Last updated on April 18, 2014 at 17:24 EDT

Shell Moves Forward on New Gulf of Mexico Development at Stones

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.


        - A 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.
        - A 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.
        - A combination of polyester rope and chain comprises the ultra-deepwater
          mooring system holding the FPSO on station.
        - Multiphase 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

Royal Dutch Shell plc

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SOURCE Royal Dutch Shell plc

Source: PR Newswire