Last updated on April 18, 2014 at 21:21 EDT

Shell to Increase Participation in the Beryl Area Fields in the North Sea

October 25, 2012

THE HAGUE, the Netherlands, October 25, 2012 /PRNewswire/ –

Shell announced today the signing of an agreement with Hess Corporation to acquire its
interests in the Beryl area fields and the Scottish Area Gas Evacuation System (“SAGE”),
for US$ 525 million.

The Beryl Area includes 12 fields located on the UK Continental Shelf. The fields are
operated by Apache and with the acquisition Shell’s interest in the different fields will
increase by a range of between 9-65% depending on the field.

The Beryl cluster has a far longer anticipated lifetime than originally thought and
may produce for a further two decades. The acquisition should help to enhance the
performance and economic potential from key Shell North Sea operated and non-operated
assets, lifting Shell’s production in the Beryl area fields from currently 9 thousand
boe/d to 24 thousand boe/d. Shell intends to invest in these assets to substantially
extend the production life, for potentially a further 20 years

Notes to Editors

        1) Shell and Hess Corporation signed an agreement on May 29, 2012 to acquire
          Hess's 15.67% interest in the BP operated Schiehallion field. The sale which completed
          on 28 September 2012 brings Shell's equity in Schiehallion to 49%"
        2) In 2010 we increased our interest in the Clair field from 18% to 28%.
          Clair lies west of Shetland and is operated by BP.
        3) Shell is a leading operator in the UK sector of the North Sea and intends to
          maintain this position. Offshore, Shell has interests in more than 50 fields, operates
          more than 30 platform installations, 30 subsea installations and one production (FPSO)
          vessel. Onshore, we operate three gas plants; the St. Fergus Gas Terminal and Fife NGL
          Plant (with Braefoot Bay marine terminal) in Scotland, and Bacton in the east of
          England. Shell operates a significant number of its interests in the UK Continental
          Shelf (UKCS) on behalf of a 50:50 joint venture with ExxonMobil. The Shell share of UK
          oil and gas production is about 8% (140 kboe/d in 2011). Almost half of this is gas.
          This is almost 4% of total Shell Group production.
        4) The increase in Shell share of fields is as follows: Beryl, Nevis Central,
          Nevis North, Nevis Far North, Nevis South Cormorant, Loirston, Ness and Ness South
          from 23% to 45%. Nevis South from 14.8% to 52.2%. On Nevis West Beryl from 0% to
          65.5%. On Buckland from 14.4% to 28.5%, and from 15.9% to 25% on Skene.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments
are separate entities. In this 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 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 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 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
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 potential litigation and regulatory measures
as a result of climate changes; (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 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 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 release, October 25, 2012. 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 release. There can be no assurance that
dividend payments will match or exceed those set out in this release in the future, or
that they will be made at all.

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 use certain terms
in this release, such as resources and oil in place, 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


Shell Investor Relations

Europe – Tjerk Huysinga: +31-70-377-3996

United States – Ken Lawrence: +1-713-241-2069

Shell Media Relations

USA: +1-713-241-4544

International, UK, European Press: +44-207-934-5550

SOURCE Royal Dutch Shell plc

Source: PR Newswire