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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.

EDITOR’S NOTES:

        - 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
          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
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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
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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/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 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.

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SOURCE Royal Dutch Shell plc


Source: PR Newswire