement speaks only as of the date of this announcement,
October 21, 2013. Neither Royal Dutch Shell plc 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
We may have used certain terms, such as resources, in this announcement that
United States Securities and Exchange Commission (SEC) strictly prohibits us
from including in our 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 You can also obtain these forms from the SEC by
calling 1-800-SEC-0330. 
-0- Oct/21/2013 18:07 GMT
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