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Prelude LNG development to deploy Shell's Floating LNG technology

Shell today announced that it plans to develop its Prelude and Concerto gas discoveries, located in the Browse Basin off the northwest coast of Western Australia, using its innovative Floating Liquefied Natural Gas (FLNG) technology.

Shell’s FLNG solution is an important development for the LNG industry, with its ability to process gas ‘in situ’ over an offshore gas field, reducing both project costs and the environmental footprint of an LNG development.

Shell is the Operator and 100% equity holder of the WA-371-P permit, containing the Prelude and Concerto fields, which would be developed sequentially. While pending a Final Investment Decision, the Prelude FLNG Project is now in the Front End Engineering and Design (FEED) phase of development. FEED for Prelude is being undertaken as part of Shell’s contract with the Technip-Samsung Heavy Industries consortium for the design, construction and installation of multiple FLNG facilities.

Malcolm Brinded, Shell’s Executive Director, Upstream International, said: “Shell is excited to be progressing with FLNG technology, which has the potential to unlock some of Australia’s ‘stranded’ gas reserves that have previously been considered uneconomic to develop because of their small size or distance from shore. FLNG technology adds to Shell’s LNG leadership – we are already the largest LNG marketer amongst the international oil companies, and are technical advisor to many of the world’s LNG facilities.”

Jon Chadwick, Shell’s Executive Vice President – Australia, Upstream International, said: “I am delighted that we are planning for the first application of Shell’s FLNG technology to be in Australia. This Project will produce LNG, Condensate and Liquefied Petroleum Gas during its 20-plus years of operation and it will contribute to Australia’s economy through employment, tax revenue and business opportunities for Australians. This project is fast moving, with Prelude discovered in January 2007 and Concerto in late March 2009.”

Shell is currently working on the environmental and production approvals for the Prelude FLNG Project, with the Environmental Impact Statement soon to be released for public comment. This follows a successful drilling campaign in WA-371-P, in which all twelve commitment wells were drilled, with discoveries of the Prelude and Concerto fields.

Enquiries

For media queries, please contact:
- Shell International Media Relations:
Catherine Aitken, Catherine.Aitken@shell.com , +31 (0)70 377 6254
- Shell Australia Media Relations:
Claire Wilkinson, Claire.Wilkinson@shell.com , +61 (0)416 924 822

For investor relations queries, please contact:
The Hague: Tjerk Huysinga, Tjerk.Huysinga@shell.com , +31 70377 3996
New York: Harold Hatchett, Harold.Hatchett@shell.com , +1 212 218 3112

Note to editors

Shell is a global, integrated energy company with operations in more than 100 countries and territories, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including biofuels.

Shell has been operating in Australia since 1901 and employs nearly 3,000 people. It has a one-sixth interest in the North West Shelf Venture, a 100% interest in the Prelude FLNG Project offshore north west Australia, as well as equity interest in other developments including the Gorgon Joint Venture (which recently took Final Investment Decision), Browse Joint Venture and Sunrise Joint Venture. It is also active in the coal seam gas industry, with its LNG Project in Gladstone, Queensland.

The dimensions of Shell’s FLNG facility are approximately 480 by 75 metres, with the capacity to produce around 3.5 million tonnes per annum of LNG, as well as Condensate and LPG. When fully ballasted, the FLNG facility weighs around 600,000 tonnes.

Shell’s FLNG solution means the facility can be re-deployed to another gas field once production at one gas field is complete, and its standardised “design one, build many” approach allows repeatability gains to be captured during design and construction phases. It is suitable for more distant offshore fields, remains on station during harsh metocean conditions such as cyclones, and can process a wide range of gas compositions.

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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 34% 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 Group’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 effects arising from recategorisation of reserves; (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, 2008 (available at www.shell.com/investor  and 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 – 8th October 2009. 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.

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